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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

LeMaitre Vascular, Inc.

PROCEPT BioRobotics Corp.

Stevanato Group SpA

Establishment Labs Holdings, Inc.

Tandem Diabetes Care, Inc.

Paragon 28, 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.

-4.43%

-1.02

38.02%

S&P 500

18.81%

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)

-0.55%

EBIT Growth (5y)

-6.38%

EBIT to Interest (avg)

7.55

Debt to EBITDA (avg)

0.93

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.60

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

0.83

EV to EBIT

17.11

EV to EBITDA

8.56

EV to Capital Employed

0.84

EV to Sales

0.98

PEG Ratio

0.23

Dividend Yield

ROCE (Latest)

4.90%

ROE (Latest)

7.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 104.4 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,250

INVENTORY TURNOVER RATIO(HY)

Highest at 2.16 times

-8What is not working for the Company

ROCE(HY)

Lowest at -46.68%

NET PROFIT(Q)

At USD 9.3 MM has Fallen at -37.1%

RAW MATERIAL COST(Y)

Grown by 16.65% (YoY

CASH AND EQV(HY)

Lowest at USD 160.8 MM

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

Operating Cash Flow

Highest at USD 104.4 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)

Interest Coverage Ratio

Highest at 1,250

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Inventory Turnover Ratio

Highest at 2.16 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Net Profit

At USD 9.3 MM has Fallen at -37.1%

over average net sales of the previous four periods of USD 14.78 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Cash and Eqv

Lowest at USD 160.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 16.65% (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