Avanos Medical (AVNS)
NYSE:AVNS
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Avanos Medical
(NYSE:AVNS)
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Rating:54Neutral
Price Target:
$13.50
▲(14.02% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Avanos Medical (AVNS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$641.75M
Dividend YieldN/A
Average Volume (3M)533.25K
Price to Earnings (P/E)35.2
Beta (1Y)0.66
Revenue Growth2.70%
EPS Growth-3090.51%
CountryUS
Employees2,227
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)0.29
Shares Outstanding46,503,456
10 Day Avg. Volume604,609
30 Day Avg. Volume533,252
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)0.67
Price to Sales (P/S)0.74
P/FCF Ratio12.09
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit1.95
Enterprise Value/Ebitda-34.95
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1
Revenue Forecast (FY)$710.00M
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 ...
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 reven...
Avanos Medical Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed solid operational execution and portfolio reshaping that produced revenue outperformance, margin expansion in key segments, strong cash generation, and successful M&A integration (Nexus). However, a material near-term headwind from tariffs (approximately $30M expected in 2026) and lingering softness in certain product lines (surgical pain, GAME READY, HA/IV exits) will weigh on margins in the near term. Management presented a credible mitigation path (China exit, production shift to Mexico/SE Asia, cost containment, pricing) and provided constructive 2026 guidance, indicating confidence in returning to margin improvement in H2 2026 and beyond.Positive Updates
Full-Year Revenue Beat
Net sales for fiscal 2025 were $701 million, exceeding the range revised after Q3 and providing momentum into 2026.
Negative Updates
Material Tariff Headwind
Management expects approximately $30 million of tariff P&L costs in 2026 (a $12 million increase versus 2025), with about two-thirds of that impact tied to China-sourced products, pressuring gross margin especially in H1 2026.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue Beat
Net sales for fiscal 2025 were $701 million, exceeding the range revised after Q3 and providing momentum into 2026.
Read all positive updates
Company Guidance
Avanos guided 2026 net sales of $700–720 million and adjusted diluted EPS of $0.90–$1.10, assuming consolidated mid‑single‑digit organic growth (~5%) with SNS growing mid‑to‑high single digits and PM&R low‑to‑mid single digits; Corporate & Other revenue is expected to be about $1 million and foreign exchange is assumed near current levels. The company expects approximately $30 million of tariff P&L costs (about $12 million incremental versus 2025, with roughly two‑thirds China‑related) but forecasts gross margin to pause in H1 and to see favorable momentum beginning in H2 and continuing into 2027 as syringe production exits China to Mexico by June. Planned capital expenditures are about $25 million (≈$7 million lower than 2025 but slightly above normalized levels to support the China exit), the annual effective tax rate is ~29%, and management highlighted a strong balance sheet (≈$90 million cash, $100 million debt, leverage well below 1x) and ongoing cost‑savings to drive operating margin improvement.Avanos Medical Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
63
Positive
Cash Flow
56
Neutral
| 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
Positive
11.84
Price Trends
13.65
Positive
12.56
Positive
12.16
Positive
Market Momentum
-0.12
Positive
49.98
Neutral
34.36
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 13.65, below the 50-day MA of 13.65, and below the 200-day MA of 12.16, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 49.98 is Neutral, neither overbought nor oversold. The STOCH value of 34.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVNS.
Avanos Medical Risk Analysis
Avanos Medical disclosed 38 risk factors in its most recent earnings report. Avanos Medical reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Avanos Medical Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $761.70M | 21.81 | 4.97% | ― | 1.58% | ― | |
55 Neutral | $410.27M | -10.51 | -12.67% | ― | 19.90% | -57.90% | |
54 Neutral | $641.75M | 35.21 | -8.56% | ― | 2.70% | -3090.51% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $478.92M | -6.56 | -20.38% | ― | 4.31% | 3.26% | |
46 Neutral | $447.91M | 52.93 | -13.86% | ― | 4.14% | -45.29% |
* Healthcare Sector Average
AVNS
Avanos Medical
13.80
-0.36
-2.54%
OFIX
Orthofix Medical
11.93
-4.36
-26.74%
VREX
Varex Imaging
10.69
-1.39
-11.51%
KIDS
OrthoPediatrics
16.23
-8.18
-33.51%
BVS
Bioventus
9.16
0.04
0.44%
Avanos Medical Corporate Events
Executive/Board Changes
Avanos Medical boosts CEO long-term incentive compensation
Positive
Mar 12, 2026
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 Pla...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Avanos Medical Reaches Cooperation Deal, Refreshes Board Governance
Positive
Feb 26, 2026
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 nominati...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Avanos Medical Highlights Growth Strategy at JP Morgan Conference
Positive
Jan 13, 2026
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 recove...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.