Operating Margin

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Price: 36.34 USD -1.01% Market Closed

Market Cap: $3.3B

7.7%

Declining

by 0.5%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

7.7%

Operating Income

$249.5m

Revenue

$3.2B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

7.7%

Operating Income

$249.5m

Revenue

$3.2B

Peer Comparison

Country	Company	Market Cap	Operating Margin
US	Avient Corp NYSE:AVNT	3.4B USD	Loading...
US	Sherwin-Williams Co NYSE:SHW	86.8B USD	Loading...
US	Ecolab Inc NYSE:ECL	79.7B USD	Loading...
JP	Shin-Etsu Chemical Co Ltd TSE:4063	9.2T JPY	Loading...
CN	Wanhua Chemical Group Co Ltd SSE:600309	274.6B CNY	Loading...
CH	Givaudan SA SIX:GIVN	29B CHF	Loading...
DK	Novozymes A/S CSE:NZYM B	165.6B DKK	Loading...
US	PPG Industries Inc NYSE:PPG	25.8B USD	Loading...
IN	Asian Paints Ltd NSE:ASIANPAINT	2.3T INR	Loading...
CH	Sika AG F:SIKA	19.9B EUR	Loading...
US	Albemarle Corp NYSE:ALB	21.7B USD	Loading...

Market Distribution

Min	-4 087 900%
30th Percentile	-5.1%
Median	6%
70th Percentile	14.8%
Max	1 032 600%

Other Profitability Ratios

Avient Corp
Glance View

Economic Moat

None

Market Cap

3.3B USD

Industry

Chemicals

Avient Corporation, formerly known as PolyOne, has undergone significant transformation since its establishment, embracing innovation and resilience to carve a unique niche in the specialty chemical sector. Born from the merger of two established companies, Geon Company and M.A. Hanna Company, Avient initially specialized in polymer materials, soon evolving into a powerhouse offering an extensive range of sustainable solutions for complex material challenges faced by industries globally. The company's backbone is its diversified product line, which comes imbued in high-performance polymers, custom formulations, and cutting-edge services. By engineering these solutions, Avient strives to ensure its offerings are embedded with features that reduce environmental footprints, enhance product longevity, and deliver exceptional end-user value, all of which resonate well with the market's growing demand for sustainable innovation. At the heart of Avient's business model is its tailored approach to meeting industry-specific needs, spanning sectors like healthcare, automotive, packaging, and consumer goods. The corporation thrives on its ability to co-develop solutions with customers, a process that not only bolsters strong client relationships but also provides insight into emerging industry trends. This collaborative model aids Avient in creating high-value products that command a premium due to their unique capabilities, whether it's adding functionality to packaging, improving the aesthetics of consumer goods, or ensuring the safety and performance of medical devices. Its revenue flows robustly from these specializations as Avient's offerings are sought after for their capacity to solve critical challenges within its clients' operations while adhering to stringent regulatory frameworks.

View AVNT Analysis

AVNT Intrinsic Value

Undervaluation 24%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Avient Corp
NYSE:AVNT

Peer Comparison

Market Distribution

Other Profitability Ratios

Avient Corp
Glance View

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Avient Corp NYSE:AVNT