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1. Company Snapshot

1.a. Company Description

AdvanSix Inc.manufactures and sells polymer resins in the United States and internationally.It offers Nylon 6, a polymer resin, which is a synthetic material used to produce fibers, filaments, engineered plastics and films.


The company also provides caprolactam to manufacture polymer resins; ammonium sulfate fertilizers to distributors, farm cooperatives, and retailers; and acetone that are used in the production of adhesives, paints, coatings, solvents, herbicides, and engineered plastic resins, as well as other intermediate chemicals, including phenol, alpha-methyl styrene, cyclohexanone, methyl ethyl ketoxime, acetaldehyde oxime, 2-pentanone oxime, cyclohexanol, sulfuric acid, ammonia, and carbon dioxide.It offers its products under the Aegis, Capra, Sulf-N, Nadone, Naxol, and EZ-Blox brands.The company sells its products directly, as well as through distributors.


AdvanSix Inc.was incorporated in 2016 and is headquartered in Parsippany, New Jersey.

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1.b. Last Insights on ASIX

AdvanSix's recent performance faced challenges due to sector cyclicality and small size risks. Despite stable earnings and a well-covered 3.29% dividend, operational instability previously affected the company. However, this instability is largely resolved. The company's upcoming Q3 2025 financial results announcement may impact its performance. Additionally, AdvanSix's board appointments, including Dana O'Brien and Daryl Roberts, may influence its strategic direction. A conservative price target of $30/share and a 7.1x P/E ratio indicate potential value, according to a recent analysis (Source: ).

1.c. Company Highlights

2. AdvanSix's Q3 2025 Earnings: Navigating Challenging Industry Dynamics

AdvanSix reported sales of $374 million for the third quarter of 2025, a 6% decrease from the prior year due to softer demand in chemical intermediates and nylon end markets. Adjusted EBITDA was $25 million, down $28 million from last year. The company's EPS came in at $0.08, beating estimates of $0.01. The raw material pass-through pricing was down 5%, contributing to the decline in sales. The current P/E Ratio of 7.78 and EV/EBITDA of 11.06 indicate a relatively stable valuation.

Publication Date: Nov -26

📋 Highlights
  • Revenue Decline:: Q3 sales fell to $374 million (-6% YoY) due to weaker demand in chemical intermediates and nylon markets.
  • EBITDA Drop:: Adjusted EBITDA declined to $25 million (-$28M YoY), with $7–9 million Q4 impact from Chesterfield plant outage.
  • Cost Reduction Initiatives:: 2026 program targets $2 million calendar year benefit via bonus depreciation on new assets.
  • 45Q Credits:: $100–120 million cumulative benefit from carbon capture credits, with $20 million application pending 2026 approval.
  • IP Settlement:: EZ-BLOX settlement includes monetary payment and licensing agreement to expand customer base and sales.

Operational Challenges and Cost Management

The company faced operational challenges, including a site-wide electrical outage at its Chesterfield nylon plant in mid-September, which is expected to impact 4Q EBITDA by $7 million to $9 million. Despite these challenges, AdvanSix is focused on delivering controllable levers, including production output and sales volume mix optimization, productivity, and cash management. As Erin Kane stated, the company is "positioning itself to win long-term" by navigating a challenging market environment with discipline and agility.

End Market Exposure and Diversification

AdvanSix's end market exposure remains a strategic advantage, providing diversification and insulation from significant variability in any one industry. The company is well-positioned to navigate cycles and capitalize on emerging opportunities, with a unique combination of assets and business model. The strength in ammonium sulfate results, attributed to a good fall pickup and increased granular volume, is a positive note.

Raw Material Cost Trends and Hedging

AdvanSix typically doesn't execute hedges on a regular basis but has some coverage in formula-based pricing in the nylon business. The company is watching the recent changes in sulfur and natural gas prices, which will impact their fourth-quarter results. The company's raw material cost management is crucial in maintaining profitability.

Outlook and Valuation

Analysts estimate next year's revenue growth at 7.5%. AdvanSix's current valuation metrics, including a P/S Ratio of 0.27 and a Dividend Yield of 4.22%, indicate a relatively attractive valuation. The company's focus on cost reduction initiatives for 2026, including optimizing yield and addressing inflationary energy environment, is expected to support through-cycle profitability and sustainable performance.

3. NewsRoom

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AdvanSix $ASIX Shares Sold by Bank of New York Mellon Corp

Nov -22

Source: defenseworld.net

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AdvanSix Inc. (ASIX) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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AdvanSix Announces Third Quarter 2025 Financial Results

Nov -07

Source: businesswire.com

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Teacher Retirement System of Texas Has $1.39 Million Holdings in AdvanSix $ASIX

Nov -06

Source: defenseworld.net

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AdvanSix: Looking At The Upside Beyond 2025

Oct -22

Source: seekingalpha.com

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AdvanSix to Release Third Quarter Financial Results and Hold Investor Conference Call on November 7

Oct -14

Source: businesswire.com

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AdvanSix Appoints Dana O'Brien and Daryl Roberts to Board of Directors

Sep -02

Source: businesswire.com

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AdvanSix (ASIX) Q2 Revenue Falls 10%

Aug -02

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.67%)

6. Segments

Ammonium Sulfate

Expected Growth: 7%

AdvanSix Inc.'s Ammonium Sulfate growth is driven by increasing demand from the nitrogen-based fertilizer industry, supported by population growth and food security concerns. Additionally, the product's use in pharmaceuticals, cosmetics, and water treatment applications contributes to its growth. The company's strategic production capacity expansion and cost-saving initiatives also support the 7% growth rate.

Chemical Intermediates

Expected Growth: 6%

AdvanSix Inc.'s Chemical Intermediates segment growth is driven by increasing demand for nylon, a key end-market application. Strong automotive and industrial production, coupled with rising nylon prices, contribute to the 6% growth. Additionally, AdvanSix's strategic investments in capacity expansion and cost savings initiatives enhance operational efficiency, further supporting segment growth.

Nylon

Expected Growth: 5%

AdvanSix's Nylon segment growth is driven by increasing demand from automotive and industrial applications, supported by rising global vehicle production and infrastructure development. Additionally, growing adoption of nylon in sustainable and recyclable products contributes to the segment's 5% growth.

Caprolactam

Expected Growth: 4%

AdvanSix Inc.'s Caprolactam segment growth is driven by increasing demand from nylon production, supported by growing automotive and textile industries. Additionally, capacity expansions and strategic partnerships contribute to the 4% growth rate, as the company leverages its cost-competitive position and diversified customer base.

7. Detailed Products

Nylon

A high-performance engineering plastic used in various industrial applications, including automotive, industrial, and consumer goods.

Caprolactam

A chemical intermediate used in the production of nylon, plastics, and other industrial applications.

Ammonium Sulfate

A fertilizer and chemical intermediate used in various industrial applications, including agriculture and water treatment.

Sulfuric Acid

A strong acid used in various industrial applications, including the production of fertilizers, detergents, and other chemicals.

8. AdvanSix Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for AdvanSix Inc. is medium due to the availability of alternative products in the market, but the company's strong brand presence and customer loyalty mitigate this threat to some extent.

Bargaining Power Of Customers

The bargaining power of customers is low for AdvanSix Inc. due to the company's strong market position and the lack of concentration of buyers in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for AdvanSix Inc. due to the presence of a few large suppliers in the market, but the company's strong relationships with suppliers and its ability to negotiate prices mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low for AdvanSix Inc. due to the high barriers to entry in the market, including the need for significant capital investment and the complexity of the production process.

Intensity Of Rivalry

The intensity of rivalry is high for AdvanSix Inc. due to the presence of several established players in the market, leading to a highly competitive environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 21.53%
Debt Cost 3.95%
Equity Weight 78.47%
Equity Cost 12.67%
WACC 10.79%
Leverage 27.44%

11. Quality Control: AdvanSix Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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FutureFuel

A-Score: 4.7/10

Value: 8.8

Growth: 2.0

Quality: 1.7

Yield: 10.0

Momentum: 0.5

Volatility: 5.0

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Valhi

A-Score: 4.5/10

Value: 9.5

Growth: 3.1

Quality: 5.9

Yield: 4.0

Momentum: 0.5

Volatility: 3.7

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AdvanSix

A-Score: 4.4/10

Value: 7.7

Growth: 2.9

Quality: 4.1

Yield: 4.0

Momentum: 1.5

Volatility: 6.0

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LSB Industries

A-Score: 3.8/10

Value: 8.1

Growth: 2.8

Quality: 5.0

Yield: 0.0

Momentum: 3.0

Volatility: 3.7

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ASP Isotopes

A-Score: 3.4/10

Value: 6.0

Growth: 1.4

Quality: 3.0

Yield: 0.0

Momentum: 9.5

Volatility: 0.3

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Rayonier Advanced Materials

A-Score: 3.1/10

Value: 6.6

Growth: 3.8

Quality: 0.9

Yield: 0.0

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.02$

Current Price

16.02$

Potential

-0.00%

Expected Cash-Flows