AVANOS MEDICAL INC (AVNS) Stock Fundamental Analysis
NYSE:AVNS - New York Stock Exchange, Inc. - US05350V1061 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to AVNS. AVNS was compared to 187 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on AVNS.
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.
The reported net income has been mixed in the past 5 years: AVNS reported negative net income in multiple years.
Of the past 5 years AVNS 4 years had a positive operating cash flow.
1.2 Ratios
AVNS has a Return On Assets of -34.72%. This is in the lower half of the industry: AVNS underperforms 60.43% of its industry peers.
AVNS has a Return On Equity of -45.82%. This is comparable to the rest of the industry: AVNS outperforms 49.20% of its industry peers.
The Return On Invested Capital of AVNS (4.13%) is better than 75.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AVNS is significantly below the industry average of 7.89%.
The last Return On Invested Capital (4.13%) for AVNS is above the 3 year average (2.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -34.72% | ||
| ROE | -45.82% | ||
| ROIC | 4.13% |
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's Operating Margin of 7.36% is fine compared to the rest of the industry. AVNS outperforms 76.47% of its industry peers.
AVNS's Operating Margin has improved in the last couple of years.
AVNS's Gross Margin of 54.60% is in line compared to the rest of the industry. AVNS outperforms 49.73% of its industry peers.
In the last couple of years the Gross Margin of AVNS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.36% | ||
| PM (TTM) | N/A | ||
| GM | 54.6% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVNS is destroying value.
AVNS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AVNS has less shares outstanding
The debt/assets ratio for AVNS is higher compared to a year ago.
2.2 Solvency
AVNS has an Altman-Z score of 1.32. 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 (1.32) which is comparable to the rest of the industry.
The Debt to FCF ratio of AVNS is 0.94, which is an excellent value as it means it would take AVNS, only 0.94 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.94, AVNS belongs to the best of the industry, outperforming 91.98% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that AVNS is not too dependend on debt financing.
AVNS has a Debt to Equity ratio (0.12) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.49
WACC8.39%
2.3 Liquidity
AVNS has a Current Ratio of 2.57. This indicates that AVNS is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.57, AVNS perfoms like the industry average, outperforming 49.20% of the companies in the same industry.
AVNS has a Quick Ratio of 1.56. This is a normal value and indicates that AVNS is financially healthy and should not expect problems in meeting its short term obligations.
AVNS's Quick ratio of 1.56 is in line compared to the rest of the industry. AVNS outperforms 43.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.31% over the past year.
AVNS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.32% yearly.
AVNS shows a small growth in Revenue. In the last year, the Revenue has grown by 1.34%.
AVNS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.28% yearly.
EPS 1Y (TTM)2.31%
EPS 3Y3.09%
EPS 5Y3.32%
EPS Q2Q%36.84%
Revenue 1Y (TTM)1.34%
Revenue growth 3Y-2.61%
Revenue growth 5Y-0.28%
Sales Q2Q%0.84%
3.2 Future
AVNS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.00% yearly.
Based on estimates for the next years, AVNS will show a small growth in Revenue. The Revenue will grow by 1.56% on average per year.
EPS Next Y-31.19%
EPS Next 2Y-5.59%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue Next Year-1.96%
Revenue Next 2Y0.69%
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.
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
With a Price/Earnings ratio of 8.44, the valuation of AVNS can be described as very reasonable.
Based on the Price/Earnings ratio, AVNS is valued cheaper than 96.26% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. AVNS is valued rather cheaply when compared to this.
AVNS is valuated reasonably with a Price/Forward Earnings ratio of 9.99.
Based on the Price/Forward Earnings ratio, AVNS is valued cheaply inside the industry as 89.84% of the companies are valued more expensively.
AVNS is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.44 | ||
| Fwd PE | 9.99 |
4.2 Price Multiples
97.86% of the companies in the same industry are more expensive than AVNS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AVNS is valued cheaply inside the industry as 99.47% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.55 | ||
| EV/EBITDA | 5.81 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.54
EPS Next 2Y-5.59%
EPS Next 3Y5%
5. Dividend
5.1 Amount
No dividends for AVNS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.22
-0.42 (-3.61%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners95.13%
Inst Owner Change0%
Ins Owners3.24%
Ins Owner Change4.42%
Market Cap518.81M
Analysts43.33
Price Target17.34 (54.55%)
Short Float %3.28%
Short Ratio3.26
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)22.28%
Min EPS beat(2)2.94%
Max EPS beat(2)41.61%
EPS beat(4)2
Avg EPS beat(4)10.83%
Min EPS beat(4)-0.94%
Max EPS beat(4)41.61%
EPS beat(8)4
Avg EPS beat(8)10.55%
EPS beat(12)7
Avg EPS beat(12)9.33%
EPS beat(16)8
Avg EPS beat(16)5.73%
Revenue beat(2)1
Avg Revenue beat(2)0.43%
Min Revenue beat(2)-0.66%
Max Revenue beat(2)1.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-4.72%
Max Revenue beat(4)1.52%
Revenue beat(8)1
Avg Revenue beat(8)-2.17%
Revenue beat(12)1
Avg Revenue beat(12)-5.03%
Revenue beat(16)2
Avg Revenue beat(16)-5.23%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-37.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-24.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.44 | ||
| Fwd PE | 9.99 | ||
| P/S | 0.75 | ||
| P/FCF | 4.55 | ||
| P/OCF | 3.86 | ||
| P/B | 0.62 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 5.81 |
EPS(TTM)1.33
EY11.85%
EPS(NY)1.12
Fwd EY10.01%
FCF(TTM)2.47
FCFY21.97%
OCF(TTM)2.91
OCFY25.91%
SpS14.9
BVpS18.15
TBVpS5.98
PEG (NY)N/A
PEG (5Y)2.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -34.72% | ||
| ROE | -45.82% | ||
| ROCE | 5.22% | ||
| ROIC | 4.13% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 12.9% | ||
| OM | 7.36% | ||
| PM (TTM) | N/A | ||
| GM | 54.6% | ||
| FCFM | 16.54% |
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
ROICexcg growth 3Y51.11%
ROICexcg 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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.94 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 46.68% | ||
| Cap/Sales | 2.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 142.37% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.57 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 1.32 |
F-Score6
WACC8.39%
ROIC/WACC0.49
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)2.31%
EPS 3Y3.09%
EPS 5Y3.32%
EPS Q2Q%36.84%
EPS Next Y-31.19%
EPS Next 2Y-5.59%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue 1Y (TTM)1.34%
Revenue growth 3Y-2.61%
Revenue growth 5Y-0.28%
Sales Q2Q%0.84%
Revenue Next Year-1.96%
Revenue Next 2Y0.69%
Revenue Next 3Y1.56%
Revenue Next 5YN/A
EBIT growth 1Y209.15%
EBIT growth 3Y38.85%
EBIT growth 5YN/A
EBIT Next Year51.47%
EBIT Next 3Y22.03%
EBIT Next 5YN/A
FCF growth 1Y78.13%
FCF growth 3Y7.73%
FCF growth 5YN/A
OCF growth 1Y63.31%
OCF growth 3Y4.87%
OCF growth 5YN/A