AVANOS MEDICAL INC (AVNS) Stock Fundamental Analysis
NYSE:AVNS - New York Stock Exchange, Inc. - US05350V1061 - Common Stock - Currency: USD
Taking everything into account, AVNS scores 5 out of 10 in our fundamental rating. AVNS was compared to 188 industry peers in the Health Care Equipment & Supplies industry. AVNS has an average financial health and profitability rating. AVNS scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
AVNS had positive earnings in the past year.
In the past year AVNS had a positive cash flow from operations.
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
With a Return On Assets value of -34.72%, AVNS is not doing good in the industry: 60.11% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -45.82%, AVNS is in line with its industry, outperforming 48.94% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.13%, AVNS is in the better half of the industry, outperforming 75.53% of the companies in the same industry.
AVNS had an Average Return On Invested Capital over the past 3 years of 2.58%. This 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 76.60% of its industry peers.
In the last couple of years the Operating Margin of AVNS has grown nicely.
With a Gross Margin value of 54.60%, AVNS perfoms like the industry average, outperforming 49.47% 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 | 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
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
The debt/assets ratio for AVNS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.46, we must say that AVNS is in the distress zone and has some risk of bankruptcy.
AVNS's Altman-Z score of 1.46 is in line compared to the rest of the industry. AVNS outperforms 53.72% of its industry peers.
AVNS has a debt to FCF ratio of 0.94. This is a very positive value and a sign of high solvency as it would only need 0.94 years to pay back of all of its debts.
AVNS has a Debt to FCF ratio of 0.94. This is amongst the best in the industry. AVNS outperforms 92.02% 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.
AVNS has a Debt to Equity ratio of 0.12. This is comparable to the rest of the industry: AVNS outperforms 56.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | 1.46 |
ROIC/WACC0.49
WACC8.46%
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.
AVNS's Current ratio of 2.57 is in line compared to the rest of the industry. AVNS outperforms 48.94% of its industry peers.
A Quick Ratio of 1.56 indicates that AVNS should not have too much problems paying its short term obligations.
AVNS's Quick ratio of 1.56 is in line compared to the rest of the industry. AVNS outperforms 44.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
AVNS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.31%.
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.
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
The Earnings Per Share is expected to grow by 5.00% on average over the next years.
The Revenue is expected to grow by 1.56% on average over the next years.
EPS Next Y-31.19%
EPS Next 2Y-1.64%
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
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.
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
A Price/Earnings ratio of 9.26 indicates a reasonable valuation of AVNS.
Based on the Price/Earnings ratio, AVNS is valued cheaper than 95.21% of the companies in the same industry.
AVNS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.55.
The Price/Forward Earnings ratio is 10.11, which indicates a very decent valuation of AVNS.
Based on the Price/Forward Earnings ratio, AVNS is valued cheaper than 92.55% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AVNS to the average of the S&P500 Index (22.40), we can say AVNS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 10.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVNS is valued cheaply inside the industry as 96.81% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AVNS is valued cheaper than 99.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5 | ||
| EV/EBITDA | 6.43 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.79
EPS Next 2Y-1.64%
EPS Next 3Y5%
5. Dividend
5.1 Amount
AVNS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.32
-0.59 (-4.57%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.82%
Inst Owner Change-0.54%
Ins Owners2.93%
Ins Owner Change4.42%
Market Cap569.68M
Analysts43.33
Price Target17.34 (40.75%)
Short Float %2.96%
Short Ratio2.59
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)-37.5%
EPS NQ rev (3m)-53.99%
EPS NY rev (1m)-24.44%
EPS NY rev (3m)-50%
Revenue NQ rev (1m)-1.64%
Revenue NQ rev (3m)-4.66%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-2.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.26 | ||
| Fwd PE | 10.11 | ||
| P/S | 0.83 | ||
| P/FCF | 5 | ||
| P/OCF | 4.24 | ||
| P/B | 0.68 | ||
| P/tB | 2.06 | ||
| EV/EBITDA | 6.43 |
EPS(TTM)1.33
EY10.8%
EPS(NY)1.22
Fwd EY9.89%
FCF(TTM)2.47
FCFY20.01%
OCF(TTM)2.91
OCFY23.59%
SpS14.9
BVpS18.15
TBVpS5.98
PEG (NY)N/A
PEG (5Y)2.79
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 | 1.46 |
F-Score6
WACC8.46%
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-1.64%
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