Advantage Solutions (ADV) AI Stock Analysis

• Market Cap: $400.91M
• Dividend Yield: N/A
• Average Volume (3M): 652.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: -7.12%
• EPS Growth: -7.75%
• Country: US
• Employees: 17,000
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.32
• Shares Outstanding: 325,946,870
• 10 Day Avg. Volume: 398,695
• 30 Day Avg. Volume: 652,905
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 24.87
• Enterprise Value/Market Cap: 4.93
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 3.99
• Enterprise Value/Ebitda: 28.79
• 1Y Price Target: $2.50
• Price Target Upside: 117.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $1.00 ▼(-13.04% Downside)

Advantage Solutions' overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and negative profitability margins. Technical analysis further indicates bearish trends, with the stock trading below key moving averages. Valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield. The earnings call provided some positive insights, such as strong cash flow generation, but overall challenges persist, leading to a cautious outlook.

Positive Factors

Strong Cash Flow Generation

Strong cash flow generation indicates effective working capital management, providing the company with financial flexibility to invest in growth opportunities and weather economic downturns.

Experiential Segment Growth

Growth in the Experiential segment reflects increasing demand and improved operational efficiency, which can drive future revenue and margin expansion.

Successful SAP Implementation

The successful ERP implementation enhances operational efficiency and data integration, leading to better decision-making and cost management.

Negative Factors

Revenue Decline

Declining revenues indicate potential challenges in maintaining market share and competitive positioning, which could impact long-term growth prospects.

Negative Profitability Margins

Negative profitability margins suggest operational inefficiencies and competitive pressures, which may hinder the company's ability to achieve sustainable profitability.

Increasing Leverage

Higher leverage increases financial risk and limits the company's ability to invest in growth initiatives, potentially affecting long-term stability.

Advantage Solutions Business Overview & Revenue Model

Company Description

Advantage Solutions (ADV) is a leading provider of outsourced sales and marketing solutions, primarily serving the consumer goods industry. The company operates across various sectors, including retail, grocery, and foodservice, offering services such as merchandising, sales force management, digital marketing, and promotional execution. Advantage Solutions focuses on enhancing brand visibility and driving sales through innovative strategies and comprehensive market insights.

How the Company Makes Money

Advantage Solutions generates revenue through multiple key streams, primarily by charging clients for its sales, marketing, and promotional services. The company works on a fee-for-service basis, where clients pay for the execution of marketing campaigns and sales initiatives. Additionally, Advantage Solutions earns income through performance-based incentives tied to sales growth and market penetration. The company also benefits from long-term contracts with major retailers and manufacturers, which provide a steady income stream. Strategic partnerships with brands and distribution networks further enhance its revenue potential by expanding its service offerings and market reach.

Advantage Solutions Financial Statement Overview

Summary

Advantage Solutions faces significant financial challenges, with declining revenues, negative profitability margins, and increasing leverage. The company's cash flow situation is concerning, with negative growth and low coverage ratios. Overall, the financial health of the company is weak, and it faces substantial risks in improving its financial performance.

Income Statement

Advantage Solutions has experienced declining revenue growth, with a significant drop in the TTM period. The gross profit margin has been relatively stable but low, while the net profit margin is negative, indicating ongoing losses. EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage and potential financial risk. Return on equity is negative, showing that the company is not generating profits from its equity base. The equity ratio is declining, suggesting a weakening financial position.

Cash Flow

Free cash flow has significantly decreased in the TTM period, and the operating cash flow to net income ratio is negative, highlighting cash flow challenges. The free cash flow to net income ratio is positive, but overall cash flow performance is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.50B	3.57B	3.90B	3.65B	3.60B	3.16B
Gross Profit	495.78M	507.27M	485.08M	472.85M	638.17M	604.19M
EBITDA	68.69M	-89.85M	255.73M	-1.26B	469.13M	292.24M
Net Income	-243.89M	-326.96M	-63.32M	-1.38B	54.49M	-175.81M
Balance Sheet
Total Assets	2.99B	3.11B	3.78B	4.26B	5.85B	5.78B
Cash, Cash Equivalents and Short-Term Investments	201.14M	205.23M	120.84M	120.72M	164.62M	204.30M
Total Debt	13.25M	1.74B	1.91B	2.11B	2.10B	2.16B
Total Liabilities	2.29B	2.36B	2.68B	3.03B	3.27B	3.26B
Stockholders Equity	708.50M	748.74M	1.11B	1.12B	2.48B	2.42B
Cash Flow
Free Cash Flow	-9.09M	37.76M	186.93M	71.69M	94.82M	314.78M
Operating Cash Flow	24.55M	93.09M	228.49M	104.70M	125.99M	345.73M
Investing Cash Flow	-11.35M	206.45M	-50.52M	-106.10M	-75.84M	-99.00M
Financing Cash Flow	-9.84M	-211.42M	-178.40M	-31.38M	-86.30M	-230.15M

Advantage Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADV, the sentiment is Negative. The current price of 1.15 is below the 20-day moving average (MA) of 1.32, below the 50-day MA of 1.52, and below the 200-day MA of 1.62, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 34.99 is Neutral, neither overbought nor oversold. The STOCH value of 35.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ADV.

Advantage Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLX	72 Outperform	$909.60M	11.08	12.96%	6.60%	-0.94%	47.48%
XNET	66 Neutral	$460.27M	0.37	131.32%	―	26.91%	8746.89%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
EEX	53 Neutral	$791.23M	185.19	1.21%	1.50%	11.18%	―
NCMI	50 Neutral	$403.47M	-26.20	-4.10%	3.01%	-3.67%	34.36%
ADV	44 Neutral	$400.91M	-1.19	-29.47%	―	-7.12%	-7.75%
VSME	31 Underperform	$25.55M	-6.87	-194.72%	―	-11.51%	74.52%

Advantage Solutions Corporate Events

Advantage Solutions Earnings Call: Balancing Growth and Challenges

Advantage Solutions Inc. recently held its earnings call, revealing a balanced sentiment with both positive and negative aspects. The company demonstrated strong cash flow generation and growth in its Experiential segment, alongside a successful ERP implementation. However, it faced challenges with revenue declines in Branded and Retailer Services amid a tough macroeconomic environment. The overall sentiment was one of cautious optimism for future performance.

Advantage Solutions Reports Q3 2025 Financial Results

Advantage Solutions Inc. is a leading business solutions provider in North America, specializing in omnichannel retail services for consumer goods manufacturers and retailers. The company leverages data and technology to optimize retail experiences and drive demand across various channels.

Advantage Solutions Announces Executive Transition Agreement

On August 18, 2025, Andrea Young, a former executive officer at Advantage Solutions Inc., entered into a transition agreement with a company subsidiary. The agreement outlines a reduction in her salary and her continued service in a non-executive role until August 15, 2026, with severance benefits including cash payments, health insurance, and continued vesting of equity awards. This transition reflects a strategic personnel adjustment within the company, potentially impacting its operational dynamics and stakeholder relations.

The most recent analyst rating on (ADV) stock is a Buy with a $2.50 price target. To see the full list of analyst forecasts on Advantage Solutions stock, see the ADV Stock Forecast page.