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AVANOS MEDICAL INC (AVNS) Stock Fundamental Analysis

NYSE:AVNS - New York Stock Exchange, Inc. - US05350V1061 - Common Stock - Currency: USD

15.85  +0.4 (+2.59%)

Fundamental Rating

5

Overall AVNS gets a fundamental rating of 5 out of 10. We evaluated AVNS against 189 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 quite cheap, while showing a decent growth score. This is a good combination! With these ratings, AVNS could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

AVNS had positive earnings in the past year.
AVNS had a positive operating cash flow in the past year.
In multiple years AVNS reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: AVNS reported negative operating cash flow in multiple years.
AVNS Yearly Net Income VS EBIT VS OCF VS FCFAVNS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -200M -400M

1.2 Ratios

The Return On Assets of AVNS (0.95%) is better than 72.19% of its industry peers.
AVNS has a better Return On Equity (1.28%) than 72.19% of its industry peers.
With a decent Return On Invested Capital value of 2.07%, AVNS is doing good in the industry, outperforming 70.59% 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 8.22%.
The last Return On Invested Capital (2.07%) for AVNS is above the 3 year average (1.65%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 0.95%
ROE 1.28%
ROIC 2.07%
ROA(3y)-0.17%
ROA(5y)-0.94%
ROE(3y)-0.23%
ROE(5y)-1.29%
ROIC(3y)1.65%
ROIC(5y)N/A
AVNS Yearly ROA, ROE, ROICAVNS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -10 -20 -30 -40

1.3 Margins

AVNS's Profit Margin of 2.30% is fine compared to the rest of the industry. AVNS outperforms 72.73% of its industry peers.
With a decent Operating Margin value of 5.65%, AVNS is doing good in the industry, outperforming 72.73% of the companies in the same industry.
In the last couple of years the Operating Margin of AVNS has declined.
AVNS has a Gross Margin (55.51%) which is comparable to the rest of the industry.
AVNS's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 5.65%
PM (TTM) 2.3%
GM 55.51%
OM growth 3YN/A
OM growth 5Y-25.57%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.59%
GM growth 5Y-1.21%
AVNS Yearly Profit, Operating, Gross MarginsAVNS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50

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5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVNS is destroying value.
AVNS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AVNS has less shares outstanding
The debt/assets ratio for AVNS has been reduced compared to a year ago.
AVNS Yearly Shares OutstandingAVNS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M
AVNS Yearly Total Debt VS Total AssetsAVNS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

2.2 Solvency

Based on the Altman-Z score of 1.41, we must say that AVNS is in the distress zone and has some risk of bankruptcy.
AVNS has a Altman-Z score (1.41) which is in line with its industry peers.
AVNS has a debt to FCF ratio of 4.43. This is a neutral value as AVNS would need 4.43 years to pay back of all of its debts.
AVNS has a Debt to FCF ratio of 4.43. This is amongst the best in the industry. AVNS outperforms 81.82% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that AVNS is not too dependend on debt financing.
AVNS has a Debt to Equity ratio of 0.12. This is comparable to the rest of the industry: AVNS outperforms 57.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 4.43
Altman-Z 1.41
ROIC/WACC0.23
WACC9.02%
AVNS Yearly LT Debt VS Equity VS FCFAVNS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

2.3 Liquidity

AVNS has a Current Ratio of 2.22. This indicates that AVNS is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.22, AVNS is not doing good in the industry: 62.03% of the companies in the same industry are doing better.
AVNS has a Quick Ratio of 1.46. 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 1.46 is on the low side compared to the rest of the industry. AVNS is outperformed by 60.43% of its industry peers.
Industry RankSector Rank
Current Ratio 2.22
Quick Ratio 1.46
AVNS Yearly Current Assets VS Current LiabilitesAVNS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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4

3. Growth

3.1 Past

AVNS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.12%.
AVNS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.63% yearly.
The Revenue has decreased by -5.02% in the past year.
The Revenue has been growing slightly by 0.64% on average over the past years.
EPS 1Y (TTM)-30.12%
EPS 3Y20.95%
EPS 5Y-3.63%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)-5.02%
Revenue growth 3Y-1.97%
Revenue growth 5Y0.64%
Sales Q2Q%-0.53%

3.2 Future

AVNS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.80% yearly.
The Revenue is expected to grow by 4.23% on average over the next years.
EPS Next Y-2.21%
EPS Next 2Y12.09%
EPS Next 3Y14.48%
EPS Next 5Y12.8%
Revenue Next Year2.24%
Revenue Next 2Y3.3%
Revenue Next 3Y4.06%
Revenue Next 5Y4.23%

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.
AVNS Yearly Revenue VS EstimatesAVNS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
AVNS Yearly EPS VS EstimatesAVNS Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3

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7

4. Valuation

4.1 Price/Earnings Ratio

AVNS is valuated correctly with a Price/Earnings ratio of 13.66.
Based on the Price/Earnings ratio, AVNS is valued cheaper than 93.05% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.62, AVNS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.14, the valuation of AVNS can be described as reasonable.
97.86% of the companies in the same industry are more expensive than AVNS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.70. AVNS is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 13.66
Fwd PE 9.14
AVNS Price Earnings VS Forward Price EarningsAVNS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AVNS is valued cheaper than 93.58% of the companies in the same industry.
90.37% of the companies in the same industry are more expensive than AVNS, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 19.9
EV/EBITDA 9.28
AVNS Per share dataAVNS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

A more expensive valuation may be justified as AVNS's earnings are expected to grow with 14.48% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y12.09%
EPS Next 3Y14.48%

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0

5. Dividend

5.1 Amount

AVNS does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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AVANOS MEDICAL INC

NYSE:AVNS (2/24/2025, 10:30:16 AM)

15.85

+0.4 (+2.59%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)10-30 2024-10-30/bmo
Earnings (Next)02-26 2025-02-26/bmo
Inst Owners96.82%
Inst Owner Change-97.15%
Ins Owners2.93%
Ins Owner Change4.09%
Market Cap728.47M
Analysts45.71
Price Target20.4 (28.71%)
Short Float %1.42%
Short Ratio1.32
Dividend
Industry RankSector 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)0
Avg EPS beat(2)-0.62%
Min EPS beat(2)-0.94%
Max EPS beat(2)-0.3%
EPS beat(4)0
Avg EPS beat(4)-7.23%
Min EPS beat(4)-14.44%
Max EPS beat(4)-0.3%
EPS beat(8)3
Avg EPS beat(8)7.06%
EPS beat(12)6
Avg EPS beat(12)6.47%
EPS beat(16)8
Avg EPS beat(16)5.98%
Revenue beat(2)0
Avg Revenue beat(2)-3.04%
Min Revenue beat(2)-4.72%
Max Revenue beat(2)-1.37%
Revenue beat(4)0
Avg Revenue beat(4)-1.61%
Min Revenue beat(4)-4.72%
Max Revenue beat(4)-0.04%
Revenue beat(8)0
Avg Revenue beat(8)-2.98%
Revenue beat(12)0
Avg Revenue beat(12)-6.93%
Revenue beat(16)2
Avg Revenue beat(16)-5.31%
PT rev (1m)0%
PT rev (3m)-11.11%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)0%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 13.66
Fwd PE 9.14
P/S 1.07
P/FCF 19.9
P/OCF 13.13
P/B 0.59
P/tB 3.4
EV/EBITDA 9.28
EPS(TTM)1.16
EY7.32%
EPS(NY)1.73
Fwd EY10.94%
FCF(TTM)0.8
FCFY5.02%
OCF(TTM)1.21
OCFY7.62%
SpS14.83
BVpS26.76
TBVpS4.67
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.95%
ROE 1.28%
ROCE 2.67%
ROIC 2.07%
ROICexc 2.2%
ROICexgc 8.79%
OM 5.65%
PM (TTM) 2.3%
GM 55.51%
FCFM 5.37%
ROA(3y)-0.17%
ROA(5y)-0.94%
ROE(3y)-0.23%
ROE(5y)-1.29%
ROIC(3y)1.65%
ROIC(5y)N/A
ROICexc(3y)1.79%
ROICexc(5y)N/A
ROICexgc(3y)6.52%
ROICexgc(5y)N/A
ROCE(3y)2.13%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-30.33%
ROICexc growth 3YN/A
ROICexc growth 5Y-27.24%
OM growth 3YN/A
OM growth 5Y-25.57%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.59%
GM growth 5Y-1.21%
F-Score6
Asset Turnover0.41
Health
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 4.43
Debt/EBITDA 1.81
Cap/Depr 41.18%
Cap/Sales 2.77%
Interest Coverage 250
Cash Conversion 65.76%
Profit Quality 233.12%
Current Ratio 2.22
Quick Ratio 1.46
Altman-Z 1.41
F-Score6
WACC9.02%
ROIC/WACC0.23
Cap/Depr(3y)44.63%
Cap/Depr(5y)63.62%
Cap/Sales(3y)2.61%
Cap/Sales(5y)3.58%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-30.12%
EPS 3Y20.95%
EPS 5Y-3.63%
EPS Q2Q%-14.29%
EPS Next Y-2.21%
EPS Next 2Y12.09%
EPS Next 3Y14.48%
EPS Next 5Y12.8%
Revenue 1Y (TTM)-5.02%
Revenue growth 3Y-1.97%
Revenue growth 5Y0.64%
Sales Q2Q%-0.53%
Revenue Next Year2.24%
Revenue Next 2Y3.3%
Revenue Next 3Y4.06%
Revenue Next 5Y4.23%
EBIT growth 1Y75%
EBIT growth 3YN/A
EBIT growth 5Y-25.09%
EBIT Next Year44.6%
EBIT Next 3Y26.69%
EBIT Next 5Y23.47%
FCF growth 1Y-59.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-49.22%
OCF growth 3YN/A
OCF growth 5YN/A