📊 AVNS Key Takeaways
Is Avanos Medical, Inc.. (AVNS) a Good Investment?
Avanos Medical faces significant profitability challenges with negative operating margins (-8.8%) and net losses (-$72.9M) despite modest revenue growth of 1.9% YoY, indicating operational deterioration rather than temporary headwinds. While the company maintains adequate liquidity and generates positive free cash flow ($43.1M), the persistent inability to convert a healthy 50.5% gross margin into profitability suggests structural operational issues that require immediate attention.
Avanos Medical shows mixed fundamentals: liquidity is healthy, leverage is low, and free cash flow is positive, which gives the company financial flexibility despite ongoing losses. However, revenue growth is modest and profitability remains weak, with negative operating and net margins indicating that the core business still needs meaningful margin recovery for the fundamentals to strengthen materially.
Why Buy Avanos Medical, Inc.. Stock? AVNS Key Strengths
- Strong gross margin of 50.5% demonstrates pricing power and product quality in the medical device sector
- Positive free cash flow of $43.1M with 6.1% FCF margin provides operational runway despite net losses
- Solid balance sheet with low leverage (0.12x debt-to-equity ratio) and comfortable liquidity position (2.15x current ratio)
- Positive operating cash flow of $74.7M suggests underlying business generates cash despite accounting losses
- Healthy balance sheet with low debt-to-equity of 0.12x and strong equity base
- Solid liquidity profile with 2.15x current ratio and positive free cash flow of $43.1M
- Net loss has improved significantly year over year, suggesting some progress in operational recovery
AVNS Stock Risks: Avanos Medical, Inc.. Investment Risks
- Severe profitability erosion with negative operating margin (-8.8%) and net margin (-10.4%), indicating unsustainable cost structure
- Negative return metrics (ROE -9.4%, ROA -6.8%) destroying shareholder value with cash burn exceeding operational efficiency gains
- Inability to control operating expenses relative to modest 1.9% revenue growth signals management execution concerns and potential market share pressure
- Negative interest coverage ratio (-19.9x) indicates company cannot service debt from operating earnings, relying on cash reserves
- Operating margin of -8.8% shows the business is still unprofitable at the core operating level
- Revenue growth of 1.9% is weak and may not be enough to drive margin recovery quickly
- Negative interest coverage reflects earnings pressure and limited cushion from operating profits
Key Metrics to Watch
- Operating margin trend - critical to confirm whether this represents temporary restructuring or chronic operational weakness
- Gross margin sustainability - must maintain 50% threshold while achieving operating leverage through expense control
- Free cash flow conversion - monitor ability to sustain positive FCF as current profitability gap widens
- Revenue growth acceleration - need to demonstrate topline growth exceeds 1.9% to justify operational structure
- Operating margin trend and return to sustained operating income
- Revenue growth quality alongside free cash flow conversion
Avanos Medical, Inc.. (AVNS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.15x current ratio provides a solid financial cushion.
AVNS Profit Margin, ROE & Profitability Analysis
AVNS vs Healthcare Sector: How Avanos Medical, Inc.. Compares
How Avanos Medical, Inc.. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Avanos Medical, Inc.. Stock Overvalued? AVNS Valuation Analysis 2026
Based on fundamental analysis, Avanos Medical, Inc.. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Avanos Medical, Inc.. Balance Sheet: AVNS Debt, Cash & Liquidity
AVNS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Avanos Medical, Inc..'s revenue has remained relatively flat over the 5-year period, with a 6% decline. The most recent EPS of $-1.32 indicates the company is currently unprofitable.
AVNS Revenue Growth, EPS Growth & YoY Performance
AVNS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $170.4M | -$1.4M | $-0.03 |
| Q2 2025 | $171.7M | $900.0K | $0.02 |
| Q1 2025 | $166.1M | -$900.0K | $-0.02 |
| Q3 2024 | $170.4M | -$3.7M | $-0.08 |
| Q2 2024 | $169.4M | $900.0K | $0.02 |
| Q1 2024 | $159.3M | -$500.0K | $-0.01 |
| Q3 2023 | $171.3M | -$3.7M | $-0.08 |
| Q2 2023 | $169.4M | $12.5M | $0.26 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Avanos Medical, Inc.. Dividends, Buybacks & Capital Allocation
AVNS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Avanos Medical, Inc.. (CIK: 0001606498)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AVNS
What is the AI rating for AVNS?
Avanos Medical, Inc.. (AVNS) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AVNS's key strengths?
Claude: Strong gross margin of 50.5% demonstrates pricing power and product quality in the medical device sector. Positive free cash flow of $43.1M with 6.1% FCF margin provides operational runway despite net losses. ChatGPT: Healthy balance sheet with low debt-to-equity of 0.12x and strong equity base. Solid liquidity profile with 2.15x current ratio and positive free cash flow of $43.1M.
What are the risks of investing in AVNS?
Claude: Severe profitability erosion with negative operating margin (-8.8%) and net margin (-10.4%), indicating unsustainable cost structure. Negative return metrics (ROE -9.4%, ROA -6.8%) destroying shareholder value with cash burn exceeding operational efficiency gains. ChatGPT: Operating margin of -8.8% shows the business is still unprofitable at the core operating level. Revenue growth of 1.9% is weak and may not be enough to drive margin recovery quickly.
What is AVNS's revenue and growth?
Avanos Medical, Inc.. reported revenue of $701.2M.
Does AVNS pay dividends?
Avanos Medical, Inc.. does not currently pay dividends.
Where can I find AVNS SEC filings?
Official SEC filings for Avanos Medical, Inc.. (CIK: 0001606498) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AVNS's EPS?
Avanos Medical, Inc.. has a diluted EPS of $-1.57.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AVNS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Avanos Medical, Inc.. has a SELL rating with 77% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AVNS stock overvalued or undervalued?
Valuation metrics for AVNS: ROE of -9.4% (sector avg: 15%), net margin of -10.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy AVNS stock in 2026?
Our dual AI analysis gives Avanos Medical, Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AVNS's free cash flow?
Avanos Medical, Inc..'s operating cash flow is $74.7M, with capital expenditures of $31.6M. FCF margin is 6.1%.
How does AVNS compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -10.4% (avg: 12%), ROE -9.4% (avg: 15%), current ratio 2.15 (avg: 2).