AVANOS MEDICAL INC (AVNS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVNS - US05350V1061 - Common Stock
11.23 USD
-0.07 (-0.62%)
11.23 USD
0 (0%)
Taking everything into account, AVNS scores 4 out of 10 in our fundamental rating. AVNS was compared to 186 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of AVNS get a neutral evaluation. Nothing too spectacular is happening here. AVNS 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 AVNS was profitable.
AVNS had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AVNS reported negative net income in multiple years.
AVNS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AVNS has a worse Return On Assets (-43.92%) than 63.44% of its industry peers.
AVNS has a Return On Equity (-60.27%) which is comparable to the rest of the industry.
AVNS has a Return On Invested Capital of 2.68%. This is in the better half of the industry: AVNS outperforms 69.35% of its industry peers.
AVNS had an Average Return On Invested Capital over the past 3 years of 2.58%. This is significantly below the industry average of 8.84%.
The 3 year average ROIC (2.58%) for AVNS is below the current ROIC(2.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -43.92% | ||
| ROE | -60.27% | ||
| ROIC | 2.68% |
ROA(3y)-11.6%
ROA(5y)-7.22%
ROE(3y)-16.14%
ROE(5y)-10.03%
ROIC(3y)2.58%
ROIC(5y)N/A
1.3 Margins
AVNS has a better Operating Margin (4.46%) than 69.35% of its industry peers.
AVNS's Operating Margin has improved in the last couple of years.
The Gross Margin of AVNS (52.28%) is comparable to the rest of the industry.
AVNS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.46% | ||
| PM (TTM) | N/A | ||
| GM | 52.28% |
OM growth 3Y42.57%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.25%
GM growth 5Y-0.78%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVNS is destroying value.
AVNS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AVNS has less shares outstanding
AVNS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that AVNS is in the distress zone and has some risk of bankruptcy.
AVNS has a Altman-Z score (1.04) which is in line with its industry peers.
AVNS has a debt to FCF ratio of 1.38. This is a very positive value and a sign of high solvency as it would only need 1.38 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.38, AVNS belongs to the best of the industry, outperforming 89.78% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that AVNS is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.12, AVNS is doing good in the industry, outperforming 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.26
WACC10.16%
2.3 Liquidity
A Current Ratio of 2.38 indicates that AVNS has no problem at all paying its short term obligations.
AVNS has a Current ratio (2.38) which is in line with its industry peers.
AVNS has a Quick Ratio of 1.36. This is a normal value and indicates that AVNS is financially healthy and should not expect problems in meeting its short term obligations.
AVNS has a Quick ratio of 1.36. This is in the lower half of the industry: AVNS underperforms 61.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The earnings per share for AVNS have decreased by -7.76% in the last year.
The Earnings Per Share has been growing slightly by 3.32% on average over the past years.
The Revenue has been growing slightly by 2.70% in the past year.
Measured over the past years, AVNS shows a decrease in Revenue. The Revenue has been decreasing by -0.28% on average per year.
EPS 1Y (TTM)-7.76%
EPS 3Y3.09%
EPS 5Y3.32%
EPS Q2Q%-38.89%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y-2.61%
Revenue growth 5Y-0.28%
Sales Q2Q%4.34%
3.2 Future
The Earnings Per Share is expected to grow by 5.00% on average over the next years.
Based on estimates for the next years, AVNS will show a small growth in Revenue. The Revenue will grow by 1.56% on average per year.
EPS Next Y-27.14%
EPS Next 2Y-12.3%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue Next Year1.39%
Revenue Next 2Y1.77%
Revenue Next 3Y1.56%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 10.50, the valuation of AVNS can be described as very reasonable.
AVNS's Price/Earnings ratio is rather cheap when compared to the industry. AVNS is cheaper than 93.55% of the companies in the same industry.
When comparing the Price/Earnings ratio of AVNS to the average of the S&P500 Index (26.51), we can say AVNS is valued rather cheaply.
AVNS is valuated reasonably with a Price/Forward Earnings ratio of 11.59.
AVNS's Price/Forward Earnings ratio is rather cheap when compared to the industry. AVNS is cheaper than 93.55% of the companies in the same industry.
AVNS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 11.59 |
4.2 Price Multiples
95.16% of the companies in the same industry are more expensive than AVNS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVNS indicates a rather cheap valuation: AVNS is cheaper than 98.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.98 | ||
| EV/EBITDA | 7.72 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.16
EPS Next 2Y-12.3%
EPS Next 3Y5%
5. Dividend
5.1 Amount
AVNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
11.23
-0.07 (-0.62%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.79%
Inst Owner Change0.57%
Ins Owners2.95%
Ins Owner Change0.25%
Market Cap521.30M
Revenue(TTM)699.90M
Net Income(TTM)-468.90M
Analysts43.33
Price Target17.34 (54.41%)
Short Float %6.19%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2
Avg EPS beat(2)45.42%
Min EPS beat(2)11.11%
Max EPS beat(2)79.74%
EPS beat(4)4
Avg EPS beat(4)33.85%
Min EPS beat(4)2.94%
Max EPS beat(4)79.74%
EPS beat(8)4
Avg EPS beat(8)13.31%
EPS beat(12)7
Avg EPS beat(12)15.99%
EPS beat(16)10
Avg EPS beat(16)13.31%
Revenue beat(2)2
Avg Revenue beat(2)4.82%
Min Revenue beat(2)3.67%
Max Revenue beat(2)5.97%
Revenue beat(4)3
Avg Revenue beat(4)2.62%
Min Revenue beat(4)-0.66%
Max Revenue beat(4)5.97%
Revenue beat(8)3
Avg Revenue beat(8)0.51%
Revenue beat(12)3
Avg Revenue beat(12)-1.11%
Revenue beat(16)3
Avg Revenue beat(16)-4.54%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)13.07%
EPS NY rev (3m)13.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.37%
Revenue NY rev (1m)2.81%
Revenue NY rev (3m)2.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 11.59 | ||
| P/S | 0.74 | ||
| P/FCF | 6.98 | ||
| P/OCF | 5 | ||
| P/B | 0.67 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 7.72 |
EPS(TTM)1.07
EY9.53%
EPS(NY)0.97
Fwd EY8.63%
FCF(TTM)1.61
FCFY14.33%
OCF(TTM)2.24
OCFY19.99%
SpS15.08
BVpS16.76
TBVpS5.64
PEG (NY)N/A
PEG (5Y)3.16
Graham Number20.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -43.92% | ||
| ROE | -60.27% | ||
| ROCE | 3.39% | ||
| ROIC | 2.68% | ||
| ROICexc | 2.9% | ||
| ROICexgc | 7.4% | ||
| OM | 4.46% | ||
| PM (TTM) | N/A | ||
| GM | 52.28% | ||
| FCFM | 10.67% |
ROA(3y)-11.6%
ROA(5y)-7.22%
ROE(3y)-16.14%
ROE(5y)-10.03%
ROIC(3y)2.58%
ROIC(5y)N/A
ROICexc(3y)2.84%
ROICexc(5y)N/A
ROICexgc(3y)9.32%
ROICexgc(5y)N/A
ROCE(3y)3.26%
ROCE(5y)N/A
ROICexgc growth 3Y51.11%
ROICexgc growth 5YN/A
ROICexc growth 3Y59.93%
ROICexc growth 5YN/A
OM growth 3Y42.57%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.25%
GM growth 5Y-0.78%
F-Score6
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.38 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 72.84% | ||
| Cap/Sales | 4.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 145.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 1.04 |
F-Score6
WACC10.16%
ROIC/WACC0.26
Cap/Depr(3y)39.4%
Cap/Depr(5y)44.02%
Cap/Sales(3y)2.53%
Cap/Sales(5y)2.65%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-7.76%
EPS 3Y3.09%
EPS 5Y3.32%
EPS Q2Q%-38.89%
EPS Next Y-27.14%
EPS Next 2Y-12.3%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue 1Y (TTM)2.7%
Revenue growth 3Y-2.61%
Revenue growth 5Y-0.28%
Sales Q2Q%4.34%
Revenue Next Year1.39%
Revenue Next 2Y1.77%
Revenue Next 3Y1.56%
Revenue Next 5YN/A
EBIT growth 1Y-18.96%
EBIT growth 3Y38.85%
EBIT growth 5YN/A
EBIT Next Year51.47%
EBIT Next 3Y22.03%
EBIT Next 5YN/A
FCF growth 1Y104.1%
FCF growth 3Y7.73%
FCF growth 5YN/A
OCF growth 1Y95.13%
OCF growth 3Y4.87%
OCF growth 5YN/A
AVANOS MEDICAL INC / AVNS FAQ
Can you provide the ChartMill fundamental rating for AVANOS MEDICAL INC?
ChartMill assigns a fundamental rating of 4 / 10 to AVNS.
What is the valuation status for AVNS stock?
ChartMill assigns a valuation rating of 6 / 10 to AVANOS MEDICAL INC (AVNS). This can be considered as Fairly Valued.
Can you provide the profitability details for AVANOS MEDICAL INC?
AVANOS MEDICAL INC (AVNS) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for AVNS stock?
The Earnings per Share (EPS) of AVANOS MEDICAL INC (AVNS) is expected to decline by -27.14% in the next year.