Avanos Medical, Inc. (AVNS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

LeMaitre Vascular, Inc.

PROCEPT BioRobotics Corp.

Stevanato Group SpA

Paragon 28, Inc.

Establishment Labs Holdings, Inc.

Tandem Diabetes Care, Inc.

Alphatec Holdings, Inc.

Avanos Medical, Inc.

Myriad Genetics, Inc.

Quanterix Corp.

Owens & Minor, Inc.

Why is Avanos Medical, Inc. ?

Poor Management Efficiency with a low ROCE of 5.39%

The company has been able to generate a Return on Capital Employed (avg) of 5.39% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -0.37% over the last 5 years

Flat results in Jun 25

ROCE(HY) Lowest at -46.17%
RAW MATERIAL COST(Y) Grown by 5.58% (YoY)
OPERATING PROFIT MARGIN(Q) Lowest at 9.89 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -36.70%, its profits have risen by 75.2% ; the PEG ratio of the company is 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -36.70% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Avanos Medical, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Avanos Medical, Inc.

-26.33%

-1.02

38.02%

S&P 500

11.09%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.37%

EBIT Growth (5y)

-0.32%

EBIT to Interest (avg)

7.55

Debt to EBITDA (avg)

0.93

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.57

Tax Ratio

3.77%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

5.39%

ROE (avg)

4.86%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.69

EV to EBIT

11.40

EV to EBITDA

6.23

EV to Capital Employed

0.70

EV to Sales

0.87

PEG Ratio

0.12

Dividend Yield

ROCE (Latest)

6.11%

ROE (Latest)

7.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 113.4 MM

NET PROFIT(9M)

Higher at USD 49.95 MM

DEBT-EQUITY RATIO (HY)

Lowest at 6.05 %

DEBTORS TURNOVER RATIO(HY)

Highest at 5.94 times

-13What is not working for the Company

ROCE(HY)

Lowest at -46.17%

RAW MATERIAL COST(Y)

Grown by 5.58% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 9.89 %

PRE-TAX PROFIT(Q)

Lowest at USD 5.6 MM

NET PROFIT(Q)

Lowest at USD 4.7 MM

Here's what is working for Avanos Medical, Inc.

Operating Cash Flow

Highest at USD 113.4 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Lowest at 6.05 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 5.94 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Avanos Medical, Inc.

Pre-Tax Profit

At USD 5.6 MM has Fallen at -57.82%

over average net sales of the previous four periods of USD 13.28 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 4.7 MM has Fallen at -70.66%

over average net sales of the previous four periods of USD 16.02 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Profit Margin

Lowest at 9.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 5.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 4.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Raw Material Cost

Grown by 5.58% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales