AVANOS MEDICAL INC (AVNS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVNS - US05350V1061 - Common Stock
11.4 USD
+0.51 (+4.68%)
11.4 USD
0 (0%)
Taking everything into account, AVNS scores 4 out of 10 in our fundamental rating. AVNS was compared to 188 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.
1. Profitability
1.1 Basic Checks
AVNS had positive earnings in the past year.
In the past year AVNS had a positive cash flow from operations.
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
With a Return On Assets value of -43.92%, AVNS is not doing good in the industry: 63.30% of the companies in the same industry are doing better.
AVNS has a Return On Equity of -60.27%. This is comparable to the rest of the industry: AVNS outperforms 47.87% of its industry peers.
AVNS has a Return On Invested Capital of 2.68%. This is in the better half of the industry: AVNS outperforms 70.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AVNS is significantly below the industry average of 8.98%.
The last Return On Invested Capital (2.68%) for AVNS is above the 3 year average (2.58%), which is a sign of increasing profitability.
| 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
The Operating Margin of AVNS (4.46%) is better than 69.68% of its industry peers.
AVNS's Operating Margin has improved in the last couple of years.
AVNS's Gross Margin of 52.28% is in line compared to the rest of the industry. AVNS outperforms 46.28% of its industry peers.
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
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.
The debt/assets ratio for AVNS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.06, we must say that AVNS is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.06, AVNS is in line with its industry, outperforming 52.66% of the companies in the same industry.
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.
AVNS has a Debt to FCF ratio of 1.38. This is amongst the best in the industry. AVNS outperforms 89.89% of its industry peers.
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 64.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 1.06 |
ROIC/WACC0.33
WACC8.1%
2.3 Liquidity
A Current Ratio of 2.38 indicates that AVNS has no problem at all paying its short term obligations.
The Current ratio of AVNS (2.38) is comparable to the rest of the industry.
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.
Looking at the Quick ratio, with a value of 1.36, AVNS is doing worse than 62.77% of the companies in the same industry.
| 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.
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%.
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
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
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.
4. Valuation
4.1 Price/Earnings Ratio
AVNS is valuated reasonably with a Price/Earnings ratio of 10.65.
Based on the Price/Earnings ratio, AVNS is valued cheaper than 91.49% of the companies in the same industry.
When comparing the Price/Earnings ratio of AVNS to the average of the S&P500 Index (25.45), we can say AVNS is valued rather cheaply.
The Price/Forward Earnings ratio is 12.38, which indicates a correct valuation of AVNS.
AVNS's Price/Forward Earnings ratio is rather cheap when compared to the industry. AVNS is cheaper than 90.43% of the companies in the same industry.
AVNS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 12.38 |
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 94.15% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVNS indicates a rather cheap valuation: AVNS is cheaper than 97.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.08 | ||
| EV/EBITDA | 7.83 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.21
EPS Next 2Y-14.5%
EPS Next 3Y5%
5. Dividend
5.1 Amount
AVNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.4
+0.51 (+4.68%)
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 Change0.57%
Ins Owners3.51%
Ins Owner Change0.25%
Market Cap528.96M
Revenue(TTM)699.90M
Net Income(TTM)-468.90M
Analysts43.33
Price Target17.34 (52.11%)
Short Float %5.35%
Short Ratio4.33
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)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)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)3.37%
Revenue NQ rev (3m)3.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.65 | ||
| Fwd PE | 12.38 | ||
| P/S | 0.76 | ||
| P/FCF | 7.08 | ||
| P/OCF | 5.08 | ||
| P/B | 0.68 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 7.83 |
EPS(TTM)1.07
EY9.39%
EPS(NY)0.92
Fwd EY8.08%
FCF(TTM)1.61
FCFY14.12%
OCF(TTM)2.25
OCFY19.7%
SpS15.08
BVpS16.77
TBVpS5.64
PEG (NY)N/A
PEG (5Y)3.21
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 | 1.06 |
F-Score6
WACC8.1%
ROIC/WACC0.33
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)2.7%
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 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 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 10.65 and the Price/Book (PB) ratio is 0.68.
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.