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Filing Category: Dividend

  • AdvanSix Inc. 8-K Analysis & Summary – 2/21/2025

    Analyst Summary

    • Q4 2024 sales decreased by 14% year-over-year to $329 million.
    • Full-year sales decreased by approximately 1% to $1.518 billion.
    • Q4 2024 net income was $0.4 million ($0.01 per share).
    • Full-year net income was $44.1 million ($1.62 per share).
    • A quarterly cash dividend of $0.16 per share was declared.
    • Gross Profit Margin FY 2024: 10.08%, FY 2023: 10.77%, Trend: -6.41%.
    • Operating Profit Margin FY 2024: 3.8%, FY 2023: 4.53%, Trend: -16.11%.
    • Net Profit Margin FY 2024: 2.91%, FY 2023: 3.56%, Trend: -18.26%.
    • Return on Assets (ROA) FY 2024: 2.77%, FY 2023: 3.65%, Trend: -24.11%.
    • Return on Equity (ROE) FY 2024: 5.7%, FY 2023: 7.39%, Trend: -22.87%.
    • Current Ratio FY 2024: 1.08, FY 2023: 1.17, Trend: -7.69%.
    • Quick Ratio FY 2024: 0.49, FY 2023: 0.58, Trend: -15.52%.
    • Cash Ratio FY 2024: 0.05, FY 2023: 0.08, Trend: -37.5%.
    • Debt-to-Equity Ratio FY 2024: 1.06, FY 2023: 1.02, Trend: 3.92%.
    • Debt-to-Assets Ratio FY 2024: 0.51, FY 2023: 0.51, Trend: 0%.
    • Interest Coverage Ratio FY 2024: 5.02, FY 2023: 10.25, Trend: -50.05%.
    • Days Sales Outstanding (DSO) FY 2024: 35.02 days, FY 2023: 39.34 days, Trend: -10.98%.
    • Days Payable Outstanding (DPO) FY 2024: 61.14 days, FY 2023: 69.05 days, Trend: -11.46%.
    • Asset Turnover FY 2024: 0.95, FY 2023: 1.02, Trend: -6.86%.
    • Price-to-Earnings Ratio (P/E) FY 2024: 18.38, FY 2023: 15.27, Trend: 20.37%.
    • Price-to-Book Ratio (P/B) FY 2024: 1.03, FY 2023: 1.08, Trend: -4.63%.
    • Price-to-Sales Ratio (P/S) FY 2024: 0.52, FY 2023: 0.52, Trend: 0%.
    • Enterprise Value to EBITDA (EV/EBITDA) FY 2024: 6.83, FY 2023: 6.16, Trend: 10.88%.
    • Revenue Growth: -1.05% year-over-year.
    • Net Income Growth: -19.17% year-over-year.
    • EPS Growth: -16.92% year-over-year.
    • Adjusted EBITDA Margin FY 2024: 9.4%, FY 2023: 10.0%, Trend: -6%.
    • Free cash flow decreased by 83.37% year-over-year.

    Opportunities and Risks

    • Operational Disruptions: Plant turnarounds and unplanned downtime can significantly impact production volume and profitability.
    • Nylon Market Conditions: Slower recovery in the North American nylon market and increased domestic competition could pressure sales and margins.
    • Raw Material Costs: Higher raw material prices, particularly impacting fertilizer margins, could negatively affect profitability.
    • Macroeconomic Factors: Exposure to domestic building and construction, which remains subdued, could limit growth.
    • Plant Nutrients: Strong sulfur nutrition demand and tight North American ammonium sulfate supply are expected to support sulfur premiums.
    • Acetone: Balanced global acetone supply and demand conditions are expected to support industry spreads above cycle averages.
    • SUSTAIN Program: The SUSTAIN program and other growth projects could drive future revenue growth and profitability.
    • Carbon Capture Tax Credits: Continued pursuit of 45Q tax credits for subsequent periods could provide a meaningful medium- to long-term value driver.

    Potential Implications

    Company Performance

    • Monitor the company’s progress in executing its growth strategy, particularly the SUSTAIN program and other growth projects.
    • Assess the impact of macroeconomic factors, such as the recovery in the North American nylon market and the impact of higher raw material prices on fertilizer margins.
    • Evaluate the company’s ability to mitigate operational risks associated with plant turnarounds and unplanned downtime.
    • Track the company’s progress in claiming 45Q carbon capture tax credits and its potential to generate value from these initiatives.