Avient: Hold Off Until Next Earnings Call
ByAinvest
Friday, Aug 29, 2025 1:19 am ET1min read
AVNT--
Investors are advised to wait for the next earnings call to assess the company's financial performance and navigate the uncertainties it faces. Avient's revenue per share (RPS) has fluctuated over the past decade, with a significant drop in 2020 due to the pandemic but rebounded the following year [1]. The gross profit margin has expanded at a solid rate, surpassing 32% last fiscal year, indicating the company's efforts to optimize plant utilization and reduce costs [1]. However, the return on invested capital (ROIC) remains well-below the typical threshold of 20%, suggesting there is room for improvement in this area [1].
Avient has grown its dividend for 13 years, currently paying a quarterly dividend of $0.27, or $1.08 annually, with a forward dividend yield of 2.88%. The dividend growth has slowed more recently, with a 3-year dividend growth rate of 4.89% and a 5-year growth rate of 5.87%, raising concerns about the sustainability of the dividend [1].
The company is also facing challenges due to uncertainties in trade policy, as stated in its Q2 earnings report [1]. Investors should closely monitor the company's progress and wait for the next earnings call to make informed decisions.
References:
[1] https://seekingalpha.com/article/4817776-avient-stock-take-pause-until-next-earnings-call
Avient Corporation is a global manufacturer of plastic materials, colors, and additives for various industries. The company operates with two segments: Color, Additives, and Inks, and Specialty Engineered Materials. It employs over 9,000 people worldwide. Investors are advised to take a pause and wait for the next earnings call before making any investment decisions.
Avient Corporation (NYSE: AVNT), a global manufacturer of plastic materials, colors, and additives, has advised investors to take a pause before making any investment decisions. The company operates under two segments: Color, Additives, and Inks, and Specialty Engineered Materials, employing over 9,000 people worldwide [1].Investors are advised to wait for the next earnings call to assess the company's financial performance and navigate the uncertainties it faces. Avient's revenue per share (RPS) has fluctuated over the past decade, with a significant drop in 2020 due to the pandemic but rebounded the following year [1]. The gross profit margin has expanded at a solid rate, surpassing 32% last fiscal year, indicating the company's efforts to optimize plant utilization and reduce costs [1]. However, the return on invested capital (ROIC) remains well-below the typical threshold of 20%, suggesting there is room for improvement in this area [1].
Avient has grown its dividend for 13 years, currently paying a quarterly dividend of $0.27, or $1.08 annually, with a forward dividend yield of 2.88%. The dividend growth has slowed more recently, with a 3-year dividend growth rate of 4.89% and a 5-year growth rate of 5.87%, raising concerns about the sustainability of the dividend [1].
The company is also facing challenges due to uncertainties in trade policy, as stated in its Q2 earnings report [1]. Investors should closely monitor the company's progress and wait for the next earnings call to make informed decisions.
References:
[1] https://seekingalpha.com/article/4817776-avient-stock-take-pause-until-next-earnings-call
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