Avanos Medical (AVNS) AI Stock Analysis

• Market Cap: $625.26M
• Dividend Yield: N/A
• Average Volume (3M): 533.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• 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: 604,609
• 30 Day Avg. Volume: 533,252
• 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: 1.13
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 1.96
• Enterprise Value/Ebitda: -1.61
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $14.00 ▲(18.24% Upside)

AVNS scores as a moderate opportunity: the largest drag is weak underlying profitability and soft cash-flow trends, partly offset by a stable balance sheet. Offsetting that, management delivered a constructive earnings update with raised guidance and visible cost-savings plans, while technicals show improving momentum. Valuation support is limited due to a negative P/E and no stated dividend yield.

Positive Factors

Leading position in Specialty Nutrition

Avanos's top domestic positions in multiple feeding categories support recurring consumable demand and durable customer relationships across hospitals and neonatal units. This market leadership underpins above-market growth potential and steadier organic revenue over multiple years.

Upwardly revised full-year guidance

Management's upward guidance, backed by mid-teens organic specialty nutrition growth and improved adjusted gross margin (52.8%), signals operational traction and cost discipline. Sustained execution of these trends could structurally improve profitability and predictability of cash flows.

Conservative capital structure

A steadier balance sheet with low leverage gives Avanos flexibility to fund strategic M&A, supply-chain investments, and capital expenditures without acute refinancing risk. This conservatism supports long-term resilience against industry shocks and tariff/capex stress.

Negative Factors

Persistent profitability pressure

Sustained negative net margins and weakened EBIT/EBITDA indicate structural operating inefficiencies. Unless addressed by lasting margin improvements or higher-margin mix, these trends constrain retained earnings, limit reinvestment capacity, and weaken long-term shareholder returns.

Deteriorating cash-flow conversion

A decline in free cash flow and subpar conversion of income into operating cash reduces financial flexibility. Over the medium term this hampers the company's ability to self-fund capex, complete accretive M&A, or weather margin shocks without tapping liquidity or increasing leverage.

Tariff and supply-chain capex headwinds

Ongoing tariff exposure and above-plan capex to reconfigure supply chains are structural cost drivers that can erode margins and free cash flow for multiple years. These investments raise capital intensity and may offset near-term cost-savings unless they yield sustained efficiency gains.

Avanos Medical Business Overview & Revenue Model

Company Description

Avanos Medical (AVNS) is a global medical technology company focused on providing innovative products and solutions in the healthcare sector, particularly in the areas of pain management, surgical, and wound care. The company's core offerings include a range of specialized devices and consumables designed to improve patient outcomes and enhance the quality of care in hospitals and outpatient settings. Avanos operates primarily in the segments of pain management and respiratory health, with notable products such as the ON-Q Pain Relief System and the Medusa and Airway Management products.

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

Financials are mixed: the income statement shows meaningful profitability pressure (negative net profit margin, weakening EBIT/EBITDA margins), while the balance sheet is steadier with conservative leverage. Cash flow is positive but deteriorating, with weak conversion of income to operating cash.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVNS, the sentiment is Positive. The current price of 11.84 is below the 20-day moving average (MA) of 12.69, below the 50-day MA of 11.99, and below the 200-day MA of 11.90, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 73.67 is Negative, neither overbought nor oversold. The STOCH value of 74.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$679.49M	73.37	4.97%	―	1.58%	―
AVNS	59 Neutral	$625.26M	-1.32	-46.68%	―	2.70%	-3090.51%
OFIX	55 Neutral	$532.62M	-4.29	-24.60%	―	4.31%	3.26%
KIDS	54 Neutral	$433.59M	-8.68	-12.67%	―	19.90%	-57.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
VREX	50 Neutral	$593.58M	-8.06	-13.95%	―	4.14%	-45.29%

Avanos Medical Corporate Events

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.