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1. Company Snapshot

1.a. Company Description

Avient Corporation provides specialized formulator, services, and sustainable material solutions in the United States, Canada, Mexico, Europe, South America, and Asia.It operates through three segments: Color, Additives and Inks; Specialty Engineered Materials; and Distribution.The Color, Additives and Inks segment offers specialized color and additive concentrates in solid and liquid form for thermoplastics; dispersions for thermosets; and specialty inks.


This segment products are used in various markets include medical, pharmaceutical devices, food packaging, personal care, cosmetics, transportation, building products, recreational, athletic apparel, construction, filtration, outdoor furniture, healthcare, wire, and cable.The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials; and long glass and carbon fiber technology to thermoset and thermoplastic composites.The Distribution segment distributes approximately 4,000 grades of engineering and commodity grade resins to custom injection molders and extruders.


The company sells its products through direct sales personnel, distributors, and commissioned sales agents.The company was formerly known as PolyOne Corporation and changed its name to Avient Corporation in June 2020.Avient Corporation was founded in 1885 and is headquartered in Avon Lake, Ohio.

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1.b. Last Insights on AVNT

Avient Corporation's recent performance was negatively impacted by a 1% decline in sales to $807 million, primarily due to unfavorable business conditions. Despite this, the company reported an 8% year-over-year growth in adjusted EPS to $0.70, driven by EBITDA margin expansion. The company's debt repayment efforts also stood out, with $100 million repaid year-to-date. Analysts have a "Moderate Buy" rating on the stock, with four buy recommendations and four hold recommendations. Additionally, Avient's commitment to dividend growth, with a 15th consecutive annual increase, may support shareholder value.

1.c. Company Highlights

2. Avient Corporation's Q3 Earnings: A Resilient Performance Amidst Challenging Market Conditions

Avient Corporation reported a third-quarter adjusted EPS of $0.70, in line with guidance, despite weaker-than-anticipated sales. Revenue growth was affected by subdued market demand in key markets, but the company's focus on increased productivity, cost containment, and portfolio prioritization helped expand adjusted EBITDA margin 60 basis points to 16.5%. The company's adjusted EPS growth was 7.7% as reported and 4.5% excluding foreign currency translation. As Jamie Beggs, Senior Vice President and Chief Financial Officer, noted, the company's updated adjusted EBITDA range for the year is now $540 million to $550 million, with lower interest expense offsetting the slightly lower adjusted EBITDA range.

Publication Date: Nov -09

📋 Highlights
  • Q3 Adjusted EPS Growth: Achieved $0.70, aligning with guidance despite lower sales, with 7.7% growth (4.5% excluding FX) driven by productivity and cost controls.
  • EBITDA Margin Expansion: Rose 60 basis points to 16.5% due to operational efficiency, while full-year adjusted EBITDA now expected at $540–550M despite lower interest expenses.
  • Q4 Outlook: Forecasts stronger consumer sales in healthcare and defense, offsetting declines in industrial, building & construction, and energy sectors.
  • 2026 Strategy: Prioritizes SEM growth via innovation, cost-cutting, and supply expansion, while consumer business faces headwinds; EPS growth projected at 3–8% despite flat sales.
  • Market Risks: Cautious outlook on trade wars, labor challenges, and weak consumer sentiment, with contingency plans for deeper productivity measures if conditions worsen.

Segment Performance and Outlook

The company expects year-over-year consumer sales performance to be better in the fourth quarter, driven by favorable mix and innovation-driven growth in healthcare and defense portfolios. However, Industrial and Building & Construction have seen negative demand, and energy sales were down due to the U.S. government's pause of Infrastructure Investment and Jobs Act funding. For the fourth quarter, the company expects growth in Specialty Engineered Materials and defense, healthcare, and telecommunications markets, while the Color, Additives and Inks business is expected to be under pressure due to subdued market demand.

Valuation and Growth Prospects

With a P/E Ratio of 24.01 and an EV/EBITDA of 12.0, the market appears to be pricing in moderate growth expectations. Analysts estimate next year's revenue growth at 2.4%. The company's ability to drive EPS growth through margin expansion and productivity initiatives is encouraging. The Dividend Yield of 3.64% and Free Cash Flow Yield of 5.56% also make the stock attractive to income investors. The actual EPS of $0.7 beat estimates of $0.69, indicating a positive surprise.

Challenges and Opportunities

Ashish Khandpur, Chairman and Chief Executive Officer, expressed caution and uncertainty about the near future, citing factors such as trade wars, shifting supply chains, labor market challenges, and weak consumer sentiment. However, the company is well-positioned to navigate these challenges, with a plan in place to enact additional productivity and cost-cutting measures if needed. The company's focus on innovation and new product launches is also expected to drive growth in the Specialty Engineered Materials business.

3. NewsRoom

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Avient Corporation $AVNT Shares Sold by Fisher Asset Management LLC

Dec -04

Source: defenseworld.net

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Ceredex Value Advisors LLC Cuts Stake in Avient Corporation $AVNT

Nov -29

Source: defenseworld.net

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Head to Head Survey: Chemours (NYSE:CC) and Avient (NYSE:AVNT)

Nov -29

Source: defenseworld.net

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Avient Corporation (NYSE:AVNT) Receives Average Rating of “Moderate Buy” from Analysts

Nov -22

Source: defenseworld.net

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4 Ideal November Buys In Barron's 100 Sustainable Dividend Dogs Of 47 'Safer'

Nov -13

Source: seekingalpha.com

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Compared to Estimates, Avient (AVNT) Q3 Earnings: A Look at Key Metrics

Nov -05

Source: zacks.com

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Avient Corporation (AVNT) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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Avient (AVNT) Q3 Earnings Surpass Estimates

Nov -05

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.86%)

6. Segments

Color, Additives and Inks

Expected Growth: 4.5%

Avient Corporation's Color, Additives and Inks segment growth of 4.5% is driven by increasing demand for sustainable and specialty materials, growth in packaging and healthcare industries, and expansion in emerging markets. Additionally, the company's innovative product offerings, such as its sustainable colorant solutions, and strategic acquisitions are contributing to the segment's growth.

Specialty Engineered Materials

Expected Growth: 5.5%

Avient Corporation's Specialty Engineered Materials segment growth of 5.5% is driven by increasing demand for sustainable and lightweight materials in the automotive and aerospace industries, as well as growing adoption of advanced composites in industrial and consumer applications.

Corporate

Expected Growth: 3.5%

Avient Corporation's 3.5% corporate growth is driven by increasing demand for sustainable materials, expansion in emerging markets, and strategic acquisitions. The company's focus on specialty chemicals and compounding also contributes to growth, as well as its ability to pass on raw material costs to customers.

7. Detailed Products

Color and Additives

Avient Corporation offers a wide range of color and additive solutions for plastics, including color concentrates, specialty additives, and liquid colorants.

Specialty Engineered Materials

Avient Corporation provides specialty engineered materials, including thermoplastic elastomers, thermoplastic vulcanizates, and alloys, for various industrial applications.

Distribution

Avient Corporation distributes a broad portfolio of plastics and chemicals from leading suppliers, offering a one-stop-shop solution for customers.

Sustainable Solutions

Avient Corporation offers sustainable solutions, including bioplastics, recycled materials, and eco-friendly additives, to help customers reduce their environmental footprint.

Formulation and Design

Avient Corporation provides formulation and design services to help customers develop customized material solutions for their specific applications.

8. Avient Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Avient Corporation operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the availability of alternative materials and technologies.

Bargaining Power Of Customers

Avient Corporation's customers have limited bargaining power due to the company's strong market position and diversified customer base.

Bargaining Power Of Suppliers

Avient Corporation's suppliers have moderate bargaining power due to the availability of alternative suppliers and the company's dependence on certain raw materials.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the specialty chemicals industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The specialty chemicals industry is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.48%
Debt Cost 8.24%
Equity Weight 52.52%
Equity Cost 11.67%
WACC 10.04%
Leverage 90.40%

11. Quality Control: Avient Corporation 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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Avient

A-Score: 4.2/10

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Quality: 4.0

Yield: 5.0

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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

30.69$

Current Price

30.69$

Potential

-0.00%

Expected Cash-Flows