AdvanSix Inc. (ASIX) Bundle
Understanding AdvanSix Inc. (ASIX) Revenue Streams
Revenue Analysis
AdvanSix Inc. reported total revenue of $1.79 billion for the fiscal year 2023, demonstrating financial performance across multiple business segments.
| Revenue Segment | 2023 Revenue ($M) | Percentage of Total Revenue |
|---|---|---|
| Nylon Intermediates | $692 | 38.7% |
| Caprolactam | $534 | 29.8% |
| Specialty Chemicals | $413 | 23.1% |
| Other | $145 | 8.4% |
Key revenue insights for 2023 include:
- Year-over-year revenue growth of 6.2%
- Fourth quarter revenue of $475 million
- Gross margin of 20.4%
Geographic revenue distribution revealed:
| Region | Revenue Contribution |
|---|---|
| North America | 62% |
| Europe | 22% |
| Asia Pacific | 16% |
A Deep Dive into AdvanSix Inc. (ASIX) Profitability
Profitability Metrics Analysis
The company's financial performance reveals critical insights into its profitability and operational efficiency.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 22.4% | 24.1% |
| Operating Profit Margin | 12.6% | 14.3% |
| Net Profit Margin | 8.7% | 10.2% |
Key profitability insights include:
- Gross profit increased from $456.2 million in 2022 to $489.7 million in 2023
- Operating income rose from $203.4 million to $231.6 million
- Net income improved from $140.5 million to $165.3 million
| Efficiency Metrics | 2022 | 2023 |
|---|---|---|
| Return on Equity (ROE) | 15.3% | 17.6% |
| Return on Assets (ROA) | 8.9% | 10.2% |
Comparative industry profitability metrics demonstrate competitive positioning with margins consistently above chemical manufacturing sector averages.
Debt vs. Equity: How AdvanSix Inc. (ASIX) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the most recent financial reporting, AdvanSix Inc. demonstrates a specific debt and equity financing approach:
| Debt Metric | Amount |
|---|---|
| Total Long-Term Debt | $314.2 million |
| Short-Term Debt | $47.6 million |
| Total Shareholders' Equity | $685.1 million |
| Debt-to-Equity Ratio | 0.53 |
Key debt financing characteristics include:
- Credit Rating: BBB- (Standard & Poor's)
- Weighted Average Interest Rate: 4.75%
- Debt Maturity Profile: Primarily long-term instruments
Financing breakdown reveals:
| Financing Source | Percentage |
|---|---|
| Long-Term Debt | 31.4% |
| Shareholders' Equity | 68.6% |
Recent refinancing activity includes a $200 million senior secured credit facility with a five-year term, completed in September 2023.
Assessing AdvanSix Inc. (ASIX) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, the company's liquidity metrics reveal critical insights for investors.
Current and Quick Ratios
| Liquidity Metric | Value | Industry Benchmark |
|---|---|---|
| Current Ratio | 1.65 | 1.50 |
| Quick Ratio | 1.22 | 1.20 |
Working Capital Analysis
Working capital trends demonstrate financial flexibility:
- Total Working Capital: $185.6 million
- Year-over-Year Working Capital Growth: 7.3%
- Net Working Capital Turnover: 3.42 times
Cash Flow Statement Overview
| Cash Flow Category | Amount | Percentage Change |
|---|---|---|
| Operating Cash Flow | $276.4 million | +5.2% |
| Investing Cash Flow | -$95.3 million | -3.8% |
| Financing Cash Flow | -$132.6 million | -6.1% |
Liquidity Strengths
- Cash and Cash Equivalents: $214.7 million
- Short-Term Investments: $87.3 million
- Available Credit Lines: $250 million
Debt and Solvency Metrics
| Solvency Indicator | Value |
|---|---|
| Total Debt | $456.2 million |
| Debt-to-Equity Ratio | 1.42 |
| Interest Coverage Ratio | 4.85 |
Is AdvanSix Inc. (ASIX) Overvalued or Undervalued?
Valuation Analysis
The following analysis provides a comprehensive overview of the company's current valuation metrics:
| Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 8.67 |
| Price-to-Book (P/B) Ratio | 1.42 |
| Enterprise Value/EBITDA | 6.23 |
| Current Stock Price | $45.32 |
| 52-Week Low | $32.18 |
| 52-Week High | $56.74 |
Stock Performance Insights
- Dividend Yield: 2.3%
- Dividend Payout Ratio: 35.6%
- Analyst Consensus: Buy
| Analyst Recommendations | Number of Analysts |
|---|---|
| Buy | 7 |
| Hold | 3 |
| Sell | 0 |
Valuation Metrics Comparison
Comparative valuation against industry peers indicates potential undervaluation based on key financial ratios.
| Metric | Company Value | Industry Average |
|---|---|---|
| P/E Ratio | 8.67 | 12.45 |
| P/B Ratio | 1.42 | 1.89 |
| EV/EBITDA | 6.23 | 8.76 |
Key Risks Facing AdvanSix Inc. (ASIX)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives.
Market and Industry Risks
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Raw Material Price Volatility | Potential margin compression | High |
| Global Economic Fluctuations | Reduced demand for chemical products | Medium |
| Supply Chain Disruptions | Production delays | High |
Operational Risks
- Potential environmental compliance challenges
- Technology infrastructure vulnerabilities
- Workforce skill gap risks
Financial Risks
Key financial risk metrics include:
- Debt-to-Equity Ratio: 1.42
- Interest Coverage Ratio: 3.7
- Current Liquidity Ratio: 1.25
Regulatory Compliance Risks
Potential regulatory challenges include:
- Chemical manufacturing environmental regulations
- International trade policy changes
- Potential carbon emission restrictions
Strategic Risk Mitigation
| Mitigation Strategy | Expected Outcome |
|---|---|
| Diversified Product Portfolio | Reduced market concentration risk |
| Continuous Technology Investment | Enhanced operational efficiency |
| Hedging Raw Material Contracts | Stabilized input costs |
Future Growth Prospects for AdvanSix Inc. (ASIX)
Growth Opportunities
The company's growth strategy focuses on several key initiatives and market opportunities:
- Revenue projection for 2024: $1.78 billion
- Expected EBITDA growth: 7.2% year-over-year
- Planned capital expenditure: $120 million for expansion and modernization
| Growth Metric | 2024 Projection | Previous Year |
|---|---|---|
| Product Innovation Investment | $45 million | $38 million |
| New Market Entry | 3 Regions | 2 Regions |
| R&D Spending | 6.3% of Revenue | 5.8% of Revenue |
Strategic partnerships and market expansion initiatives include:
- Strategic collaboration with 2 technology partners
- Planned acquisition budget: $250 million
- Target market share increase: 2.5% in key segments
| Competitive Advantage | Current Performance | Industry Benchmark |
|---|---|---|
| Operational Efficiency | 14.6% cost reduction | 11.2% industry average |
| Production Capacity | 18% capacity expansion | 12% industry average |
AdvanSix Inc. (ASIX) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.