ASIX - AdvanSix Is Cheap Even In The Worst-Case Scenario

• AdvanSix managed to grow by ~225% over the past year due to the sharp increase in selling prices and volumes, which led to an astronomical increase in revenue.
• In addition to revenue, the company increased its margins and reduced its debt burden, getting the maximum from the favorable cycle turn.
• I've built a DCF model in 3 scenarios to derive the intrinsic value of AdvanSix based on its management's guidance and the end markets' prospects.
• Even in the worst-case scenario, the stock turned out to be undervalued (by 12.25%) with declining margins amid falling U.S. demand.
• I think it's just a matter of time before the all-time highs of $46-47 are beaten. Therefore, bearing in mind all the catalysts and the upcoming 3Q report, I recommend buying ASIX at its current price levels.

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