AVANOS MEDICAL INC (AVNS) Stock Fundamental Analysis
USA - NYSE:AVNS - US05350V1061 - Common Stock
11 USD
+0.16 (+1.48%)
11 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 an average financial health and profitability rating. AVNS has a valuation in line with the averages, but it does not seem to be growing.
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.
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
AVNS has a Return On Assets of -44.58%. This is in the lower half of the industry: AVNS underperforms 63.35% of its industry peers.
AVNS has a Return On Equity of -59.67%. This is comparable to the rest of the industry: AVNS outperforms 47.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.90%, AVNS is in the better half of the industry, outperforming 73.82% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AVNS is significantly below the industry average of 8.89%.
The last Return On Invested Capital (3.90%) for AVNS is above the 3 year average (2.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -44.58% | ||
| ROE | -59.67% | ||
| ROIC | 3.9% |
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
AVNS has a Operating Margin of 6.45%. This is in the better half of the industry: AVNS outperforms 72.77% 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 48.17% 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 | 6.45% | ||
| PM (TTM) | N/A | ||
| GM | 53.83% |
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.
The number of shares outstanding for AVNS has been reduced compared to 1 year ago.
Compared to 5 years ago, AVNS has less shares outstanding
AVNS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.17, 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 1.17, AVNS is in line with its industry, outperforming 53.40% of the companies in the same industry.
AVNS has a debt to FCF ratio of 1.20. This is a very positive value and a sign of high solvency as it would only need 1.20 years to pay back of all of its debts.
AVNS has a Debt to FCF ratio of 1.20. This is amongst the best in the industry. AVNS outperforms 90.58% 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 61.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 1.17 |
ROIC/WACC0.48
WACC8.08%
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.
AVNS's Current ratio of 2.64 is in line compared to the rest of the industry. AVNS outperforms 53.93% of its industry peers.
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.
The Quick ratio of AVNS (1.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
AVNS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.82%.
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
AVNS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.00% yearly.
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-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.
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 9.09, which indicates a very decent valuation of AVNS.
AVNS's Price/Earnings ratio is rather cheap when compared to the industry. AVNS is cheaper than 93.72% of the companies in the same industry.
AVNS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.50.
A Price/Forward Earnings ratio of 11.94 indicates a reasonable valuation of AVNS.
90.05% of the companies in the same industry are more expensive than AVNS, based on the Price/Forward Earnings ratio.
AVNS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.09 | ||
| Fwd PE | 11.94 |
4.2 Price Multiples
97.38% of the companies in the same industry are more expensive than AVNS, based on the Enterprise Value to EBITDA ratio.
99.48% of the companies in the same industry are more expensive than AVNS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.82 | ||
| EV/EBITDA | 5.97 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.74
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
+0.16 (+1.48%)
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 Change-0.24%
Ins Owners3.51%
Ins Owner Change2.76%
Market Cap510.40M
Analysts43.33
Price Target17.34 (57.64%)
Short Float %7.18%
Short Ratio4.81
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)0%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.09 | ||
| Fwd PE | 11.94 | ||
| P/S | 0.74 | ||
| P/FCF | 5.82 | ||
| P/OCF | 4.51 | ||
| P/B | 0.66 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 5.97 |
EPS(TTM)1.21
EY11%
EPS(NY)0.92
Fwd EY8.37%
FCF(TTM)1.89
FCFY17.18%
OCF(TTM)2.44
OCFY22.18%
SpS14.92
BVpS16.73
TBVpS6.24
PEG (NY)N/A
PEG (5Y)2.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -44.58% | ||
| ROE | -59.67% | ||
| ROCE | 4.94% | ||
| ROIC | 3.9% | ||
| ROICexc | 4.34% | ||
| ROICexgc | 10.78% | ||
| OM | 6.45% | ||
| PM (TTM) | N/A | ||
| GM | 53.83% | ||
| FCFM | 12.66% |
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
ROICexcg growth 3Y51.11%
ROICexcg 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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.2 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 60.57% | ||
| Cap/Sales | 3.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 130.42% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 1.17 |
F-Score6
WACC8.08%
ROIC/WACC0.48
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)-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 1Y67.42%
EBIT growth 3Y38.85%
EBIT growth 5YN/A
EBIT Next Year51.47%
EBIT Next 3Y22.03%
EBIT Next 5YN/A
FCF growth 1Y154.2%
FCF growth 3Y7.73%
FCF growth 5YN/A
OCF growth 1Y114.8%
OCF growth 3Y4.87%
OCF growth 5YN/A