Taking everything into account, AVNS scores 4 out of 10 in our fundamental rating. AVNS was compared to 184 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 on the other hand it scores bad on growth.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Of the past 5 years AVNS 4 years had a positive operating cash flow.

1.2 Ratios

AVNS's Return On Assets of -43.92% is on the low side compared to the rest of the industry. AVNS is outperformed by 64.13% of its industry peers.
With a Return On Equity value of -60.27%, AVNS perfoms like the industry average, outperforming 46.74% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.68%, AVNS is in the better half of the industry, outperforming 69.02% 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 8.81%.
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

Looking at the Operating Margin, with a value of 4.46%, AVNS is in the better half of the industry, outperforming 69.02% of the companies in the same industry.
In the last couple of years the Operating Margin of AVNS has grown nicely.
With a Gross Margin value of 52.28%, AVNS perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
In the last couple of years the Gross Margin of AVNS has remained more or less at the same level.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVNS is destroying value.
AVNS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for AVNS has been reduced compared to 5 years ago.
Compared to 1 year ago, AVNS has a worse debt to assets ratio.

2.2 Solvency

AVNS has an Altman-Z score of 1.24. This is a bad value and indicates that AVNS is not financially healthy and even has some risk of bankruptcy.
AVNS has a Altman-Z score (1.24) which is in line with its industry peers.
The Debt to FCF ratio of AVNS is 1.38, which is an excellent value as it means it would take AVNS, only 1.38 years of fcf income to pay off all of its debts.
AVNS has a Debt to FCF ratio of 1.38. This is amongst the best in the industry. AVNS outperforms 89.13% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that AVNS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.12, AVNS is in the better half of the industry, outperforming 63.59% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.12
Debt/FCF	1.38
Altman-Z	1.24

ROIC/WACC0.26

WACC10.18%

2.3 Liquidity

AVNS has a Current Ratio of 2.38. This indicates that AVNS is financially healthy and has no problem in meeting its short term obligations.
AVNS's Current ratio of 2.38 is in line compared to the rest of the industry. AVNS outperforms 46.74% of its industry peers.
A Quick Ratio of 1.36 indicates that AVNS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.36, AVNS is doing worse than 61.41% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.38
Quick Ratio	1.36

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for AVNS have decreased by -7.76% in the last year.
AVNS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.32% yearly.
AVNS shows a small growth in Revenue. In the last year, the Revenue has grown by 2.70%.
The Revenue has been decreasing by -0.28% on average over the past years.

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

Based on estimates for the next years, AVNS will show a small growth in Earnings Per Share. The EPS will grow by 5.00% on average per year.
The Revenue is expected to grow by 1.56% on average over the next years.

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

AVNS is valuated correctly with a Price/Earnings ratio of 12.45.
92.93% of the companies in the same industry are more expensive than AVNS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.30, AVNS is valued rather cheaply.
A Price/Forward Earnings ratio of 13.75 indicates a correct valuation of AVNS.
Based on the Price/Forward Earnings ratio, AVNS is valued cheaply inside the industry as 91.85% of the companies are valued more expensively.
AVNS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	12.45
Fwd PE	13.75

4.2 Price Multiples

AVNS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AVNS is cheaper than 93.48% of the companies in the same industry.
98.37% of the companies in the same industry are more expensive than AVNS, based on the Price/Free Cash Flow ratio.