Advantage Solutions (ADV) AI Stock Analysis

• Market Cap: $444.31M
• Dividend Yield: N/A
• Average Volume (3M): 750.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: -13.81%
• EPS Growth: -433.86%
• Country: US
• Employees: 17,000
• Sector: Communication Services
• Sector Strength: 75
• Industry: Advertising Agencies
• EPS (TTM): -0.17
• Shares Outstanding: 324,312,000
• 10 Day Avg. Volume: 925,218
• 30 Day Avg. Volume: 750,585
• PEG Ratio: -0.71
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 798.13
• Enterprise Value/Market Cap: 4.54
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 4.06
• Enterprise Value/Ebitda: 3.98
• 1Y Price Target: $2.25
• Price Target Upside: 64.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 51 Neutral
• Price Target: $1.50 ▲(9.49%Upside)

Advantage Solutions faces significant challenges, primarily due to declining financial performance and poor valuation metrics. However, ongoing investments in technology and labor, along with debt reduction initiatives, offer some positive outlook. Technical analysis suggests a neutral trend, and the mixed earnings call sentiment reflects cautious optimism amid macroeconomic headwinds.

Positive Factors

Business Strategy

Despite top-line weakness, ADV continues to move forward with its transformation activities in order to achieve better profitability.

Debt Management

On the all-important de-levering front, Advantage was active in 2024, voluntarily repurchasing ~$158mm of its outstanding debt while also buying back ~$34mm in common stock.

Operational Efficiency

ADV is seeing improvement in staffing due to better recruiting efforts and centralized staffing.

Negative Factors

Competitive Environment

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

Financial Performance

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 (ADV) is a leading provider of outsourced sales and marketing services to consumer goods manufacturers and retailers. The company operates primarily in North America and focuses on enhancing the sales and marketing efforts of its clients by offering comprehensive solutions that include headquarter sales, retail merchandising, and marketing services. Advantage Solutions serves a broad range of clients, including manufacturers of consumer packaged goods, retailers, and technology companies, with the goal of improving product sales and market penetration.

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 presents a mixed financial outlook with declining revenues and profitability challenges. The balance sheet shows improved leverage but persistent losses. Cash flow generation is inconsistent, adding uncertainty to financial stability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.57B	3.90B	4.05B	3.60B	3.16B
Gross Profit	507.27M	564.38M	556.56M	638.17M	604.19M
EBITDA	-82.75M	301.17M	400.96M	466.36M	277.84M
Net Income	-326.96M	-63.26M	-1.38B	54.49M	-175.81M
Balance Sheet
Total Assets	3.11B	3.78B	4.26B	5.85B	5.78B
Cash, Cash Equivalents and Short-Term Investments	205.23M	120.84M	120.72M	164.62M	204.30M
Total Debt	1.74B	1.92B	2.11B	2.10B	2.16B
Total Liabilities	2.36B	2.68B	3.03B	3.27B	3.26B
Stockholders Equity	748.74M	1.11B	1.12B	2.48B	2.42B
Cash Flow
Free Cash Flow	37.76M	192.72M	80.80M	94.82M	314.78M
Operating Cash Flow	93.09M	239.00M	121.26M	125.99M	345.73M
Investing Cash Flow	206.45M	-50.52M	-113.54M	-75.84M	-99.00M
Financing Cash Flow	-211.42M	-178.40M	-41.64M	-86.30M	-230.15M

Advantage Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1.37 is below the 20-day moving average (MA) of 1.50, below the 50-day MA of 1.43, and below the 200-day MA of 2.18, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 42.04 is Neutral, neither overbought nor oversold. The STOCH value of 7.21 is Positive, 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	71 Outperform	$720.31M	12.92	9.10%	7.70%	-2.69%	61.73%
Sector *	64 Neutral	£1.84B	9.95	-15.74%	3.62%	2.47%	-68.24%
BOC	55 Neutral	$413.30M	464.31	0.16%	―	11.58%	―
ADV	51 Neutral	$444.31M	―	-42.89%	―	-13.81%	-433.86%
NCMI	48 Neutral	$453.60M	―	-4.73%	1.25%	42.01%	-100.56%
CCO	48 Neutral	$506.65M	―	4.92%	―	-17.54%	66.05%
VSME	31 Underperform	$69.39M	―	-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.