Avient Corp (NYSE: AVNT)

Sector: Basic Materials Industry: Specialty Chemicals CIK: 0001122976
Market Cap 3.92 Bn
P/B 1.65
P/E 47.82
P/S 1.20
ROIC (Qtr) 3.29
Div Yield % 2.51
Rev 1y % (Qtr) 1.89
Total Debt (Qtr) 1.92 Bn
Debt/Equity (Qtr) 0.81
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About

Investment thesis

Bull case

  • Healthy cash reserves of 510.50M provide 1021x coverage of short-term debt 500000, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 301.60M provides exceptional 177.41x coverage of minority interest expenses 1.70M, showing strong core operations.
  • Operating cash flow of 301.60M provides strong 33.14x coverage of stock compensation 9.10M, indicating sustainable incentive practices.
  • Robust free cash flow of 207.90M exceeds capital expenditure of 93.70M by 2.22x, indicating strong organic growth funding capability.
  • Cash position of 510.50M provides exceptional 300.29x coverage of minority interest expenses 1.70M, indicating strong liquidity.

Bear case

  • Operating cash flow of 301.60M barely covers its investment activities of (97M), with a coverage ratio of -3.11, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 301.60M provides thin coverage of dividend payments of (98.80M) with a -3.05 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 208.60M show weak coverage of depreciation charges of 185.90M, with a 1.12 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 207.90M represents just -1.38x of debt issuance (150.30M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 185.90M relative to operating cash flow of 301.60M, which is 0.62x suggests significant maintenance capital requirements affecting free cash flow.

Geographical Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Specialty Chemicals
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LIN Linde Plc 259.51 Bn 110.86 9.26 25.93 Bn
2 SHW Sherwin Williams Co 101.80 Bn 102.98 9.01 13.58 Bn
3 ECL Ecolab Inc. 86.78 Bn 76.91 6.25 8.67 Bn
4 APD Air Products & Chemicals, Inc. 58.65 Bn 49.06 6.08 18.14 Bn
5 PPG Ppg Industries Inc 31.75 Bn 25.73 2.06 7.91 Bn
6 DD DuPont de Nemours, Inc. 21.19 Bn -27.20 3.09 3.19 Bn
7 IFF International Flavors & Fragrances Inc 21.16 Bn -8.98 1.87 6.60 Bn
8 ALB Albemarle Corp 19.87 Bn -29.33 3.86 3.19 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.90 1.62
EV to Cash from Ops. EV/CFO 18.05 10.83
EV to Debt EV to Debt 2.83 16.61
EV to EBIT EV/EBIT 26.09 -61.80
EV to EBITDA EV/EBITDA 13.98 -9.02
EV to Free Cash Flow [EV/FCF] EV/FCF 26.18 6.67
EV to Market Cap EV to Market Cap 1.39 5.10
EV to Revenue EV/Rev 1.67 72.68
Price to Book Value [P/B] P/B 1.65 5.37
Price to Earnings [P/E] P/E 47.82 14.34
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.83 -5.46
Dividend Payout Ratio % Div Payout % (Qtr) 120.60 -74.36
Dividend per Basic Share Div per Share (Qtr) 1.09 1.27
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 47.76 9.98
Interest Coverage Int. cover (Qtr) 2.12 -9.95
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 20.93 -1,110.27
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -6.24 83.68
Dividend Growth (1y) % Div 1y % (Qtr) 4.03 -3.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -37.76 -80.22
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -23.50 48.27
EBIT Growth (1y) % EBIT 1y % (Qtr) -36.63 11.23
EBT Growth (1y) % EBT 1y % (Qtr) -50.81 -62.96
EPS Growth (1y) % EPS 1y % (Qtr) -51.61 -125.48
FCF Growth (1y) % FCF 1y % (Qtr) 50.33 4.34
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -3.89 193.82
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.54 0.70
Cash Payout Ratio Cash Payout (Qtr) 0.25 0.40
Cash Ratio Cash Ratio (Qtr) 0.60 1.24
Current Ratio Curr Ratio (Qtr) 1.66 3.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.81 0.92
Interest Cover Ratio Int Coverage (Qtr) 2.12 -9.95
Times Interest Earned Times Interest Earned (Qtr) 2.12 -9.95
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 12.10 -320.64
EBIT Margin % EBIT Margin % (Qtr) 6.40 -360.99
EBT Margin % EBT Margin % (Qtr) 3.37 -366.51
Gross Margin % Gross Margin % (Qtr) 31.20 29.06
Net Profit Margin % Net Margin % (Qtr) 2.50 -367.54