AVANOS MEDICAL INC (AVNS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVNS - US05350V1061 - Common Stock
11.24 USD
-0.02 (-0.18%)
11.24 USD
0 (0%)
Overall AVNS gets a fundamental rating of 5 out of 10. We evaluated AVNS against 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. AVNS has a bad growth rate and is valued cheaply.
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 -43.92%. This is in the lower half of the industry: AVNS underperforms 62.57% of its industry peers.
The Return On Equity of AVNS (-60.27%) is comparable to the rest of the industry.
AVNS's Return On Invested Capital of 2.68% is fine compared to the rest of the industry. AVNS outperforms 70.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AVNS is significantly below the industry average of 8.81%.
The 3 year average ROIC (2.58%) for AVNS is below the current ROIC(2.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -43.92% | ||
| ROE | -60.27% | ||
| ROIC | 2.68% |
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 has a better Operating Margin (4.46%) than 70.05% of its industry peers.
In the last couple of years the Operating Margin of AVNS has grown nicely.
Looking at the Gross Margin, with a value of 52.28%, AVNS is in line with its industry, outperforming 47.06% of the companies in the same industry.
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 | 4.46% | ||
| PM (TTM) | N/A | ||
| GM | 52.28% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVNS is destroying value.
The number of shares outstanding for AVNS has been reduced compared to 1 year ago.
Compared to 5 years ago, AVNS has less shares outstanding
AVNS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that AVNS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AVNS (1.04) is comparable to the rest of the industry.
The Debt to FCF ratio of AVNS is 1.38, which is an excellent value as it means it would take AVNS, only 1.38 years of fcf income to pay off all of its debts.
AVNS's Debt to FCF ratio of 1.38 is amongst the best of the industry. AVNS outperforms 89.84% of its industry peers.
AVNS has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AVNS (0.12) is better than 64.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 1.04 |
ROIC/WACC0.33
WACC8.16%
2.3 Liquidity
AVNS has a Current Ratio of 2.38. This indicates that AVNS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of AVNS (2.38) is comparable to the rest of the industry.
A Quick Ratio of 1.36 indicates that AVNS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.36, AVNS is doing worse than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The earnings per share for AVNS have decreased by -7.76% in the last year.
Measured over the past 5 years, AVNS shows a small growth in Earnings Per Share. The EPS has been growing by 3.32% on average per year.
The Revenue has been growing slightly by 2.70% in the past year.
Measured over the past years, AVNS shows a decrease in Revenue. The Revenue has been decreasing by -0.28% on average per year.
EPS 1Y (TTM)-7.76%
EPS 3Y3.09%
EPS 5Y3.32%
EPS Q2Q%-38.89%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y-2.61%
Revenue growth 5Y-0.28%
Sales Q2Q%4.34%
3.2 Future
The Earnings Per Share is expected to grow by 5.00% on average over the next years.
AVNS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.56% yearly.
EPS Next Y-27.14%
EPS Next 2Y-12.3%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue Next Year1.39%
Revenue Next 2Y1.77%
Revenue Next 3Y1.56%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 10.50 indicates a reasonable valuation of AVNS.
Based on the Price/Earnings ratio, AVNS is valued cheaper than 93.58% of the companies in the same industry.
When comparing the Price/Earnings ratio of AVNS to the average of the S&P500 Index (26.34), we can say AVNS is valued rather cheaply.
The Price/Forward Earnings ratio is 11.60, which indicates a very decent valuation of AVNS.
Based on the Price/Forward Earnings ratio, AVNS is valued cheaper than 91.98% of the companies in the same industry.
AVNS is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.56, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 11.6 |
4.2 Price Multiples
AVNS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AVNS is cheaper than 94.65% of the companies in the same industry.
AVNS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AVNS is cheaper than 97.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.98 | ||
| EV/EBITDA | 7.74 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.16
EPS Next 2Y-12.3%
EPS Next 3Y5%
5. Dividend
5.1 Amount
AVNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.24
-0.02 (-0.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.79%
Inst Owner Change0.57%
Ins Owners2.95%
Ins Owner Change0.25%
Market Cap521.76M
Revenue(TTM)699.90M
Net Income(TTM)-468.90M
Analysts43.33
Price Target17.34 (54.27%)
Short Float %5.81%
Short Ratio4.82
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)45.42%
Min EPS beat(2)11.11%
Max EPS beat(2)79.74%
EPS beat(4)4
Avg EPS beat(4)33.85%
Min EPS beat(4)2.94%
Max EPS beat(4)79.74%
EPS beat(8)4
Avg EPS beat(8)13.31%
EPS beat(12)7
Avg EPS beat(12)15.99%
EPS beat(16)10
Avg EPS beat(16)13.31%
Revenue beat(2)2
Avg Revenue beat(2)4.82%
Min Revenue beat(2)3.67%
Max Revenue beat(2)5.97%
Revenue beat(4)3
Avg Revenue beat(4)2.62%
Min Revenue beat(4)-0.66%
Max Revenue beat(4)5.97%
Revenue beat(8)3
Avg Revenue beat(8)0.51%
Revenue beat(12)3
Avg Revenue beat(12)-1.11%
Revenue beat(16)3
Avg Revenue beat(16)-4.54%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)13.07%
EPS NY rev (3m)13.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.37%
Revenue NY rev (1m)2.81%
Revenue NY rev (3m)2.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.5 | ||
| Fwd PE | 11.6 | ||
| P/S | 0.75 | ||
| P/FCF | 6.98 | ||
| P/OCF | 5.01 | ||
| P/B | 0.67 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 7.74 |
EPS(TTM)1.07
EY9.52%
EPS(NY)0.97
Fwd EY8.62%
FCF(TTM)1.61
FCFY14.32%
OCF(TTM)2.24
OCFY19.97%
SpS15.08
BVpS16.76
TBVpS5.64
PEG (NY)N/A
PEG (5Y)3.16
Graham Number20.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -43.92% | ||
| ROE | -60.27% | ||
| ROCE | 3.39% | ||
| ROIC | 2.68% | ||
| ROICexc | 2.9% | ||
| ROICexgc | 7.4% | ||
| OM | 4.46% | ||
| PM (TTM) | N/A | ||
| GM | 52.28% | ||
| FCFM | 10.67% |
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
ROICexgc growth 3Y51.11%
ROICexgc 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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.38 | ||
| Debt/EBITDA | 1.3 | ||
| Cap/Depr | 72.84% | ||
| Cap/Sales | 4.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 145.33% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.38 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z | 1.04 |
F-Score6
WACC8.16%
ROIC/WACC0.33
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)-7.76%
EPS 3Y3.09%
EPS 5Y3.32%
EPS Q2Q%-38.89%
EPS Next Y-27.14%
EPS Next 2Y-12.3%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue 1Y (TTM)2.7%
Revenue growth 3Y-2.61%
Revenue growth 5Y-0.28%
Sales Q2Q%4.34%
Revenue Next Year1.39%
Revenue Next 2Y1.77%
Revenue Next 3Y1.56%
Revenue Next 5YN/A
EBIT growth 1Y-18.96%
EBIT growth 3Y38.85%
EBIT growth 5YN/A
EBIT Next Year51.47%
EBIT Next 3Y22.03%
EBIT Next 5YN/A
FCF growth 1Y104.1%
FCF growth 3Y7.73%
FCF growth 5YN/A
OCF growth 1Y95.13%
OCF growth 3Y4.87%
OCF growth 5YN/A
AVANOS MEDICAL INC / AVNS FAQ
Can you provide the ChartMill fundamental rating for AVANOS MEDICAL INC?
ChartMill assigns a fundamental rating of 5 / 10 to AVNS.
What is the valuation status of AVANOS MEDICAL INC (AVNS) stock?
ChartMill assigns a valuation rating of 7 / 10 to AVANOS MEDICAL INC (AVNS). This can be considered as Undervalued.
What is the profitability of AVNS stock?
AVANOS MEDICAL INC (AVNS) has a profitability rating of 4 / 10.
What are the PE and PB ratios of AVANOS MEDICAL INC (AVNS) stock?
The Price/Earnings (PE) ratio for AVANOS MEDICAL INC (AVNS) is 10.5 and the Price/Book (PB) ratio is 0.67.
What is the earnings growth outlook for AVANOS MEDICAL INC?
The Earnings per Share (EPS) of AVANOS MEDICAL INC (AVNS) is expected to decline by -27.14% in the next year.