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Avient Corporation (AVNT)
:AVNT

Avient (AVNT) AI Stock Analysis

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Avient

(NYSE:AVNT)

Rating:71Outperform
Price Target:
$38.00
â–²(10.37%Upside)
Avient's overall score is driven by strong earnings call insights and positive corporate events, indicating resilience and strategic financial management. However, technical analysis and valuation suggest caution due to bearish momentum and potentially high valuation. The company's financial performance highlights the need to address profitability pressures for future growth.
Positive Factors
Debt Management
AVNT plans to pay down $100-200 million of debt by year-end due to strong expected free cash flow.
Market Growth
AVNT sees growth in packaging, defense, and healthcare markets as positive drivers.
Negative Factors
Demand Forecast
Lower demand into packaging and consumer end markets is weighing on growth expectations for the Color, Additives and Inks segment.
Economic Challenges
Negative impacts include policy uncertainty, inflation and global slowdown, supply chain impacts from global trade policies and foreign exchange.

Avient (AVNT) vs. SPDR S&P 500 ETF (SPY)

Avient Business Overview & Revenue Model

Company DescriptionAvient 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 MoneyAvient Corporation generates revenue primarily through the sale of its specialty polymer formulations and advanced materials. The company offers custom solutions that enhance the performance, appearance, and sustainability of end-products. Key revenue streams include sales of colorants, additives, thermoplastic compounds, and composite materials. Avient's business model also benefits significantly from strategic partnerships with global manufacturers and a focus on innovation to meet specific customer needs. Additionally, the company invests in research and development to create new materials that align with market trends, such as sustainability and performance enhancement, further driving its revenue.

Avient Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 2.08%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
Avient Corporation demonstrated resilience through consistent organic growth, margin expansion, and strong performance in Asia and Latin America. However, challenges such as declining sales in North America and unfavorable foreign exchange impacts were noted. The company's focus on cost control and debt reduction indicates proactive management in navigating uncertainties.
Q1-2025 Updates
Positive Updates
Consistent Organic Growth
Avient Corporation reported its fourth consecutive quarter of organic growth, with sales increasing by 2% and adjusted EPS growing by 4%, excluding foreign exchange impacts.
EBITDA Margin Expansion
Adjusted EBITDA margins expanded by 20 basis points to 17.5%, driven by cost management and operational efficiencies.
Strong Regional Performance in Asia and Latin America
Asia reported a 9% increase in organic sales, while Latin America achieved a 17% increase, marking the fourth consecutive quarter of double-digit growth.
Healthcare and Defense Growth
Healthcare showed double-digit growth, and while the defense segment saw a 5% decline due to tough comparisons, it is expected to achieve high single-digit growth for the full year.
Cost Control and Debt Reduction
The company expects $30 million in savings from cost control initiatives and plans to pay down $100 million to $200 million of debt by year-end.
Negative Updates
US and Canada Sales Decline
Organic sales in the US and Canada declined by 3% due to weak demand in consumer and transportation markets.
Transportation Segment Challenges
The transportation segment faced double-digit declines in the US and EMEA, impacting overall sales.
Weak Consumer Demand in the US
The consumer market in the US saw double-digit declines in both staples and discretionary categories.
Impact of Unfavorable Foreign Exchange
The quarter was affected by unfavorable foreign exchange, impacting EPS by $0.03 per share.
Company Guidance
In the first quarter of 2025, Avient Corporation maintained strong performance with a 2% organic sales growth and a 4% growth in adjusted EBITDA, excluding foreign exchange impacts. Adjusted EBITDA margins expanded by 20 basis points to 17.5%, and adjusted EPS was $0.76, reflecting a 4% increase when excluding currency fluctuations. Regional performances varied, with Asia experiencing a 9% increase in organic sales, while Latin America saw a 17% rise, marking its fourth consecutive quarter of double-digit growth. However, the US and Canada faced a 3% decline in organic sales due to weak demand in consumer and transportation markets. The company emphasized cost control and productivity initiatives, projecting $30 million in savings for 2025, and plans to reduce debt by $100 million to $200 million. Despite macroeconomic uncertainties, Avient's guidance for the year remains unchanged, expecting adjusted EBITDA between $540 million and $570 million and adjusted EPS between $2.70 and $2.94.

Avient Financial Statement Overview

Summary
Avient demonstrates solid financial health with stable revenue and strong cash flow generation. However, the decline in profit margins and Return on Equity (ROE) indicates pressure on profitability, which the company needs to address to improve investor confidence.
Income Statement
75
Positive
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
70
Positive
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
78
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.24B3.24B3.14B3.40B4.82B3.24B
Gross Profit1.04B1.06B902.70M882.70M1.10B784.30M
EBITDA449.50M510.10M391.40M427.20M472.90M352.90M
Net Income99.90M169.50M75.70M83.10M230.80M131.60M
Balance Sheet
Total Assets5.81B5.81B5.97B6.08B5.00B4.87B
Cash, Cash Equivalents and Short-Term Investments456.00M544.50M545.80M641.10M601.20M649.50M
Total Debt2.07B2.15B2.14B2.24B1.93B1.95B
Total Liabilities3.50B3.48B3.63B3.73B3.21B3.17B
Stockholders Equity2.30B2.33B2.32B2.33B1.77B1.68B
Cash Flow
Free Cash Flow138.50M134.90M82.20M292.90M133.20M157.90M
Operating Cash Flow248.50M256.80M201.60M398.40M233.80M221.60M
Investing Cash Flow-108.60M-120.60M-94.20M-504.00M-150.20M-1.43B
Financing Cash Flow-121.10M-120.90M-201.70M166.40M-114.60M982.00M

Avient Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price34.43
Price Trends
50DMA
35.15
Negative
100DMA
36.55
Negative
200DMA
41.25
Negative
Market Momentum
MACD
-0.57
Negative
RSI
49.73
Neutral
STOCH
78.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVNT, the sentiment is Neutral. The current price of 34.43 is below the 20-day moving average (MA) of 34.46, below the 50-day MA of 35.15, and below the 200-day MA of 41.25, indicating a bearish trend. The MACD of -0.57 indicates Negative momentum. The RSI at 49.73 is Neutral, neither overbought nor oversold. The STOCH value of 78.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AVNT.

Avient Risk Analysis

Avient disclosed 13 risk factors in its most recent earnings report. Avient reported the most risks in the "Finance & Corporate" 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

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
SXSXT
73
Outperform
$4.58B35.7211.87%1.52%6.30%41.01%
71
Outperform
$3.18B37.8519.47%0.47%6.01%12.38%
71
Outperform
$3.15B31.844.32%3.14%3.58%-5.17%
FUFUL
70
Outperform
$3.36B33.805.62%1.51%-0.09%-37.60%
69
Neutral
$2.21B83.782.21%1.89%-7.91%-81.73%
OLOLN
64
Neutral
$2.52B43.192.94%3.65%-1.13%-81.74%
44
Neutral
C$979.74M-6.70-13.35%2.68%17.20%-32.62%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AVNT
Avient
34.43
-6.69
-16.27%
FUL
H.B. Fuller Company
62.24
-13.99
-18.35%
HWKN
Hawkins
152.47
62.15
68.81%
IOSP
Innospec
88.70
-31.97
-26.49%
OLN
Olin
21.92
-22.87
-51.06%
SXT
Sensient Technologies
107.90
35.07
48.15%

Avient Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Avient Secures New $500M Revolving Credit Facility
Positive
Jun 16, 2025

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.

The most recent analyst rating on (AVNT) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Avient stock, see the AVNT Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Avient Elects Board and Approves Executive Compensation
Neutral
May 15, 2025

At the Annual Meeting of Shareholders held on May 14, 2025, Avient Corporation announced the election of its board of directors for the upcoming year, with all nominees successfully elected. Additionally, shareholders approved the executive officer compensation and ratified Ernst & Young LLP as the independent auditor for the fiscal year ending December 31, 2025.

The most recent analyst rating on (AVNT) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Avient stock, see the AVNT Stock Forecast page.

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.Date of analysis: Jun 16, 2025