Avanos Medical (AVNS) AI Stock Analysis

• Market Cap: $561.47M
• Dividend Yield: N/A
• Average Volume (3M): 699.96K
• Price to Earnings (P/E): 45.8
• Beta (1Y): 0.91
• Revenue Growth: 1.48%
• EPS Growth: -6091.13%
• Country: US
• Employees: 2,227
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.17
• Shares Outstanding: 46,402,480
• 10 Day Avg. Volume: 695,668
• 30 Day Avg. Volume: 699,957
• 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: 1.09
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 1.64
• Enterprise Value/Ebitda: -1.45
• 1Y Price Target: $12.00
• Price Target Upside: -0.83% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: $11.50 ▼(-4.96% Downside)

Avanos Medical's overall stock score reflects strong revenue growth but significant profitability challenges and a negative valuation. The earnings call provided some positive insights, but was marred by a large impairment charge and tariff impacts. Technical indicators suggest a bearish trend, further weighing down the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Strategic Divestiture

Divesting non-core assets allows Avanos to focus resources on high-growth areas, enhancing strategic focus and operational efficiency.

Leadership Changes

New leadership can bring fresh perspectives and strategies, potentially improving financial management and corporate governance.

Negative Factors

Goodwill Impairment

Significant impairment charges reflect potential overvaluation of assets, impacting financial stability and investor confidence.

Profitability Challenges

Ongoing profitability issues can hinder reinvestment in growth initiatives and affect long-term financial health.

Tariff Impact

Tariff-related costs increase operational expenses, potentially reducing margins and affecting competitive pricing strategies.

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 primarily through the sale of its medical devices and products in the surgical and pain management sectors. Key revenue streams include direct sales to hospitals, healthcare systems, and outpatient facilities, as well as partnerships with distributors and third-party sellers. The company benefits from recurring revenue through the ongoing use of its products in various medical procedures. Additionally, Avanos has established strategic partnerships with healthcare providers and organizations to enhance product adoption, which contributes to its earnings. Factors such as product innovation, regulatory approvals, and market demand for minimally invasive surgical solutions also play a significant role in driving the company's financial performance.

Avanos Medical Financial Statement Overview

Summary

Avanos Medical shows strong revenue growth of 47.9% TTM but faces significant profitability challenges with negative EBIT and net profit margins. The balance sheet is stable with low leverage, yet the negative return on equity indicates inefficiencies. Cash flow generation is positive, but declining free cash flow growth raises concerns about future liquidity.

Income Statement

Avanos Medical's income statement shows a mixed performance. The company has experienced significant revenue growth of 47.9% TTM, indicating strong top-line expansion. However, profitability metrics are concerning, with negative EBIT and net profit margins, reflecting operational challenges. The gross profit margin remains relatively stable, but the negative net income highlights ongoing financial difficulties.

Balance Sheet

The balance sheet of Avanos Medical presents a moderate financial position. The debt-to-equity ratio is low at 0.18, suggesting manageable leverage levels. However, the return on equity is negative, indicating inefficiencies in generating returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.

Cash Flow

Cash flow analysis reveals a mixed scenario for Avanos Medical. Operating cash flow is positive, but the free cash flow has decreased by 22.9% TTM, indicating potential liquidity concerns. The operating cash flow to net income ratio is healthy, suggesting that cash generation is relatively strong compared to reported losses. However, the decline in free cash flow growth is a point of concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	692.50M	687.80M	673.30M	684.10M	744.60M	714.80M
Gross Profit	374.10M	381.30M	379.70M	394.20M	379.90M	390.60M
EBITDA	-424.70M	-345.60M	50.60M	77.80M	48.90M	-2.00M
Net Income	-463.20M	-392.10M	-61.80M	50.50M	6.30M	-27.20M
Balance Sheet
Total Assets	1.04B	1.15B	1.69B	1.79B	1.59B	1.67B
Cash, Cash Equivalents and Short-Term Investments	90.30M	107.70M	87.70M	127.70M	118.50M	111.50M
Total Debt	137.30M	170.20M	209.10M	277.00M	187.50M	248.80M
Total Liabilities	262.70M	325.70M	456.10M	495.70M	330.70M	416.30M
Stockholders Equity	776.30M	828.50M	1.24B	1.29B	1.26B	1.26B
Cash Flow
Free Cash Flow	87.90M	82.90M	14.60M	71.60M	66.30M	-22.70M
Operating Cash Flow	113.40M	100.70M	32.40M	90.90M	87.30M	-2.50M
Investing Cash Flow	-41.90M	-27.50M	21.60M	-135.40M	-21.00M	-24.20M
Financing Cash Flow	-75.70M	-49.10M	-94.20M	56.70M	-55.30M	-70.00M

Avanos Medical Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Positive. The current price of 12.1 is below the 20-day moving average (MA) of 12.16, above the 50-day MA of 11.64, and below the 200-day MA of 13.64, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 52.43 is Neutral, neither overbought nor oversold. The STOCH value of 36.88 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
ZIMV	67 Neutral	533.28M	-27.19	-4.72%	―	-19.52%	94.65%
VREX	57 Neutral	508.79M	-3.69	-29.10%	―	-1.36%	-479.49%
OFIX	54 Neutral	584.52M	-4.53	-26.99%	―	4.84%	0.85%
BVS	53 Neutral	569.66M	-913.51	-0.10%	―	5.08%	99.38%
KIDS	52 Neutral	473.64M	-10.03	-11.75%	―	26.08%	-63.67%
AVNS	49 Neutral	$561.47M	45.80	-46.17%	―	1.48%	-6091.13%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Avanos Medical Corporate Events

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.

The most recent analyst rating on (AVNS) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Avanos Medical stock, see the AVNS Stock Forecast page.

Avanos Medical Appoints New CFO Amid Financial Challenges

On August 1, 2025, Avanos Medical appointed David Pacitti as a Board member and Scott Galovan as the Senior Vice President, Chief Financial Officer. The company reported a 1.9% increase in net sales for the second quarter of 2025, but faced a net loss of $76.8 million due to a $77.0 million goodwill impairment charge. Despite challenges, Avanos showed growth in its Specialty Nutrition Systems and Pain Management & Recovery segments, with strategic divestitures and restructuring efforts aimed at strengthening its market position.

The most recent analyst rating on (AVNS) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Avanos Medical stock, see the AVNS Stock Forecast page.