I have diversified into ASIX which shows a DCF valuation of $36.34/share. That's 44.26% undervalued; Pays a 3% dividend too
AdvanSix Inc (ASIX) DCF Valuation
AdvanSix Inc. (ASIX), a key player in the fertilizer market, reported total revenues of approximately $378 million for Q1 2025, reflecting a 12% increase year over year. This growth was driven by higher sales volume (+7%) and increased market pricing (+4%) for plant nutrients including ammonium sulfate, where strong demand and premiums over urea were noted. For Q2 2025, ASIX reported revenues around $410 million with a slight decline versus the previous year in that quarter due to volume decreases, but maintained a strong fertilizer sales performance overall. The company expects continued growth supported by robust industry fundamentals, including a large U.S. corn acreage planting and ongoing demand for sulfur fertilizers.
Looking forward, the broader North American fertilizer market, where ASIX operates, is forecasted to grow at a CAGR of about 3.33% from 2025 to 2033, reaching a market size over $92 billion by 2033. Globally, the fertilizer market is expected to grow at a CAGR of approximately 2.7% from 2025 to 2035, reaching over $278 billion. ASIX's growth prospects are also tied to its strategic initiatives like the SUSTAIN growth program and increased granular ammonium sulfate production capability, aiming to reach 72% conversion by end of 2025.
In summary, ASIX's fertilizer revenues are in the $1.5 billion range annualized based on recent quarterly reports, with positive growth expected driven by demand fundamentals and operational improvements. The market environment projects steady mid-single-digit CAGR growth over the next decade, underpinning ASIX's future growth potential in the fertilizer sector.
This outlook reflects both company-level performance and broader market trends in agriculture and fertilizer demand |
