ADVANTAGE SOLUTIONS INC (ADV) Stock Fundamental Analysis
NASDAQ:ADV - Nasdaq - US00791N1028 - Common Stock - Currency: USD
ADV gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 97 industry peers in the Media industry. ADV has a bad profitability rating. Also its financial health evaluation is rather negative. ADV has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ADV has reported negative net income.
In the past year ADV had a positive cash flow from operations.
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
ADV has a Return On Assets of -10.53%. This is in the lower half of the industry: ADV underperforms 67.01% of its industry peers.
ADV's Return On Equity of -43.67% is on the low side compared to the rest of the industry. ADV is outperformed by 69.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.34%, ADV is doing worse than 63.92% of the companies in the same industry.
ADV had an Average Return On Invested Capital over the past 3 years of 2.32%. This is below the industry average of 7.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.53% | ||
| ROE | -43.67% | ||
| ROIC | 0.34% |
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 worse Operating Margin (0.32%) than 63.92% of its industry peers.
In the last couple of years the Operating Margin of ADV has declined.
ADV's Gross Margin of 14.22% is on the low side compared to the rest of the industry. ADV is outperformed by 80.41% of its industry peers.
ADV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.32% | ||
| 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
ADV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ADV has been reduced compared to 1 year ago.
Compared to 5 years ago, ADV has less shares outstanding
ADV has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.25, we must say that ADV is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ADV (0.25) is worse than 68.04% of its industry peers.
The Debt to FCF ratio of ADV is 45.02, which is on the high side as it means it would take ADV, 45.02 years of fcf income to pay off all of its debts.
ADV has a Debt to FCF ratio (45.02) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.25 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 2.25, ADV is doing worse than 70.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.25 | ||
| Debt/FCF | 45.02 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.05
WACC6.26%
2.3 Liquidity
A Current Ratio of 1.98 indicates that ADV should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.98, ADV is in the better half of the industry, outperforming 64.95% of the companies in the same industry.
ADV has a Quick Ratio of 1.98. 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 1.98 is fine compared to the rest of the industry. ADV outperforms 64.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
ADV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -137.04%.
Looking at the last year, ADV shows a very negative growth in Revenue. The Revenue has decreased by -15.59% in the last year.
ADV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.18% yearly.
EPS 1Y (TTM)-137.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-35.71%
Revenue 1Y (TTM)-15.59%
Revenue growth 3Y-0.33%
Revenue growth 5Y-1.18%
Sales Q2Q%-17.36%
3.2 Future
ADV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 93.56% yearly.
Based on estimates for the next years, ADV will show a small growth in Revenue. The Revenue will grow by 3.19% on average per year.
EPS Next Y519.15%
EPS Next 2Y157.8%
EPS Next 3Y93.56%
EPS Next 5YN/A
Revenue Next Year-0.06%
Revenue Next 2Y-0.03%
Revenue Next 3Y3.19%
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.
Based on the Price/Forward Earnings ratio of 3.17, the valuation of ADV can be described as very cheap.
98.97% 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 (21.38), we can say ADV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADV is on the same level as its industry peers.
ADV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ADV is cheaper than 72.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.32 | ||
| EV/EBITDA | 8.85 |
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.
A more expensive valuation may be justified as ADV's earnings are expected to grow with 93.56% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y157.8%
EPS Next 3Y93.56%
5. Dividend
5.1 Amount
No dividends for ADV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.33
+0.03 (+2.31%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners22.02%
Inst Owner Change0.03%
Ins Owners2.17%
Ins Owner Change0.98%
Market Cap427.48M
Analysts74.29
Price Target4.08 (206.77%)
Short Float %10.18%
Short Ratio14.06
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)-58.37%
Min EPS beat(2)-91%
Max EPS beat(2)-25.74%
EPS beat(4)0
Avg EPS beat(4)-128.85%
Min EPS beat(4)-360.55%
Max EPS beat(4)-25.74%
EPS beat(8)2
Avg EPS beat(8)-88.41%
EPS beat(12)5
Avg EPS beat(12)-54.47%
EPS beat(16)7
Avg EPS beat(16)-39.38%
Revenue beat(2)2
Avg Revenue beat(2)5.76%
Min Revenue beat(2)2.32%
Max Revenue beat(2)9.2%
Revenue beat(4)4
Avg Revenue beat(4)6.66%
Min Revenue beat(4)0.32%
Max Revenue beat(4)14.81%
Revenue beat(8)5
Avg Revenue beat(8)2.5%
Revenue beat(12)7
Avg Revenue beat(12)1.79%
Revenue beat(16)10
Avg Revenue beat(16)2.11%
PT rev (1m)-14.29%
PT rev (3m)-14.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)-10.75%
EPS NY rev (3m)-9.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.23%
Revenue NY rev (1m)-2.03%
Revenue NY rev (3m)-2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.17 | ||
| P/S | 0.12 | ||
| P/FCF | 11.32 | ||
| P/OCF | 4.59 | ||
| P/B | 0.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.85 |
EPS(TTM)-0.1
EYN/A
EPS(NY)0.42
Fwd EY31.52%
FCF(TTM)0.12
FCFY8.83%
OCF(TTM)0.29
OCFY21.78%
SpS11.1
BVpS2.33
TBVpS-3.3
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.53% | ||
| ROE | -43.67% | ||
| ROCE | 0.44% | ||
| ROIC | 0.34% | ||
| ROICexc | 0.37% | ||
| ROICexgc | 1.44% | ||
| OM | 0.32% | ||
| PM (TTM) | N/A | ||
| GM | 14.22% | ||
| FCFM | 1.06% |
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 Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.25 | ||
| Debt/FCF | 45.02 | ||
| Debt/EBITDA | 7.81 | ||
| Cap/Depr | 27.05% | ||
| Cap/Sales | 1.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 0.25 |
F-Score6
WACC6.26%
ROIC/WACC0.05
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)-137.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-35.71%
EPS Next Y519.15%
EPS Next 2Y157.8%
EPS Next 3Y93.56%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.59%
Revenue growth 3Y-0.33%
Revenue growth 5Y-1.18%
Sales Q2Q%-17.36%
Revenue Next Year-0.06%
Revenue Next 2Y-0.03%
Revenue Next 3Y3.19%
Revenue Next 5YN/A
EBIT growth 1Y-84.55%
EBIT growth 3Y-33.74%
EBIT growth 5Y-20.72%
EBIT Next Year117.07%
EBIT Next 3Y32.67%
EBIT Next 5YN/A
FCF growth 1Y-79.8%
FCF growth 3Y-26.43%
FCF growth 5Y-17.52%
OCF growth 1Y-59.26%
OCF growth 3Y-9.6%
OCF growth 5Y-9.26%