ADVANTAGE SOLUTIONS INC (ADV) Stock Fundamental Analysis
NASDAQ:ADV - Nasdaq - US00791N1028 - Common Stock - Currency: USD
Taking everything into account, ADV scores 3 out of 10 in our fundamental rating. ADV was compared to 97 industry peers in the Media industry. Both the profitability and financial health of ADV have multiple concerns. ADV has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ADV had negative earnings in the past year.
ADV had a positive operating cash flow in the past year.
ADV had negative earnings in 4 of the past 5 years.
ADV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -12.54%, ADV is not doing good in the industry: 72.16% of the companies in the same industry are doing better.
With a Return On Equity value of -54.31%, ADV is not doing good in the industry: 72.16% of the companies in the same industry are doing better.
The Return On Invested Capital of ADV (0.76%) is comparable to the rest of the industry.
ADV had an Average Return On Invested Capital over the past 3 years of 2.32%. This is significantly below the industry average of 7.56%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.54% | ||
| ROE | -54.31% | ||
| ROIC | 0.76% |
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
With a Operating Margin value of 0.70%, ADV is not doing good in the industry: 60.82% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of ADV has declined.
ADV has a worse Gross Margin (14.09%) than 83.51% of its industry peers.
In the last couple of years the Gross Margin of ADV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.7% | ||
| PM (TTM) | N/A | ||
| GM | 14.09% |
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
ADV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ADV has less shares outstanding than it did 1 year ago.
ADV has less shares outstanding than it did 5 years ago.
ADV has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.23, we must say that ADV is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.23, ADV is doing worse than 64.95% of the companies in the same industry.
ADV has a debt to FCF ratio of 239.31. This is a negative value and a sign of low solvency as ADV would need 239.31 years to pay back of all of its debts.
ADV's Debt to FCF ratio of 239.31 is in line compared to the rest of the industry. ADV outperforms 49.48% of its industry peers.
ADV has a Debt/Equity ratio of 2.39. This is a high value indicating a heavy dependency on external financing.
ADV has a Debt to Equity ratio of 2.39. This is in the lower half of the industry: ADV underperforms 75.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.39 | ||
| Debt/FCF | 239.31 | ||
| Altman-Z | 0.23 |
ROIC/WACC0.12
WACC6.25%
2.3 Liquidity
ADV has a Current Ratio of 1.99. 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 Current ratio of 1.99 is fine compared to the rest of the industry. ADV outperforms 69.07% of its industry peers.
ADV has a Quick Ratio of 1.99. This is a normal value and indicates that ADV is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.99, ADV is in the better half of the industry, outperforming 70.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
ADV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -172.22%.
ADV shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.44%.
ADV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.18% yearly.
EPS 1Y (TTM)-172.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-320%
Revenue 1Y (TTM)-13.44%
Revenue growth 3Y-0.33%
Revenue growth 5Y-1.18%
Sales Q2Q%-6.51%
3.2 Future
ADV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 86.09% yearly.
The Revenue is expected to grow by 1.89% on average over the next years.
EPS Next Y403%
EPS Next 2Y139.52%
EPS Next 3Y86.09%
EPS Next 5YN/A
Revenue Next Year-2.42%
Revenue Next 2Y-1.35%
Revenue Next 3Y1.89%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ADV reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 3.53, the valuation of ADV can be described as very cheap.
Based on the Price/Forward Earnings ratio, ADV is valued cheaper than 96.91% of the companies in the same industry.
ADV's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.53 |
4.2 Price Multiples
61.86% of the companies in the same industry are more expensive than ADV, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as ADV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.03 | ||
| EV/EBITDA | 8.7 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ADV's earnings are expected to grow with 86.09% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y139.52%
EPS Next 3Y86.09%
5. Dividend
5.1 Amount
No dividends for ADV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.32
+0.01 (+0.76%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners21.67%
Inst Owner Change-0.16%
Ins Owners2.2%
Ins Owner Change1.84%
Market Cap428.09M
Analysts74.29
Price Target2.89 (118.94%)
Short Float %9.15%
Short Ratio14.22
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)-153.63%
Min EPS beat(2)-281.52%
Max EPS beat(2)-25.74%
EPS beat(4)0
Avg EPS beat(4)-189.7%
Min EPS beat(4)-360.55%
Max EPS beat(4)-25.74%
EPS beat(8)2
Avg EPS beat(8)-104.64%
EPS beat(12)4
Avg EPS beat(12)-80.52%
EPS beat(16)6
Avg EPS beat(16)-58.91%
Revenue beat(2)2
Avg Revenue beat(2)3.7%
Min Revenue beat(2)2.32%
Max Revenue beat(2)5.07%
Revenue beat(4)4
Avg Revenue beat(4)7.85%
Min Revenue beat(4)2.32%
Max Revenue beat(4)14.81%
Revenue beat(8)5
Avg Revenue beat(8)2.94%
Revenue beat(12)7
Avg Revenue beat(12)2.02%
Revenue beat(16)11
Avg Revenue beat(16)2.49%
PT rev (1m)-29.17%
PT rev (3m)-29.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)21.05%
EPS NY rev (1m)-16.67%
EPS NY rev (3m)-27.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.53 | ||
| P/S | 0.12 | ||
| P/FCF | 61.03 | ||
| P/OCF | 6.98 | ||
| P/B | 0.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.7 |
EPS(TTM)-0.26
EYN/A
EPS(NY)0.37
Fwd EY28.31%
FCF(TTM)0.02
FCFY1.64%
OCF(TTM)0.19
OCFY14.32%
SpS10.87
BVpS2.14
TBVpS-3.3
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.54% | ||
| ROE | -54.31% | ||
| ROCE | 0.96% | ||
| ROIC | 0.76% | ||
| ROICexc | 0.79% | ||
| ROICexgc | 2.84% | ||
| OM | 0.7% | ||
| PM (TTM) | N/A | ||
| GM | 14.09% | ||
| FCFM | 0.2% |
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%
ROICexcg growth 3Y-36.7%
ROICexcg 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-Score6
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.39 | ||
| Debt/FCF | 239.31 | ||
| Debt/EBITDA | 7.3 | ||
| Cap/Depr | 26.69% | ||
| Cap/Sales | 1.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 26.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 0.23 |
F-Score6
WACC6.25%
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)-172.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-320%
EPS Next Y403%
EPS Next 2Y139.52%
EPS Next 3Y86.09%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.44%
Revenue growth 3Y-0.33%
Revenue growth 5Y-1.18%
Sales Q2Q%-6.51%
Revenue Next Year-2.42%
Revenue Next 2Y-1.35%
Revenue Next 3Y1.89%
Revenue Next 5YN/A
EBIT growth 1Y-54.14%
EBIT growth 3Y-33.74%
EBIT growth 5Y-20.72%
EBIT Next Year109.3%
EBIT Next 3Y29.57%
EBIT Next 5YN/A
FCF growth 1Y-95.35%
FCF growth 3Y-26.43%
FCF growth 5Y-17.52%
OCF growth 1Y-67.46%
OCF growth 3Y-9.6%
OCF growth 5Y-9.26%