NYSE:AVNS

Stock Analysis Report

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Executive Summary

Avanos Medical, Inc. operates as a medical technology company that focuses on delivering medical device solutions to improve patients’ quality of life in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


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

-0.6%

AVNS

-7.3%

US Medical Equipment

2.9%

US Market


1 Year Return

-28.6%

AVNS

11.1%

US Medical Equipment

8.9%

US Market

Return vs Industry: AVNS underperformed the US Medical Equipment industry which returned 13.5% over the past year.

Return vs Market: AVNS underperformed the US Market which returned 8.5% over the past year.


Shareholder returns

AVNSIndustryMarket
7 Day-0.6%-7.3%2.9%
30 Day-4.8%3.6%10.6%
90 Day-12.1%7.1%5.1%
1 Year-28.6%-28.6%12.0%11.1%11.4%8.9%
3 Year-24.1%-24.1%58.5%54.2%34.3%25.4%
5 Year-32.5%-32.5%105.6%84.4%60.7%42.7%

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?

13.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVNS ($28.7) is trading below our estimate of fair value ($33.54)

Significantly Below Fair Value: AVNS is trading below fair value, but not by a significant amount.


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 (1.1x) compared to the US Medical Equipment industry average (3.8x).


Next Steps

Future Growth

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

104.3%

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 (2.2%).

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 (6.4% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: AVNS's revenue (6.4% 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 (4.8%).


Next Steps

Past Performance

How has Avanos Medical performed over the past 5 years?

38.4%

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 38.4% 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 (7.2%).


Return on Equity

High ROE: AVNS has a negative Return on Equity (-1.74%), as it is currently unprofitable.


Next Steps

Financial Health

How is Avanos Medical's financial position?


Financial Position Analysis

Short Term Liabilities: AVNS's short term assets ($524.1M) exceed its short term liabilities ($189.4M).

Long Term Liabilities: AVNS's short term assets ($524.1M) exceed its long term liabilities ($317.8M).


Debt to Equity History and Analysis

Debt Level: AVNS's debt to equity ratio (19.8%) is considered satisfactory.

Reducing Debt: AVNS's debt to equity ratio has reduced from 41.9% to 19.8% over the past 5 years.


Balance Sheet


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

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

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

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Joe Woody (53yo)

3yrs

Tenure

US$5,023,674

Compensation

Mr. Joseph F. Woody, also known as Joe, has been Chief Executive Officer and Director of Avanos Medical, Inc. (formerly known as Halyard Health, Inc.) since June 26, 2017. Mr. Woody served as the Chief Exe ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD5.02M) is about average for companies of similar size in the US market ($USD4.77M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Woody
CEO & Director3yrsUS$5.02m0.036% $502.2k
John Wesley
Senior Vice President of Legal & Government Relationsno dataUS$940.93k0.029% $393.9k
Warren MacHan
Senior Vice President of Business Strategy0.42yrUS$911.19k0.081% $1.1m
Arjun Sarker
Senior Vice President of International2.17yrsUS$836.80k0.027% $377.8k
David Ball
Senior Vice President of Global Supply Chain & Procurement1.5yrsUS$1.04mno data
Michael Greiner
Senior VP & CFO0.42yrno datano data
Renato Negro
VP, Controller & Chief Accounting Officerno datano data0.053% $726.4k
David Crawford
VP of FP&A and Investor Relations and Treasurerno datano datano data
Rhonda Gibby
Senior VP & Chief Human Resources Officer5.67yrsUS$1.03mno data
Lee Burnes
Senior Vice President of Global R&Dno datano datano data

1.8yrs

Average Tenure

53yo

Average Age

Experienced Management: AVNS's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Joseph Woody
CEO & Director3yrsUS$5.02m0.036% $502.2k
John Byrnes
Independent Director5.67yrsUS$250.00k0.052% $718.8k
William Hawkins
Independent Director4.5yrsUS$265.00k0.051% $700.0k
Heidi Fields
Independent Director5.67yrsUS$270.00k0.052% $718.1k
Patrick O'Leary
Independent Director5.67yrsUS$250.00k0.052% $719.5k
Gary Blackford
Independent Chairman0.083yrUS$265.00k0.073% $1.0m
Julie Shimer
Independent Director5.67yrsUS$265.00k0.052% $718.0k
Maria Sainz
Independent Director5.33yrsUS$250.00k0.050% $694.6k
Heidi Kunz
Director0.17yrno datano data

5.3yrs

Average Tenure

62yo

Average Age

Experienced Board: AVNS's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AVNS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$1.380b
  • Shares outstanding: 47.76m
  • 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 in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. Its product portfolio includes digestive health products, including enteral feeding tubes and solutions; respiratory health products, such as closed airway suction systems and oral care kits; and acute pain products comprising surgical pain pumps, and cold and compression therapy systems, as well as interventional pain management solutions that include minimally invasive interventional pain therapies. The company sells its products under the MIC-KEY, CORPAK, NEOMED, BALLARD, MICROCUFF, ENDOCLEAR, ON-Q, AMBIT, GAME READY, and COOLIEF brand names. It markets its products directly to hospitals and other healthcare providers, and through third-party wholesale distributors. The company was formerly known as Halyard Health, Inc. and changed its name to Avanos Medical, Inc. in June 2018. Avanos Medical, Inc. was incorporated in 2014 and is headquartered in Alpharetta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 04:44
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.