ADVANTAGE SOLUTIONS INC (ADV) Stock Fundamental Analysis
NASDAQ:ADV - Nasdaq - US00791N1028 - Common Stock - Currency: USD
Overall ADV gets a fundamental rating of 3 out of 10. We evaluated ADV against 96 industry peers in the Media industry. Both the profitability and financial health of ADV have multiple concerns. ADV has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ADV had negative earnings in the past year.
In the past year ADV had a positive cash flow from operations.
In the past 5 years ADV reported 4 times negative net income.
ADV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ADV has a worse Return On Assets (-12.54%) than 72.92% of its industry peers.
ADV has a Return On Equity of -54.31%. This is in the lower half of the industry: ADV underperforms 70.83% of its industry peers.
With a Return On Invested Capital value of 0.76%, ADV perfoms like the industry average, outperforming 42.71% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ADV is below the industry average of 6.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.54% | ||
| ROE | -54.31% | ||
| ROIC | 0.76% |
ROA(3y)-14.86%
ROA(5y)-9.29%
ROE(3y)-57.41%
ROE(5y)-35.33%
ROIC(3y)2.32%
ROIC(5y)2.29%
1.3 Margins
Looking at the Operating Margin, with a value of 0.70%, ADV is doing worse than 62.50% of the companies in the same industry.
In the last couple of years the Operating Margin of ADV has declined.
The Gross Margin of ADV (14.09%) is worse than 80.21% of its industry peers.
In the last couple of years the Gross Margin of ADV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.7% | ||
| PM (TTM) | N/A | ||
| GM | 14.09% |
OM growth 3Y-33.51%
OM growth 5Y-19.77%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.06%
GM growth 5Y-2.83%
2. Health
2.1 Basic Checks
ADV 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 ADV has been reduced compared to 1 year ago.
Compared to 5 years ago, ADV has less shares outstanding
ADV has a worse debt/assets ratio than last year.
2.2 Solvency
ADV has an Altman-Z score of 0.22. This is a bad value and indicates that ADV is not financially healthy and even has some risk of bankruptcy.
ADV has a Altman-Z score of 0.22. This is in the lower half of the industry: ADV underperforms 66.67% of its industry peers.
The Debt to FCF ratio of ADV is 239.31, which is on the high side as it means it would take ADV, 239.31 years of fcf income to pay off all of its debts.
ADV has a Debt to FCF ratio (239.31) which is in line with its industry peers.
ADV has a Debt/Equity ratio of 2.39. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ADV (2.39) is worse than 69.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.39 | ||
| Debt/FCF | 239.31 | ||
| Altman-Z | 0.22 |
ROIC/WACC0.13
WACC6%
2.3 Liquidity
ADV has a Current Ratio of 1.99. This is a normal value and indicates that ADV is financially healthy and should not expect problems in meeting its short term obligations.
ADV has a better Current ratio (1.99) than 70.83% of its industry peers.
ADV has a Quick Ratio of 1.99. This is a normal value and indicates that ADV is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of ADV (1.99) is better than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 |
3. Growth
3.1 Past
ADV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -172.22%.
Looking at the last year, ADV shows a very negative growth in Revenue. The Revenue has decreased by -13.44% in the last year.
ADV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.18% yearly.
EPS 1Y (TTM)-172.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-320%
Revenue 1Y (TTM)-13.44%
Revenue growth 3Y-0.33%
Revenue growth 5Y-1.18%
Sales Q2Q%-6.51%
3.2 Future
Based on estimates for the next years, ADV will show a very strong growth in Earnings Per Share. The EPS will grow by 86.09% on average per year.
ADV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.89% yearly.
EPS Next Y463.6%
EPS Next 2Y139.52%
EPS Next 3Y86.09%
EPS Next 5YN/A
Revenue Next Year-2.42%
Revenue Next 2Y-1.35%
Revenue Next 3Y1.89%
Revenue Next 5YN/A
3.3 Evolution
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 negative for ADV. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 3.00, which indicates a rather cheap valuation of ADV.
95.83% of the companies in the same industry are more expensive than ADV, based on the Price/Forward Earnings ratio.
ADV is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ADV is on the same level as its industry peers.
ADV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.64 | ||
| EV/EBITDA | 8.48 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ADV's earnings are expected to grow with 86.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y139.52%
EPS Next 3Y86.09%
5. Dividend
5.1 Amount
ADV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.12
-0.04 (-3.45%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners22.02%
Inst Owner Change-0.35%
Ins Owners2.17%
Ins Owner Change1.16%
Market Cap363.23M
Analysts74.29
Price Target4.08 (264.29%)
Short Float %9.55%
Short Ratio13.31
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)0
Avg EPS beat(2)-153.63%
Min EPS beat(2)-281.52%
Max EPS beat(2)-25.74%
EPS beat(4)0
Avg EPS beat(4)-189.7%
Min EPS beat(4)-360.55%
Max EPS beat(4)-25.74%
EPS beat(8)2
Avg EPS beat(8)-104.64%
EPS beat(12)4
Avg EPS beat(12)-80.52%
EPS beat(16)6
Avg EPS beat(16)-58.91%
Revenue beat(2)2
Avg Revenue beat(2)3.7%
Min Revenue beat(2)2.32%
Max Revenue beat(2)5.07%
Revenue beat(4)4
Avg Revenue beat(4)7.85%
Min Revenue beat(4)2.32%
Max Revenue beat(4)14.81%
Revenue beat(8)5
Avg Revenue beat(8)2.94%
Revenue beat(12)7
Avg Revenue beat(12)2.02%
Revenue beat(16)11
Avg Revenue beat(16)2.49%
PT rev (1m)0%
PT rev (3m)-14.29%
EPS NQ rev (1m)-5.26%
EPS NQ rev (3m)-21.74%
EPS NY rev (1m)-13.25%
EPS NY rev (3m)-22.58%
Revenue NQ rev (1m)-2.6%
Revenue NQ rev (3m)-4.35%
Revenue NY rev (1m)-2.36%
Revenue NY rev (3m)-4.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3 | ||
| P/S | 0.1 | ||
| P/FCF | 51.64 | ||
| P/OCF | 5.91 | ||
| P/B | 0.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.48 |
EPS(TTM)-0.26
EYN/A
EPS(NY)0.37
Fwd EY33.37%
FCF(TTM)0.02
FCFY1.94%
OCF(TTM)0.19
OCFY16.93%
SpS10.91
BVpS2.15
TBVpS-3.31
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -12.54% | ||
| ROE | -54.31% | ||
| ROCE | 0.96% | ||
| ROIC | 0.76% | ||
| ROICexc | 0.79% | ||
| ROICexgc | 2.84% | ||
| OM | 0.7% | ||
| PM (TTM) | N/A | ||
| GM | 14.09% | ||
| FCFM | 0.2% |
ROA(3y)-14.86%
ROA(5y)-9.29%
ROE(3y)-57.41%
ROE(5y)-35.33%
ROIC(3y)2.32%
ROIC(5y)2.29%
ROICexc(3y)2.44%
ROICexc(5y)2.39%
ROICexgc(3y)10.77%
ROICexgc(5y)15.83%
ROCE(3y)2.94%
ROCE(5y)2.9%
ROICexcg growth 3Y-36.7%
ROICexcg growth 5Y-21.71%
ROICexc growth 3Y-15.6%
ROICexc growth 5Y-7.39%
OM growth 3Y-33.51%
OM growth 5Y-19.77%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.06%
GM growth 5Y-2.83%
F-Score6
Asset Turnover1.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.39 | ||
| Debt/FCF | 239.31 | ||
| Debt/EBITDA | 7.3 | ||
| Cap/Depr | 26.69% | ||
| Cap/Sales | 1.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 26.89% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.99 | ||
| Altman-Z | 0.22 |
F-Score6
WACC6%
ROIC/WACC0.13
Cap/Depr(3y)21.44%
Cap/Depr(5y)18.06%
Cap/Sales(3y)1.21%
Cap/Sales(5y)1.09%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-172.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-320%
EPS Next Y463.6%
EPS Next 2Y139.52%
EPS Next 3Y86.09%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.44%
Revenue growth 3Y-0.33%
Revenue growth 5Y-1.18%
Sales Q2Q%-6.51%
Revenue Next Year-2.42%
Revenue Next 2Y-1.35%
Revenue Next 3Y1.89%
Revenue Next 5YN/A
EBIT growth 1Y-54.14%
EBIT growth 3Y-33.74%
EBIT growth 5Y-20.72%
EBIT Next Year117.07%
EBIT Next 3Y32.67%
EBIT Next 5YN/A
FCF growth 1Y-95.35%
FCF growth 3Y-26.43%
FCF growth 5Y-17.52%
OCF growth 1Y-67.46%
OCF growth 3Y-9.6%
OCF growth 5Y-9.26%