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 189 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year AVNS was profitable.
AVNS had a positive operating cash flow in the past year.
In multiple years AVNS reported negative net income over the last 5 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 perfoms like the industry average, outperforming 41.27% of the companies in the same industry.
AVNS has a Return On Equity (-45.82%) which is comparable to the rest of the industry.
AVNS's Return On Invested Capital of 4.13% is fine compared to the rest of the industry. AVNS outperforms 75.13% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AVNS is significantly below the industry average of 7.87%.
The 3 year average ROIC (2.58%) for AVNS is below the current ROIC(4.13%), indicating increased profibility in the last year.
| 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
The Operating Margin of AVNS (7.36%) is better than 75.66% of its industry peers.
In the last couple of years the Operating Margin of AVNS has grown nicely.
AVNS's Gross Margin of 54.60% is in line compared to the rest of the industry. AVNS outperforms 49.21% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for AVNS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.47, we must say that AVNS is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AVNS (1.47) 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 92.06% of the companies in the same industry.
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 59.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.94 | ||
| Altman-Z | 1.47 |
ROIC/WACC0.49
WACC8.48%
2.3 Liquidity
A Current Ratio of 2.57 indicates that AVNS has no problem at all paying its short term obligations.
The Current ratio of AVNS (2.57) is comparable to the rest of the 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 has a Quick ratio (1.56) which is in line with 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.
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 1.34% in the past year.
The Revenue has been decreasing by -0.28% on average over the past years.
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
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-31.19%
EPS Next 2Y-1.64%
EPS Next 3Y5%
EPS Next 5YN/A
Revenue Next Year-1.74%
Revenue Next 2Y0.76%
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
AVNS is valuated reasonably with a Price/Earnings ratio of 9.55.
Compared to the rest of the industry, the Price/Earnings ratio of AVNS indicates a rather cheap valuation: AVNS is cheaper than 96.30% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AVNS to the average of the S&P500 Index (26.03), we can say AVNS is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.42, the valuation of AVNS can be described as reasonable.
AVNS's Price/Forward Earnings ratio is rather cheap when compared to the industry. AVNS is cheaper than 92.06% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.94. AVNS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 10.42 |
4.2 Price Multiples
AVNS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AVNS is cheaper than 96.30% 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 99.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.12 | ||
| EV/EBITDA | 6.49 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)2.87
EPS Next 2Y-1.64%
EPS Next 3Y5%
5. Dividend
5.1 Amount
No dividends for AVNS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.7
-0.4 (-3.05%)
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-0.81%
Ins Owners2.93%
Ins Owner Change4.99%
Market Cap584.20M
Analysts45.71
Price Target17.34 (36.54%)
Short Float %2.56%
Short Ratio2.15
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)-15%
EPS NQ rev (1m)-37.5%
EPS NQ rev (3m)-62.59%
EPS NY rev (1m)-24.44%
EPS NY rev (3m)-50%
Revenue NQ rev (1m)-1.46%
Revenue NQ rev (3m)-7.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-5.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.55 | ||
| Fwd PE | 10.42 | ||
| P/S | 0.85 | ||
| P/FCF | 5.12 | ||
| P/OCF | 4.35 | ||
| P/B | 0.7 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 6.49 |
EPS(TTM)1.33
EY10.47%
EPS(NY)1.22
Fwd EY9.6%
FCF(TTM)2.48
FCFY19.51%
OCF(TTM)2.92
OCFY23.01%
SpS14.98
BVpS18.25
TBVpS6.01
PEG (NY)N/A
PEG (5Y)2.87
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 | 1.47 |
F-Score6
WACC8.48%
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-1.74%
Revenue Next 2Y0.76%
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