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AVANOS MEDICAL INC (AVNS) Stock Fundamental Analysis

NYSE:AVNS - New York Stock Exchange, Inc. - US05350V1061 - Common Stock - Currency: USD

12.31  -0.22 (-1.76%)

Fundamental Rating

5

Overall AVNS gets a fundamental rating of 5 out of 10. We evaluated AVNS against 191 industry peers in the Health Care Equipment & Supplies industry. AVNS has only an average score on both its financial health and profitability. AVNS has a bad growth rate and is valued cheaply.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

AVNS had positive earnings in the past year.
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.
AVNS Yearly Net Income VS EBIT VS OCF VS FCFAVNS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -200M -400M

1.2 Ratios

Looking at the Return On Assets, with a value of -33.97%, AVNS is in line with its industry, outperforming 41.88% of the companies in the same industry.
Looking at the Return On Equity, with a value of -47.33%, AVNS is in line with its industry, outperforming 49.21% of the companies in the same industry.
The Return On Invested Capital of AVNS (3.57%) is better than 73.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AVNS is significantly below the industry average of 7.68%.
The last Return On Invested Capital (3.57%) for AVNS is above the 3 year average (2.58%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -33.97%
ROE -47.33%
ROIC 3.57%
ROA(3y)-11.6%
ROA(5y)-7.22%
ROE(3y)-16.14%
ROE(5y)-10.03%
ROIC(3y)2.58%
ROIC(5y)N/A
AVNS Yearly ROA, ROE, ROICAVNS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -10 -20 -30 -40

1.3 Margins

The Operating Margin of AVNS (6.50%) is better than 74.35% of its industry peers.
AVNS's Operating Margin has improved in the last couple of years.
AVNS has a Gross Margin of 55.44%. This is comparable to the rest of the industry: AVNS outperforms 48.69% of its industry peers.
In the last couple of years the Gross Margin of AVNS has remained more or less at the same level.
Industry RankSector Rank
OM 6.5%
PM (TTM) N/A
GM 55.44%
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%
AVNS Yearly Profit, Operating, Gross MarginsAVNS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVNS is destroying value.
Compared to 1 year ago, AVNS has less shares outstanding
Compared to 5 years ago, AVNS has less shares outstanding
Compared to 1 year ago, AVNS has a worse debt to assets ratio.
AVNS Yearly Shares OutstandingAVNS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M
AVNS Yearly Total Debt VS Total AssetsAVNS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

AVNS has an Altman-Z score of 1.16. This is a bad value and indicates that AVNS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.16, AVNS perfoms like the industry average, outperforming 54.45% of the companies in the same industry.
The Debt to FCF ratio of AVNS is 1.62, which is an excellent value as it means it would take AVNS, only 1.62 years of fcf income to pay off all of its debts.
AVNS's Debt to FCF ratio of 1.62 is amongst the best of the industry. AVNS outperforms 90.58% of its industry peers.
AVNS has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AVNS (0.15) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.15
Debt/FCF 1.62
Altman-Z 1.16
ROIC/WACC0.38
WACC9.29%
AVNS Yearly LT Debt VS Equity VS FCFAVNS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

2.3 Liquidity

AVNS has a Current Ratio of 2.37. This indicates that AVNS is financially healthy and has no problem in meeting its short term obligations.
AVNS's Current ratio of 2.37 is in line compared to the rest of the industry. AVNS outperforms 45.03% of its industry peers.
A Quick Ratio of 1.53 indicates that AVNS should not have too much problems paying its short term obligations.
AVNS has a Quick ratio (1.53) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.37
Quick Ratio 1.53
AVNS Yearly Current Assets VS Current LiabilitesAVNS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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3

3. Growth

3.1 Past

AVNS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.70%.
AVNS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.32% yearly.
Looking at the last year, AVNS shows a small growth in Revenue. The Revenue has grown by 2.15% in the last 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)-8.7%
EPS 3Y3.09%
EPS 5Y3.32%
EPS Q2Q%31.25%
Revenue 1Y (TTM)2.15%
Revenue growth 3Y-2.61%
Revenue growth 5Y-0.28%
Sales Q2Q%3.64%

3.2 Future

The Earnings Per Share is expected to grow by 5.00% on average over the next years.
The Revenue is expected to grow by 1.65% on average over the next years.
EPS Next Y-8.93%
EPS Next 2Y1.4%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue Next Year-1.74%
Revenue Next 2Y0.78%
Revenue Next 3Y1.65%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
AVNS Yearly Revenue VS EstimatesAVNS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
AVNS Yearly EPS VS EstimatesAVNS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3

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7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 9.77, the valuation of AVNS can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of AVNS indicates a rather cheap valuation: AVNS is cheaper than 95.29% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AVNS to the average of the S&P500 Index (28.92), we can say AVNS is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.73, the valuation of AVNS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AVNS is valued cheaper than 94.76% of the companies in the same industry.
AVNS is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.65, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 9.77
Fwd PE 10.73
AVNS Price Earnings VS Forward Price EarningsAVNS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVNS indicates a rather cheap valuation: AVNS is cheaper than 96.86% of the companies listed in the same industry.
AVNS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AVNS is cheaper than 98.95% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.83
EV/EBITDA 6.69
AVNS Per share dataAVNS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)2.94
EPS Next 2Y1.4%
EPS Next 3Y5%

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0

5. Dividend

5.1 Amount

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

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AVANOS MEDICAL INC

NYSE:AVNS (4/25/2025, 1:01:15 PM)

12.31

-0.22 (-1.76%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-26 2025-02-26/bmo
Earnings (Next)04-30 2025-04-30/bmo
Inst Owners96.82%
Inst Owner Change0.13%
Ins Owners2.93%
Ins Owner Change6.88%
Market Cap566.26M
Analysts45.71
Price Target17.34 (40.86%)
Short Float %1.79%
Short Ratio1.57
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)1
Avg EPS beat(2)1.32%
Min EPS beat(2)-0.3%
Max EPS beat(2)2.94%
EPS beat(4)1
Avg EPS beat(4)-2.88%
Min EPS beat(4)-13.23%
Max EPS beat(4)2.94%
EPS beat(8)3
Avg EPS beat(8)4.92%
EPS beat(12)6
Avg EPS beat(12)5.7%
EPS beat(16)8
Avg EPS beat(16)4.49%
Revenue beat(2)0
Avg Revenue beat(2)-2.69%
Min Revenue beat(2)-4.72%
Max Revenue beat(2)-0.66%
Revenue beat(4)0
Avg Revenue beat(4)-1.7%
Min Revenue beat(4)-4.72%
Max Revenue beat(4)-0.04%
Revenue beat(8)0
Avg Revenue beat(8)-2.83%
Revenue beat(12)0
Avg Revenue beat(12)-6.91%
Revenue beat(16)2
Avg Revenue beat(16)-5.26%
PT rev (1m)0%
PT rev (3m)-15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-44.44%
EPS NY rev (1m)-33.82%
EPS NY rev (3m)-33.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.28%
Revenue NY rev (1m)-2.74%
Revenue NY rev (3m)-5.86%
Valuation
Industry RankSector Rank
PE 9.77
Fwd PE 10.73
P/S 0.82
P/FCF 6.83
P/OCF 5.62
P/B 0.68
P/tB 2.17
EV/EBITDA 6.69
EPS(TTM)1.26
EY10.24%
EPS(NY)1.15
Fwd EY9.32%
FCF(TTM)1.8
FCFY14.64%
OCF(TTM)2.19
OCFY17.78%
SpS14.95
BVpS18.01
TBVpS5.67
PEG (NY)N/A
PEG (5Y)2.94
Profitability
Industry RankSector Rank
ROA -33.97%
ROE -47.33%
ROCE 4.52%
ROIC 3.57%
ROICexc 4.01%
ROICexgc 11.29%
OM 6.5%
PM (TTM) N/A
GM 55.44%
FCFM 12.05%
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
ROICexcg growth 3Y51.11%
ROICexcg 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-Score5
Asset Turnover0.6
Health
Industry RankSector Rank
Debt/Equity 0.15
Debt/FCF 1.62
Debt/EBITDA 1.39
Cap/Depr 39.12%
Cap/Sales 2.59%
Interest Coverage 3.89
Cash Conversion 111.64%
Profit Quality N/A
Current Ratio 2.37
Quick Ratio 1.53
Altman-Z 1.16
F-Score5
WACC9.29%
ROIC/WACC0.38
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)-8.7%
EPS 3Y3.09%
EPS 5Y3.32%
EPS Q2Q%31.25%
EPS Next Y-8.93%
EPS Next 2Y1.4%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue 1Y (TTM)2.15%
Revenue growth 3Y-2.61%
Revenue growth 5Y-0.28%
Sales Q2Q%3.64%
Revenue Next Year-1.74%
Revenue Next 2Y0.78%
Revenue Next 3Y1.65%
Revenue Next 5YN/A
EBIT growth 1Y496%
EBIT growth 3Y38.85%
EBIT growth 5YN/A
EBIT Next Year51.47%
EBIT Next 3Y22.03%
EBIT Next 5YN/A
FCF growth 1Y467.81%
FCF growth 3Y7.73%
FCF growth 5YN/A
OCF growth 1Y210.8%
OCF growth 3Y4.87%
OCF growth 5YN/A