Avanos Medical (AVNS) AI Stock Analysis

• Market Cap: $655.70M
• Dividend Yield: N/A
• Average Volume (3M): 533.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: 2.70%
• EPS Growth: -3090.51%
• Country: US
• Employees: 2,227
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.29
• Shares Outstanding: 46,503,456
• 10 Day Avg. Volume: 604,609
• 30 Day Avg. Volume: 533,252
• PEG Ratio: 0.09
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 12.09
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.99
• Enterprise Value/Gross Profit: 1.99
• Enterprise Value/Ebitda: -35.58
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1
• Revenue Forecast (FY): $710.00M

• Rating: 59 Neutral
• Price Target: $15.00 ▲(26.69% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held back primarily by weak/volatile profitability and a negative P/E, partially offset by a solid balance sheet and currently positive cash flow. Technically, the stock trend is constructive (above major moving averages with positive MACD). Earnings call guidance is encouraging, but tariffs are a notable near-term margin headwind; recent governance actions provide modest additional support.

Positive Factors

Revenue Momentum & Gross Margin

Sustained TTM revenue growth near 18.6% with a consistent ~52% gross margin signals durable demand and favorable product economics. This combination supports reinvestment in R&D and commercialization, provides a buffer versus cost shocks, and underpins scalable operating leverage as volumes rise.

Cash Generation & Balance Sheet

Positive free cash flow with a conservative net leverage profile (debt ~ $100M vs ~$90M cash) affords strategic flexibility. That balance-sheet strength supports funding the China-to-Mexico manufacturing move, targeted capex, M&A integration and working-capital needs without immediate refinancing pressure.

Specialty Nutrition & RFA Growth

Double-digit and high-single-digit growth in core niches (SNS >8% and RFA double-digit) reflect strong market positions and recurring consumable demand. Leadership in specialty nutrition and an expanding installed base for RFA create durable revenue streams, high customer stickiness, and margin resilience over the medium term.

Negative Factors

Ongoing Net Losses

Persistent net losses and swings in operating profitability indicate the company struggles to consistently convert solid gross margins into sustainable net earnings. This undermines returns on equity, may limit retained-capital accumulation, and keeps reliance on cash generation or external funding to support strategic initiatives.

Tariff-Driven Margin Headwind

A structural tariff exposure (~$30M in 2026) materially raises cost of goods sold and compresses margins, especially in H1. Mitigation requires supply-chain relocation, capex and execution risk; until shifts complete, profitability and free cash flow remain vulnerable to policy and trade-cycle volatility.

Inconsistent Free Cash Flow

A sharp ~42% TTM decline in free cash flow and historical inconsistency reduce confidence in cash-generation durability. Lower FCF constrains discretionary investment, makes funding supply-chain reconfiguration and M&A more sensitive to shortfalls, and increases reliance on cost cuts to sustain financial flexibility.

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 through the sale of its medical devices and consumables across various healthcare settings, including hospitals, ambulatory surgery centers, and home care. The company primarily earns money from its pain management product line, which includes advanced pain control systems and local anesthetic delivery devices. Additional revenue stems from its surgical and respiratory care products. Avanos also benefits from partnerships with healthcare providers and distributors that enhance its market reach. Furthermore, the company invests in R&D to innovate and expand its product portfolio, which is essential for maintaining a competitive edge and driving future revenue growth.

Avanos Medical Financial Statement Overview

Summary

Balance sheet leverage is conservative (debt-to-equity ~0.17 TTM) and operating/free cash flow are positive in 2024 and TTM, but profitability remains weak with ongoing net losses and volatile operating results despite solid gross margin (~52% TTM).

Income Statement

Revenue has stabilized and improved recently, with TTM (Trailing-Twelve-Months) growth of ~18.6% following modest growth in 2024. However, profitability is weak and volatile: net losses persist in TTM and 2024, and operating profitability has swung from positive in 2021–2022 to losses in 2023–TTM. Gross margin remains solid (~52% TTM), but the company is not consistently converting that into bottom-line earnings, which materially drags the score.

Balance Sheet

Leverage looks manageable, with debt-to-equity around ~0.17 TTM (and generally ~0.15–0.21 historically), suggesting a relatively conservative capital structure. Equity remains sizable versus total assets, providing balance-sheet flexibility. The key weakness is returns: return on equity is deeply negative in TTM and 2024 due to net losses, indicating the balance sheet is not currently generating acceptable shareholder returns.

Cash Flow

Cash generation has improved versus earlier years, with positive operating cash flow and free cash flow in both 2024 and TTM (Trailing-Twelve-Months). That said, free cash flow declined sharply in TTM (down ~42% vs. the prior period), and cash flow performance has been inconsistent over time (including negative operating and free cash flow in 2020). While cash flow is currently supportive, the downshift in TTM raises questions about sustainability.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 11.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 11.84 is below the 20-day moving average (MA) of 14.44, below the 50-day MA of 12.98, and below the 200-day MA of 12.08, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 50.82 is Neutral, neither overbought nor oversold. The STOCH value of 38.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AVNS.

Avanos Medical Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BVS	64 Neutral	$726.66M	78.18	4.97%	―	1.58%	―
AVNS	59 Neutral	$655.70M	-8.95	-46.68%	―	2.70%	-3090.51%
KIDS	55 Neutral	$480.73M	-11.34	-12.67%	―	19.90%	-57.90%
VREX	52 Neutral	$551.82M	-7.91	-13.95%	―	4.14%	-45.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
OFIX	50 Neutral	$543.15M	-5.78	-24.60%	―	4.31%	3.26%

Avanos Medical Corporate Events

Avanos Medical Reaches Cooperation Deal, Refreshes Board Governance

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 nomination. Under the deal, Avanos agreed to nominate Electromed CEO James L. Cunniff and former Haemonetics CFO William P. Burke as independent directors for election at its 2026 annual meeting, and the Radoff parties accepted standstill and voting commitments through key dates ahead of the 2027 meeting, signaling a governance refresh designed to bolster operational and financial expertise on the board and align with the company’s long‑term strategy.

The company highlighted the nominees’ extensive leadership, operating and financial backgrounds in the medical technology sector, which the board expects to strengthen Avanos’s execution of its strategic priorities and enhance oversight. The arrangement underscores continued shareholder engagement around Avanos’s direction while aiming to stabilize its governance framework, with the formal slate and recommendations to be detailed in proxy materials to be filed with the U.S. Securities and Exchange Commission ahead of the 2026 shareholder vote.

The most recent analyst rating on (AVNS) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Avanos Medical stock, see the AVNS Stock Forecast page.

Avanos Medical Highlights Growth Strategy at JP Morgan Conference

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 recovery. Management outlined above-market growth ambitions for its U.S. specialty nutrition segment, supported by #1 domestic positions in long-term, short-term and neonatal feeding, an expanded innovation pipeline and the 2025 acquisition of Nexus Medical and its TKO anti-reflux connector, while projecting at-market growth for pain management, emphasizing non-opioid surgical pain relief and radiofrequency ablation offerings, and signaling that the newly appointed CEO is focused on executing strategic imperatives and deploying a strong balance sheet and M&A pipeline to drive future expansion.

The most recent analyst rating on (AVNS) stock is a Hold with a $12.50 price target. To see the full list of analyst forecasts on Avanos Medical stock, see the AVNS Stock Forecast page.