RE: Advansix Inc (ASIX)
I like this company and have been accumulating several similar cyclicals; DOW, CC; LYB
According to the Perplexity.AI; ASIX would benefit from tariffs as they most of their revenues are in the US w/ several manufacturing facilities.
In for a starter position w/ more Buys every 3% - 5% lower
AdvanSix Inc. is a leading manufacturer of essential chemicals and materials, primarily known as a producer and supplier of Nylon 6 materials. The company, established in 2016 as a spin-off from Honeywell International Inc., plays a critical role in global supply chains.
Aegis® Brand and Applications: The company's polymer resin is sold under the Aegis® brand, which is widely used to produce:
- Engineered plastics: Used in automotive and electronic components.
- Fibers and filaments: For products like carpets, sports apparel, and fishing nets.
- Films: Especially for packaging applications such as vacuum bags, casings, pouches for food and consumer products, medical devices, and even novelty balloons. Aegis® resins are known for their durability, strength, barrier qualities, and performance in maintaining freshness and integrity of goods.
AdvanSix also produces and sells other chemical products that are part of its Nylon 6 integrated manufacturing chain, including:
- Caprolactam: A key raw material for Nylon 6.
- Ammonium sulfate: A high-quality fertilizer sold under the Sulf-N® brand.
- Acetone and other intermediate chemicals: Such as phenol, alpha-methylstyrene, cyclohexanone, oximes, cyclohexanol, and alkyl and specialty amines, used in various industries like adhesives, paints, coatings, solvents, and pharmaceuticals.
Estimated Earnings: AdvanSix's Q1 2025 earnings and revenues surpassed estimates.
- Q1 2025 Earnings Per Share (EPS): $0.93 (beating the Zacks Consensus Estimate of $0.83). This compares to a loss of $0.56 per share a year ago.
- Q1 2025 Revenues: $377.79 million (surpassing the Zacks Consensus Estimate by 8.80%). This compares to $336.83 million in the year-ago quarter.
- Outlook: The consensus EPS estimate for Q2 2025 is $1.37 on $431.3 million in revenues. For the full fiscal year 2025, the consensus is $3.61 EPS on $1.57 billion in revenues.
Revenue Breakdown by Country: While a detailed country-by-country breakdown isn't fully public, available information indicates:
- The United States is the largest contributor to AdvanSix's revenue. For the last fiscal year, the U.S. contributed approximately $1.30 billion, with international revenue at approximately $217.69 million.
- The company operates both in the United States and internationally.
Impact on Tariffs: AdvanSix has a Tariff Resilience Score of 7 (Highly Resilient), according to GuruFocus. This implies the company has a strong domestic manufacturing base with significant U.S. sales, limiting direct tariff impact. Potential indirect effects on raw material costs are possible. The company has shown historical resilience to tariff changes, likely due to strategic supplier relationships and its primarily U.S.-centric manufacturing for domestic sales.
Manufacturing/Distribution Centers: AdvanSix operates several key manufacturing sites in the United States, which also serve as major distribution hubs:
- Chesterfield, Virginia: One of the largest U.S. producers of Nylon 6 resins, used in carpet fiber, automobile parts, fish nets, and food/consumer packaging. It also has an R&D center.
- Hopewell, Virginia: One of the world's largest single manufacturing sites for ammonium sulfate fertilizer and one of the world's largest single-site producers of caprolactam.
- Frankford, Pennsylvania: Produces ingredients for products like acetone and caprolactam, and is a significant exporter from Philadelphia.
- Bucks, Alabama: Produces a variety of chemical intermediates for diverse end markets, including agriculture, rubber processing, pharmaceuticals, and water treatments. (Acquired with U.S. Amines in 2021).
- Portsmouth, Virginia: Also produces chemical intermediates for various end markets, including agriculture, rubber processing, pharmaceuticals, and water treatments. It specializes in synthetic Allyl amines. (Acquired with U.S. Amines in 2021).
These facilities highlight AdvanSix's vertically integrated value chain, enabling reliable and sustainable supply of its products. |
