Avanos Medical (AVNS) AI Stock Analysis

• Market Cap: $571.11M
• Dividend Yield: N/A
• Average Volume (3M): 409.24K
• Price to Earnings (P/E): 45.8
• Beta (1Y): 0.89
• Revenue Growth: 1.34%
• EPS Growth: -530.36%
• Country: US
• Employees: 2,227
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Devices
• EPS (TTM): 0.26
• Shares Outstanding: 46,243,980
• 10 Day Avg. Volume: 507,038
• 30 Day Avg. Volume: 409,241
• PEG Ratio: 0.03
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.73
• Enterprise Value/Market Cap: 2.49
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 3.78
• Enterprise Value/Ebitda: -2.86
• 1Y Price Target: $14.00
• Price Target Upside: 13.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 48 Neutral
• Price Target: $12.50 ▲(1.21%Upside)

Avanos Medical's overall stock score reflects significant financial performance challenges, with declining revenues and net losses weighing heavily. The technical analysis indicates neutral to bearish sentiment, while the negative valuation metrics further impact the score. Despite some positive segment performances, tariff impacts and product line declines add risks.

Positive Factors

Business Performance

Avanos Medical posted a moderate quarterly beat on both the top and bottom lines, with a strong quarter from its Digestive Health business.

Strategic Developments

AVNS recorded some positive developments during the quarter, which include completing the divestiture of its respiratory health business, exceeding internal expectations on its Trident U.S. market launch, as well as improving its capital position.

Negative Factors

Guidance and Market Conditions

Management's initial full-year 2025 guidance was light of Street expectations, calling for flat to slight declines in both revenue and earnings, reflecting a challenging market environment for some of its product categories, currency headwinds, and other macro factors.

Hyaluronic Acid Business

The hyaluronic acid injection business continues to be a sore spot with ongoing pricing pressures highlighted as a key factor underpinning the company’s below-Consensus initial 2025 guidance.

Avanos Medical Business Overview & Revenue Model

Company Description

Avanos Medical, Inc. (AVNS) is a medical technology company that operates primarily within the healthcare sector, focusing on the development and production of medical devices designed to address various clinical needs. The company's core products and services are centered around pain management and chronic care, offering solutions such as non-opioid pain therapies and products for digestive health, respiratory health, and surgical care. Avanos is dedicated to improving patient outcomes and enhancing quality of life through innovative and clinically effective products.

How the Company Makes Money

Avanos Medical generates revenue through the sale of its medical devices and related services. The company's revenue model is primarily based on direct sales to hospitals, healthcare providers, and other medical facilities that utilize its products for patient care. Key revenue streams include sales from its pain management products, such as COOLIEF, a radiofrequency treatment for chronic pain, and ON-Q, a non-opioid pain relief system. Additionally, the company earns income from its chronic care offerings, including enteral feeding tubes and respiratory health products. Strategic partnerships with healthcare providers, ongoing product innovation, and a focus on non-opioid solutions are significant factors contributing to Avanos' earnings.

Avanos Medical Financial Statement Overview

Summary

Avanos Medical faces significant financial challenges, with a declining revenue trend and persistent net losses negatively impacting profitability. Improved cash flows and a strong equity position provide some financial stability, but operational inefficiencies need to be addressed for better performance.

Income Statement

Avanos Medical's income statement shows a declining revenue trend, with a noticeable revenue decrease from $820M in 2022 to $689.2M TTM. The company has been operating at a loss, with negative EBIT and net income margins for TTM, indicating challenges in managing operational costs efficiently. Despite historical profitability in 2022, recent performance suggests financial struggles, potentially due to market or operational disruptions.

Balance Sheet

The balance sheet reflects a strong equity position, with a healthy equity ratio of 75.8% TTM. However, the debt-to-equity ratio has decreased from 0.22 in 2022 to 0.17 TTM, indicating reduced leverage. Avanos Medical maintains a stable asset base, but the declining equity and total assets since 2022 suggest potential pressures on financial stability.

Cash Flow

Avanos Medical's cash flow indicates improved operational efficiency, with operating cash flow increasing to $134.4M TTM. The free cash flow growth is positive, showing a recovery from 2022. However, the negative investing cash flow suggests ongoing investments or capital expenditures that might impact liquidity. The operating cash flow to net income ratio shows effective conversion of income into cash despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	689.20M	687.80M	673.30M	820.00M	744.60M	714.80M
Gross Profit	376.30M	381.30M	379.70M	450.00M	364.30M	373.30M
EBITDA	-337.80M	-345.60M	50.60M	77.80M	8.90M	-2.00M
Net Income	-384.60M	-392.10M	-61.80M	50.50M	6.30M	-27.20M
Balance Sheet
Total Assets	1.11B	1.15B	1.69B	1.79B	1.59B	1.67B
Cash, Cash Equivalents and Short-Term Investments	97.00M	107.70M	87.70M	127.70M	118.50M	111.50M
Total Debt	140.90M	170.20M	209.10M	280.00M	187.50M	248.80M
Total Liabilities	268.40M	325.70M	456.10M	495.70M	330.70M	416.30M
Stockholders Equity	839.40M	828.50M	1.24B	1.29B	1.26B	1.26B
Cash Flow
Free Cash Flow	114.00M	82.90M	14.60M	71.60M	66.30M	-22.70M
Operating Cash Flow	134.40M	100.70M	32.40M	90.90M	87.30M	-2.50M
Investing Cash Flow	-34.60M	-27.50M	21.60M	-135.40M	-21.00M	-24.20M
Financing Cash Flow	-77.50M	-49.10M	-94.20M	56.70M	-55.30M	-70.00M

Avanos Medical Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.35
• 50DMA: Negative
• 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 AVNS, the sentiment is Neutral. The current price of 12.35 is above the 20-day moving average (MA) of 12.32, below the 50-day MA of 12.48, and below the 200-day MA of 16.42, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 49.21 is Neutral, neither overbought nor oversold. The STOCH value of 61.84 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
SIBN	65 Neutral	$787.09M	―	-15.96%	―	22.60%	41.26%
KIDS	64 Neutral	$556.81M	―	-11.33%	―	31.28%	-81.86%
Sector *	52 Neutral	$7.50B	0.31	-61.87%	2.27%	17.10%	1.59%
BVS	50 Neutral	$576.65M	―	-19.79%	―	8.60%	-42.76%
OFIX	49 Neutral	$435.69M	―	-27.82%	―	5.85%	-8.92%
AVNS	48 Neutral	$571.11M	45.80	-36.78%	―	1.34%	-530.36%
BFLY	47 Neutral	$479.74M	―	-29.16%	―	25.77%	49.44%

Avanos Medical Corporate Events

Avanos Medical Announces Executive Departure Agreement

On April 28, 2025, Avanos Medical, Inc. and Michael C. Greiner entered into a Separation and Consulting Agreement, marking Mr. Greiner’s departure from the company. As part of the agreement, Mr. Greiner will receive a cash severance of $2,100,000, a prorated bonus for 2025, and coverage of his COBRA premiums for six months. Additionally, certain stock units granted to Mr. Greiner will vest immediately. He will also serve as an independent contractor until May 16, 2025, for which he will be compensated $50,000. The agreement includes a Full and Final Release of Claims and Covenant Not to Sue, ensuring a smooth transition and compliance with confidentiality and non-solicitation terms.

Avanos Medical Announces Leadership Changes in April 2025

On April 18, 2025, Avanos Medical announced the departure of Michael C. Greiner, who had served as Interim CEO and previously as CFO and Chief Transformation Officer. Greiner’s exit follows the appointment of Dave Pacitti as CEO on April 14, 2025. Greiner will receive a severance package, including a $2.1 million payment, prorated bonus, and consulting fees. Additionally, Jason M. Pickett has been appointed as Interim CFO and Treasurer, effective April 14, 2025, following Warren J. Machan’s transition to a consulting role. These leadership changes indicate a strategic shift within Avanos Medical, potentially impacting its operational focus and stakeholder relations.