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ADVANTAGE SOLUTIONS INC (ADV) Stock Fundamental Analysis

NASDAQ:ADV - Nasdaq - US00791N1028 - Common Stock - Currency: USD

2.45  -0.03 (-1.21%)

After market: 2.45 0 (0%)

Fundamental Rating

2

Overall ADV gets a fundamental rating of 2 out of 10. We evaluated ADV against 93 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 on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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1

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.
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

ADV's Return On Assets of -3.88% is in line compared to the rest of the industry. ADV outperforms 40.23% of its industry peers.
The Return On Equity of ADV (-14.10%) is worse than 64.37% of its industry peers.
The Return On Invested Capital of ADV (0.47%) is worse than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ADV is below the industry average of 7.01%.
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

ADV has a worse Operating Margin (0.46%) than 71.26% of its industry peers.
In the last couple of years the Operating Margin of ADV has declined.
With a Gross Margin value of 14.27%, ADV is not doing good in the industry: 88.51% of the companies in the same industry are doing better.
ADV's Gross Margin has declined in the last couple of years.
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.
Compared to 1 year ago, ADV has about the same amount of shares outstanding.
ADV has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for ADV is higher compared to a year ago.
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 0.46. 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 (0.46) is worse than 68.97% of its industry peers.
The Debt to FCF ratio of ADV is 22.44, which is on the high side as it means it would take ADV, 22.44 years of fcf income to pay off all of its debts.
ADV's Debt to FCF ratio of 22.44 is in line compared to the rest of the industry. ADV outperforms 42.53% of its industry peers.
ADV has a Debt/Equity ratio of 1.81. This is a high value indicating a heavy dependency on external financing.
ADV has a Debt to Equity ratio of 1.81. This is in the lower half of the industry: ADV underperforms 68.97% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.81
Debt/FCF 22.44
Altman-Z 0.46
ROIC/WACC0.06
WACC7.29%
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 has a Current ratio of 1.90. This is in the better half of the industry: ADV outperforms 60.92% of its industry peers.
A Quick Ratio of 1.90 indicates that ADV should not have too much problems paying its short term obligations.
The Quick ratio of ADV (1.90) is better than 60.92% 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%.
ADV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.65% yearly.
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

ADV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.41% yearly.
Based on estimates for the next years, ADV will show a decrease in Revenue. The Revenue will decrease by -4.21% on average per year.
EPS Next Y23.44%
EPS Next 2Y31.89%
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

The Price/Earnings Ratio is negative for ADV. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 5.22 indicates a rather cheap valuation of ADV.
96.55% of the companies in the same industry are more expensive than ADV, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of ADV to the average of the S&P500 Index (22.68), we can say ADV is valued rather cheaply.
Industry RankSector Rank
PE N/A
Fwd PE 5.22
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

The rest of the industry has a similar Enterprise Value to EBITDA ratio as ADV.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ADV indicates a somewhat cheap valuation: ADV is cheaper than 71.26% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 10.37
EV/EBITDA 10.25
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 2Y31.89%
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 (2/21/2025, 8:00:04 PM)

After market: 2.45 0 (0%)

2.45

-0.03 (-1.21%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)02-26 2025-02-26/amc
Inst Owners21.84%
Inst Owner Change-43.25%
Ins Owners2.2%
Ins Owner Change-0.56%
Market Cap785.84M
Analysts74.29
Price Target4.76 (94.29%)
Short Float %9.45%
Short Ratio23.14
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)4.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 5.22
P/S 0.21
P/FCF 10.37
P/OCF 5.51
P/B 0.84
P/tB N/A
EV/EBITDA 10.25
EPS(TTM)-0.05
EYN/A
EPS(NY)0.47
Fwd EY19.17%
FCF(TTM)0.24
FCFY9.65%
OCF(TTM)0.45
OCFY18.16%
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 0.46
F-Score7
WACC7.29%
ROIC/WACC0.06
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 2Y31.89%
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 Year62.6%
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%