Definitive Analysis
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Avient Corporation (AVNT)

Company Dividend Discount ModelIndustry: Chemicals - SpecialtySector: Basic Materials

Valuation Snapshot

Stable Growth$28.94 - $76.78$44.26
Multi-Stage$21.24 - $23.13$22.17
Blended Fair Value$33.21
Current Price$32.95
Upside0.80%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS9.29%12.14%1.020.980.950.850.780.660.610.480.440.39
YoY Growth--4.21%3.92%11.71%8.98%18.24%7.49%27.21%9.70%12.61%19.40%
Dividend Yield--2.75%2.29%2.30%1.76%1.64%3.46%2.05%1.13%1.28%1.29%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)113.30
(-) Cash Dividends Paid (M)97.60
(=) Cash Retained (M)15.70
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)22.6614.168.50
Cash Retained (M)15.7015.7015.70
(-) Cash Required (M)-22.66-14.16-8.50
(=) Excess Retained (M)-6.961.547.20
(/) Shares Outstanding (M)91.8391.8391.83
(=) Excess Retained per Share-0.080.020.08
LTM Dividend per Share1.061.061.06
(+) Excess Retained per Share-0.080.020.08
(=) Adjusted Dividend0.991.081.14
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$28.94$44.26$76.78
Upside / Downside-12.16%34.32%133.02%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)113.30120.66128.51136.86145.76155.23159.89
Payout Ratio86.14%86.91%87.69%88.46%89.23%90.00%92.50%
Projected Dividends (M)97.60104.87112.68121.06130.06139.71147.90

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)95.2396.1397.03
Year 2 PV (M)92.9094.6796.46
Year 3 PV (M)90.6393.2395.88
Year 4 PV (M)88.4091.8095.30
Year 5 PV (M)86.2390.3994.72
PV of Terminal Value (M)1,496.921,569.231,644.30
Equity Value (M)1,950.322,035.462,123.69
Shares Outstanding (M)91.8391.8391.83
Fair Value$21.24$22.17$23.13
Upside / Downside-35.54%-32.73%-29.81%

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