AVANOS MEDICAL INC (AVNS) Stock Fundamental Analysis
NYSE:AVNS - US05350V1061 - Common Stock
11.94 USD
+0.07 (+0.59%)
11.94 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AVNS. AVNS was compared to 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
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.
AVNS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of -44.57%, AVNS is not doing good in the industry: 64.40% of the companies in the same industry are doing better.
AVNS has a Return On Equity (-59.68%) which is in line with its industry peers.
AVNS has a Return On Invested Capital of 3.81%. This is in the better half of the industry: AVNS outperforms 73.30% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AVNS is significantly below the industry average of 8.44%.
The last Return On Invested Capital (3.81%) for AVNS is above the 3 year average (2.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -44.57% | ||
| ROE | -59.68% | ||
| ROIC | 3.81% |
ROA(3y)-11.6%
ROA(5y)-7.22%
ROE(3y)-16.13%
ROE(5y)-10.03%
ROIC(3y)2.58%
ROIC(5y)N/A
1.3 Margins
The Operating Margin of AVNS (6.30%) is better than 72.25% of its industry peers.
In the last couple of years the Operating Margin of AVNS has grown nicely.
AVNS has a Gross Margin (53.83%) which is in line with its industry peers.
AVNS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.3% | ||
| PM (TTM) | N/A | ||
| GM | 53.83% |
OM growth 3Y42.88%
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
AVNS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AVNS has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for AVNS has been reduced compared to 5 years ago.
Compared to 1 year ago, AVNS has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.28, we must say that AVNS is in the distress zone and has some risk of bankruptcy.
AVNS's Altman-Z score of 1.28 is in line compared to the rest of the industry. AVNS outperforms 55.50% of its industry peers.
AVNS has a debt to FCF ratio of 1.19. This is a very positive value and a sign of high solvency as it would only need 1.19 years to pay back of all of its debts.
AVNS has a better Debt to FCF ratio (1.19) than 90.58% 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 in line compared to the rest of the industry. AVNS outperforms 59.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.19 | ||
| Altman-Z | 1.28 |
ROIC/WACC0.46
WACC8.26%
2.3 Liquidity
A Current Ratio of 2.64 indicates that AVNS has no problem at all paying its short term obligations.
AVNS has a Current ratio (2.64) which is in line with its industry peers.
A Quick Ratio of 1.58 indicates that AVNS should not have too much problems paying its short term obligations.
AVNS has a Quick ratio (1.58) which is in line with its industry peers.
| 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%.
AVNS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.32% yearly.
The Revenue has been growing slightly by 1.48% in the past year.
AVNS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.28% yearly.
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
The Earnings Per Share is expected to grow by 5.00% on average over the next years.
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
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
AVNS is valuated reasonably with a Price/Earnings ratio of 9.87.
93.19% of the companies in the same industry are more expensive than AVNS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AVNS to the average of the S&P500 Index (27.08), we can say AVNS is valued rather cheaply.
A Price/Forward Earnings ratio of 12.96 indicates a correct valuation of AVNS.
Based on the Price/Forward Earnings ratio, AVNS is valued cheaper than 88.48% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AVNS to the average of the S&P500 Index (22.72), we can say AVNS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.87 | ||
| Fwd PE | 12.96 |
4.2 Price Multiples
AVNS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AVNS is cheaper than 97.38% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AVNS is valued cheaply inside the industry as 99.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.3 | ||
| EV/EBITDA | 6.57 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.97
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 |
11.94
+0.07 (+0.59%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners93.61%
Inst Owner Change3.65%
Ins Owners3.24%
Ins Owner Change5.17%
Market Cap554.02M
Analysts43.33
Price Target17.34 (45.23%)
Short Float %4.28%
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)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)-33.33%
EPS NQ rev (3m)-65.76%
EPS NY rev (1m)-6.35%
EPS NY rev (3m)-6.35%
Revenue NQ rev (1m)-1.79%
Revenue NQ rev (3m)-4.64%
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.87 | ||
| Fwd PE | 12.96 | ||
| P/S | 0.8 | ||
| P/FCF | 6.3 | ||
| P/OCF | 4.86 | ||
| P/B | 0.71 | ||
| P/tB | 1.91 | ||
| EV/EBITDA | 6.57 |
EPS(TTM)1.21
EY10.13%
EPS(NY)0.92
Fwd EY7.71%
FCF(TTM)1.9
FCFY15.88%
OCF(TTM)2.46
OCFY20.58%
SpS14.92
BVpS16.72
TBVpS6.25
PEG (NY)N/A
PEG (5Y)2.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -44.57% | ||
| ROE | -59.68% | ||
| ROCE | 4.82% | ||
| ROIC | 3.81% | ||
| ROICexc | 4.23% | ||
| ROICexgc | 10.51% | ||
| OM | 6.3% | ||
| PM (TTM) | N/A | ||
| GM | 53.83% | ||
| FCFM | 12.71% |
ROA(3y)-11.6%
ROA(5y)-7.22%
ROE(3y)-16.13%
ROE(5y)-10.03%
ROIC(3y)2.58%
ROIC(5y)N/A
ROICexc(3y)2.85%
ROICexc(5y)N/A
ROICexgc(3y)9.35%
ROICexgc(5y)N/A
ROCE(3y)3.27%
ROCE(5y)N/A
ROICexcg growth 3Y51.51%
ROICexcg growth 5YN/A
ROICexc growth 3Y60.31%
ROICexc growth 5YN/A
OM growth 3Y42.88%
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 | 1.19 | ||
| Debt/EBITDA | 1.11 | ||
| Cap/Depr | 60.47% | ||
| Cap/Sales | 3.75% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 131.64% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.64 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 1.28 |
F-Score6
WACC8.26%
ROIC/WACC0.46
Cap/Depr(3y)39.57%
Cap/Depr(5y)44.13%
Cap/Sales(3y)2.55%
Cap/Sales(5y)2.66%
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 1Y63.3%
EBIT growth 3Y39.16%
EBIT growth 5YN/A
EBIT Next Year51.47%
EBIT Next 3Y22.03%
EBIT Next 5YN/A
FCF growth 1Y155.07%
FCF growth 3Y7.78%
FCF growth 5YN/A
OCF growth 1Y116.32%
OCF growth 3Y4.98%
OCF growth 5YN/A