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ADVANTAGE SOLUTIONS INC (ADV) Stock Fundamental Analysis

NASDAQ:ADV - Nasdaq - US00791N1028 - Common Stock

2.61  +0.09 (+3.57%)

After market: 2.61 0 (0%)

Fundamental Rating

2

Taking everything into account, ADV scores 2 out of 10 in our fundamental rating. ADV was compared to 92 industry peers in the Media industry. ADV may be in some trouble as it scores bad on both profitability and health. ADV has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

ADV had negative earnings in the past year.
In the past year ADV had a positive cash flow from operations.
In the past 5 years ADV reported 4 times negative net income.
ADV had a positive operating cash flow in each of the past 5 years.
ADV Yearly Net Income VS EBIT VS OCF VS FCFADV Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 0 -500M -1B

1.2 Ratios

Looking at the Return On Assets, with a value of -3.88%, ADV is in line with its industry, outperforming 40.23% of the companies in the same industry.
ADV's Return On Equity of -14.10% is on the low side compared to the rest of the industry. ADV is outperformed by 64.37% of its industry peers.
The Return On Invested Capital of ADV (0.47%) is worse than 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ADV is below the industry average of 6.90%.
Industry RankSector Rank
ROA -3.88%
ROE -14.1%
ROIC 0.47%
ROA(3y)-11.04%
ROA(5y)-7.26%
ROE(3y)-42.12%
ROE(5y)-26.87%
ROIC(3y)2.76%
ROIC(5y)2.47%
ADV Yearly ROA, ROE, ROICADV Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 0 -20 -40 -60 -80 -100

1.3 Margins

The Operating Margin of ADV (0.46%) is worse than 71.26% of its industry peers.
In the last couple of years the Operating Margin of ADV has declined.
ADV's Gross Margin of 14.27% is on the low side compared to the rest of the industry. ADV is outperformed by 87.36% of its industry peers.
In the last couple of years the Gross Margin of ADV has declined.
Industry RankSector Rank
OM 0.46%
PM (TTM) N/A
GM 14.27%
OM growth 3Y-5.96%
OM growth 5Y-14.36%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.31%
GM growth 5Y-3.73%
ADV Yearly Profit, Operating, Gross MarginsADV Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 -20 -30

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADV is destroying value.
ADV has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ADV remains at a similar level compared to 5 years ago.
Compared to 1 year ago, ADV has a worse debt to assets ratio.
ADV Yearly Shares OutstandingADV Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 100M 200M 300M
ADV Yearly Total Debt VS Total AssetsADV Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

ADV has an Altman-Z score of 0.47. This is a bad value and indicates that ADV is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ADV (0.47) is worse than 67.82% of its industry peers.
ADV has a debt to FCF ratio of 22.44. This is a negative value and a sign of low solvency as ADV would need 22.44 years to pay back of all of its debts.
ADV has a Debt to FCF ratio of 22.44. This is comparable to the rest of the industry: ADV outperforms 42.53% of its industry peers.
A Debt/Equity ratio of 1.81 is on the high side and indicates that ADV has dependencies on debt financing.
With a Debt to Equity ratio value of 1.81, ADV is not doing good in the industry: 68.97% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 1.81
Debt/FCF 22.44
Altman-Z 0.47
ROIC/WACC0.08
WACC6.04%
ADV Yearly LT Debt VS Equity VS FCFADV Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.3 Liquidity

A Current Ratio of 1.90 indicates that ADV should not have too much problems paying its short term obligations.
ADV's Current ratio of 1.90 is fine compared to the rest of the industry. ADV outperforms 62.07% of its industry peers.
ADV has a Quick Ratio of 1.90. This is a normal value and indicates that ADV is financially healthy and should not expect problems in meeting its short term obligations.
ADV's Quick ratio of 1.90 is fine compared to the rest of the industry. ADV outperforms 62.07% of its industry peers.
Industry RankSector Rank
Current Ratio 1.9
Quick Ratio 1.9
ADV Yearly Current Assets VS Current LiabilitesADV Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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2

3. Growth

3.1 Past

ADV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -116.13%.
ADV shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.63%.
Measured over the past years, ADV shows a small growth in Revenue. The Revenue has been growing by 2.65% on average per year.
EPS 1Y (TTM)-116.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-83.33%
Revenue 1Y (TTM)-11.63%
Revenue growth 3Y10.21%
Revenue growth 5Y2.65%
Sales Q2Q%-14.3%

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 26.41% on average per year.
The Revenue is expected to decrease by -4.21% on average over the next years.
EPS Next Y23.44%
EPS Next 2Y31.18%
EPS Next 3Y26.41%
EPS Next 5YN/A
Revenue Next Year-19.69%
Revenue Next 2Y-9.49%
Revenue Next 3Y-4.21%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ADV Yearly Revenue VS EstimatesADV Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B
ADV Yearly EPS VS EstimatesADV Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6

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5

4. Valuation

4.1 Price/Earnings Ratio

ADV reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 5.62 indicates a rather cheap valuation of ADV.
Based on the Price/Forward Earnings ratio, ADV is valued cheaper than 94.25% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. ADV is valued rather cheaply when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 5.62
ADV Price Earnings VS Forward Price EarningsADV Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 -40

4.2 Price Multiples

ADV's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADV indicates a somewhat cheap valuation: ADV is cheaper than 73.56% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.04
EV/EBITDA 10.31
ADV Per share dataADV EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10

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 26.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y31.18%
EPS Next 3Y26.41%

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0

5. Dividend

5.1 Amount

No dividends for ADV!.
Industry RankSector Rank
Dividend Yield N/A

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ADVANTAGE SOLUTIONS INC

NASDAQ:ADV (1/21/2025, 8:00:00 PM)

After market: 2.61 0 (0%)

2.61

+0.09 (+3.57%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)N/A N/A
Inst Owners21.84%
Inst Owner Change0.08%
Ins Owners2.2%
Ins Owner Change-0.53%
Market Cap837.16M
Analysts74.29
Price Target4.76 (82.38%)
Short Float %9.49%
Short Ratio18.91
Dividend
Industry RankSector 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)-225.78%
Min EPS beat(2)-360.55%
Max EPS beat(2)-91%
EPS beat(4)1
Avg EPS beat(4)-121.43%
Min EPS beat(4)-360.55%
Max EPS beat(4)3.96%
EPS beat(8)3
Avg EPS beat(8)-82.51%
EPS beat(12)6
Avg EPS beat(12)-51.86%
EPS beat(16)7
Avg EPS beat(16)-38.81%
Revenue beat(2)2
Avg Revenue beat(2)12%
Min Revenue beat(2)9.2%
Max Revenue beat(2)14.81%
Revenue beat(4)3
Avg Revenue beat(4)4.72%
Min Revenue beat(4)-5.45%
Max Revenue beat(4)14.81%
Revenue beat(8)5
Avg Revenue beat(8)2.44%
Revenue beat(12)7
Avg Revenue beat(12)2.2%
Revenue beat(16)10
Avg Revenue beat(16)2.14%
PT rev (1m)0%
PT rev (3m)3.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-31.43%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-21.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.03%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 5.62
P/S 0.22
P/FCF 11.04
P/OCF 5.86
P/B 0.9
P/tB N/A
EV/EBITDA 10.31
EPS(TTM)-0.05
EYN/A
EPS(NY)0.46
Fwd EY17.8%
FCF(TTM)0.24
FCFY9.06%
OCF(TTM)0.45
OCFY17.05%
SpS11.7
BVpS2.91
TBVpS-3.42
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -3.88%
ROE -14.1%
ROCE 0.6%
ROIC 0.47%
ROICexc 0.51%
ROICexgc 2.08%
OM 0.46%
PM (TTM) N/A
GM 14.27%
FCFM 2.02%
ROA(3y)-11.04%
ROA(5y)-7.26%
ROE(3y)-42.12%
ROE(5y)-26.87%
ROIC(3y)2.76%
ROIC(5y)2.47%
ROICexc(3y)2.85%
ROICexc(5y)2.56%
ROICexgc(3y)18.68%
ROICexgc(5y)19.67%
ROCE(3y)3.49%
ROCE(5y)3.13%
ROICexcg growth 3Y-14.31%
ROICexcg growth 5Y-17.25%
ROICexc growth 3Y21.38%
ROICexc growth 5Y-1.9%
OM growth 3Y-5.96%
OM growth 5Y-14.36%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.31%
GM growth 5Y-3.73%
F-Score7
Asset Turnover1.11
Health
Industry RankSector Rank
Debt/Equity 1.81
Debt/FCF 22.44
Debt/EBITDA 7.52
Cap/Depr 32.28%
Cap/Sales 1.78%
Interest Coverage 250
Cash Conversion 63.58%
Profit Quality N/A
Current Ratio 1.9
Quick Ratio 1.9
Altman-Z 0.47
F-Score7
WACC6.04%
ROIC/WACC0.08
Cap/Depr(3y)16.99%
Cap/Depr(5y)17.29%
Cap/Sales(3y)0.99%
Cap/Sales(5y)1.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-116.13%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-83.33%
EPS Next Y23.44%
EPS Next 2Y31.18%
EPS Next 3Y26.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.63%
Revenue growth 3Y10.21%
Revenue growth 5Y2.65%
Sales Q2Q%-14.3%
Revenue Next Year-19.69%
Revenue Next 2Y-9.49%
Revenue Next 3Y-4.21%
Revenue Next 5YN/A
EBIT growth 1Y-73.56%
EBIT growth 3Y3.64%
EBIT growth 5Y-12.09%
EBIT Next Year64.18%
EBIT Next 3Y21.41%
EBIT Next 5YN/A
FCF growth 1Y8.61%
FCF growth 3Y-15.09%
FCF growth 5Y19.5%
OCF growth 1Y33.53%
OCF growth 3Y-11.58%
OCF growth 5Y13.6%