ADVANTAGE SOLUTIONS INC (ADV)
US00791N1028 - Common Stock
ADV gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ADV was profitable.
In the past year ADV had a positive cash flow from operations.
ADV had negative earnings in 4 of the past 5 years.
In the past 5 years ADV always reported a positive cash flow from operatings.
1.2 Ratios
ADV's Return On Assets of -1.67% is on the low side compared to the rest of the industry. ADV is outperformed by 61.05% of its industry peers.
With a Return On Equity value of -5.72%, ADV perfoms like the industry average, outperforming 43.16% of the companies in the same industry.
ADV has a Return On Invested Capital (1.82%) which is in line with its industry peers.
ADV had an Average Return On Invested Capital over the past 3 years of 2.76%. This is below the industry average of 7.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.67% | ||
| ROE | -5.72% | ||
| ROIC | 1.82% |
ROA(3y)-11.04%
ROA(5y)-7.26%
ROE(3y)-42.12%
ROE(5y)-26.87%
ROIC(3y)2.76%
ROIC(5y)2.47%
1.3 Margins
With a Operating Margin value of 1.77%, ADV is not doing good in the industry: 65.26% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of ADV has declined.
ADV has a Gross Margin of 13.36%. This is amonst the worse of the industry: ADV underperforms 85.26% of its industry peers.
ADV's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.77% | ||
| PM (TTM) | N/A | ||
| GM | 13.36% |
OM growth 3Y-5.96%
OM growth 5Y-14.36%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-11.31%
GM growth 5Y-3.73%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ADV is destroying value.
ADV has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, ADV has about the same amount of shares outstanding.
The debt/assets ratio for ADV is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.79, we must say that ADV is in the distress zone and has some risk of bankruptcy.
ADV's Altman-Z score of 0.79 is in line compared to the rest of the industry. ADV outperforms 42.11% of its industry peers.
The Debt to FCF ratio of ADV is 9.68, which is on the high side as it means it would take ADV, 9.68 years of fcf income to pay off all of its debts.
ADV has a Debt to FCF ratio of 9.68. This is in the better half of the industry: ADV outperforms 63.16% of its industry peers.
ADV has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.68, ADV is not doing good in the industry: 69.47% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 9.68 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.27
WACC6.72%
2.3 Liquidity
A Current Ratio of 1.87 indicates that ADV should not have too much problems paying its short term obligations.
With a Current ratio value of 1.87, ADV perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 1.87 indicates that ADV should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.87, ADV is doing good in the industry, outperforming 61.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.87 |
3. Growth
3.1 Past
ADV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.46%.
ADV shows a small growth in Revenue. In the last year, the Revenue has grown by 4.32%.
Measured over the past years, ADV shows a small growth in Revenue. The Revenue has been growing by 2.65% on average per year.
EPS 1Y (TTM)-58.46%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-22.22%
Revenue 1Y (TTM)4.32%
Revenue growth 3Y10.21%
Revenue growth 5Y2.65%
Revenue growth Q2Q-2.09%
3.2 Future
ADV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.65% yearly.
Based on estimates for the next years, ADV will show a decrease in Revenue. The Revenue will decrease by -2.27% on average per year.
EPS Next Y75.81%
EPS Next 2Y43.44%
EPS Next 3Y31.65%
EPS Next 5YN/A
Revenue Next Year-11.83%
Revenue Next 2Y-4.78%
Revenue Next 3Y-2.27%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.91, which indicates a correct valuation of ADV.
69.47% of the companies in the same industry are more expensive than ADV, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.55. ADV is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 9.62, which indicates a very decent valuation of ADV.
Based on the Price/Forward Earnings ratio, ADV is valued a bit cheaper than the industry average as 75.79% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ADV to the average of the S&P500 Index (20.92), we can say ADV is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 9.62 |
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 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.59 | ||
| EV/EBITDA | 10.55 |
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 31.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y43.44%
EPS Next 3Y31.65%
5. Dividend
5.1 Amount
ADV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ADVANTAGE SOLUTIONS INC
NASDAQ:ADV (5/2/2024, 12:49:49 PM)
4.565
+0.15 (+3.28%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.91 | ||
| Fwd PE | 9.62 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.67% | ||
| ROE | -5.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.77% | ||
| PM (TTM) | N/A | ||
| GM | 13.36% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.12
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.87 | ||
| Quick Ratio | 1.87 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-58.46%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y75.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.32%
Revenue growth 3Y10.21%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y