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Relative valuation derived from Materials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
9.1%
Sector: 3.3%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, AdvanSix Inc. (ASIX) receives a "Hold" rating with a composite score of 50.1/100, ranked #688 out of 4446 stocks. Key factor scores: Quality 50/100, Value 68/100, Momentum 49/100. This is quantitative analysis only — not investment advice.
AdvanSix Inc. (ASIX) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does AdvanSix Inc. Do?
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. AdvanSix Inc. (ASIX) is classified as a small-cap stock in the Materials sector, specifically within the Chemicals industry. The company is led by CEO Erin N. Kane and employs approximately 1,460 people, headquartered in PARSIPPANY, New Jersey. With a market capitalization of $675M, ASIX is one of the notable companies in the Materials sector.
AdvanSix Inc. (ASIX) Stock Rating — Hold (April 2026)
As of April 2026, AdvanSix Inc. receives a Hold rating with a composite score of 50.1/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.ASIX ranks #688 out of 4,446 stocks in our coverage universe. Within the Materials sector, AdvanSix Inc. ranks #39 of 284 stocks, placing it in the top quartile of its Materials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
ASIX Stock Price and 52-Week Range
AdvanSix Inc. (ASIX) currently trades at $23.94. The stock gained $0.61 (2.6%) in the most recent trading session. The 52-week high for ASIX is $25.53, which means the stock is currently trading -6.2% from its annual peak. The 52-week low is $14.10, putting the stock 69.8% above its annual trough. Recent trading volume was 223K shares, suggesting relatively thin trading activity.
Is ASIX Overvalued or Undervalued? — Valuation Analysis
AdvanSix Inc. (ASIX) carries a value factor score of 68/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 8.83x, compared to the Materials sector average of 26.50x — a discount of 67%. The price-to-book ratio stands at 0.81x, versus the sector average of 2.83x. The price-to-sales ratio is 0.42x, compared to 0.74x for the average Materials stock. On an enterprise value basis, ASIX trades at 6.03x EV/EBITDA, versus 6.01x for the sector.
Overall, ASIX's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
AdvanSix Inc. Profitability — ROE, Margins, and Quality Score
AdvanSix Inc. (ASIX) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 9.1%, compared to the Materials sector average of 3.3%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 4.4% versus the sector average of 0.6%.
On a margin basis, AdvanSix Inc. reports gross margins of 12.4%, compared to 29.8% for the sector. The operating margin is 5.7% (sector: 6.0%). Net profit margin stands at 4.7%, versus 3.0% for the average Materials stock. Revenue growth is running at -17.4% on a trailing basis, compared to 1.8% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
ASIX Debt, Balance Sheet, and Financial Health
AdvanSix Inc. has a debt-to-equity ratio of 109.0%, compared to the Materials sector average of 41.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.13x, suggesting adequate working capital coverage. Total debt on the balance sheet is $365M. Cash and equivalents stand at $24M.
ASIX has a beta of 1.02, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for AdvanSix Inc. is 46/100, reflecting average volatility within the normal range for its sector.
AdvanSix Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, AdvanSix Inc. reported revenue of $1.56B and earnings per share (EPS) of $1.83. Net income for the quarter was $74M. Gross margin was 12.4%. Operating income came in at $90M.
In FY 2025, AdvanSix Inc. reported revenue of $1.52B and earnings per share (EPS) of $1.83. Net income for the quarter was $49M. Gross margin was 10.8%. Revenue grew 0.3% year-over-year compared to FY 2024. Operating income came in at $54M.
In Q3 2025, AdvanSix Inc. reported revenue of $374M and earnings per share (EPS) of $-0.10. Net income for the quarter was $-3M. Gross margin was 6.8%. Revenue grew -6.0% year-over-year compared to Q3 2024. Operating income came in at $-4M.
In Q2 2025, AdvanSix Inc. reported revenue of $410M and earnings per share (EPS) of $1.17. Net income for the quarter was $31M. Gross margin was 14.3%. Revenue grew -9.6% year-over-year compared to Q2 2024. Operating income came in at $32M.
Over the past 8 quarters, AdvanSix Inc. has demonstrated a growth trajectory, with revenue expanding from $453M to $1.56B. Investors analyzing ASIX stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ASIX Dividend Yield and Income Analysis
AdvanSix Inc. (ASIX) does not currently pay a dividend. This is common among smaller companies in the Chemicals industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Materials dividend stocks may want to explore other Materials stocks or use the stock screener to filter by dividend yield.
ASIX Momentum and Technical Analysis Profile
AdvanSix Inc. (ASIX) has a momentum factor score of 49/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 37/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 43/100 reflects moderate short selling activity.
ASIX vs Competitors — Materials Sector Ranking and Peer Comparison
Comparing ASIX against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ASIX vs S&P 500 (SPY) comparison to assess how AdvanSix Inc. stacks up against the broader market across all factor dimensions.
ASIX Next Earnings Date
No upcoming earnings date has been announced for AdvanSix Inc. (ASIX) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ASIX? — Investment Thesis Summary
AdvanSix Inc. presents a balanced picture with arguments on both sides. The value score of 68/100 suggests attractive pricing relative to fundamentals.
In summary, AdvanSix Inc. (ASIX) earns a Hold rating with a composite score of 50.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ASIX stock.
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Institutional Research Dossier
AdvanSix Inc. (ASIX) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on AdvanSix (ASIX), driven by a mixed outlook. While the company exhibits attractive valuation multiples compared to its peers, particularly in P/E and EV/EBITDA, its recent financial performance, characterized by revenue declines and negative free cash flow, raises concerns. The company's exposure to cyclical chemical markets and its relatively high debt levels further temper our enthusiasm, warranting a cautious approach.
AdvanSix operates in a competitive and volatile industry, and its ability to consistently generate positive free cash flow and improve its margins will be crucial for a more positive outlook. The current valuation reflects some of these challenges, but the lack of a clear catalyst for significant near-term improvement keeps us on the sidelines. Investors should closely monitor the company's progress in managing its debt, improving its operational efficiency, and navigating the cyclical downturn in its end markets.
Business Strategy & Overview
AdvanSix operates as a manufacturer and seller of polymer resins, primarily Nylon 6, along with related chemical intermediates such as caprolactam, ammonium sulfate fertilizers, and acetone. The company's revenue streams are derived from direct sales and through distributors, serving a diverse range of industries including engineered plastics, fibers, films, and agricultural sectors. Its strategic positioning hinges on leveraging its integrated manufacturing platform to produce these chemicals and resins, aiming for cost efficiency and supply chain reliability.
The company's product portfolio is centered around Nylon 6, a versatile polymer used in various applications. AdvanSix also produces ammonium sulfate fertilizers, which are sold to agricultural distributors, farm cooperatives, and retailers. Additionally, the company manufactures acetone and other intermediate chemicals used in adhesives, paints, coatings, and solvents. This diversified product mix allows AdvanSix to cater to different end markets, mitigating some of the risks associated with relying on a single product or industry.
AdvanSix's strategy involves optimizing its manufacturing processes to reduce costs and improve efficiency. The company focuses on operational excellence and aims to maintain a competitive cost structure. Furthermore, AdvanSix seeks to expand its market presence through strategic partnerships and distribution agreements. The company also invests in research and development to innovate and introduce new products to meet evolving customer needs.
The chemical industry is highly competitive, with numerous players vying for market share. AdvanSix competes with both large, diversified chemical companies and smaller, specialized manufacturers. The company's ability to differentiate itself through product quality, customer service, and cost competitiveness is crucial for its success. The cyclical nature of the chemical industry also poses a challenge, as demand and prices can fluctuate significantly based on macroeconomic conditions and industry-specific factors.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-17.4%
Sector: 1.8%
-1095% VS SCTR
Economic Moat Analysis
AdvanSix's economic moat is best characterized as Narrow. The company possesses some elements of a cost advantage due to its integrated manufacturing platform, but this advantage is not substantial enough to create a wide moat. While AdvanSix benefits from economies of scale in its production processes, it faces competition from larger, more diversified chemical companies with greater resources and broader product portfolios.
The company's reliance on Nylon 6 and related chemical intermediates exposes it to the cyclical nature of the chemical industry. Fluctuations in raw material prices and end-market demand can significantly impact AdvanSix's profitability. While the company has some degree of product differentiation through its Aegis, Capra, and Sulf-N brands, these brands do not command significant pricing power or customer loyalty to create a strong competitive advantage.
Switching costs for customers are relatively low, as Nylon 6 and other chemical intermediates are generally commoditized products. Customers can easily switch to alternative suppliers if they find better prices or service. This lack of customer stickiness limits AdvanSix's ability to maintain high margins and defend its market share.
While AdvanSix has some intangible assets in the form of its manufacturing expertise and proprietary processes, these assets are not unique or difficult to replicate. Other chemical companies possess similar capabilities, and the barrier to entry for new competitors is not prohibitively high. Therefore, AdvanSix's economic moat is limited by the competitive nature of the chemical industry and the lack of significant barriers to entry.
Financial Health & Profitability
AdvanSix's financial health presents a mixed picture. The company's revenue has declined recently, with a -17.4% decrease compared to the sector's 1.5% growth. This decline is concerning and indicates potential challenges in maintaining market share or navigating industry headwinds. The quarterly financial history shows fluctuating revenue and net income, with some quarters experiencing losses, further highlighting the volatility of the business.
The company's profitability metrics, such as gross margin and operating margin, are lower than the sector averages. AdvanSix's gross margin of 12.4% is significantly below the sector's 30.2%, indicating potential cost inefficiencies or pricing pressures. Similarly, its operating margin of 5.7% is slightly below the sector's 6.0%. However, its net margin of 4.7% is higher than the sector's 3.0%, suggesting better management of non-operating expenses.
AdvanSix's balance sheet reveals a relatively high level of debt. The company's debt-to-equity ratio of 109.00 is significantly higher than the sector's 40.00, indicating a higher degree of financial leverage. This high debt level could pose a risk if the company's earnings decline or interest rates rise. The current ratio of 1.13 suggests adequate liquidity to meet short-term obligations, but the high debt burden remains a concern.
The company's free cash flow is negative, with a TTM value of $-135.99 million. This negative free cash flow is a significant red flag, as it indicates that the company is not generating enough cash to cover its operating expenses and capital expenditures. The lack of free cash flow could limit the company's ability to invest in growth opportunities, pay down debt, or return capital to shareholders. The absence of FCF data in the quarterly history makes it difficult to assess trends and potential improvements.
Valuation Assessment
AdvanSix's valuation appears attractive based on certain multiples, but a deeper analysis reveals potential risks. The company's P/E ratio of 11.1x is significantly lower than the sector average of 26.1x, suggesting that the stock is undervalued relative to its earnings. Similarly, its EV/EBITDA ratio of 2.5x is much lower than the sector average of 5.2x, further indicating a potential undervaluation. However, these low multiples may reflect the market's concerns about the company's recent financial performance and its exposure to cyclical industries.
The company's ROE of 9.1% is higher than the sector average of 2.7%, indicating that AdvanSix is generating higher returns on equity compared to its peers. However, this higher ROE may be due to the company's higher leverage, which can amplify both gains and losses. The negative free cash flow is a significant concern, as it suggests that the company's earnings may not be sustainable or that it may need to raise additional capital in the future.
Given the company's declining revenue, negative free cash flow, and high debt levels, the current valuation may be justified. While the low P/E and EV/EBITDA multiples may appear attractive, they do not fully account for the risks associated with the company's financial health and its exposure to cyclical industries. The market may be discounting the stock due to concerns about the company's ability to generate sustainable earnings and cash flow.
A fair valuation would need to consider the company's potential for improvement in its operational efficiency, its ability to manage its debt, and its exposure to cyclical downturns. If the company can successfully address these challenges, the stock could potentially be undervalued. However, given the current uncertainties, a more conservative valuation approach is warranted.
Risk & Uncertainty
AdvanSix faces several specific risks that could negatively impact its business and financial performance. One of the primary risks is its exposure to the cyclical nature of the chemical industry. Demand and prices for Nylon 6 and other chemical intermediates can fluctuate significantly based on macroeconomic conditions and industry-specific factors. A prolonged economic downturn or a decline in demand for its products could lead to lower revenue and profitability.
Another significant risk is the company's high debt levels. AdvanSix's debt-to-equity ratio is significantly higher than the sector average, indicating a higher degree of financial leverage. This high debt level could make it more difficult for the company to invest in growth opportunities, pay down debt, or return capital to shareholders. Rising interest rates could also increase the company's borrowing costs and further strain its financial resources.
Competition from other chemical companies is also a significant risk. AdvanSix competes with both large, diversified chemical companies and smaller, specialized manufacturers. The company's ability to differentiate itself through product quality, customer service, and cost competitiveness is crucial for its success. Increased competition could lead to pricing pressures and reduced market share.
Raw material price volatility is another risk factor. AdvanSix's profitability is affected by fluctuations in the prices of raw materials used in its manufacturing processes. Increases in raw material prices could squeeze the company's margins and reduce its earnings. The company's ability to pass on these cost increases to its customers is limited by the competitive nature of the industry.
Bulls Say / Bears Say
The Bull Case
BULL VIEWAdvanSix's low valuation multiples, particularly its P/E and EV/EBITDA ratios, suggest that the stock is undervalued and offers significant upside potential if the company can improve its financial performance.
BULL VIEWThe company's integrated manufacturing platform provides a cost advantage that allows it to compete effectively in the chemical industry and generate attractive returns on equity.
BULL VIEWIf AdvanSix can successfully manage its debt and improve its free cash flow generation, the stock could re-rate significantly higher as investors recognize its underlying value.
The Bear Case
BEAR VIEWAdvanSix's declining revenue, negative free cash flow, and high debt levels raise serious concerns about its financial health and its ability to navigate the cyclical downturn in the chemical industry.
BEAR VIEWThe company's exposure to volatile raw material prices and intense competition limits its ability to maintain high margins and generate sustainable earnings.
BEAR VIEWGiven the company's weak financial performance and uncertain outlook, the stock is likely to remain undervalued and could potentially decline further if its challenges persist.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score ASIX and 4,400+ other equities.
AdvanSix Inc. exhibits a 45% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
4.4%
Sector: 0.6%
Gross Margin
Pricing power and cost efficiency
12.4%
Sector: 29.8%
Operating Margin
Core business profitability
5.7%
Sector: 6.0%
Net Margin
Bottom-line profitability
4.7%
Sector: 3.0%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
