AVANOS MEDICAL INC (AVNS) Stock Fundamental Analysis
USA - NYSE:AVNS - US05350V1061 - Common Stock
11.76 USD
+0.1 (+0.86%)
11.76 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AVNS. AVNS was compared to 189 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 valuation in line with the averages, but it does not seem to be growing.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of -44.58%, AVNS is doing worse than 63.49% of the companies in the same industry.
The Return On Equity of AVNS (-59.67%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.90%, AVNS is in the better half of the industry, outperforming 73.02% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AVNS is significantly below the industry average of 8.99%.
The 3 year average ROIC (2.58%) for AVNS is below the current ROIC(3.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -44.58% | ||
| ROE | -59.67% | ||
| ROIC | 3.9% |
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 (6.45%) than 71.96% of its industry peers.
AVNS's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 53.83%, AVNS is in line with its industry, outperforming 48.15% of the companies in the same industry.
AVNS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.45% | ||
| PM (TTM) | N/A | ||
| GM | 53.83% |
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
AVNS 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 AVNS has been reduced compared to 1 year ago.
AVNS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AVNS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that AVNS is in the distress zone and has some risk of bankruptcy.
AVNS has a Altman-Z score (1.26) which is in line with its industry peers.
The Debt to FCF ratio of AVNS is 1.20, which is an excellent value as it means it would take AVNS, only 1.20 years of fcf income to pay off all of its debts.
AVNS has a better Debt to FCF ratio (1.20) than 90.48% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that AVNS is not too dependend on debt financing.
AVNS has a better Debt to Equity ratio (0.12) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.48
WACC8.17%
2.3 Liquidity
AVNS has a Current Ratio of 2.64. This indicates that AVNS is financially healthy and has no problem in meeting its short term obligations.
AVNS's Current ratio of 2.64 is in line compared to the rest of the industry. AVNS outperforms 53.44% of its industry peers.
AVNS has a Quick Ratio of 1.58. This is a normal value and indicates that AVNS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.58, AVNS is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
AVNS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.76%.
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.
AVNS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.28% yearly.
EPS 1Y (TTM)-7.76%
EPS 3Y3.09%
EPS 5Y3.32%
EPS Q2Q%-38.89%
Revenue 1Y (TTM)2.15%
Revenue growth 3Y-2.61%
Revenue growth 5Y-0.28%
Sales Q2Q%4.34%
3.2 Future
AVNS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.00% yearly.
AVNS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.56% yearly.
EPS Next Y-35.56%
EPS Next 2Y-14.5%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue Next Year-1.38%
Revenue Next 2Y-0.03%
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.99, which indicates a very decent valuation of AVNS.
Compared to the rest of the industry, the Price/Earnings ratio of AVNS indicates a rather cheap valuation: AVNS is cheaper than 90.48% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, AVNS is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.77, AVNS is valued correctly.
Based on the Price/Forward Earnings ratio, AVNS is valued cheaply inside the industry as 89.95% of the companies are valued more expensively.
AVNS is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 12.77 |
4.2 Price Multiples
AVNS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AVNS is cheaper than 95.77% of the companies in the same industry.
AVNS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AVNS is cheaper than 98.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.22 | ||
| EV/EBITDA | 6.46 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.31
EPS Next 2Y-14.5%
EPS Next 3Y5%
5. Dividend
5.1 Amount
No dividends for AVNS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.76
+0.1 (+0.86%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.22%
Inst Owner Change-6.68%
Ins Owners3.51%
Ins Owner Change1.04%
Market Cap545.66M
Revenue(TTM)687.80M
Net Income(TTM)-463.20M
Analysts43.33
Price Target17.34 (47.45%)
Short Float %5.21%
Short Ratio4.18
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)2
Avg EPS beat(2)26.36%
Min EPS beat(2)11.11%
Max EPS beat(2)41.61%
EPS beat(4)3
Avg EPS beat(4)13.84%
Min EPS beat(4)-0.3%
Max EPS beat(4)41.61%
EPS beat(8)4
Avg EPS beat(8)9.23%
EPS beat(12)7
Avg EPS beat(12)9.82%
EPS beat(16)9
Avg EPS beat(16)7.16%
Revenue beat(2)2
Avg Revenue beat(2)2.59%
Min Revenue beat(2)1.52%
Max Revenue beat(2)3.67%
Revenue beat(4)2
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-4.72%
Max Revenue beat(4)3.67%
Revenue beat(8)2
Avg Revenue beat(8)-0.36%
Revenue beat(12)2
Avg Revenue beat(12)-3.09%
Revenue beat(16)2
Avg Revenue beat(16)-5.07%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 12.77 | ||
| P/S | 0.79 | ||
| P/FCF | 6.22 | ||
| P/OCF | 4.82 | ||
| P/B | 0.7 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 6.46 |
EPS(TTM)1.07
EY9.1%
EPS(NY)0.92
Fwd EY7.83%
FCF(TTM)1.89
FCFY16.07%
OCF(TTM)2.44
OCFY20.75%
SpS14.92
BVpS16.73
TBVpS6.24
PEG (NY)N/A
PEG (5Y)3.31
Graham Number20.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -44.58% | ||
| ROE | -59.67% | ||
| ROCE | 4.94% | ||
| ROIC | 3.9% | ||
| ROICexc | 4.34% | ||
| ROICexgc | 10.78% | ||
| OM | 6.45% | ||
| PM (TTM) | N/A | ||
| GM | 53.83% | ||
| FCFM | 12.66% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.2 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 60.57% | ||
| Cap/Sales | 3.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 130.42% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 1.26 |
F-Score6
WACC8.17%
ROIC/WACC0.48
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-35.56%
EPS Next 2Y-14.5%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue 1Y (TTM)2.15%
Revenue growth 3Y-2.61%
Revenue growth 5Y-0.28%
Sales Q2Q%4.34%
Revenue Next Year-1.38%
Revenue Next 2Y-0.03%
Revenue Next 3Y1.56%
Revenue Next 5YN/A
EBIT growth 1Y67.42%
EBIT growth 3Y38.85%
EBIT growth 5YN/A
EBIT Next Year51.47%
EBIT Next 3Y22.03%
EBIT Next 5YN/A
FCF growth 1Y154.2%
FCF growth 3Y7.73%
FCF growth 5YN/A
OCF growth 1Y114.8%
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 of AVANOS MEDICAL INC (AVNS) stock?
ChartMill assigns a valuation rating of 6 / 10 to AVANOS MEDICAL INC (AVNS). This can be considered as Fairly Valued.
What is the profitability of AVNS stock?
AVANOS MEDICAL INC (AVNS) has a profitability rating of 4 / 10.
What are the PE and PB ratios of AVANOS MEDICAL INC (AVNS) stock?
The Price/Earnings (PE) ratio for AVANOS MEDICAL INC (AVNS) is 10.99 and the Price/Book (PB) ratio is 0.7.
What is the earnings growth outlook for AVANOS MEDICAL INC?
The Earnings per Share (EPS) of AVANOS MEDICAL INC (AVNS) is expected to decline by -35.56% in the next year.