AVANOS MEDICAL INC (AVNS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVNS - US05350V1061 - Common Stock
13.11 USD
+0.01 (+0.08%)
We assign a fundamental rating of 4 out of 10 to AVNS. AVNS was compared to 186 industry peers in the Health Care Equipment & Supplies industry. AVNS has only an average score on both its financial health and profitability. AVNS is valued correctly, 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.
- In multiple years AVNS reported negative net income over the last 5 years.
- Of the past 5 years AVNS 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of AVNS (-43.92%) is worse than 63.98% of its industry peers.
- AVNS has a Return On Equity of -60.27%. This is comparable to the rest of the industry: AVNS outperforms 46.77% of its industry peers.
- With a decent Return On Invested Capital value of 2.68%, AVNS is doing good in the industry, outperforming 69.35% of the companies in the same industry.
- 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 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 69.35% of its industry peers.
- AVNS's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 52.28%, AVNS perfoms like the industry average, outperforming 47.85% 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 | 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
- AVNS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, AVNS has less shares outstanding
- 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 1.22, we must say that AVNS is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of AVNS (1.22) is comparable to the rest of the 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.
- The Debt to FCF ratio of AVNS (1.38) is better than 89.25% of its industry peers.
- A Debt/Equity ratio of 0.12 indicates that AVNS is not too dependend on debt financing.
- AVNS's Debt to Equity ratio of 0.12 is fine compared to the rest of the industry. AVNS outperforms 63.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.26
WACC10.12%
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.
- AVNS has a worse Quick ratio (1.36) than 61.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.36 |
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.
- 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.
- 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.
- 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 12.25, which indicates a correct valuation of AVNS.
- 93.01% of the companies in the same industry are more expensive than AVNS, based on the Price/Earnings ratio.
- AVNS is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 13.53, AVNS is valued correctly.
- 90.86% of the companies in the same industry are more expensive than AVNS, based on the Price/Forward Earnings ratio.
- AVNS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.25 | ||
| Fwd PE | 13.53 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AVNS is valued cheaper than 93.55% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AVNS is valued cheaper than 98.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.15 | ||
| EV/EBITDA | 8.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.69
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% |
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.