AVANOS MEDICAL INC (AVNS) Stock Fundamental Analysis
USA - NYSE:AVNS - US05350V1061 - Common Stock
10.66 USD
-0.64 (-5.66%)
10.67 USD
+0.01 (+0.09%)
AVNS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 189 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 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.
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
With a Return On Assets value of -44.58%, AVNS is not doing good in the industry: 63.49% of the companies in the same industry are doing better.
With a Return On Equity value of -59.67%, AVNS perfoms like the industry average, outperforming 47.09% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.90%, AVNS is in the better half of the industry, outperforming 73.55% 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 9.12%.
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 72.49% of its industry peers.
In the last couple of years the Operating Margin of AVNS has grown nicely.
AVNS has a Gross Margin of 53.83%. This is comparable to the rest of the industry: AVNS outperforms 48.15% of its industry peers.
AVNS's Gross Margin has been stable in the last couple of years.
| 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
AVNS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AVNS has been reduced compared to 1 year ago.
AVNS has less shares outstanding than it did 5 years ago.
AVNS has a worse debt/assets ratio than last year.
2.2 Solvency
AVNS has an Altman-Z score of 1.21. 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 1.21 is in line compared to the rest of the industry. AVNS outperforms 52.38% of its industry peers.
The Debt to FCF ratio of AVNS is 1.20, which is an excellent value as it means it would take AVNS, only 1.20 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.20, AVNS belongs to the best of the industry, outperforming 89.95% of the companies in the same industry.
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 the better half of the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 1.21 |
ROIC/WACC0.48
WACC8.1%
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 has a Current ratio of 2.64. This is comparable to the rest of the industry: AVNS outperforms 53.44% of its industry peers.
A Quick Ratio of 1.58 indicates that AVNS should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.58, AVNS perfoms like the industry average, outperforming 42.86% of the companies in the same 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%.
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.
AVNS shows a small growth in Revenue. In the last year, the Revenue has grown by 1.48%.
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)-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
The Earnings Per Share is expected to grow by 5.00% on average over the next years.
The Revenue is expected to grow by 1.56% on average over the next years.
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
Based on the Price/Earnings ratio of 8.81, the valuation of AVNS can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of AVNS indicates a rather cheap valuation: AVNS is cheaper than 93.65% of the companies listed in the same industry.
AVNS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.13.
With a Price/Forward Earnings ratio of 11.57, the valuation of AVNS can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AVNS is valued cheaper than 89.95% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, AVNS is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.81 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVNS is valued cheaply inside the industry as 96.83% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AVNS is valued cheaply inside the industry as 98.94% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.64 | ||
| EV/EBITDA | 6.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.65
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 |
10.66
-0.64 (-5.66%)
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-5.32%
Ins Owners3.51%
Ins Owner Change1.04%
Market Cap494.62M
Revenue(TTM)692.50M
Net Income(TTM)-463200000
Analysts43.33
Price Target17.34 (62.66%)
Short Float %5.21%
Short Ratio4.18
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 | 8.81 | ||
| Fwd PE | 11.57 | ||
| P/S | 0.71 | ||
| P/FCF | 5.64 | ||
| P/OCF | 4.37 | ||
| P/B | 0.64 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 6.21 |
EPS(TTM)1.21
EY11.35%
EPS(NY)0.92
Fwd EY8.64%
FCF(TTM)1.89
FCFY17.73%
OCF(TTM)2.44
OCFY22.89%
SpS14.92
BVpS16.73
TBVpS6.24
PEG (NY)N/A
PEG (5Y)2.65
Graham Number21.34
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
ROICexgc growth 3Y51.11%
ROICexgc 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 | 1.21 |
F-Score6
WACC8.1%
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
AVANOS MEDICAL INC / AVNS FAQ
Can you provide the ChartMill fundamental rating for AVANOS MEDICAL INC?
ChartMill assigns a fundamental rating of 4 / 10 to AVNS.
What is the valuation status of AVANOS MEDICAL INC (AVNS) stock?
ChartMill assigns a valuation rating of 6 / 10 to AVANOS MEDICAL INC (AVNS). This can be considered as Fairly Valued.
What is the profitability of AVNS stock?
AVANOS MEDICAL INC (AVNS) has a profitability rating of 4 / 10.
What are the PE and PB ratios of AVANOS MEDICAL INC (AVNS) stock?
The Price/Earnings (PE) ratio for AVANOS MEDICAL INC (AVNS) is 8.81 and the Price/Book (PB) ratio is 0.64.
What is the earnings growth outlook for AVANOS MEDICAL INC?
The Earnings per Share (EPS) of AVANOS MEDICAL INC (AVNS) is expected to decline by -35.56% in the next year.