Avanos Medical (AVNS) AI Stock Analysis

• Market Cap: $625.94M
• Dividend Yield: N/A
• Average Volume (3M): 533.25K
• Price to Earnings (P/E): 35.2
• Beta (1Y): 0.65
• Revenue Growth: 2.70%
• EPS Growth: -3090.51%
• Country: US
• Employees: 2,227
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.29
• Shares Outstanding: 46,503,456
• 10 Day Avg. Volume: 604,609
• 30 Day Avg. Volume: 533,252
• PEG Ratio: 0.09
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 12.09
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 1.91
• Enterprise Value/Ebitda: -34.11
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1
• Revenue Forecast (FY): $710.00M

• Rating: 54 Neutral
• Price Target: $13.50 ▲(14.02% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held back mainly by weak and inconsistent profitability plus a recent free-cash-flow downshift, partially offset by a conservative balance sheet and improving revenue. Technical signals are currently bearish-to-neutral, and valuation lacks support with a high P/E and no dividend. The latest earnings call adds some upside due to constructive 2026 guidance and mitigation plans, though tariffs create meaningful near-term margin risk.

Positive Factors

Leading U.S. specialty nutrition share; recurring consumables

Avanos's top domestic positions in long-, short- and neonatal feeding underpin a durable consumables revenue base. Recurring disposable sales create high customer stickiness and predictable repeat demand, supporting steady organic growth and pricing leverage over multiple years.

Solid gross margin with recent revenue improvement

A ~52% gross margin combined with ~18.6% TTM revenue growth suggests structural product-level profitability and pricing power in core portfolios. These margins provide headroom for reinvestment and margin recovery once transitory pressures abate, supporting sustainable operating leverage long term.

Positive free cash flow and conservative leverage

Consistent positive free cash flow and a conservative capital structure (cash roughly in line with debt, leverage <1x) give Avanos flexibility to fund China-to-Mexico production shifts, M&A and working capital. That financial flexibility supports execution of strategic initiatives over the medium term.

Negative Factors

Persistent net losses and volatile profitability

Despite revenue and gross margin strength, Avanos has recorded net losses in the TTM and 2024 and operating margins have been inconsistent. This earnings volatility hinders capital allocation, reduces ROE, and raises execution risk until the company can consistently convert gross margins into stable net profits.

Material tariff headwind tied to China sourcing (~$30M)

A structural ~$30M tariff impact in 2026 materially pressures gross margins and creates first-half volatility. The required relocation of syringe production raises near-term capex and supply-chain complexity, creating execution and margin risk during the multi-quarter transition period and beyond.

Dependence on procedure volumes; surgical pain underperformance

The pain-management business relies on procedure volumes and favorable reimbursement. Delayed policy/reimbursement benefits and recent surgical pain underperformance mean capital equipment sales and recurring disposables growth may lag, creating structural revenue sensitivity to external healthcare trends.

Avanos Medical Business Overview & Revenue Model

Company Description

Avanos Medical, Inc., a medical technology company, focuses on delivering medical device solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. It offers a portfolio of chronic care products that include digestive health products, such as Mic-Key enteral feeding tubes, Corpak patient feeding solutions, and NeoMed neonatal and pediatric feeding solutions; and respiratory health products, such as closed airway suction systems and other airway management devices under the Ballard, Microcuff, and Endoclear brands. The company also provides a portfolio of non-opioid pain solutions, including acute pain products, such as On-Q and ambIT surgical pain pumps, Game Ready cold, and compression therapy systems; and interventional pain solutions, which offers minimally invasive pain-relieving therapies, such as Coolief pain relief therapy. It markets its products directly to hospitals and other healthcare providers, healthcare facilities, and other end-user customers, as well as through third-party wholesale distributors. The company was formerly known as Halyard Health, Inc. and changed its name to Avanos Medical, Inc. in June 2018. Avanos Medical, Inc. was incorporated in 2014 and is headquartered in Alpharetta, Georgia.

How the Company Makes Money

Avanos makes money primarily by selling medical devices and associated single-use consumables to healthcare providers (e.g., hospitals, health systems, and alternate-site care providers) and, in some cases, through distribution partners. Its revenue model is largely product-sales driven and typically includes: (1) recurring sales of disposable consumables used in digestive health/enteral feeding (e.g., feeding tubes and related administration and accessories), where ongoing patient use drives repeat purchasing; (2) sales of durable capital equipment and procedure-based technologies in pain management (e.g., generators/consoles) that can be complemented by recurring sales of single-use procedure disposables or accessories used each time the therapy is delivered; and (3) sales of implantable and non-implantable pain management systems and their components, where revenue is generated per device/system sold and may be supported by repeat purchasing of related components or supplies depending on the therapy. Earnings are influenced by procedure volumes (for pain management), patient utilization and care setting trends (for enteral feeding), and the company’s ability to maintain and expand hospital formulary access, distribution coverage, and pricing. Specific material partnerships or contract terms contributing to earnings are null.

Avanos Medical Financial Statement Overview

Summary

Revenue has improved (TTM growth ~18.6%) and gross margin is solid (~52% TTM), while the balance sheet leverage is conservative (debt-to-equity ~0.17). However, persistent net losses in TTM/2024 and volatile operating profitability materially weaken overall financial quality, and free cash flow, though positive, fell sharply in TTM (~42% decline).

Income Statement

Revenue has stabilized and improved recently, with TTM (Trailing-Twelve-Months) growth of ~18.6% following modest growth in 2024. However, profitability is weak and volatile: net losses persist in TTM and 2024, and operating profitability has swung from positive in 2021–2022 to losses in 2023–TTM. Gross margin remains solid (~52% TTM), but the company is not consistently converting that into bottom-line earnings, which materially drags the score.

Balance Sheet

Leverage looks manageable, with debt-to-equity around ~0.17 TTM (and generally ~0.15–0.21 historically), suggesting a relatively conservative capital structure. Equity remains sizable versus total assets, providing balance-sheet flexibility. The key weakness is returns: return on equity is deeply negative in TTM and 2024 due to net losses, indicating the balance sheet is not currently generating acceptable shareholder returns.

Cash Flow

Cash generation has improved versus earlier years, with positive operating cash flow and free cash flow in both 2024 and TTM (Trailing-Twelve-Months). That said, free cash flow declined sharply in TTM (down ~42% vs. the prior period), and cash flow performance has been inconsistent over time (including negative operating and free cash flow in 2020). While cash flow is currently supportive, the downshift in TTM raises questions about sustainability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	701.20M	687.80M	673.30M	684.10M	744.60M
Gross Profit	349.00M	381.30M	379.70M	394.20M	379.90M
EBITDA	-33.20M	-345.60M	50.60M	77.80M	48.90M
Net Income	-67.90M	-392.10M	-61.80M	50.50M	6.30M
Balance Sheet
Total Assets	1.07B	1.15B	1.69B	1.79B	1.60B
Cash, Cash Equivalents and Short-Term Investments	89.80M	107.70M	87.70M	127.70M	118.50M
Total Debt	129.10M	170.20M	209.10M	277.00M	187.50M
Total Liabilities	295.50M	325.70M	456.10M	495.70M	333.00M
Stockholders Equity	778.20M	828.50M	1.24B	1.29B	1.27B
Cash Flow
Free Cash Flow	43.10M	82.90M	14.60M	71.60M	66.30M
Operating Cash Flow	74.70M	100.70M	32.40M	90.90M	87.30M
Investing Cash Flow	-60.60M	-27.50M	21.60M	-135.40M	-21.00M
Financing Cash Flow	-37.00M	-49.10M	-94.20M	56.70M	-55.30M

Avanos Medical Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.84
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVNS, the sentiment is Neutral. The current price of 11.84 is below the 20-day moving average (MA) of 13.87, below the 50-day MA of 13.57, and below the 200-day MA of 12.14, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 45.44 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AVNS.

Avanos Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BVS	65 Neutral	$748.39M	21.81	4.97%	―	1.58%	―
KIDS	55 Neutral	$418.11M	-10.51	-12.67%	―	19.90%	-57.90%
AVNS	54 Neutral	$625.94M	35.21	-8.56%	―	2.70%	-3090.51%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OFIX	50 Neutral	$469.69M	-6.56	-20.38%	―	4.31%	3.26%
VREX	46 Neutral	$464.67M	52.93	-13.86%	―	4.14%	-45.29%

Avanos Medical Corporate Events

Avanos Medical boosts CEO long-term incentive compensation

On March 6, 2026, Avanos Medical, Inc.’s board of directors approved an increase in the target value of the annual long-term incentive grant for Chief Executive Officer David C. Pacitti. Under the company’s 2021 Long Term Incentive Plan, his target award will rise from $5,000,000 to $5,500,000 beginning in 2026, signaling the board’s strengthened commitment to executive retention and alignment with shareholder interests.

The adjustment in Pacitti’s equity-based compensation underscores Avanos Medical’s use of long-term incentives to reward leadership performance and support strategic objectives. This move may influence executive compensation benchmarks within the medical technology sector and reflects the company’s confidence in its current CEO’s role in driving future operational and financial outcomes.

The most recent analyst rating on (AVNS) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Avanos Medical stock, see the AVNS Stock Forecast page.

Avanos Medical Reaches Cooperation Deal, Refreshes Board Governance

On February 25 and 26, 2026, Avanos Medical, Inc. entered into a cooperation agreement with investor Bradley L. Radoff and his affiliated foundation, resolving a potential proxy contest and securing Radoff’s withdrawal of a director nomination. Under the deal, Avanos agreed to nominate Electromed CEO James L. Cunniff and former Haemonetics CFO William P. Burke as independent directors for election at its 2026 annual meeting, and the Radoff parties accepted standstill and voting commitments through key dates ahead of the 2027 meeting, signaling a governance refresh designed to bolster operational and financial expertise on the board and align with the company’s long‑term strategy.

The company highlighted the nominees’ extensive leadership, operating and financial backgrounds in the medical technology sector, which the board expects to strengthen Avanos’s execution of its strategic priorities and enhance oversight. The arrangement underscores continued shareholder engagement around Avanos’s direction while aiming to stabilize its governance framework, with the formal slate and recommendations to be detailed in proxy materials to be filed with the U.S. Securities and Exchange Commission ahead of the 2026 shareholder vote.

The most recent analyst rating on (AVNS) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Avanos Medical stock, see the AVNS Stock Forecast page.

Avanos Medical Highlights Growth Strategy at JP Morgan Conference

On January 13, 2026, Avanos Medical planned to showcase its strategy and growth outlook at the JP Morgan Healthcare Conference, highlighting its investment rationale, portfolio mix and pipeline in specialty nutrition and pain management and recovery. Management outlined above-market growth ambitions for its U.S. specialty nutrition segment, supported by #1 domestic positions in long-term, short-term and neonatal feeding, an expanded innovation pipeline and the 2025 acquisition of Nexus Medical and its TKO anti-reflux connector, while projecting at-market growth for pain management, emphasizing non-opioid surgical pain relief and radiofrequency ablation offerings, and signaling that the newly appointed CEO is focused on executing strategic imperatives and deploying a strong balance sheet and M&A pipeline to drive future expansion.

The most recent analyst rating on (AVNS) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on Avanos Medical stock, see the AVNS Stock Forecast page.