Avanos Medical (AVNS) AI Stock Analysis

• Market Cap: $554.97M
• Dividend Yield: N/A
• Average Volume (3M): 707.38K
• Price to Earnings (P/E): 45.8
• Beta (1Y): 0.93
• Revenue Growth: 1.48%
• EPS Growth: -6091.13%
• Country: US
• Employees: 2,227
• Sector: Healthcare
• Sector Strength: 49
• Industry: Medical - Devices
• EPS (TTM): 0.17
• Shares Outstanding: 46,402,480
• 10 Day Avg. Volume: 518,384
• 30 Day Avg. Volume: 707,376
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 1.65
• Enterprise Value/Ebitda: -1.45
• 1Y Price Target: $12.00
• Price Target Upside: -5.21% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: $12.00 ▼(-5.21% Downside)

Avanos Medical's overall stock score reflects strong revenue growth and strategic initiatives to address challenges. However, significant profitability issues, a negative P/E ratio, and potential liquidity concerns weigh down the score. Technical indicators show mixed signals, with short-term bullish momentum but longer-term challenges. The earnings call provided a balanced view of growth and challenges, contributing positively to the score.

Positive Factors

Business 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.

Financial Performance

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

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.

Pricing Pressures

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. 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 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	820.00M	587.00M	714.80M
Gross Profit	372.80M	381.30M	379.70M	450.00M	364.30M	373.30M
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: 12.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 12.66 is above the 20-day moving average (MA) of 11.43, above the 50-day MA of 11.63, and below the 200-day MA of 14.10, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 68.24 is Neutral, neither overbought nor oversold. The STOCH value of 93.64 is Negative, 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
SIBN	62 Neutral	$709.67M	―	-14.18%	―	22.93%	43.83%
BVS	56 Neutral	$596.94M	―	-0.10%	―	5.08%	99.38%
AVNS	54 Neutral	$554.97M	45.80	-46.17%	―	1.48%	-6091.13%
OFIX	54 Neutral	$588.07M	―	-24.63%	―	4.84%	0.85%
KIDS	52 Neutral	$521.53M	―	-11.49%	―	26.08%	-63.67%
Sector *	51 Neutral	$7.91B	-0.36	-41.70%	2.23%	23.45%	-1.86%
BFLY	47 Neutral	$405.30M	―	-29.42%	―	23.13%	46.62%

Avanos Medical Corporate Events

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.