Avanos Medical (AVNS) AI Stock Analysis

• Market Cap: $524.35M
• Dividend Yield: N/A
• Average Volume (3M): 482.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: 1.48%
• EPS Growth: -6091.13%
• Country: US
• Employees: 2,227
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.22
• Shares Outstanding: 46,402,480
• 10 Day Avg. Volume: 435,596
• 30 Day Avg. Volume: 482,466
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 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: 51 Neutral
• Price Target: $11.50 ▼(-2.21% Downside)

Avanos Medical's overall stock score is primarily influenced by its strong revenue growth and positive earnings call guidance. However, significant profitability challenges, negative valuation metrics, and bearish technical indicators weigh down the score. The company's strategic initiatives and cost-saving measures offer potential upside but are offset by ongoing operational inefficiencies and external challenges.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong market demand and effective sales strategies, supporting long-term growth potential.

Strategic Acquisitions

The acquisition of Nexus Medical enhances product offerings and market reach, potentially boosting revenue and competitive positioning.

Cost Improvement Initiatives

Cost-saving measures can improve profitability and operational efficiency, strengthening financial health over the long term.

Negative Factors

Profitability Challenges

Ongoing profitability issues suggest operational inefficiencies, which could hinder financial performance and shareholder returns.

Tariff Impact

Tariff-related costs could pressure margins and increase operational expenses, affecting long-term profitability.

Declining Free Cash Flow

Reduced free cash flow growth raises concerns about liquidity and the ability to fund future investments or debt obligations.

Avanos Medical Business Overview & Revenue Model

Company Description

Avanos Medical, Inc. is a global medical technology company that specializes in developing and manufacturing innovative products focused on pain management and surgical solutions. The company operates primarily in two main sectors: Surgical and Pain Management. Avanos offers a range of core products, including catheters, wound care devices, and specialized surgical instruments, designed to improve patient outcomes and enhance the efficiency of healthcare providers.

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 but faces significant profitability challenges. 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	699.90M	687.80M	673.30M	684.10M	744.60M	714.80M
Gross Profit	367.20M	381.30M	379.70M	394.20M	379.90M	390.60M
EBITDA	-443.10M	-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	1.59B	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	330.70M	416.30M
Stockholders Equity	778.00M	828.50M	1.24B	1.29B	1.26B	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: Negative
• Last Price: 11.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVNS, the sentiment is Negative. The current price of 11.76 is above the 20-day moving average (MA) of 11.35, above the 50-day MA of 11.71, and below the 200-day MA of 12.87, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 35.20 is Neutral, neither overbought nor oversold. The STOCH value of 17.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVNS.

Avanos Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BVS	66 Neutral	$624.23M	-1,020.27	4.97%	―	1.58%	―
OFIX	52 Neutral	$587.28M	―	-24.60%	―	4.31%	3.26%
VREX	52 Neutral	$489.70M	-3.64	-25.57%	―	-1.36%	-479.49%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
AVNS	51 Neutral	$524.35M	―	-46.17%	―	1.48%	-6091.13%
ZIMV	48 Neutral	―	―	-4.76%	―	-19.52%	94.65%
KIDS	47 Neutral	$415.78M	―	-12.67%	―	19.90%	-57.90%

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.

The most recent analyst rating on (AVNS) stock is a Hold with a $11.50 price target. To see the full list of analyst forecasts on Avanos Medical stock, see the AVNS Stock Forecast page.

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 Reports Q2 2025 Financial Results

Avanos Medical, Inc. is a medical technology company based in Alpharetta, Georgia, focusing on providing solutions for specialty nutrition and pain management, with a commitment to reducing opioid use and supporting patient recovery.

Avanos Medical’s Earnings Call: Strategic Growth Amid Challenges

The recent earnings call for Avanos Medical, Inc. painted a picture of resilience and strategic focus amidst a challenging economic landscape. The company showcased strong performance in key segments and successful strategic divestitures, while also addressing significant challenges such as a substantial goodwill impairment charge and ongoing cost pressures from tariffs. Despite these hurdles, Avanos reaffirmed its guidance, signaling confidence in its future trajectory.