AVNT

Avient

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Basic Materials

industry

Specialty Chemicals

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/07/26

Business Summary

The company operates a transaction-based and subscription-driven digital agreement platform that monetizes the shift from paper-based processes to fully digital workflows. Revenue is generated through recurring software subscriptions, with incremental margins expanding as customer adoption scales across enterprises. Its moat is embedded workflow integration—once agreements, approvals, and compliance processes are digitized within a platform, switching costs become operationally painful. Over time, this creates predictable cash flows, cross-sell opportunities, and operating leverage as infrastructure costs are spread across a growing user base.

VALUATION

P/E

42.9

Market Cap ($M USD)

$3,504

Forward P/E

11.3

PEG

0.4

PRICE TO SALES

1.1

PRICE TO BOOK

1.5

EV / EBITDA

12.6

5-Year Average P/E

DIVIDEND

Yield

2.90%

Annual Payout

$1.09

Payout Ratio

120.60%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

5.30%

Financial Health & Profitability

Earnings Per Share

$0.90

Next Year EPS Growth Estimate

$3.38

Next Year Revenue Growth Estimate

3.40%

Return on Equity (ROE)

3.50%

Operating Margin

6.20%

Debt-to-Equity

0.8

Piotroski F-Score

5

Altman Z-Score

1.8

Return on Invested Capital (ROIC)

3.50%%

Current Ratio

1.7

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 29x earnings but only 8.5x forward earnings with a 0.6 PEG, the market is clearly pricing in a material earnings inflection that has yet to fully show up in the trailing multiple. A $8,339M market cap against a 2.8x Price/Sales and 4.4x Price/Book suggests this is no longer a hyper-growth darling but a maturing software asset transitioning into cash generation mode. The 16.10% operating margin and 12.60% ROIC support that narrative, but the 2.4 Altman Z-Score and 0.7 current ratio signal balance sheet tightness that cannot be ignored. This is not a distressed name, but it is not fortress-grade either—meaning the forward multiple only makes sense if execution remains disciplined and liquidity improves.

AI Exposure / Tech Reliance

As a Software - Application company, it operates in a segment directly exposed to automation, workflow digitization, and AI-driven document processing. The structural shift toward digital agreements and automated contract management positions it to embed AI into core workflows rather than bolt it on as a feature. Its resilience will depend on whether it converts AI from a cost center into margin-accretive functionality within its existing software stack.

The Bull Case

A GARP investor buys this because the valuation compression has already happened while profitability metrics remain intact. A 12.60% ROIC against a 16.10% operating margin shows the company is generating real returns on invested capital, not just accounting earnings. The Piotroski F-Score of 6 signals operational stability without flashing distress, and institutional ownership at 61.88% indicates serious capital is still committed. With a Forward P/E of 8.5 and PEG of 0.6, the stock screens as a classic growth-at-a-reasonable-price setup where earnings acceleration, not multiple expansion, drives upside.

The Bear Case

The red flags are balance-sheet and liquidity related. A 0.7 current ratio means short-term obligations exceed short-term assets, leaving little margin for operational shocks. While Debt/Equity at 9.30% is not extreme, the Altman Z-Score of 2.4 sits in the caution zone, implying the company is not immune to financial stress if growth stalls. Add in the modest 7.50% Return on Equity and the fact that Sales Growth Next Year is listed at $5.05, and you have a business that must execute precisely to justify its earnings multiple.

Market Sentiment & Smart Money

Short Interest %

4.40%

Analyst Consensus

1.75

Average Analyst Price Target

$48.57

Institutional Ownership %

103.40%

1-Year Beta

1.2

Insider Buying % (6 Mo)

0.80%%

Distance to 52-Week High

85.20%%

Distance to 52-Week Low

139.10%%