Avanos Medical, Inc.

Health Care
Industrial Specialties
www.avanos.com

Earnings Score
Moat Score
Safety Score

Market Cap $850.63M
PE 54
Debt $171.90M
Cash $89.00M
EV $933.53M
FCF $36.60M

Earnings

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Sales & Net Margins

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Earnings	$15.70M
EBIT	$33.50M
ROE	1%
ROA	2%
FCF	$36.60M
Equity	$1.23B
Growth Stability	-651%
PE	54.18
PEG	12.49
PB	0.69
P/FCF	23.24
P/S	1.25
Price/Cash	0.1
Debt/Equity	0.14
Debt/FCF	4.7
Net Margins	1%
Gross Margins	56%
Op. Margins	5%
Earnings CAGR	-4%
Sales Growth YoY	-1%
Sales Growth QoQ	-1%
Sales CAGR	-7%
FCF CAGR	-5%
Equity CAGR	0%
Earnings Stability	0.06
Earnings Growth YoY	-216%
Earnings Growth QoQ	139%

Earnings CAGR 5Y	4%
Sales CAGR 5Y	-0%
FCF CAGR 5Y	-18%
Equity CAGR 5Y	-1%
Earnings CAGR 3Y	-6%
Sales CAGR 3Y	-6%
FCF CAGR 3Y	-40%
Equity CAGR 3Y	-1%
Market Cap	$850.63M
Revenue	$681.50M
Assets	$1.66B
Total Debt	$171.90M
Cash	$89.00M
Shares Outstanding	45.95M
EV	933.53M
Earnings Score	6%
Moat Score	29%
Safety Score	56%
Final Score	30%
Working Capital	259.7M
Current Ratio	2.22
Gross Profit	$378.30M
Shares Growth 3y	-1%
Equity Growth QoQ	1%
Equity Growth YoY	1%

Assets & ROA

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Stockholders Equity & ROE

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Avanos Medical Inc is a United States-based company that develops and sells medical devices and related services globally. The firm operates in one segment, medical devices, which primarily sells products related to pain management, IV Therapy, and respiratory and digestive health. The company divides its Medical Devices segment into two franchises: Pain Management and Chronic Care. Pain Management provides non-opioid products for acute and interventional pain, including cold and compression therapy. Chronic Care aims at addressing digestive and respiratory issues with feeding tubes and catheters. Avanos generates most of its revenue from its Chronic Care franchise and in North America.

SEC Filings

Direct access to Avanos Medical, Inc. (AVNS) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Avanos Medical, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Avanos Medical, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -4%

Stability 6%

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Avanos Medical, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Avanos Medical, Inc..

Years

Calculation mode

= $257M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$37M	$35M	$33M	$31M	$29M	$28M	$26M	$25M	$24M	$22M	$21M	$211M
DCF		$31M	$27M	$23M	$20M	$17M	$15M	$13M	$11M	$9.5M	$8.1M	$81M
Value	$257M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	2%	-27%	2%	13%	9%	-7%	-4%	1%	6%	-9%	1%
ROA	-	-19%	4%	-2%	0%	-3%	-3%	1%	4%	0%	2%
ROE	-	-40%	4%	7%	4%	-4%	-2%	0%	4%	-5%	1%

Bad Net Margins (1.02%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	21.25	3.69	6.23	-1.28	-1.98	-7.93	1.96	3.35	12.15	4.7
Debt over Equity	0.43	0.55	0.53	0.52	0.19	0.2	0.14	0.1	0.19	0.14	0.14
Growth Stability	-	-	-	-	-	-78%	-90%	-	-	-651%	-651%

Bad Debt/FCF ratio (4.7)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.14)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-651%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-6%	1%	-62%	7%	7%	2%	4%	10%	-18%	-0%
Earnings YoY growth	-	-2K%	-109%	99%	-27%	-180%	-41%	-119%	871%	-222%	4%
Equity YoY growth	-	-29%	4%	10%	7%	-2%	-1%	1%	2%	-4%	-1%
FCF YoY growth	-	-61%	487%	-37%	-293%	-36%	-82%	-392%	8%	-80%	-18%