AVANOS MEDICAL INC (AVNS) Stock Fundamental Analysis
USA - NYSE:AVNS - US05350V1061 - Common Stock
12.22 USD
-0.19 (-1.53%)
12.22 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AVNS. AVNS was compared to 191 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 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
Looking at the Return On Assets, with a value of -44.57%, AVNS is doing worse than 64.21% of the companies in the same industry.
AVNS has a Return On Equity of -59.68%. This is comparable to the rest of the industry: AVNS outperforms 48.42% of its industry peers.
AVNS's Return On Invested Capital of 3.81% is fine compared to the rest of the industry. AVNS outperforms 73.16% 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 8.46%.
The 3 year average ROIC (2.58%) for AVNS is below the current ROIC(3.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -44.57% | ||
| ROE | -59.68% | ||
| ROIC | 3.81% |
ROA(3y)-11.6%
ROA(5y)-7.22%
ROE(3y)-16.13%
ROE(5y)-10.03%
ROIC(3y)2.58%
ROIC(5y)N/A
1.3 Margins
AVNS has a Operating Margin of 6.30%. This is in the better half of the industry: AVNS outperforms 72.11% 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 47.37% 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 | 6.3% | ||
| PM (TTM) | N/A | ||
| GM | 53.83% |
OM growth 3Y42.88%
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVNS is destroying value.
AVNS has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, AVNS has less shares outstanding
The debt/assets ratio for AVNS is higher compared to a year ago.
2.2 Solvency
AVNS has an Altman-Z score of 1.33. This is a bad value and indicates that AVNS is not financially healthy and even has some risk of bankruptcy.
AVNS's Altman-Z score of 1.33 is in line compared to the rest of the industry. AVNS outperforms 55.26% of its industry peers.
AVNS has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
AVNS has a Debt to FCF ratio of 1.19. This is amongst the best in the industry. AVNS outperforms 90.53% 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 line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.47
WACC8.18%
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.
With a Current ratio value of 2.64, AVNS perfoms like the industry average, outperforming 53.68% of the companies in the same industry.
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.
AVNS's Quick ratio of 1.58 is in line compared to the rest of the industry. AVNS outperforms 43.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The earnings per share for AVNS have decreased by -0.82% in the last year.
The Earnings Per Share has been growing slightly by 3.32% on average over the past years.
Looking at the last year, AVNS shows a small growth in Revenue. The Revenue has grown by 1.48% in the last year.
The Revenue has been decreasing by -0.28% on average over the past years.
EPS 1Y (TTM)-0.82%
EPS 3Y3.09%
EPS 5Y3.32%
EPS Q2Q%-41.38%
Revenue 1Y (TTM)1.48%
Revenue growth 3Y-2.61%
Revenue growth 5Y-0.28%
Sales Q2Q%1.92%
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.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AVNS is valuated reasonably with a Price/Earnings ratio of 10.10.
Compared to the rest of the industry, the Price/Earnings ratio of AVNS indicates a rather cheap valuation: AVNS is cheaper than 92.63% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, AVNS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.27, the valuation of AVNS can be described as correct.
89.47% 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 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 13.27 |
4.2 Price Multiples
97.37% of the companies in the same industry are more expensive than AVNS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AVNS is valued cheaper than 99.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.44 | ||
| EV/EBITDA | 6.82 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.04
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 |
12.22
-0.19 (-1.53%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners93.61%
Inst Owner Change3.65%
Ins Owners3.24%
Ins Owner Change2.78%
Market Cap567.01M
Analysts43.33
Price Target17.34 (41.9%)
Short Float %5.36%
Short Ratio3.92
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)-33.33%
EPS NQ rev (3m)-65.76%
EPS NY rev (1m)-6.35%
EPS NY rev (3m)-6.35%
Revenue NQ rev (1m)-1.79%
Revenue NQ rev (3m)-4.64%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.1 | ||
| Fwd PE | 13.27 | ||
| P/S | 0.82 | ||
| P/FCF | 6.44 | ||
| P/OCF | 4.97 | ||
| P/B | 0.73 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 6.82 |
EPS(TTM)1.21
EY9.9%
EPS(NY)0.92
Fwd EY7.54%
FCF(TTM)1.9
FCFY15.52%
OCF(TTM)2.46
OCFY20.11%
SpS14.92
BVpS16.72
TBVpS6.25
PEG (NY)N/A
PEG (5Y)3.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -44.57% | ||
| ROE | -59.68% | ||
| ROCE | 4.82% | ||
| ROIC | 3.81% | ||
| ROICexc | 4.23% | ||
| ROICexgc | 10.51% | ||
| OM | 6.3% | ||
| PM (TTM) | N/A | ||
| GM | 53.83% | ||
| FCFM | 12.71% |
ROA(3y)-11.6%
ROA(5y)-7.22%
ROE(3y)-16.13%
ROE(5y)-10.03%
ROIC(3y)2.58%
ROIC(5y)N/A
ROICexc(3y)2.85%
ROICexc(5y)N/A
ROICexgc(3y)9.35%
ROICexgc(5y)N/A
ROCE(3y)3.27%
ROCE(5y)N/A
ROICexcg growth 3Y51.51%
ROICexcg growth 5YN/A
ROICexc growth 3Y60.31%
ROICexc growth 5YN/A
OM growth 3Y42.88%
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 | 1.19 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 60.47% | ||
| Cap/Sales | 3.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 131.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 1.33 |
F-Score6
WACC8.18%
ROIC/WACC0.47
Cap/Depr(3y)39.57%
Cap/Depr(5y)44.13%
Cap/Sales(3y)2.55%
Cap/Sales(5y)2.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-0.82%
EPS 3Y3.09%
EPS 5Y3.32%
EPS Q2Q%-41.38%
EPS Next Y-35.56%
EPS Next 2Y-14.5%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue 1Y (TTM)1.48%
Revenue growth 3Y-2.61%
Revenue growth 5Y-0.28%
Sales Q2Q%1.92%
Revenue Next Year-1.38%
Revenue Next 2Y-0.03%
Revenue Next 3Y1.56%
Revenue Next 5YN/A
EBIT growth 1Y63.3%
EBIT growth 3Y39.16%
EBIT growth 5YN/A
EBIT Next Year51.47%
EBIT Next 3Y22.03%
EBIT Next 5YN/A
FCF growth 1Y155.07%
FCF growth 3Y7.78%
FCF growth 5YN/A
OCF growth 1Y116.32%
OCF growth 3Y4.98%
OCF growth 5YN/A