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AdvanSix

ASIX
28
Chemicals · Basic Materials
Price
$20.79
+0.03 (+0.14%)
Market Cap
$560.5M
Winston Score
28
Winston is worried
Below-average fundamentals — multiple weak pillars.

Share count falling — buybacks

5.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 29.0M (2021) → 27.3M (2025)

AdvanSix makes chemicals used in everyday products like clothing, carpets, and food packaging. Its main product is nylon 6 resin, which manufacturers use to make fibers and plastics. The company also produces ammonium sulfate fertilizer and other chemical ingredients sold to industrial and agricultural customers across North America.

AdvanSix earns revenue by selling these chemicals directly to manufacturers and distributors, with prices that often move up and down with raw material costs like propylene. The company operates primarily in the United States and generates roughly $1.5 billion in annual sales, but its very thin margins — around 7% gross and under 1% operating — leave little room for error. Its integrated manufacturing process at a single large facility in Hopewell, Virginia, gives it some cost efficiency, but that same concentration is a key risk, since any disruption there could significantly impact the entire business.

Winston Score History

Score breakdown

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Quality

Gross Margin
0.9%
Thin — 0.9% gross margin
Operating Margin
-4.6%
Losing money on operations — -4.6%
ROCE
-1.7%
Weak — -1.7% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
-0.6%
Shrinking sales (-0.6% YoY)
EPS YoY
-87.7%
Earnings shrinking (-87.7% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
924%
Turns 924% of profit into real cash
FCF Margin
-1.4%
Burning cash (-1.4%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
0.39
Conservative — low debt load (0.39)
Interest Cover
1.22x
Dangerous — barely covers interest (1.2x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

P/E Ratio (TTM)
53.3x
Expensive — P/E 53.3

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+39.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (53.3 → 14.1)

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Dividends

Dividend Yield
3.15%
Moderate income — 3.15% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+0.0%
Dividend flat

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