Avient (AVNT)
NYSE:AVNT
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Avient
(NYSE:AVNT)
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Rating:59Neutral
Price Target:
$39.00
▲(4.14% Upside)
Action:ReiteratedDate:02/17/26
AVNT’s score is supported by improving cash flow and balance-sheet progress plus constructive 2026 guidance and margin expansion plans. It is held back by a high valuation (P/E ~48) and overbought technical signals, alongside historically inconsistent net profitability and limited organic top-line momentum.
Positive Factors
Free Cash Flow
Consistently positive and improving free cash flow provides durable financial flexibility. $195M FCF in 2025 funded meaningful debt reduction and underpins management's ability to invest in capacity, fund capex, and pursue deleveraging targets without relying on external capital, improving long-term resilience.
Negative Factors
Inconsistent Profitability
Large swings in net margin indicate earnings quality and execution risk that can persist across cycles. Lower net margins reduce retained cash available to reinvest or pay down debt, make returns more sensitive to commodity/operating cost shifts, and complicate forecasting and long-term ROIC improvement plans.
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Positive Factors
Negative Factors
Free Cash Flow
Consistently positive and improving free cash flow provides durable financial flexibility. $195M FCF in 2025 funded meaningful debt reduction and underpins management's ability to invest in capacity, fund capex, and pursue deleveraging targets without relying on external capital, improving long-term resilience.
Read all positive factors
Avient (AVNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.50B
Dividend Yield3.48%
Average Volume (3M)771.24K
Price to Earnings (P/E)34.9
Beta (1Y)1.25
Revenue Growth1.03%
EPS Growth-24.57%
CountryUS
Employees9,200
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.56
Shares Outstanding91,624,725
10 Day Avg. Volume694,863
30 Day Avg. Volume771,238
Financial Highlights & Ratios
PEG Ratio-0.68
Price to Book (P/B)1.20
Price to Sales (P/S)0.88
P/FCF Ratio14.66
Enterprise Value/Market Cap1.40
Enterprise Value/Revenue1.51
Enterprise Value/Gross Profit4.76
Enterprise Value/Ebitda11.40
Forecast
1Y Price Target
$48.33Price Target Upside29.05% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)3.06
Revenue Forecast (FY)$3.35B
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 Engine...
How the Company Makes Money
Avient makes money primarily by selling specialty polymer materials and formulations to manufacturers and processors that use plastics in their products. Its revenue model is largely transaction-based: customers purchase formulated products (e.g.,...
Avient Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call emphasizes strong execution: margin expansion, record full‑year EBITDA margins (16.7%), double‑digit Q4 EPS growth, solid free cash flow ($195M) and meaningful deleveraging (net leverage 2.6x). Growth vectors (defense, healthcare, telecom) and innovation (non‑PFAS products, Dyneema process improvements) are clear positives and underpin constructive 2026 guidance (adjusted EBITDA +2%–7%, adjusted EPS +4%–12%). Offsetting items include persistent CAI weakness (organic down ~2% for the year), regions with soft demand (EMEA, Latin America), flat overall organic sales, and near‑term inflation/capex pressures. On balance, the positive operational and financial momentum and forward guidance outweigh the headwinds, though management remains cautious given macro uncertainty.Positive Updates
Margin Expansion and EPS Growth
Adjusted EBITDA margin expanded 80 basis points in Q4 and 50 basis points for full year 2025 versus 2024, reaching a record 16.7%. Adjusted EBITDA was $545,000,000 for 2025 (up 3.5% year‑over‑year as reported). Adjusted EPS grew ~14% in Q4 and ~6% for the full year.
Negative Updates
Color Additives & Inks (CAI) Demand Weakness
CAI organic sales declined ~3% in Q4 and ~2% for full year 2025. Q4 CAI EBITDA margins declined ~10 basis points as healthcare and packaging strength were insufficient to offset weak consumer, industrial and building & construction demand.
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Q4-2025 Updates
Positive
Negative
Margin Expansion and EPS Growth
Adjusted EBITDA margin expanded 80 basis points in Q4 and 50 basis points for full year 2025 versus 2024, reaching a record 16.7%. Adjusted EBITDA was $545,000,000 for 2025 (up 3.5% year‑over‑year as reported). Adjusted EPS grew ~14% in Q4 and ~6% for the full year.
Read all positive updates
Company Guidance
Avient guided 2026 to adjusted EBITDA of $555–$585 million (up 2%–7% YoY) and adjusted EPS of $2.93–$3.17 (up 4%–12% YoY), including a Q1 adjusted EPS outlook of $0.81; it expects free cash flow of $200–$220 million and plans capital expenditures of $140 million (about $33 million higher than 2025) to support defense capacity investments (incremental capacity expected by 2028). Management said it will prioritize debt reduction (no M&A in the next 12 months) and expects to finish 2026 with net leverage below 2.5x, while relying on carryover productivity and price/mix to drive margin expansion (management delivered >$40 million of productivity in 2025 with roughly half carrying into 2026), offsetting a baseline net inflation impact of about $30 million; the guide projects continued improvement in ROIC and EBITDA margins versus 2025 (which closed at $545 million adjusted EBITDA and a 16.7% adjusted EBITDA margin).Avient Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.26B | 3.24B | 3.14B | 3.40B | 3.32B |
| Gross Profit | 1.06B | 1.06B | 902.70M | 882.70M | 943.80M |
| EBITDA | 548.70M | 510.10M | 391.40M | 346.70M | 424.60M |
| Net Income | 81.90M | 169.50M | 75.70M | 153.00M | 230.80M |
Balance Sheet | |||||
| Total Assets | 6.03B | 5.81B | 5.97B | 6.08B | 5.00B |
| Cash, Cash Equivalents and Short-Term Investments | 510.50M | 544.50M | 545.80M | 641.10M | 601.20M |
| Total Debt | 1.92B | 2.15B | 2.14B | 2.24B | 1.92B |
| Total Liabilities | 3.64B | 3.48B | 3.63B | 3.73B | 3.21B |
| Stockholders Equity | 2.37B | 2.31B | 2.32B | 2.33B | 1.77B |
Cash Flow | |||||
| Free Cash Flow | 195.00M | 134.90M | 82.20M | 292.90M | 133.20M |
| Operating Cash Flow | 301.60M | 256.80M | 201.60M | 398.40M | 233.80M |
| Investing Cash Flow | -97.00M | -120.60M | -94.20M | -504.00M | -150.20M |
| Financing Cash Flow | -257.10M | -120.90M | -201.70M | 166.40M | -114.60M |
Avient Technical Analysis
Positive
37.45
Price Trends
37.48
Negative
34.52
Positive
33.75
Positive
Market Momentum
-0.17
Negative
58.13
Neutral
71.59
Neutral
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 37.45 is above the 20-day moving average (MA) of 34.82, below the 50-day MA of 37.48, and above the 200-day MA of 33.75, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 58.13 is Neutral, neither overbought nor oversold. The STOCH value of 71.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVNT.
Avient Risk Analysis
Avient disclosed 17 risk factors in its most recent earnings report. Avient reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Avient Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $3.90B | 11.96 | 20.42% | 2.72% | -7.04% | -11.28% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $3.10B | 53.35 | 16.73% | 0.50% | 11.86% | 1.99% | |
59 Neutral | $3.50B | 34.90 | 3.48% | 3.48% | 1.03% | -24.57% | |
55 Neutral | $3.81B | -7.30 | -17.79% | ― | 19.12% | ― | |
53 Neutral | $3.47B | 42.73 | 8.09% | 1.54% | -1.30% | -36.69% | |
52 Neutral | $3.29B | -55.77 | -2.18% | 3.91% | 4.68% | -62.80% |
* Basic Materials Sector Average
AVNT
Avient
38.21
8.06
26.73%
CBT
Cabot
74.62
-2.92
-3.77%
FUL
H.B. Fuller Company
63.73
10.85
20.52%
HWKN
Hawkins
148.10
33.92
29.71%
OLN
Olin
28.95
9.23
46.80%
PRM
Perimeter Solutions
25.48
15.51
155.57%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.