Avient (AVNT) AI Stock Analysis

• Market Cap: $3.25B
• Dividend Yield: 2.97%
• Average Volume (3M): 799.99K
• Price to Earnings (P/E): 27.4
• Beta (1Y): 1.38
• Revenue Growth: 3.28%
• EPS Growth: 1.69%
• Country: US
• Employees: 9,200
• Sector: Basic Materials
• Sector Strength: 56
• Industry: Chemicals - Specialty
• EPS (TTM): 0.80
• Shares Outstanding: 91,540,565
• 10 Day Avg. Volume: 751,371
• 30 Day Avg. Volume: 799,990
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 1.39
• Enterprise Value/Gross Profit: 4.26
• Enterprise Value/Ebitda: 19.98
• 1Y Price Target: $40.25
• Price Target Upside: 11.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 70 Neutral
• Price Target: $39.00 ▲(8.33% Upside)

Avient's overall stock score reflects stable financial performance and positive corporate developments, such as the new credit facility. However, technical indicators suggest caution due to potential overbought conditions, and valuation metrics indicate the stock may be overvalued. The earnings call provided a balanced view with positive growth and debt reduction efforts, offset by challenges in consumer markets.

Positive Factors

Debt Management

AVNT plans to pay down $100-200 million of debt by year-end due to strong expected free cash flow.

Financial Performance

2Q sales and segment operating income were modestly above both MSe and consensus, with lower than expected corporate expense supporting the operating income beat.

Market Growth

Growth in healthcare and defense markets is expected to help offset declines in larger markets for AVNT.

Negative Factors

Consumer Demand

Weak consumer demand is a significant headwind, posing a downside risk to AVNT's guidance.

Economic Environment

Negative impacts include policy uncertainty, inflation and global slowdown, supply chain impacts from global trade policies and foreign exchange.

Market Demand

Lower demand into packaging and consumer end markets is weighing on growth expectations for the Color, Additives and Inks segment.

Avient Business Overview & Revenue Model

Company Description

Avient Corporation provides specialized formulator, services, and sustainable material solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates through three segments: Color, Additives and Inks; Specialty Engineered Materials; and Distribution. The Color, Additives and Inks segment offers specialized color and additive concentrates in solid and liquid form for thermoplastics; dispersions for thermosets; and specialty inks. This segment products are used in various markets include medical, pharmaceutical devices, food packaging, personal care, cosmetics, transportation, building products, recreational, athletic apparel, construction, filtration, outdoor furniture, healthcare, wire, and cable. The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials; and long glass and carbon fiber technology to thermoset and thermoplastic composites. The Distribution segment distributes approximately 4,000 grades of engineering and commodity grade resins to custom injection molders and extruders. The company sells its products through direct sales personnel, distributors, and commissioned sales agents. The company was formerly known as PolyOne Corporation and changed its name to Avient Corporation in June 2020. Avient Corporation was founded in 1885 and is headquartered in Avon Lake, Ohio.

How the Company Makes Money

Avient generates revenue through the sale of its specialty polymer products and services across various industries. The company has a diverse revenue model that includes direct sales to manufacturers and distributors, along with custom solutions tailored to specific customer needs. Key revenue streams include the sale of engineered materials, color and additive systems, and specialty inks. Avient also benefits from strategic partnerships with other companies in its supply chain, which enhance its product offerings and market reach. Additionally, the company's focus on sustainable solutions and innovation contributes to its ability to capture new market opportunities and maintain competitive pricing, further driving its earnings.

Avient Financial Statement Overview

Summary

Avient shows solid financial health with stable revenue and strong cash flow generation. However, declining profit margins and ROE suggest pressure on profitability, which requires attention to improve investor confidence.

Income Statement

Avient's income statement reflects stable revenue generation with a TTM (Trailing-Twelve-Months) revenue of $3.24 billion, slightly down from the previous year's $3.39 billion. The Gross Profit Margin for the TTM period stands at 32.18%, indicating strong product pricing and cost control. However, the Net Profit Margin decreased to 3.08% in the TTM period from 5.23% in the previous year, driven by lower EBIT and EBITDA margins, highlighting pressure on operating efficiencies and profitability.

Balance Sheet

Avient's balance sheet shows a moderate Debt-to-Equity Ratio of 0.90, reflecting a manageable level of leverage. The Equity Ratio stands at 39.55%, indicating a solid equity base relative to total assets. However, Return on Equity (ROE) has declined to 4.34% in the TTM period, indicating reduced profitability relative to shareholder equity, which may concern investors seeking strong returns.

Cash Flow

Avient's cash flow statement reveals robust cash generation capabilities, with an Operating Cash Flow to Net Income Ratio of 2.49 for the TTM, suggesting efficient conversion of income to cash. The Free Cash Flow to Net Income Ratio of 1.39 further supports solid cash flow health. While Free Cash Flow growth is slightly positive, the company must focus on sustaining this momentum amid fluctuating net income levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.25B	3.24B	3.14B	3.40B	4.82B	3.24B
Gross Profit	1.06B	1.06B	902.70M	882.70M	1.10B	784.30M
EBITDA	226.60M	510.10M	391.40M	427.20M	472.90M	352.90M
Net Income	118.90M	169.50M	75.70M	83.10M	230.80M	131.60M
Balance Sheet
Total Assets	6.13B	5.81B	5.97B	6.08B	5.00B	4.87B
Cash, Cash Equivalents and Short-Term Investments	474.50M	544.50M	545.80M	641.10M	601.20M	649.50M
Total Debt	2.02B	2.15B	2.14B	2.24B	1.93B	1.95B
Total Liabilities	3.76B	3.48B	3.63B	3.73B	3.21B	3.17B
Stockholders Equity	2.37B	2.33B	2.32B	2.33B	1.77B	1.68B
Cash Flow
Free Cash Flow	149.80M	134.90M	82.20M	292.90M	133.20M	157.90M
Operating Cash Flow	255.40M	256.80M	201.60M	398.40M	233.80M	221.60M
Investing Cash Flow	-105.60M	-120.60M	-94.20M	-504.00M	-150.20M	-1.43B
Financing Cash Flow	-172.50M	-120.90M	-201.70M	166.40M	-114.60M	982.00M

Avient Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVNT, the sentiment is Positive. The current price of 36 is above the 20-day moving average (MA) of 33.97, above the 50-day MA of 33.97, and below the 200-day MA of 38.97, indicating a neutral trend. The MACD of 0.52 indicates Negative momentum. The RSI at 61.07 is Neutral, neither overbought nor oversold. The STOCH value of 85.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVNT.

Avient Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HWKN	74 Outperform	$3.62B	42.75	18.69%	0.42%	9.51%	5.20%
FUL	70 Outperform	$3.18B	32.03	5.62%	1.52%	-0.09%	-37.60%
AVNT	70 Neutral	$3.25B	27.44	5.09%	2.97%	3.28%	1.69%
SXT	70 Neutral	$4.93B	36.61	12.18%	1.44%	4.95%	53.63%
IOSP	61 Neutral	$2.06B	110.00	1.55%	1.96%	-5.45%	-87.13%
Sector *	61 Neutral	$10.03B	6.44	0.67%	3.02%	2.97%	-45.32%
OLN	58 Neutral	$2.44B	41.89	-0.69%	3.76%	1.49%	-105.20%

Avient Corporate Events

Avient Secures New $500M Revolving Credit Facility

On June 12, 2025, Avient Corporation entered into a new Revolving Credit Agreement with JPMorgan Chase Bank, replacing its previous credit agreement from 2019. This agreement introduces a senior secured revolving credit facility of up to $500 million, which can be increased by $250 million, and is intended for working capital, capital expenditures, and other corporate purposes. The facility allows for borrowings in U.S. Dollars and specified alternative currencies, with interest rates determined by Avient’s Consolidated Leverage Ratio. This financial move is expected to provide Avient with enhanced financial flexibility and support its operational and strategic initiatives.