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Ascent Industries (ACNT)
NASDAQ:ACNT
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Ascent Industries
(NASDAQ:ACNT)
41Neutral
Ascent Industries (ACNT) vs. S&P 500 (SPY)
Market Cap
$127.29M
Dividend YieldN/A
Average Volume (3M)32.30K
Price to Earnings (P/E)―
Beta (1Y)-0.08
Revenue Growth-14.57%
EPS Growth48.61%
CountryUS
Employees451
SectorBasic Materials
Sector Strength61
IndustrySteel
Share Statistics
EPS (TTM)-1.34
Shares Outstanding10,078,533
10 Day Avg. Volume55,496
30 Day Avg. Volume32,301
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.72
Price to Cash Flow (P/CF)3.60
P/FCF Ratio2.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Ascent Industries Business Overview & Revenue Model
Company DescriptionAscent Industries Co. an industrials company, focuses on the production and distribution of industrial tubular products and specialty chemicals in the United States and internationally. It manufactures welded pipes and tubes, primarily from stainless steel, duplex, and nickel alloys; and galvanized carbon tubes, as well as related stainless pipe products. The company also manufactures ornamental stainless-steel tubes for supply to the automotive, commercial transportation, marine, food services, construction, furniture, healthcare, and other industries; provides fiberglass and steel storage tanks for the oil and gas, waste water treatment, and municipal water industries; and distributes hot finish, seamless, carbon steel pipes, and tubes for use in mechanical and high-pressure applications in the oil and gas, heavy industrial, construction equipment, and chemical and other industries. In addition, it produces defoamers, surfactants, and lubricating agents for end users, including companies that supply agrochemical paper, metal working, coatings, water treatment, paint, mining, oil and gas, and janitorial and other applications. Further, the company provides contract manufacturing services, as well as operates as a multi-purpose plant to process various difficult to handle materials, including flammable solvents, viscous liquids, and granular solids. The company was formerly known as Synalloy Corporation and changed its name to Ascent Industries Co. in August 2022. Ascent Industries Co. was founded in 1945 and is headquartered in Oak Brook, Illinois.
How the Company Makes MoneyAscent Industries makes money primarily through the sale of its steel products. The company generates revenue by manufacturing and distributing a range of steel components that are essential for construction and industrial projects. These products are sold directly to construction companies, manufacturers, and infrastructure developers. Additionally, Ascent Industries may engage in contracts and partnerships with major industry players, ensuring a steady flow of orders and long-term revenue streams. The company's earnings are influenced by factors such as market demand for steel, fluctuations in raw material costs, and the overall health of the construction and manufacturing sectors.
Ascent Industries Financial Statement Overview
Summary
Ascent Industries faces severe financial challenges. The income statement shows declining revenues and negative profitability metrics, though there is a slight recovery in gross profit. The balance sheet indicates financial instability with a drop in stockholders' equity to zero, highlighting insolvency risk. Cash flow remains a relative strength with positive free cash flow, providing some liquidity.Income Statement
Ascent Industries' income statement reveals significant challenges, with a declining revenue trend from $414.1M in 2022 to $177.9M in 2024. The company has experienced negative EBIT and EBITDA margins in recent years, with margins of -2.5% and -2.5% respectively in 2024, indicating operational inefficiencies. The net profit margin is also negative at -7.6% for 2024, reflecting consistent net losses. Despite these challenges, there was an improvement in gross profit from $1.5M in 2023 to $22.1M in 2024, suggesting some recovery in cost management.35
Negative
Balance Sheet
The balance sheet of Ascent Industries highlights financial distress, with stockholders' equity dropping to $0 by the end of 2024. The debt-to-equity ratio is unavailable due to zero equity, but the previous debt levels were significant. The total assets have decreased significantly from $269M in 2022 to $29.5M in 2024, indicating asset liquidation or impairment. The equity ratio is uncalculated due to zero equity, signifying extreme financial instability and risk of insolvency.20
Very Negative
Cash Flow
Cash flow analysis shows some resilience, with free cash flow remaining positive at $15.1M in 2024, down from $20.2M in 2023. The operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to net losses. However, the free cash flow has declined, pointing to potential future liquidity concerns. Overall, cash flow management appears stronger compared to other financial aspects.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 177.87M | 193.18M | 414.15M | 334.71M | 256.00M | Gross Profit |
| 22.11M | 1.53M | 56.53M | 60.77M | 22.65M | EBIT |
| -4.47M | -25.19M | 20.39M | 27.35M | -9.17M | EBITDA |
| 2.78M | -29.17M | 23.03M | 37.81M | -18.75M | Net Income Common Stockholders |
| -13.60M | -34.15M | 22.07M | 20.25M | -27.27M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 16.11M | 1.85M | 1.44M | 2.02M | 236.00K | Total Assets |
| 147.25M | 175.92M | 269.04M | 266.00M | 206.98M | Total Debt |
| 33.27M | 31.40M | 105.42M | 105.20M | 95.06M | Net Debt |
| 17.16M | 29.55M | 103.98M | 103.18M | 94.83M | Total Liabilities |
| 53.70M | 68.51M | 134.78M | 154.41M | 126.69M | Stockholders Equity |
| 93.55M | 107.41M | 134.26M | 111.59M | 80.30M |
| Cash Flow | Free Cash Flow | |||
| 12.79M | 20.19M | 503.00K | 17.56M | 14.23M | Operating Cash Flow |
| 14.68M | 23.08M | 5.58M | 19.05M | 17.98M | Investing Cash Flow |
| 905.00K | 50.50M | -4.97M | -32.66M | 994.00K | Financing Cash Flow |
| -1.33M | -73.17M | -1.18M | 15.39M | -19.36M |
Ascent Industries Technical Analysis
Positive
12.81
Price Trends
11.47
Positive
11.10
Positive
10.44
Positive
Market Momentum
0.43
Negative
68.67
Neutral
83.55
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACNT, the sentiment is Positive. The current price of 12.81 is above the 20-day moving average (MA) of 11.94, above the 50-day MA of 11.47, and above the 200-day MA of 10.44, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 68.67 is Neutral, neither overbought nor oversold. The STOCH value of 83.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACNT.
Ascent Industries Risk Analysis
Ascent Industries disclosed 22 risk factors in its most recent earnings report. Ascent Industries reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ascent Industries Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $14.70B | 17.68 | 11.71% | 1.58% | -6.56% | -31.89% | |
74 Outperform | $18.42B | 12.46 | 17.27% | 1.50% | -6.68% | -32.96% | |
66 Neutral | $5.29B | 77.38 | 1.78% | 1.54% | -7.93% | -89.29% | |
52 Neutral | $354.57M | 16.18 | 4.07% | 1.88% | -10.03% | -48.82% | |
49 Neutral | $9.21B | 26.17 | 3.43% | 0.49% | -13.48% | -56.94% | |
47 Neutral | $2.66B | -3.61 | -22.67% | 3.28% | 3.74% | -27.14% | |
41 Neutral | $127.29M | ― | -11.17% | ― | -14.57% | 48.61% |
* Basic Materials Sector Average
Performance Comparison
ACNT
Ascent Industries
12.81
2.31
22.00%
CMC
Commercial Metals Company
48.75
-7.80
-13.79%
ZEUS
Olympic Steel
32.65
-34.54
-51.41%
RS
Reliance Steel
287.39
-38.97
-11.94%
STLD
Steel Dynamics
126.66
-16.07
-11.26%
X
United States Steel
41.15
0.67
1.66%
Ascent Industries Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: 15.93% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment, showcasing strong financial improvements in EBITDA, gross profit, and liquidity position, while also launching new products and maintaining cost efficiency. However, challenges remain with revenue growth and market perception of new products.Highlights
Significant EBITDA Improvement
Achieved a $19.9 million or 125% year-over-year increase in adjusted EBITDA, alongside a significant increase in gross profit by $20.5 million or 1,349% year-over-year.
Strong Liquidity Position
Ended the year with over $16 million in cash and more than $47 million available on a revolving credit facility, maintaining a debt-free status.
Improved Gross Profit Margins
Gross profit from continuing operations increased 448% in Q4 to $7.3 million, significantly enhancing profitability.
Successful Cost Management
Aggressive cost reduction and product line optimization initiatives led to sustained gains in profitability despite top-line compression.
Introduction of New Branded Product Portfolio
Launched a new branded product portfolio for the HINI market, potentially capturing a share of a $2.5 billion market.
Lowlights
Top-Line Compression
Net sales decreased by $15.3 million or 7.9% year-over-year, with soft demand dynamics affecting revenue across both segments.
Limited Revenue Growth in Near Term
Top-line growth expected to be more of a second-half opportunity in 2025, as markets have not fully rebounded yet.
Challenges in Market Perception
New product launch faced initial market unfamiliarity, with potential customers unaware of the company's participation in the cleaning portfolio space.
Company Guidance
During the call, Ascent Industries Co. provided guidance for 2025, indicating a focus on driving both organic and inorganic growth while maintaining operational excellence. The company reported a $19.9 million or 125% year-over-year increase in adjusted EBITDA and a $20.5 million or 1,349% increase in year-over-year gross profit. Despite a top-line compression of $15.3 million or 7.9%, they maintained a strong liquidity position with over $16 million in cash and $47 million available on their revolving credit facility. Ascent also announced an expanded stock repurchase program, authorizing the acquisition of up to an additional one million shares, approximately 10% of the common stock outstanding. Looking ahead, the company anticipates growth momentum in both its tubular products and specialty chemicals segments, with a focus on branded product sales and a total addressable market of over $9 billion for existing products. The company remains debt-free and plans to continue investing strategically to capture market share, expecting top-line growth primarily in the second half of 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.