📊 AVNS Key Takeaways
Is Avanos Medical, Inc.. (AVNS) a Good Investment?
Despite a fortress balance sheet with low leverage (0.11x Debt/Equity) and solid 51.7% gross margins, Avanos suffers from fundamental operational deterioration including negative free cash flow of -$16.6M, stagnant revenue growth of 1.9%, and severely depressed returns on equity (0.7%) and assets (0.5%). The reported net income improvement appears disconnected from actual cash generation, signaling sustainability concerns.
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
- Conservative capital structure with 0.11x Debt/Equity ratio and 2.48x current ratio provides substantial financial flexibility
- 51.7% gross margin demonstrates pricing power and product quality in medical devices market
- 81.4% year-over-year improvement in net income shows operational improvements relative to prior period
- 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
- Negative free cash flow of -$16.6M with -9.1% FCF margin indicates the company is burning cash operationally, which is unsustainable long-term
- Minimal revenue growth of 1.9% YoY reflects stagnant market position and limited expansion in orthopedic/surgical device markets
- Extremely poor returns: ROE of 0.7% and ROA of 0.5% indicate severe capital inefficiency and value destruction for shareholders
- Operating margin of only 4.9% and 2.8% net margin provide minimal cushion for unexpected challenges or market pressures
- Interest coverage of 2.9x is adequate but leaves limited room for error if operational performance deteriorates further
- 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 Cash Flow - must return to positive territory to validate sustainability of earnings
- Revenue Growth Rate - requires acceleration beyond 1.9% to demonstrate market relevance and competitive position
- Operating Margin Expansion - improvement from current 4.9% toward 10%+ needed to justify business model
- 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 2.48x 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 |
|---|---|---|---|
| Q1 2026 | $167.5M | $5.1M | $0.11 |
| 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 |
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
| Date | Form | Document | Action |
|---|---|---|---|
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778600497.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778600465.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778600427.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778600239.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778600145.xml | View → |
❓ 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 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AVNS's key strengths?
Claude: Conservative capital structure with 0.11x Debt/Equity ratio and 2.48x current ratio provides substantial financial flexibility. 51.7% gross margin demonstrates pricing power and product quality in medical devices market. 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: Negative free cash flow of -$16.6M with -9.1% FCF margin indicates the company is burning cash operationally, which is unsustainable long-term. Minimal revenue growth of 1.9% YoY reflects stagnant market position and limited expansion in orthopedic/surgical device markets. 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 $182.2M.
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 $0.11.
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 May 2026, Avanos Medical, Inc.. has a SELL rating with 74% 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 0.7% (sector avg: 15%), net margin of 2.8% (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 $-12.3M, with capital expenditures of $4.3M. FCF margin is -9.1%.
How does AVNS compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 2.8% (avg: 12%), ROE 0.7% (avg: 15%), current ratio 2.48 (avg: 2).