AVANOS MEDICAL INC (AVNS) Stock Fundamental Analysis
USA - NYSE:AVNS - US05350V1061 - Common Stock
10.66 USD
-0.64 (-5.66%)
10.67 USD
+0.01 (+0.09%)
AVNS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 189 industry peers in the Health Care Equipment & Supplies industry. AVNS has an average financial health and profitability rating. AVNS has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AVNS was profitable.
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.
AVNS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AVNS has a Return On Assets of -44.58%. This is in the lower half of the industry: AVNS underperforms 63.49% of its industry peers.
Looking at the Return On Equity, with a value of -59.67%, AVNS is in line with its industry, outperforming 47.09% of the companies in the same industry.
AVNS has a better Return On Invested Capital (3.90%) than 73.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AVNS is significantly below the industry average of 9.12%.
The 3 year average ROIC (2.58%) for AVNS is below the current ROIC(3.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -44.58% | ||
| ROE | -59.67% | ||
| ROIC | 3.9% |
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 6.45% is fine compared to the rest of the industry. AVNS outperforms 72.49% of its industry peers.
AVNS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 53.83%, AVNS perfoms like the industry average, outperforming 48.15% 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 | 6.45% | ||
| PM (TTM) | N/A | ||
| GM | 53.83% |
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.
The number of shares outstanding for AVNS has been reduced compared to 5 years ago.
AVNS has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.15, we must say that AVNS is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.15, AVNS perfoms like the industry average, outperforming 51.32% of the companies in the same industry.
AVNS has a debt to FCF ratio of 1.20. This is a very positive value and a sign of high solvency as it would only need 1.20 years to pay back of all of its debts.
The Debt to FCF ratio of AVNS (1.20) is better than 89.95% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that AVNS is not too dependend on debt financing.
AVNS's Debt to Equity ratio of 0.12 is fine compared to the rest of the industry. AVNS outperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 1.15 |
ROIC/WACC0.48
WACC8.1%
2.3 Liquidity
AVNS has a Current Ratio of 2.64. This indicates that AVNS is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.64, AVNS perfoms like the industry average, outperforming 53.44% of the companies in the same industry.
A Quick Ratio of 1.58 indicates that AVNS should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.58, AVNS is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
AVNS shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.82%.
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 1.48% in the past year.
The Revenue has been decreasing by -0.28% on average over the past years.
EPS 1Y (TTM)-0.82%
EPS 3Y3.09%
EPS 5Y3.32%
EPS Q2Q%-41.38%
Revenue 1Y (TTM)1.48%
Revenue growth 3Y-2.61%
Revenue growth 5Y-0.28%
Sales Q2Q%1.92%
3.2 Future
Based on estimates for the next years, AVNS will show a small growth in Earnings Per Share. The EPS will grow by 5.00% on average per year.
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-35.56%
EPS Next 2Y-14.5%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue Next Year-1.38%
Revenue Next 2Y-0.03%
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
Based on the Price/Earnings ratio of 8.81, the valuation of AVNS can be described as reasonable.
95.24% of the companies in the same industry are more expensive than AVNS, based on the Price/Earnings ratio.
AVNS is valuated cheaply when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.57, the valuation of AVNS can be described as very reasonable.
AVNS's Price/Forward Earnings ratio is rather cheap when compared to the industry. AVNS is cheaper than 91.01% of the companies in the same industry.
AVNS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.81 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVNS is valued cheaply inside the industry as 97.35% of the companies are valued more expensively.
99.47% of the companies in the same industry are more expensive than AVNS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.64 | ||
| EV/EBITDA | 5.87 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.65
EPS Next 2Y-14.5%
EPS Next 3Y5%
5. Dividend
5.1 Amount
AVNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.66
-0.64 (-5.66%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.22%
Inst Owner Change-5.32%
Ins Owners3.51%
Ins Owner Change1.04%
Market Cap494.62M
Revenue(TTM)692.50M
Net Income(TTM)-463200000
Analysts43.33
Price Target17.34 (62.66%)
Short Float %5.21%
Short Ratio4.18
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)26.36%
Min EPS beat(2)11.11%
Max EPS beat(2)41.61%
EPS beat(4)3
Avg EPS beat(4)13.84%
Min EPS beat(4)-0.3%
Max EPS beat(4)41.61%
EPS beat(8)4
Avg EPS beat(8)9.23%
EPS beat(12)7
Avg EPS beat(12)9.82%
EPS beat(16)9
Avg EPS beat(16)7.16%
Revenue beat(2)2
Avg Revenue beat(2)2.59%
Min Revenue beat(2)1.52%
Max Revenue beat(2)3.67%
Revenue beat(4)2
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-4.72%
Max Revenue beat(4)3.67%
Revenue beat(8)2
Avg Revenue beat(8)-0.36%
Revenue beat(12)2
Avg Revenue beat(12)-3.09%
Revenue beat(16)2
Avg Revenue beat(16)-5.07%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.81 | ||
| Fwd PE | 11.57 | ||
| P/S | 0.71 | ||
| P/FCF | 5.64 | ||
| P/OCF | 4.37 | ||
| P/B | 0.64 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 5.87 |
EPS(TTM)1.21
EY11.35%
EPS(NY)0.92
Fwd EY8.64%
FCF(TTM)1.89
FCFY17.73%
OCF(TTM)2.44
OCFY22.89%
SpS14.92
BVpS16.73
TBVpS6.24
PEG (NY)N/A
PEG (5Y)2.65
Graham Number21.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -44.58% | ||
| ROE | -59.67% | ||
| ROCE | 4.94% | ||
| ROIC | 3.9% | ||
| ROICexc | 4.34% | ||
| ROICexgc | 10.78% | ||
| OM | 6.45% | ||
| PM (TTM) | N/A | ||
| GM | 53.83% | ||
| FCFM | 12.66% |
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 Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.2 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 60.57% | ||
| Cap/Sales | 3.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 130.42% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 1.15 |
F-Score6
WACC8.1%
ROIC/WACC0.48
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)-0.82%
EPS 3Y3.09%
EPS 5Y3.32%
EPS Q2Q%-41.38%
EPS Next Y-35.56%
EPS Next 2Y-14.5%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue 1Y (TTM)1.48%
Revenue growth 3Y-2.61%
Revenue growth 5Y-0.28%
Sales Q2Q%1.92%
Revenue Next Year-1.38%
Revenue Next 2Y-0.03%
Revenue Next 3Y1.56%
Revenue Next 5YN/A
EBIT growth 1Y67.42%
EBIT growth 3Y38.85%
EBIT growth 5YN/A
EBIT Next Year51.47%
EBIT Next 3Y22.03%
EBIT Next 5YN/A
FCF growth 1Y154.2%
FCF growth 3Y7.73%
FCF growth 5YN/A
OCF growth 1Y114.8%
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 4 / 10 to AVNS.
What is the valuation status of AVANOS MEDICAL INC (AVNS) stock?
ChartMill assigns a valuation rating of 6 / 10 to AVANOS MEDICAL INC (AVNS). This can be considered as Fairly Valued.
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 8.81 and the Price/Book (PB) ratio is 0.64.
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 -35.56% in the next year.