AVANOS MEDICAL INC (AVNS) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:AVNS • US05350V1061

13.42 USD

+0.1 (+0.75%)

Last: Feb 2, 2026, 01:22 PM

Fundamental Rating

AVNS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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.

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1. Profitability

1.1 Basic Checks

In the past year AVNS was profitable.
In the past year AVNS had a positive cash flow from operations.
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

AVNS has a Return On Assets of -43.92%. This is in the lower half of the industry: AVNS underperforms 63.98% of its industry peers.
The Return On Equity of AVNS (-60.27%) is comparable to the rest of the industry.
AVNS has a better Return On Invested Capital (2.68%) than 69.35% of its industry peers.
AVNS had an Average Return On Invested Capital over the past 3 years of 2.58%. This is significantly below the industry average of 8.81%.
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

With a decent Operating Margin value of 4.46%, AVNS is doing good in the industry, outperforming 69.35% of the companies in the same industry.
AVNS's Operating Margin has improved in the last couple of years.
The Gross Margin of AVNS (52.28%) is comparable to the rest of the 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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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

Based on the Altman-Z score of 1.24, we must say that AVNS is in the distress zone and 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's Debt to FCF ratio of 1.38 is amongst the best of the industry. AVNS outperforms 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 63.98% of its industry peers.

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

ROIC/WACC0.26

WACC10.22%

2.3 Liquidity

A Current Ratio of 2.38 indicates that AVNS has no problem at all paying its short term obligations.
AVNS has a Current ratio (2.38) which is comparable to the rest of the industry.
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 61.29% 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

AVNS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.76%.
The Earnings Per Share has been growing slightly by 3.32% on average over the past years.
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

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 12.54, which indicates a correct valuation of AVNS.
AVNS's Price/Earnings ratio is rather cheap when compared to the industry. AVNS is cheaper than 92.47% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.32. AVNS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 13.85 indicates a correct valuation of AVNS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVNS indicates a rather cheap valuation: AVNS is cheaper than 90.32% of the companies listed in the same industry.
AVNS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	12.54
Fwd PE	13.85

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AVNS is valued cheaper than 92.47% of the companies 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 98.39% of the companies listed in the same industry.