Advantage Solutions (ADV) AI Stock Analysis

• Market Cap: $502.68M
• Dividend Yield: N/A
• Average Volume (3M): 680.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• Revenue Growth: -13.81%
• EPS Growth: -433.86%
• Country: US
• Employees: 17,000
• Sector: Communication Services
• Sector Strength: 87
• Industry: Advertising Agencies
• EPS (TTM): -0.17
• Shares Outstanding: 324,312,000
• 10 Day Avg. Volume: 771,095
• 30 Day Avg. Volume: 680,939
• PEG Ratio: <0.01
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.20
• Enterprise Value/Market Cap: 5.29
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 5.35
• Enterprise Value/Ebitda: 5.24
• 1Y Price Target: $2.25
• Price Target Upside: 43.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 53 Neutral
• Price Target: $1.50 ▼(-4.46%Downside)

Advantage Solutions faces significant challenges with declining financial performance and unfavorable valuation metrics. Despite some positive technical indicators and strategic management initiatives, the overall outlook is hindered by macroeconomic pressures and operational inefficiencies.

Positive Factors

Efficiency Gains

Efficiency gains should also be achievable on the IT infrastructure side of the business, with implementation of an enterprise-wide ERP platform.

Operational Optimization

ADV is optimizing its operating model for better margins, despite a tough macro quarter in CPG and grocery retail.

Negative Factors

Competitive Pressures

The stock's potential upside is significantly offset by competitive pressures and the inability to pass through costs.

Labor Market

Staffing shortages have accelerated due to a historically tight labor market, creating additional challenges for ADV.

Macro Pressures

Macro pressures, labor headwinds, and declining sentiment have negatively impacted ADV's recent financial results.

Advantage Solutions Business Overview & Revenue Model

Company Description

Advantage Solutions Inc. provides outsourced solutions to consumer goods companies and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; administration; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising, in-store media, and digital commerce. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; and retailer-centric services, such as retail experiential, private label, digital marketing, and digital media and advertising. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. Advantage Solutions Inc. was founded in 1987 and is headquartered in Irvine, California.

How the Company Makes Money

Advantage Solutions generates revenue through a variety of service offerings aimed at helping their clients increase sales and market presence. The company primarily earns money by providing outsourced sales services, which involve acting as the sales force for consumer goods manufacturers, helping them to place products in retail locations and increase product visibility. Another significant revenue stream comes from retail merchandising services, where Advantage Solutions assists retailers with in-store product placement, promotional displays, and inventory management. Additionally, the company offers marketing services that include digital marketing, consumer engagement, and analytics to help clients optimize their marketing strategies and achieve higher returns on their marketing investments. Advantage Solutions' earnings are also supported by strategic partnerships with major retailers and consumer goods companies, which enable them to leverage a wide network and drive efficiencies in their service delivery.

Advantage Solutions Financial Statement Overview

Summary

Advantage Solutions shows a mixed financial picture with declining revenues and profitability challenges as evidenced by negative EBIT and EBITDA margins. The balance sheet is more stable with improved leverage, though ongoing net losses persist. Cash flow generation is inconsistent, reflecting financial uncertainty.

Income Statement

The company shows a declining trend in revenue with a negative revenue growth rate. The TTM (Trailing-Twelve-Months) reports a gross profit margin of 12.63% and a net profit margin of -11.08%. Furthermore, both EBIT and EBITDA margins are negative, indicating operational inefficiencies and losses.

Balance Sheet

The debt-to-equity ratio has improved in the TTM, showing a decrease in total debt. However, the return on equity remains negative, reflecting ongoing net losses. The equity ratio is at 23.07%, demonstrating a moderate level of financial stability.

Cash Flow

The free cash flow has significantly decreased in recent years, showing volatility. The operating cash flow to net income ratio is positive, indicating some level of cash flow generation despite net losses. The free cash flow to net income ratio is weak due to minimal free cash flow.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.53B	3.57B	3.90B	4.05B	3.60B	3.16B
	Gross Profit
496.74M	507.27M	564.38M	556.56M	638.17M	604.19M
	EBIT
-279.65M	-294.98M	76.19M	-1.49B	230.05M	67.01M
	EBITDA
23.00M	-82.75M	301.17M	400.96M	466.36M	277.84M
	Net Income Common Stockholders
-377.62M	-326.96M	-63.26M	-1.38B	54.49M	-175.81M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
121.15M	205.23M	120.84M	120.72M	164.62M	204.30M
	Total Assets
3.01B	3.11B	3.78B	4.26B	5.85B	5.78B
	Total Debt
1.68B	1.74B	1.92B	2.11B	2.10B	2.16B
	Net Debt
1.56B	1.53B	1.79B	1.99B	1.94B	1.96B
	Total Liabilities
2.32B	2.36B	2.68B	3.03B	3.27B	3.26B
	Stockholders Equity
695.58M	748.74M	1.11B	1.12B	2.48B	2.42B
Cash Flow		Free Cash Flow
577.00K	37.76M	192.72M	80.80M	94.82M	314.78M
	Operating Cash Flow
54.87M	93.09M	239.00M	121.26M	125.99M	345.73M
	Investing Cash Flow
120.31M	206.45M	-50.52M	-113.54M	-75.84M	-99.00M
	Financing Cash Flow
-166.60M	-211.42M	-178.40M	-41.64M	-86.30M	-230.15M

Advantage Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.57
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ADV, the sentiment is Positive. The current price of 1.57 is above the 20-day moving average (MA) of 1.33, above the 50-day MA of 1.29, and below the 200-day MA of 2.51, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 59.81 is Neutral, neither overbought nor oversold. The STOCH value of 59.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$672.89M	12.07	9.10%	7.98%	-2.69%	61.73%
Sector *	61 Neutral	$14.74B	5.97	-3.99%	6.57%	2.79%	-32.84%
ADV	53 Neutral	$502.68M	―	-42.89%	―	-13.81%	-433.86%
BOC	50 Neutral	$440.98M	490.46	0.16%	―	11.58%	―
NCMI	50 Neutral	$504.53M	―	-4.73%	1.12%	42.01%	-100.56%
CCO	48 Neutral	$571.22M	―	4.92%	―	-17.54%	66.05%
VSME	31 Underperform	$9.87M	―	-157.27%	―	―	―

Advantage Solutions Corporate Events

Advantage Solutions Announces Leadership Transition in June 2025

On June 10, 2025, Advantage Solutions Inc. announced a transition in its leadership team, specifically within its Experiential Services division. Andrea Young will step down as Chief Operating Officer, Experiential Services, effective June 30, 2025, to focus on personal health and other business opportunities, including potential board service. Michael Taylor will assume the role of Chief Operating Officer, Retailer and Experiential Services, on the same date. This transition may impact the company’s operations and strategic direction within the industry.

The most recent analyst rating on (ADV) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Advantage Solutions stock, see the ADV Stock Forecast page.

Advantage Solutions Approves Key Proposals at Meeting

On May 28, 2025, Advantage Solutions Inc. held its annual stockholders meeting where three key proposals were voted on by Class A stockholders. The meeting saw a high participation rate, with approximately 88.6% of shares represented. All proposals, including the election of directors, ratification of PricewaterhouseCoopers LLP as the independent auditor, and approval of executive compensation, were passed with the required majority votes.

The most recent analyst rating on (ADV) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Advantage Solutions stock, see the ADV Stock Forecast page.

Advantage Solutions Appoints New Chief Accounting Officer

Advantage Solutions Inc. has appointed Daniel Gore as its new Chief Accounting Officer and principal accounting officer, effective March 24, 2025. Mr. Gore brings extensive financial leadership experience from his previous roles at 8th Avenue Food & Provisions and Benson Hill. His appointment replaces Christopher Growe, who will continue as the Chief Financial Officer. The move is expected to strengthen the company’s financial management capabilities.