Avanos Medical (AVNS) AI Stock Analysis

• Market Cap: $541.71M
• Dividend Yield: N/A
• Average Volume (3M): 532.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: 2.70%
• EPS Growth: -3090.51%
• Country: US
• Employees: 2,227
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.22
• Shares Outstanding: 46,418,907
• 10 Day Avg. Volume: 615,764
• 30 Day Avg. Volume: 532,547
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 1.06
• P/FCF Ratio: 8.83
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 0.86
• Enterprise Value/Gross Profit: 1.65
• Enterprise Value/Ebitda: -1.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.8
• Revenue Forecast (FY): $676.00M

• Rating: 52 Neutral
• Price Target: $11.50 ▼(-2.87% Downside)

Avanos Medical's overall stock score reflects significant profitability challenges and weak technical indicators. While the earnings call provided some positive guidance and strategic initiatives, the negative valuation metrics and bearish technical analysis weigh heavily on the score. The company's ability to improve operational efficiencies and profitability will be crucial for future performance.

Positive Factors

Strategic Acquisitions

The acquisition of Nexus Medical is expected to be immediately accretive to revenue growth and EPS, strengthening Avanos' market position in critical care.

Cost Improvement Initiatives

The cost-saving initiatives will enhance operational efficiency, potentially improving margins and profitability over the long term.

Raised Financial Guidance

Improved financial guidance reflects strong sales momentum and effective cost discipline, indicating potential for sustained growth.

Negative Factors

Profitability Challenges

Persistent profitability issues highlight operational inefficiencies, which could hinder long-term financial health and investment capacity.

Impact of Tariffs

Ongoing tariff costs could pressure margins and increase operational expenses, impacting Avanos' competitive pricing and profitability.

Leadership Restructuring

Leadership changes may disrupt strategic execution and operational dynamics, affecting stakeholder confidence and company performance.

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 Medical generates revenue through the sale of its medical devices and consumables across various healthcare settings, including hospitals, ambulatory surgery centers, and home care. The company primarily earns money from its pain management product line, which includes advanced pain control systems and local anesthetic delivery devices. Additional revenue stems from its surgical and respiratory care products. Avanos also benefits from partnerships with healthcare providers and distributors that enhance its market reach. Furthermore, the company invests in R&D to innovate and expand its product portfolio, which is essential for maintaining a competitive edge and driving future revenue growth.

Avanos Medical Financial Statement Overview

Summary

Avanos Medical faces significant profitability challenges, with negative net profit margins and declining EBIT margins. The balance sheet is stable with low leverage, but cash flow issues persist, indicating a need for improved operational efficiencies.

Income Statement

Avanos Medical's income statement reveals challenges with profitability, as evidenced by negative net profit margins and declining EBIT margins over the TTM period. Despite a slight revenue growth, the company struggles with maintaining stable gross profit margins, which have decreased from previous years. The negative EBITDA margin further highlights operational inefficiencies.

Balance Sheet

The balance sheet of Avanos Medical shows a relatively low debt-to-equity ratio, indicating conservative leverage. However, the negative return on equity suggests inefficiencies in generating profits from shareholders' equity. The equity ratio remains stable, reflecting a solid capital structure despite profitability concerns.

Cash Flow

Cash flow analysis indicates a decline in free cash flow growth, with a negative trend in the TTM period. The operating cash flow to net income ratio is below 1, suggesting potential issues in converting income into cash. Despite these challenges, the company maintains a positive free cash flow to net income ratio, indicating some level of cash generation capability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	699.90M	687.80M	673.30M	684.10M	744.60M	714.80M
Gross Profit	362.30M	381.30M	379.70M	394.20M	379.90M	390.60M
EBITDA	-439.10M	-345.60M	50.60M	77.80M	48.90M	-2.00M
Net Income	-468.90M	-392.10M	-61.80M	50.50M	6.30M	-27.20M
Balance Sheet
Total Assets	1.07B	1.15B	1.69B	1.79B	1.60B	1.67B
Cash, Cash Equivalents and Short-Term Investments	70.50M	107.70M	87.70M	127.70M	118.50M	111.50M
Total Debt	133.70M	170.20M	209.10M	277.00M	187.50M	248.80M
Total Liabilities	289.70M	325.70M	456.10M	495.70M	333.00M	416.30M
Stockholders Equity	778.00M	828.50M	1.24B	1.29B	1.27B	1.26B
Cash Flow
Free Cash Flow	74.90M	82.90M	14.60M	71.60M	66.30M	-22.70M
Operating Cash Flow	104.40M	100.70M	32.40M	90.90M	87.30M	-2.50M
Investing Cash Flow	-61.40M	-27.50M	21.60M	-135.40M	-21.00M	-24.20M
Financing Cash Flow	-61.70M	-49.10M	-94.20M	56.70M	-55.30M	-70.00M

Avanos Medical Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 above the 20-day moving average (MA) of 11.61, above the 50-day MA of 11.45, and below the 200-day MA of 12.15, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 52.17 is Neutral, neither overbought nor oversold. The STOCH value of 69.27 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	64 Neutral	$619.90M	66.70	4.97%	―	1.58%	―
OFIX	55 Neutral	$612.21M	-5.09	-24.60%	―	4.31%	3.26%
AVNS	52 Neutral	$541.71M	―	-46.68%	―	2.70%	-3090.51%
KIDS	52 Neutral	$428.07M	-8.73	-12.67%	―	19.90%	-57.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VREX	50 Neutral	$512.49M	-7.11	-13.95%	―	4.14%	-45.29%
ZIMV	48 Neutral	―	―	-4.76%	―	-19.52%	94.65%

Avanos Medical Corporate Events

Avanos Medical Announces Key Leadership Restructuring

On October 21, 2025, Avanos Medical announced the elimination of the Chief Commercial Officer and General Counsel positions as part of a broader organizational restructuring, effective December 1, 2025. This decision affects Kerr Holbrook and Mojirade James, who will receive severance packages and other benefits under the company’s Severance Pay Plan. The restructuring aims to reallocate responsibilities among other employees, potentially impacting the company’s operational dynamics and stakeholder interests.

Avanos Medical Acquires Nexus Medical for Growth

On September 15, 2025, Avanos Medical announced the acquisition of Nexus Medical, a company known for its TKO® anti-reflux needleless connector technology. This acquisition aims to enhance Avanos’ Specialty Nutrition Systems business by integrating Nexus’ technology, which supports safer nutrition and medication delivery in critical care settings like NICUs and PICUs. The acquisition is expected to immediately boost Avanos’ revenue growth and earnings per share, reinforcing its strategy to provide innovative solutions in critical care.