NYSE:AVNS

Stock Analysis Report

Executive Summary

Avanos Medical, Inc. operates as a medical technology company that focuses on delivering medical device solutions to improve patients’ quality of life worldwide.

Rewards

Trading at 28.8% below its fair value

Earnings are forecast to grow 110.38% per year

Risk Analysis

Highly volatile share price over past 3 months



Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Avanos Medical's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AVNS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.5%

AVNS

-0.05%

US Medical Equipment

0.7%

US Market


1 Year Return

-32.2%

AVNS

25.1%

US Medical Equipment

21.1%

US Market

Return vs Industry: AVNS underperformed the US Medical Equipment industry which returned 25.1% over the past year.

Return vs Market: AVNS underperformed the US Market which returned 21.1% over the past year.


Shareholder returns

AVNSIndustryMarket
7 Day-2.5%-0.05%0.7%
30 Day0.5%3.2%2.3%
90 Day-14.8%4.3%5.0%
1 Year-32.2%-32.2%26.1%25.1%23.7%21.1%
3 Year-14.8%-14.8%91.8%86.1%47.0%37.4%
5 Year-19.1%-19.1%117.7%93.9%65.7%47.5%

Price Volatility Vs. Market

How volatile is Avanos Medical's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Avanos Medical undervalued compared to its fair value and its price relative to the market?

28.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVNS ($32.48) is trading below our estimate of fair value ($45.63)

Significantly Below Fair Value: AVNS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AVNS is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: AVNS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AVNS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AVNS is good value based on its PB Ratio (1.2x) compared to the US Medical Equipment industry average (4.2x).


Next Steps

Future Growth

How is Avanos Medical forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

110.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVNS is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: AVNS is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AVNS's is expected to become profitable in the next 3 years.

Revenue vs Market: AVNS's revenue (6.7% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: AVNS's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVNS's Return on Equity is forecast to be low in 3 years time (5.7%).


Next Steps

Past Performance

How has Avanos Medical performed over the past 5 years?

17.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVNS is currently unprofitable.

Growing Profit Margin: AVNS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AVNS is unprofitable, but has reduced losses over the past 5 years at a rate of 17% per year.

Accelerating Growth: Unable to compare AVNS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AVNS is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (28.3%).


Return on Equity

High ROE: AVNS has a negative Return on Equity (-3.35%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Avanos Medical's financial position?


Financial Position Analysis

Short Term Liabilities: AVNS's short term assets ($546.5M) exceed its short term liabilities ($218.1M).

Long Term Liabilities: AVNS's short term assets ($546.5M) exceed its long term liabilities ($322.7M).


Debt to Equity History and Analysis

Debt Level: AVNS's debt to equity ratio (19.6%) is considered satisfactory.

Reducing Debt: AVNS's debt to equity ratio has increased from 0.8% to 19.6% over the past 5 years.


Balance Sheet

Inventory Level: AVNS has a high level of physical assets or inventory.

Debt Coverage by Assets: AVNS's debt is covered by short term assets (assets are 2.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AVNS has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if AVNS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Avanos Medical's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AVNS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AVNS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AVNS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AVNS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AVNS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Avanos Medical's salary, the management and board of directors tenure and is there insider trading?

1.7yrs

Average management tenure


CEO

Joe Woody (53yo)

2.5yrs

Tenure

US$7,157,269

Compensation

Mr. Joseph F. Woody, also known as Joe, has been Chief Executive Officer and Director of Halyard Health, Inc. since June 26, 2017. Mr. Woody served as the Chief Executive Officer and President of Acelity H ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD7.16M) is above average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Joe's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.7yrs

Average Tenure

53yo

Average Age

Experienced Management: AVNS's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

5.2yrs

Average Tenure

62yo

Average Age

Experienced Board: AVNS's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$139,82503 Jun 19
Joseph Woody
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares3,500
Max PriceUS$39.95

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • S. Ross Mansbach

    VP, Deputy General Counsel & Corporate Secretary

    • Tenure: 0yrs
  • Joe Woody (53yo)

    CEO & Director

    • Tenure: 2.5yrs
    • Compensation: US$7.16m
  • John Wesley (60yo)

    Senior Vice President of Legal & Government Relations

    • Tenure: 0yrs
    • Compensation: US$1.24m
  • Dave Ball (60yo)

    Senior Vice President of Global Supply Chain & Procurement

    • Tenure: 1yrs
  • Rhonda Gibby (51yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 5.2yrs
    • Compensation: US$1.03m
  • Warren MacHan (53yo)

    Senior VP of Business Strategy & Interim CFO

    • Tenure: 0.6yrs
  • Renato Negro

    VP, Controller & Chief Accounting Officer

    • Tenure: 0yrs
  • Arjun Sarker (53yo)

    Senior Vice President of International

    • Tenure: 1.7yrs
    • Compensation: US$1.26m
  • Dave Crawford

    VP of FP&A and Investor Relations and Treasurer

    • Tenure: 0yrs
  • Lee Burnes

    Senior Vice President of Global R&D

    • Tenure: 0yrs

Board Members

  • John Byrnes (60yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$230.00k
  • Bill Hawkins (65yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$245.00k
  • Ron Dollens (72yo)

    Independent Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: US$345.00k
  • Heidi Fields (64yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$245.00k
  • Patrick O'Leary (61yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$230.00k
  • Gary Blackford (62yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$245.00k
  • Joe Woody (53yo)

    CEO & Director

    • Tenure: 2.5yrs
    • Compensation: US$7.16m
  • Julie Shimer (66yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$245.00k
  • Maria Sainz (53yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$230.00k

Company Information

Avanos Medical, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avanos Medical, Inc.
  • Ticker: AVNS
  • Exchange: NYSE
  • Founded: 2014
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: US$1.557b
  • Shares outstanding: 47.93m
  • Website: https://avanos.com

Number of Employees


Location

  • Avanos Medical, Inc.
  • 5405 Windward Parkway
  • Suite 100 South
  • Alpharetta
  • Georgia
  • 30004
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVNSNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2014
8HHDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2014

Biography

Avanos Medical, Inc. operates as a medical technology company that focuses on delivering medical device solutions to improve patients’ quality of life worldwide. It provides a portfolio of products focuses ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 00:34
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.