AVNS

Avanos Medical

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Healthcare

industry

Medical Devices

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/05/26

Business Summary

Avanos Medical operates in the medical devices segment, generating revenue through the design and sale of consumable and durable healthcare products used in clinical settings. Cash generation depends on recurring hospital demand and procedural utilization rather than discretionary consumer spending, which can provide baseline stability. Its moat, to the extent it exists, lies in entrenched hospital relationships, regulatory approvals, and product integration into clinical workflows that create switching friction. However, sustainable moat strength ultimately depends on restoring operating margin discipline and achieving consistent positive returns on invested capital.

VALUATION

P/E

-

Market Cap ($M USD)

$659

Forward P/E

11.3

PEG

3.3

PRICE TO SALES

0.9

PRICE TO BOOK

0.9

EV / EBITDA

-35.8

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

-$1.57

Next Year EPS Growth Estimate

$1.25

Next Year Revenue Growth Estimate

4.20%

Return on Equity (ROE)

-9.40%

Operating Margin

2.20%

Debt-to-Equity

0.2

Piotroski F-Score

5

Altman Z-Score

1.2

Return on Invested Capital (ROIC)

-7.30%%

Current Ratio

2.2

Quick Ratio

Gainseekers Quantitative Analysis

Summary

This is a statistically cheap but fundamentally damaged balance sheet story. A Forward P/E of 11.3 and Price/Sales of 0.9 suggest the market has already discounted significant distress, yet the Altman Z-Score of 1.2 firmly places the company in financial danger territory. Negative EPS of -35.8, negative operating margin of -9.40%, and ROIC of -7.30% indicate value destruction, not cyclical weakness. The market isn’t mispricing growth — it’s pricing survival risk. At these levels, this is a balance sheet stabilization trade, not a quality compounder.

AI Exposure / Tech Reliance

As a Medical Devices company, Avanos operates in a sector that increasingly integrates AI into diagnostics, patient monitoring, and device optimization. However, nothing in the current financial metrics suggests it is monetizing technological leverage yet, given negative margins and returns. Its ability to benefit from AI will depend more on capital discipline and R&D efficiency than on sector tailwinds alone.

The Bull Case

A deep value investor could argue this is a classic washed-out med-tech turnaround. Trading at 0.9x sales and 0.9x book with a Forward P/E of 11.3, the market is pricing minimal recovery despite a respectable Piotroski F-Score of 5 and a solid Current Ratio of 2.2, which suggests short-term liquidity is not the immediate problem. Return on Equity of 4.20% shows the equity base is still generating some return despite deeply negative trailing EPS, implying potential normalization effects. If operating margins merely revert from -9.40% toward breakeven, the valuation multiple could re-rate quickly given the small $659M market cap and low expectations embedded in the stock.

The Bear Case

The bear case is brutal and grounded in hard numbers. Debt/Equity at 2.20% signals leverage pressure relative to a business generating negative operating margins and a -7.30% ROIC — this is capital misallocation in real time. A PEG Forward of 3.3 implies that even with a Forward P/E of 11.3, the expected growth profile does not justify the valuation. The Altman Z-Score of 1.2 is flashing financial distress risk, and EPS Next Year is still projected at -$1.57, meaning profitability recovery is not imminent. This combination of leverage, unprofitable operations, and weak forward earnings creates a structurally fragile setup.

Market Sentiment & Smart Money

Short Interest %

6.70%

Analyst Consensus

3

Average Analyst Price Target

-

Institutional Ownership %

99.30%

1-Year Beta

0.96

Insider Buying % (6 Mo)

4.80%%

Distance to 52-Week High

90.40%%

Distance to 52-Week Low

152.40%%