AVANOS MEDICAL INC (AVNS)
US05350V1061 - Common Stock
We assign a fundamental rating of 4 out of 10 to AVNS. AVNS was compared to 196 industry peers in the Health Care Equipment & Supplies industry. AVNS has an average financial health and profitability rating. AVNS is not valued too expensively and it also shows a decent growth rate.
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.
In multiple years AVNS reported negative operating cash flow during the last 5 years.
1.2 Ratios
AVNS has a Return On Assets of -3.65%. This is in the better half of the industry: AVNS outperforms 64.80% of its industry peers.
Looking at the Return On Equity, with a value of -5.00%, AVNS is in the better half of the industry, outperforming 66.33% of the companies in the same industry.
AVNS has a better Return On Invested Capital (0.40%) than 69.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AVNS is significantly below the industry average of 8.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.65% | ||
| ROE | -5% | ||
| ROIC | 0.4% |
ROA(3y)-0.17%
ROA(5y)-0.94%
ROE(3y)-0.23%
ROE(5y)-1.29%
ROIC(3y)1.59%
ROIC(5y)N/A
1.3 Margins
Looking at the Operating Margin, with a value of 1.11%, AVNS is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
AVNS's Operating Margin has declined in the last couple of years.
AVNS's Gross Margin of 56.39% is in line compared to the rest of the industry. AVNS outperforms 53.57% of its industry peers.
AVNS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.11% | ||
| PM (TTM) | N/A | ||
| GM | 56.39% |
OM growth 3YN/A
OM growth 5Y-33.72%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.59%
GM growth 5Y-1.21%
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.
AVNS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for AVNS has been reduced compared to 5 years ago.
The debt/assets ratio for AVNS has been reduced compared to a year ago.
2.2 Solvency
AVNS has an Altman-Z score of 1.47. This is a bad value and indicates that AVNS is not financially healthy and even has some risk of bankruptcy.
AVNS has a Altman-Z score of 1.47. This is comparable to the rest of the industry: AVNS outperforms 56.12% of its industry peers.
AVNS has a debt to FCF ratio of 11.51. This is a negative value and a sign of low solvency as AVNS would need 11.51 years to pay back of all of its debts.
AVNS has a better Debt to FCF ratio (11.51) than 75.51% of its industry peers.
AVNS has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
AVNS has a Debt to Equity ratio of 0.13. This is comparable to the rest of the industry: AVNS outperforms 55.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 11.51 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.04
WACC9.85%
2.3 Liquidity
A Current Ratio of 2.08 indicates that AVNS has no problem at all paying its short term obligations.
With a Current ratio value of 2.08, AVNS is not doing good in the industry: 72.45% of the companies in the same industry are doing better.
AVNS has a Quick Ratio of 1.38. This is a normal value and indicates that AVNS is financially healthy and should not expect problems in meeting its short term obligations.
AVNS has a worse Quick ratio (1.38) than 71.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
AVNS shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.36%.
Measured over the past years, AVNS shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.63% on average per year.
AVNS shows a decrease in Revenue. In the last year, the revenue decreased by -6.49%.
Measured over the past years, AVNS shows a small growth in Revenue. The Revenue has been growing by 0.64% on average per year.
EPS 1Y (TTM)-16.36%
EPS 3Y20.95%
EPS 5Y-3.63%
EPS growth Q2Q-46.67%
Revenue 1Y (TTM)-6.49%
Revenue growth 3Y-1.97%
Revenue growth 5Y0.64%
Revenue growth Q2Q-20.32%
3.2 Future
The Earnings Per Share is expected to grow by 16.36% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.47% on average over the next years.
EPS Next Y1.78%
EPS Next 2Y16.96%
EPS Next 3Y14.48%
EPS Next 5Y16.36%
Revenue Next Year3.07%
Revenue Next 2Y4.25%
Revenue Next 3Y4.67%
Revenue Next 5Y5.47%
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
With a Price/Earnings ratio of 13.55, AVNS is valued correctly.
93.37% of the companies in the same industry are more expensive than AVNS, based on the Price/Earnings ratio.
AVNS's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.80.
With a Price/Forward Earnings ratio of 13.31, AVNS is valued correctly.
Based on the Price/Forward Earnings ratio, AVNS is valued cheaper than 94.90% of the companies in the same industry.
AVNS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.55 | ||
| Fwd PE | 13.31 |
4.2 Price Multiples
AVNS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AVNS is cheaper than 83.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AVNS is valued a bit cheaper than 77.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.17 | ||
| EV/EBITDA | 17.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AVNS's earnings are expected to grow with 14.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)7.62
PEG (5Y)N/A
EPS Next 2Y16.96%
EPS Next 3Y14.48%
5. Dividend
5.1 Amount
AVNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AVANOS MEDICAL INC
NYSE:AVNS (4/18/2024, 7:04:00 PM)
After market: 18.7 0 (0%)18.7
-0.01 (-0.05%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap863.94M
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 | 13.55 | ||
| Fwd PE | 13.31 | ||
| 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)7.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.65% | ||
| ROE | -5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.11% | ||
| PM (TTM) | N/A | ||
| GM | 56.39% | ||
| 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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.08 | ||
| Quick Ratio | 1.38 | ||
| 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)-16.36%
EPS 3Y20.95%
EPS 5Y
EPS growth Q2Q
EPS Next Y1.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-6.49%
Revenue growth 3Y-1.97%
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