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AdvanSix Inc. (ASIX)
NYSE:ASIX
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AdvanSix
(NYSE:ASIX)
61Neutral
AdvanSix (ASIX) vs. S&P 500 (SPY)
Market Cap
$616.72M
Dividend Yield2.8%
Average Volume (3M)166.37K
Price to Earnings (P/E)14.1
Beta (1Y)1.10
Revenue Growth-1.05%
EPS Growth-16.57%
CountryUS
Employees1,450
SectorBasic Materials
Sector Strength62
IndustryChemicals
Share Statistics
EPS (TTM)1.62
Shares Outstanding26,744,100
10 Day Avg. Volume173,233
30 Day Avg. Volume166,370
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.41
Price to Cash Flow (P/CF)2.40
P/FCF Ratio4.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$35.00Price Target Upside55.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
AdvanSix Business Overview & Revenue Model
Company DescriptionAdvanSix Inc. (ASIX) is a leading manufacturer of essential chemicals and materials. The company operates primarily in the chemical industry, focusing on the production of nylon 6, chemical intermediates, and ammonium sulfate fertilizers. AdvanSix serves various sectors including agriculture, automotive, building and construction, and consumer products, providing high-quality and reliable solutions to its global customer base.
How the Company Makes MoneyAdvanSix makes money through the sale of its diverse product portfolio, which includes nylon 6 resins, chemical intermediates, and ammonium sulfate fertilizers. The company generates revenue by supplying these products to a wide range of industries, leveraging its advanced manufacturing capabilities and strategic distribution networks. Key revenue streams include contracts and agreements with large industrial customers, as well as partnerships with distributors and retailers. The company benefits from its vertical integration, which enhances operational efficiency and cost-effectiveness, thereby contributing to its profitability. Additionally, AdvanSix's focus on innovation and sustainable practices supports its competitive position and ability to adapt to market demands.
AdvanSix Financial Statement Overview
Summary
AdvanSix shows a stable financial position with strong cash flow management and improved debt-to-equity ratio. However, fluctuating revenues and reduced profitability indicate challenges in maintaining consistent financial performance.Income Statement
AdvanSix has shown fluctuating revenue trends with a recent decline in 2024. The gross profit margin remains healthy, but there was a significant reduction in net income from 2023 to 2024, impacting the net profit margin negatively. EBIT margins have been volatile, indicating potential operational inefficiencies.62
Positive
Balance Sheet
The company's debt-to-equity ratio has improved, indicating better leverage management. However, equity levels as a percentage of total assets have been stable, reflecting a balanced approach to financing. The return on equity has decreased due to reduced net income.70
Positive
Cash Flow
Operating cash flow has been relatively stable, and free cash flow has seen improvements. The operating cash flow to net income ratio is strong, showing good cash generation relative to earnings, but capital expenditures have fluctuated significantly.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.52B | 1.53B | 1.95B | 1.68B | 1.16B | Gross Profit |
| 152.94M | 165.09M | 314.48M | 274.12M | 133.75M | EBIT |
| 0.00 | 69.55M | 228.57M | 190.14M | 62.83M | EBITDA |
| 133.06M | 149.72M | 297.93M | 255.48M | 123.66M | Net Income Common Stockholders |
| 44.15M | 54.62M | 171.89M | 139.79M | 46.08M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 19.56M | 29.77M | 30.98M | 15.10M | 10.61M | Total Assets |
| 1.59B | 1.50B | 1.50B | 1.31B | 1.26B | Total Debt |
| 348.89M | 266.01M | 230.04M | 271.71M | 389.88M | Net Debt |
| 329.33M | 236.25M | 199.06M | 256.61M | 379.28M | Total Liabilities |
| 820.27M | 756.78M | 757.15M | 710.81M | 819.28M | Stockholders Equity |
| 774.65M | 739.24M | 738.18M | 601.19M | 444.12M |
| Cash Flow | Free Cash Flow | |||
| 1.69M | 10.17M | 184.15M | 162.04M | 28.93M | Operating Cash Flow |
| 135.41M | 117.55M | 273.60M | 218.85M | 111.85M | Investing Cash Flow |
| -142.90M | -110.90M | -189.27M | -67.56M | -84.10M | Financing Cash Flow |
| -2.71M | -7.87M | -68.44M | -146.79M | -24.19M |
AdvanSix Technical Analysis
Negative
22.57
Price Trends
27.74
Negative
28.76
Negative
27.87
Negative
Market Momentum
-1.43
Negative
27.54
Positive
20.87
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASIX, the sentiment is Negative. The current price of 22.57 is below the 20-day moving average (MA) of 24.18, below the 50-day MA of 27.74, and below the 200-day MA of 27.87, indicating a bearish trend. The MACD of -1.43 indicates Negative momentum. The RSI at 27.54 is Positive, neither overbought nor oversold. The STOCH value of 20.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASIX.
AdvanSix Risk Analysis
AdvanSix disclosed 30 risk factors in its most recent earnings report. AdvanSix 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
AdvanSix Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $5.32B | 15.55 | 9.02% | 5.50% | -5.36% | -74.25% | |
61 Neutral | $616.72M | 14.09 | 5.83% | 2.80% | -1.05% | -16.57% | |
55 Neutral | $2.91B | 27.24 | 5.10% | 3.17% | -4.29% | -74.85% | |
53 Neutral | $2.14B | 24.15 | 12.98% | 7.00% | -4.05% | ― | |
50 Neutral | $6.51B | 6.84 | -24.69% | 3.60% | -6.03% | -177.29% | |
50 Neutral | $2.75B | ― | -5.22% | 6.17% | -1.23% | -277.52% | |
47 Neutral | $2.67B | -3.34 | -21.43% | 3.27% | 3.49% | -27.96% |
* Basic Materials Sector Average
Performance Comparison
ASIX
AdvanSix
22.57
-4.00
-15.05%
CE
Celanese
57.20
-111.27
-66.05%
FMC
FMC
42.21
-18.63
-30.62%
HUN
Huntsman
15.82
-8.90
-36.00%
OLN
Olin
24.57
-33.85
-57.94%
CC
Chemours Company
13.72
-13.56
-49.71%
AdvanSix Earnings Call Summary
Earnings Call Date: Feb 21, 2025 | % Change Since: -22.52% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant achievements in cash flow management, settlement gains, and tax credits offset by declines in sales, challenges in the nylon market, and operational setbacks. The company remains optimistic about future earnings improvements despite the challenges.Highlights
Positive Free Cash Flow
AdvanSix reported positive free cash flow for the full year 2024, with $30 million in the fourth quarter, an increase of $8 million compared to the prior year.
Ammonium Sulfate and Acetone Performance
Strong performance in the ammonium sulfate and acetone businesses supported by a robust pre-buy program and increased market acceptance.
Settlement and Tax Credits
Final settlement of $5.3 million in insurance proceeds related to the 2019 PES QME supplier shutdown and $9.7 million in 45Q tax credits claimed in Q4.
Reduction in Effective Tax Rate
The effective tax rate for 2024 was reduced to 3.1% from 21.1% in the prior year due to carbon capture tax credits.
Lowlights
Sales Decline
Sales decreased by approximately 14% year-over-year in the fourth quarter to $329 million, with a 16% decrease in sales volume.
Nylon Market Challenges
Persistent global oversupply conditions continue to pressure pricing and spreads in the nylon market, with a slower recovery expected.
Operational Performance Below Expectations
Operational performance did not meet expectations, attributed to the impact of plant turnarounds.
Natural Gas and Sulfur Prices
Significant year-over-year and sequential increases in natural gas and sulfur prices are expected to impact price raw spreads in 2025.
Company Guidance
During AdvanSix's fourth-quarter 2024 earnings call, the company provided guidance indicating a positive outlook for 2025 despite a slower start. The company highlighted its robust plant nutrients business, with ammonium sulfate prices up 15% year-over-year and an order book sold well into the second quarter of 2025. They anticipate capital expenditures between $140 million and $160 million, focusing on growth projects like the SUSPANE program, aimed at increasing granular ammonium sulfate production to 72% by the end of 2025. The call also emphasized successful insurance recoveries and tax credits, including $5.3 million in insurance proceeds in Q4 2024 and initial 45Q carbon capture tax credits of $9.7 million from the fourth quarter. Despite a challenging nylon market, the company expects year-over-year earnings improvement, supported by operational efficiencies and a constructive acetone market outlook. The company remains committed to strategic investments and maintaining a healthy balance sheet to drive long-term shareholder value.AdvanSix Corporate Events
Executive/Board Changes
AdvanSix Announces Leadership Changes Effective March 2025
Neutral
Mar 17, 2025
AdvanSix Inc. announced leadership changes effective March 17, 2025, with Christopher Gramm appointed as Vice President of Financial Planning and Analysis, stepping down from his role as Vice President, Controller. Rachael E. Ryan will succeed him as Vice President, Controller and Chief Accounting Officer, bringing extensive experience from her previous roles at Verizon and Honeywell.
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.