Avanos Medical (AVNS) AI Stock Analysis

• Market Cap: $569.26M
• Dividend Yield: N/A
• Average Volume (3M): 501.67K
• 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: 41
• Industry: Medical - Devices
• EPS (TTM): 0.26
• Shares Outstanding: 46,243,980
• 10 Day Avg. Volume: 479,524
• 30 Day Avg. Volume: 501,669
• PEG Ratio: <0.01
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $14.00
• Price Target Upside: 13.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: $13.00 ▲( 5.61% Upside)

Avanos Medical's stock reflects a mixed outlook. Financial performance is under pressure from declining revenues and net losses, though improved cash flows and a strong equity position offer some stability. Technical indicators suggest a bearish trend, and valuation metrics are unappealing due to ongoing losses. The earnings call provided cautious optimism, with strong segment results but highlighted external challenges like tariffs. The new CEO appointment is a strategic positive, likely to influence future growth positively.

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.

Quarterly 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

Future Guidance

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 medical technology company that focuses on delivering clinically superior products and improving patient outcomes. Headquartered in Alpharetta, Georgia, Avanos operates in the healthcare sector, specializing in the development of advanced medical devices. The company's core products and services include offerings in pain management and chronic care, such as its innovative non-opioid solutions for acute and chronic pain, and its portfolio of enteral feeding products designed to improve patient care and comfort.

How the Company Makes Money

Avanos Medical generates revenue primarily through the sale of its medical devices and solutions, which are aimed at healthcare facilities, hospitals, and other medical institutions. The company's revenue model is centered around two key segments: Pain Management and Chronic Care. The Pain Management segment focuses on providing non-opioid pain relief solutions, which are increasingly in demand as healthcare providers seek alternatives to opioid prescriptions. The Chronic Care segment includes products designed for enteral feeding, airway management, and other chronic care needs. Additionally, Avanos may engage in strategic partnerships and collaborations that enable it to expand its product offerings and market reach, contributing to its financial performance. Factors such as regulatory approvals, market demand for non-opioid pain management, and the adoption of chronic care solutions are significant contributors to Avanos Medical's earnings.

Avanos Medical Financial Statement Overview

Summary

Avanos Medical exhibits a mix of growth and challenges. While revenue shows modest growth, profitability metrics remain weak with consistent net losses. The balance sheet holds a stable equity position, mitigating some risk. Cash flow improvements are a positive sign, but underlying profitability and operational efficiency need attention to ensure long-term financial health.

Income Statement

Avanos Medical has shown a slight increase in revenue with a 2.15% growth from 2023 to 2024, but there are significant concerns with profitability. The company reported a substantial net loss of $392.1 million in 2024, leading to a negative net profit margin. The negative EBIT and EBITDA margins indicate operational challenges, suggesting inefficiency in managing operational costs.

Balance Sheet

The balance sheet reflects a reasonable level of equity with a debt-to-equity ratio of 0.21 in 2024, showcasing a manageable leverage level. However, the decline in stockholders' equity and total assets over recent years signals a potential risk in financial stability. The equity ratio remains stable at around 71.8%, indicating a strong asset base supported by equity.

Cash Flow

The cash flow situation shows improvement with a significant increase in free cash flow from 2023 to 2024. The free cash flow to net income ratio is positive, suggesting positive cash generation despite accounting losses. However, the operating cash flow to net income ratio is concerning due to negative net income, indicating reliance on non-operational cash sources.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
687.80M	673.30M	820.00M	744.60M	714.80M
	Gross Profit
381.30M	379.70M	450.00M	364.30M	373.30M
	EBIT
-396.20M	4.20M	74.00M	8.90M	-46.10M
	EBITDA
-345.60M	50.60M	77.80M	8.90M	-2.00M
	Net Income Common Stockholders
-392.10M	-61.80M	50.50M	6.30M	-27.20M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
107.70M	87.70M	127.70M	118.50M	111.50M
	Total Assets
1.15B	1.69B	1.79B	1.59B	1.67B
	Total Debt
170.20M	209.10M	280.00M	187.50M	248.80M
	Net Debt
62.50M	121.40M	152.30M	69.00M	137.30M
	Total Liabilities
325.70M	456.10M	495.70M	330.70M	416.30M
	Stockholders Equity
828.50M	1.24B	1.29B	1.26B	1.26B
Cash Flow		Free Cash Flow
82.90M	14.60M	71.60M	66.30M	-22.70M
	Operating Cash Flow
100.70M	32.40M	90.90M	87.30M	-2.50M
	Investing Cash Flow
-27.50M	21.60M	-135.40M	-21.00M	-24.20M
	Financing Cash Flow
-49.10M	-94.20M	56.70M	-55.30M	-70.00M

Avanos Medical Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.31
• 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 Negative. The current price of 12.31 is below the 20-day moving average (MA) of 12.64, below the 50-day MA of 13.13, and below the 200-day MA of 17.92, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 43.26 is Neutral, neither overbought nor oversold. The STOCH value of 31.73 is Neutral, 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
SIBN	72 Outperform	$783.25M	―	-15.96%	―	22.60%	41.26%
KIDS	66 Neutral	$515.94M	―	-11.33%	―	31.28%	-81.86%
Sector *	53 Neutral	$5.14B	3.03	-44.09%	2.83%	16.75%	-0.06%
AVNS	52 Neutral	$569.26M	45.80	-36.78%	―	1.34%	-530.36%
BFLY	52 Neutral	$536.62M	―	-29.16%	―	25.77%	49.44%
OFIX	47 Neutral	$434.91M	―	-27.82%	―	5.85%	-8.92%
BVS	47 Neutral	$536.40M	―	-19.79%	―	8.60%	-42.76%

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.

Avanos Medical Appoints David Pacitti as New CEO

On March 17, 2025, Avanos Medical announced the appointment of David Pacitti as its new Chief Executive Officer, effective April 14, 2025. Pacitti, who previously held leadership roles at Siemens Healthineers and Abbott Vascular, brings extensive industry expertise and a strategic vision to the company. His appointment is expected to drive Avanos’s next phase of growth and success, with a focus on delivering breakthrough medical device solutions and enhancing long-term value for stakeholders.