AVANOS MEDICAL INC (AVNS) Stock Fundamental Analysis
NYSE:AVNS - New York Stock Exchange, Inc. - US05350V1061 - Common Stock - Currency: USD
Overall AVNS gets a fundamental rating of 5 out of 10. We evaluated AVNS against 187 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
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 (-34.72%) is worse than 60.43% of its industry peers.
AVNS's Return On Equity of -45.82% is in line compared to the rest of the industry. AVNS outperforms 49.20% of its industry peers.
The Return On Invested Capital of AVNS (4.13%) is better than 75.40% 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 7.89%.
The last Return On Invested Capital (4.13%) for AVNS is above the 3 year average (2.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -34.72% | ||
| ROE | -45.82% | ||
| ROIC | 4.13% |
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
Looking at the Operating Margin, with a value of 7.36%, AVNS is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
In the last couple of years the Operating Margin of AVNS has grown nicely.
Looking at the Gross Margin, with a value of 54.60%, AVNS is in line with its industry, outperforming 49.73% 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 | 7.36% | ||
| PM (TTM) | N/A | ||
| GM | 54.6% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVNS is destroying value.
Compared to 1 year ago, AVNS has less shares outstanding
Compared to 5 years ago, AVNS has less shares outstanding
Compared to 1 year ago, AVNS has a worse debt to assets ratio.
2.2 Solvency
AVNS has an Altman-Z score of 1.39. This is a bad value and indicates that AVNS is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.39, AVNS perfoms like the industry average, outperforming 54.01% of the companies in the same industry.
The Debt to FCF ratio of AVNS is 0.94, which is an excellent value as it means it would take AVNS, only 0.94 years of fcf income to pay off all of its debts.
AVNS's Debt to FCF ratio of 0.94 is amongst the best of the industry. AVNS outperforms 91.98% 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 in line compared to the rest of the industry. AVNS outperforms 57.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | 1.39 |
ROIC/WACC0.49
WACC8.35%
2.3 Liquidity
AVNS has a Current Ratio of 2.57. This indicates that AVNS is financially healthy and has no problem in meeting its short term obligations.
AVNS has a Current ratio (2.57) which is comparable to the rest of the industry.
AVNS has a Quick Ratio of 1.56. This is a normal value and indicates that AVNS is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.56, AVNS perfoms like the industry average, outperforming 43.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
AVNS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.31%.
Measured over the past 5 years, AVNS shows a small growth in Earnings Per Share. The EPS has been growing by 3.32% on average per year.
Looking at the last year, AVNS shows a small growth in Revenue. The Revenue has grown by 1.34% in the last year.
AVNS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.28% yearly.
EPS 1Y (TTM)2.31%
EPS 3Y3.09%
EPS 5Y3.32%
EPS Q2Q%36.84%
Revenue 1Y (TTM)1.34%
Revenue growth 3Y-2.61%
Revenue growth 5Y-0.28%
Sales Q2Q%0.84%
3.2 Future
The Earnings Per Share is expected to grow by 5.00% on average over the next years.
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-31.19%
EPS Next 2Y-5.59%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue Next Year-1.96%
Revenue Next 2Y0.69%
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.
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
With a Price/Earnings ratio of 8.97, the valuation of AVNS can be described as very reasonable.
AVNS's Price/Earnings ratio is rather cheap when compared to the industry. AVNS is cheaper than 96.26% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, AVNS is valued rather cheaply.
A Price/Forward Earnings ratio of 10.62 indicates a reasonable valuation of AVNS.
AVNS's Price/Forward Earnings ratio is rather cheap when compared to the industry. AVNS is cheaper than 91.44% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AVNS to the average of the S&P500 Index (21.76), we can say AVNS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.97 | ||
| Fwd PE | 10.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVNS is valued cheaper than 97.33% 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 99.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.84 | ||
| EV/EBITDA | 6.12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.7
EPS Next 2Y-5.59%
EPS Next 3Y5%
5. Dividend
5.1 Amount
AVNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.93
-0.33 (-2.69%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners95.13%
Inst Owner Change0%
Ins Owners3.24%
Ins Owner Change4.42%
Market Cap551.64M
Analysts43.33
Price Target17.34 (45.35%)
Short Float %3.75%
Short Ratio3.46
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)22.28%
Min EPS beat(2)2.94%
Max EPS beat(2)41.61%
EPS beat(4)2
Avg EPS beat(4)10.83%
Min EPS beat(4)-0.94%
Max EPS beat(4)41.61%
EPS beat(8)4
Avg EPS beat(8)10.55%
EPS beat(12)7
Avg EPS beat(12)9.33%
EPS beat(16)8
Avg EPS beat(16)5.73%
Revenue beat(2)1
Avg Revenue beat(2)0.43%
Min Revenue beat(2)-0.66%
Max Revenue beat(2)1.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-4.72%
Max Revenue beat(4)1.52%
Revenue beat(8)1
Avg Revenue beat(8)-2.17%
Revenue beat(12)1
Avg Revenue beat(12)-5.03%
Revenue beat(16)2
Avg Revenue beat(16)-5.23%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-37.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-24.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.97 | ||
| Fwd PE | 10.62 | ||
| P/S | 0.8 | ||
| P/FCF | 4.84 | ||
| P/OCF | 4.1 | ||
| P/B | 0.66 | ||
| P/tB | 2 | ||
| EV/EBITDA | 6.12 |
EPS(TTM)1.33
EY11.15%
EPS(NY)1.12
Fwd EY9.41%
FCF(TTM)2.47
FCFY20.67%
OCF(TTM)2.91
OCFY24.36%
SpS14.9
BVpS18.15
TBVpS5.98
PEG (NY)N/A
PEG (5Y)2.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -34.72% | ||
| ROE | -45.82% | ||
| ROCE | 5.22% | ||
| ROIC | 4.13% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 12.9% | ||
| OM | 7.36% | ||
| PM (TTM) | N/A | ||
| GM | 54.6% | ||
| FCFM | 16.54% |
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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.94 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 46.68% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 142.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.57 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 1.39 |
F-Score6
WACC8.35%
ROIC/WACC0.49
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)2.31%
EPS 3Y3.09%
EPS 5Y3.32%
EPS Q2Q%36.84%
EPS Next Y-31.19%
EPS Next 2Y-5.59%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue 1Y (TTM)1.34%
Revenue growth 3Y-2.61%
Revenue growth 5Y-0.28%
Sales Q2Q%0.84%
Revenue Next Year-1.96%
Revenue Next 2Y0.69%
Revenue Next 3Y1.56%
Revenue Next 5YN/A
EBIT growth 1Y209.15%
EBIT growth 3Y38.85%
EBIT growth 5YN/A
EBIT Next Year51.47%
EBIT Next 3Y22.03%
EBIT Next 5YN/A
FCF growth 1Y78.13%
FCF growth 3Y7.73%
FCF growth 5YN/A
OCF growth 1Y63.31%
OCF growth 3Y4.87%
OCF growth 5YN/A