ADVANTAGE SOLUTIONS INC (ADV) Stock Fundamental Analysis
NASDAQ:ADV - Nasdaq - US00791N1028 - Common Stock - Currency: USD
Taking everything into account, ADV scores 3 out of 10 in our fundamental rating. ADV was compared to 97 industry peers in the Media industry. ADV may be in some trouble as it scores bad on both profitability and health. ADV has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years ADV always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of ADV (-10.53%) is worse than 68.04% of its industry peers.
ADV has a worse Return On Equity (-43.67%) than 70.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.34%, ADV is doing worse than 62.89% of the companies in the same industry.
ADV had an Average Return On Invested Capital over the past 3 years of 2.32%. This is below the industry average of 6.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.53% | ||
| ROE | -43.67% | ||
| ROIC | 0.34% |
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 0.32%, ADV is doing worse than 62.89% of the companies in the same industry.
In the last couple of years the Operating Margin of ADV has declined.
ADV has a worse Gross Margin (14.22%) than 80.41% of its industry peers.
In the last couple of years the Gross Margin of ADV has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.32% | ||
| PM (TTM) | N/A | ||
| GM | 14.22% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADV is destroying value.
The number of shares outstanding for ADV has been reduced compared to 1 year ago.
ADV has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ADV is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.25, we must say that ADV is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.25, ADV is not doing good in the industry: 69.07% of the companies in the same industry are doing better.
ADV has a debt to FCF ratio of 45.02. This is a negative value and a sign of low solvency as ADV would need 45.02 years to pay back of all of its debts.
With a Debt to FCF ratio value of 45.02, ADV perfoms like the industry average, outperforming 46.39% of the companies in the same industry.
ADV has a Debt/Equity ratio of 2.25. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.25, ADV is doing worse than 70.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.25 | ||
| Debt/FCF | 45.02 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.05
WACC6.34%
2.3 Liquidity
ADV has a Current Ratio of 1.98. This is a normal value and indicates that ADV is financially healthy and should not expect problems in meeting its short term obligations.
ADV's Current ratio of 1.98 is fine compared to the rest of the industry. ADV outperforms 65.98% of its industry peers.
A Quick Ratio of 1.98 indicates that ADV should not have too much problems paying its short term obligations.
ADV's Quick ratio of 1.98 is fine compared to the rest of the industry. ADV outperforms 65.98% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
The earnings per share for ADV have decreased strongly by -137.04% in the last year.
Looking at the last year, ADV shows a very negative growth in Revenue. The Revenue has decreased by -15.59% 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)-137.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-35.71%
Revenue 1Y (TTM)-15.59%
Revenue growth 3Y-0.33%
Revenue growth 5Y-1.18%
Sales Q2Q%-17.36%
3.2 Future
The Earnings Per Share is expected to grow by 93.56% on average over the next years. This is a very strong growth
Based on estimates for the next years, ADV will show a small growth in Revenue. The Revenue will grow by 3.19% on average per year.
EPS Next Y519.15%
EPS Next 2Y157.8%
EPS Next 3Y93.56%
EPS Next 5YN/A
Revenue Next Year-0.06%
Revenue Next 2Y-0.03%
Revenue Next 3Y3.19%
Revenue Next 5YN/A
3.3 Evolution
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
ADV reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
With a Price/Forward Earnings ratio of 3.29, the valuation of ADV can be described as very cheap.
98.97% of the companies in the same industry are more expensive than ADV, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.86. ADV is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.29 |
4.2 Price Multiples
ADV's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, ADV is valued a bit cheaper than the industry average as 72.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.75 | ||
| EV/EBITDA | 8.88 |
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.
A more expensive valuation may be justified as ADV's earnings are expected to grow with 93.56% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y157.8%
EPS Next 3Y93.56%
5. Dividend
5.1 Amount
ADV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.38
+0.06 (+4.55%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners22.02%
Inst Owner Change0.01%
Ins Owners2.17%
Ins Owner Change0.95%
Market Cap443.55M
Analysts74.29
Price Target4.08 (195.65%)
Short Float %9.44%
Short Ratio13.05
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)-58.37%
Min EPS beat(2)-91%
Max EPS beat(2)-25.74%
EPS beat(4)0
Avg EPS beat(4)-128.85%
Min EPS beat(4)-360.55%
Max EPS beat(4)-25.74%
EPS beat(8)2
Avg EPS beat(8)-88.41%
EPS beat(12)5
Avg EPS beat(12)-54.47%
EPS beat(16)7
Avg EPS beat(16)-39.38%
Revenue beat(2)2
Avg Revenue beat(2)5.76%
Min Revenue beat(2)2.32%
Max Revenue beat(2)9.2%
Revenue beat(4)4
Avg Revenue beat(4)6.66%
Min Revenue beat(4)0.32%
Max Revenue beat(4)14.81%
Revenue beat(8)5
Avg Revenue beat(8)2.5%
Revenue beat(12)7
Avg Revenue beat(12)1.79%
Revenue beat(16)10
Avg Revenue beat(16)2.11%
PT rev (1m)-14.29%
PT rev (3m)-14.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.23%
Revenue NY rev (1m)-2.03%
Revenue NY rev (3m)-2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 3.29 | ||
| P/S | 0.12 | ||
| P/FCF | 11.75 | ||
| P/OCF | 4.76 | ||
| P/B | 0.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.88 |
EPS(TTM)-0.1
EYN/A
EPS(NY)0.42
Fwd EY30.37%
FCF(TTM)0.12
FCFY8.51%
OCF(TTM)0.29
OCFY20.99%
SpS11.1
BVpS2.33
TBVpS-3.3
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.53% | ||
| ROE | -43.67% | ||
| ROCE | 0.44% | ||
| ROIC | 0.34% | ||
| ROICexc | 0.37% | ||
| ROICexgc | 1.44% | ||
| OM | 0.32% | ||
| PM (TTM) | N/A | ||
| GM | 14.22% | ||
| FCFM | 1.06% |
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 Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.25 | ||
| Debt/FCF | 45.02 | ||
| Debt/EBITDA | 7.81 | ||
| Cap/Depr | 27.05% | ||
| Cap/Sales | 1.55% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 43.08% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 0.25 |
F-Score6
WACC6.34%
ROIC/WACC0.05
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)-137.04%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-35.71%
EPS Next Y519.15%
EPS Next 2Y157.8%
EPS Next 3Y93.56%
EPS Next 5YN/A
Revenue 1Y (TTM)-15.59%
Revenue growth 3Y-0.33%
Revenue growth 5Y-1.18%
Sales Q2Q%-17.36%
Revenue Next Year-0.06%
Revenue Next 2Y-0.03%
Revenue Next 3Y3.19%
Revenue Next 5YN/A
EBIT growth 1Y-84.55%
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-79.8%
FCF growth 3Y-26.43%
FCF growth 5Y-17.52%
OCF growth 1Y-59.26%
OCF growth 3Y-9.6%
OCF growth 5Y-9.26%