ADVANTAGE SOLUTIONS INC (ADV) Stock Fundamental Analysis
USA - NASDAQ:ADV - US00791N1028 - Common Stock
1.2 USD
-0.1 (-7.69%)
1.2 USD
0 (0%)
Taking everything into account, ADV scores 3 out of 10 in our fundamental rating. ADV was compared to 95 industry peers in the Media industry. ADV has a bad profitability rating. Also its financial health evaluation is rather negative. ADV has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ADV had positive earnings in the past year.
ADV had a negative operating cash flow in the past year.
In the past 5 years ADV reported 4 times negative net income.
In the past 5 years ADV always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -10.15%, ADV is doing worse than 65.26% of the companies in the same industry.
ADV has a Return On Equity of -44.97%. This is in the lower half of the industry: ADV underperforms 62.11% of its industry peers.
With a Return On Invested Capital value of 0.75%, ADV perfoms like the industry average, outperforming 44.21% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ADV is significantly below the industry average of 8.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.15% | ||
| ROE | -44.97% | ||
| ROIC | 0.75% |
ROA(3y)-14.86%
ROA(5y)-9.29%
ROE(3y)-57.41%
ROE(5y)-35.33%
ROIC(3y)2.32%
ROIC(5y)2.29%
1.3 Margins
ADV has a Operating Margin of 0.69%. This is in the lower half of the industry: ADV underperforms 61.05% of its industry peers.
In the last couple of years the Operating Margin of ADV has declined.
The Gross Margin of ADV (14.22%) is worse than 81.05% of its industry peers.
ADV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.69% | ||
| PM (TTM) | N/A | ||
| GM | 14.22% |
OM growth 3Y-33.51%
OM growth 5Y-19.77%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.06%
GM growth 5Y-2.83%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADV is destroying value.
Compared to 1 year ago, ADV has less shares outstanding
Compared to 5 years ago, ADV has less shares outstanding
The debt/assets ratio for ADV is higher compared to a year ago.
2.2 Solvency
ADV has an Altman-Z score of 0.21. This is a bad value and indicates that ADV is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.21, ADV is not doing good in the industry: 67.37% of the companies in the same industry are doing better.
A Debt/Equity ratio of 2.43 is on the high side and indicates that ADV has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.43, ADV is doing worse than 72.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.21 |
ROIC/WACC0.12
WACC6.06%
2.3 Liquidity
ADV has a Current Ratio of 1.96. This is a normal value and indicates that ADV is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ADV (1.96) is better than 77.89% of its industry peers.
ADV has a Quick Ratio of 1.96. This is a normal value and indicates that ADV is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.96, ADV is doing good in the industry, outperforming 77.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
ADV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 240.00%, which is quite impressive.
ADV shows a decrease in Revenue. In the last year, the revenue decreased by -8.56%.
Measured over the past years, ADV shows a decrease in Revenue. The Revenue has been decreasing by -1.18% on average per year.
EPS 1Y (TTM)240%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1000%
Revenue 1Y (TTM)-8.56%
Revenue growth 3Y-0.33%
Revenue growth 5Y-1.18%
Sales Q2Q%-2.58%
3.2 Future
Based on estimates for the next years, ADV will show a very strong growth in Earnings Per Share. The EPS will grow by 83.12% on average per year.
ADV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.17% yearly.
EPS Next Y514.1%
EPS Next 2Y139.52%
EPS Next 3Y83.12%
EPS Next 5YN/A
Revenue Next Year2.56%
Revenue Next 2Y1.62%
Revenue Next 3Y1.44%
Revenue Next 5Y1.17%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
ADV is valuated rather expensively with a Price/Earnings ratio of 17.14.
Compared to the rest of the industry, the Price/Earnings ratio of ADV indicates a somewhat cheap valuation: ADV is cheaper than 67.37% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ADV to the average of the S&P500 Index (25.91), we can say ADV is valued slightly cheaper.
With a Price/Forward Earnings ratio of 3.21, the valuation of ADV can be described as very cheap.
ADV's Price/Forward Earnings ratio is rather cheap when compared to the industry. ADV is cheaper than 94.74% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ADV to the average of the S&P500 Index (34.57), we can say ADV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.14 | ||
| Fwd PE | 3.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ADV is valued a bit cheaper than 65.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.59 |
4.3 Compensation for Growth
ADV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ADV's earnings are expected to grow with 83.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y139.52%
EPS Next 3Y83.12%
5. Dividend
5.1 Amount
No dividends for ADV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.2
-0.1 (-7.69%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners21.24%
Inst Owner Change0.65%
Ins Owners2.22%
Ins Owner Change0.77%
Market Cap391.14M
Revenue(TTM)3.57B
Net Income(TTM)-307.39M
Analysts74.29
Price Target2.89 (140.83%)
Short Float %8.04%
Short Ratio12.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-199.37%
Min EPS beat(2)-281.52%
Max EPS beat(2)-117.22%
EPS beat(4)0
Avg EPS beat(4)-128.87%
Min EPS beat(4)-281.52%
Max EPS beat(4)-25.74%
EPS beat(8)1
Avg EPS beat(8)-120.41%
EPS beat(12)4
Avg EPS beat(12)-90%
EPS beat(16)6
Avg EPS beat(16)-65.6%
Revenue beat(2)2
Avg Revenue beat(2)7.11%
Min Revenue beat(2)5.07%
Max Revenue beat(2)9.15%
Revenue beat(4)4
Avg Revenue beat(4)6.44%
Min Revenue beat(4)2.32%
Max Revenue beat(4)9.2%
Revenue beat(8)6
Avg Revenue beat(8)4.28%
Revenue beat(12)8
Avg Revenue beat(12)2.87%
Revenue beat(16)11
Avg Revenue beat(16)2.73%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)62.07%
EPS NY rev (1m)0%
EPS NY rev (3m)36.67%
Revenue NQ rev (1m)-1.09%
Revenue NQ rev (3m)6.5%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)5.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.14 | ||
| Fwd PE | 3.21 | ||
| P/S | 0.11 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.59 |
EPS(TTM)0.07
EY5.83%
EPS(NY)0.37
Fwd EY31.14%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)-0.02
OCFYN/A
SpS10.82
BVpS2.1
TBVpS-3.19
PEG (NY)0.03
PEG (5Y)N/A
Graham Number1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.15% | ||
| ROE | -44.97% | ||
| ROCE | 0.95% | ||
| ROIC | 0.75% | ||
| ROICexc | 0.78% | ||
| ROICexgc | 2.62% | ||
| OM | 0.69% | ||
| PM (TTM) | N/A | ||
| GM | 14.22% | ||
| FCFM | N/A |
ROA(3y)-14.86%
ROA(5y)-9.29%
ROE(3y)-57.41%
ROE(5y)-35.33%
ROIC(3y)2.32%
ROIC(5y)2.29%
ROICexc(3y)2.44%
ROICexc(5y)2.39%
ROICexgc(3y)10.77%
ROICexgc(5y)15.83%
ROCE(3y)2.94%
ROCE(5y)2.9%
ROICexgc growth 3Y-36.7%
ROICexgc growth 5Y-21.71%
ROICexc growth 3Y-15.6%
ROICexc growth 5Y-7.39%
OM growth 3Y-33.51%
OM growth 5Y-19.77%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.06%
GM growth 5Y-2.83%
F-Score4
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.27 | ||
| Cap/Depr | 23.24% | ||
| Cap/Sales | 1.35% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z | 0.21 |
F-Score4
WACC6.06%
ROIC/WACC0.12
Cap/Depr(3y)21.44%
Cap/Depr(5y)18.06%
Cap/Sales(3y)1.21%
Cap/Sales(5y)1.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)240%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1000%
EPS Next Y514.1%
EPS Next 2Y139.52%
EPS Next 3Y83.12%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.56%
Revenue growth 3Y-0.33%
Revenue growth 5Y-1.18%
Sales Q2Q%-2.58%
Revenue Next Year2.56%
Revenue Next 2Y1.62%
Revenue Next 3Y1.44%
Revenue Next 5Y1.17%
EBIT growth 1Y-38.31%
EBIT growth 3Y-33.74%
EBIT growth 5Y-20.72%
EBIT Next Year108.27%
EBIT Next 3Y28.06%
EBIT Next 5Y17.21%
FCF growth 1Y-133.13%
FCF growth 3Y-26.43%
FCF growth 5Y-17.52%
OCF growth 1Y-102.58%
OCF growth 3Y-9.6%
OCF growth 5Y-9.26%
ADVANTAGE SOLUTIONS INC / ADV FAQ
What is the fundamental rating for ADV stock?
ChartMill assigns a fundamental rating of 3 / 10 to ADV.
Can you provide the valuation status for ADVANTAGE SOLUTIONS INC?
ChartMill assigns a valuation rating of 6 / 10 to ADVANTAGE SOLUTIONS INC (ADV). This can be considered as Fairly Valued.
How profitable is ADVANTAGE SOLUTIONS INC (ADV) stock?
ADVANTAGE SOLUTIONS INC (ADV) has a profitability rating of 1 / 10.
What is the financial health of ADVANTAGE SOLUTIONS INC (ADV) stock?
The financial health rating of ADVANTAGE SOLUTIONS INC (ADV) is 3 / 10.
What is the expected EPS growth for ADVANTAGE SOLUTIONS INC (ADV) stock?
The Earnings per Share (EPS) of ADVANTAGE SOLUTIONS INC (ADV) is expected to grow by 514.1% in the next year.