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Avanos Medical, Inc.
🏹 Trader: 🎯 Near 52W High View all →
$1.2B
Market Cap
25.3
P/E
2.70
PEG
-7.9%
ROCE
-9.1%
ROE
0.14
D/E
-8.8%
OPM
-0.2%
% from 52W High
91
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for AVNS including FX impact
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📈 Price History
Ratio Health
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By Category
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About

Avanos Medical, Inc., a medical technology company, provides medical device solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America.

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📈 Growth Pattern
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Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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📊 MIXED Avanos FY25 rev $701M, EPS $0.94, organic growth 6%
Revenue & Profitability
FY2025 net sales $701M, adjusted diluted EPS $0.94, adjusted EBITDA $87M. Free cash flow $43M. SNS segment operating profit 19% (down 100bps YoY), PM&R operating profit 4% (up 270bps YoY).
Outlook
Management expects continued mid-single-digit organic sales growth in strategic segments. SNS to grow mid-high single digits, PM&R low-mid single digits. Tariffs are a headwind ($30M in 2026), but gross margin improvement expected in H2 2026 and into 2027.
Growth Drivers
SNS growth driven by strong demand in long-term feeding, U.K. Go Direct, double-digit short-term feeding (CORTRAK, CORGRIP), and above-market neonatal growth (Nexus acquisition). RFA business posted double-digit organic growth with sustained generator capital sales, supported by ESENTEC, TRIDENT, and COOLIEF international expansion.
Balance Sheet & CapEx
2026 CapEx guidance of $25M, approximately $7M lower than 2025. Investments support China exit plan with production moved to Mexico (Tijuana) and Southeast Asia. Capex partially offset by higher free cash flow in 2025.
Margins
FY2025 adjusted gross margin 54.6% (down due to tariffs); expects pause in 2026 with improvement in H2 2026 into 2027. Adjusted SG&A 42% of revenue. PM&R operating margin improved 270bps to 4%. Guidance implies earnings expansion greater than top-line growth.
Key Risks
Tariff impact ($30M in 2026, $12M increase from 2025) and ongoing uncertainty from Supreme Court rulings and administration actions. NOPAIN Act implementation taking longer than anticipated. Foreign exchange near current levels.
Generated by AI · Q4 2025 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q4 2025 Q4 2025 2026-02-24
Delivered strong 2025 results, exceeding revised sales and earnings guidance, with robust growth in Specialty Nutrition Systems and Pain Management & Recovery. 2026 guidance anticipates continued organic growth, margin improvement in the second half, and successful tariff mitigation as China exit completes.
Q3 2025 Q3 2025 2025-11-05
Q3 delivered double-digit organic growth in strategic segments, raised full-year guidance, and completed key portfolio moves including the Nexus Medical acquisition and HA divestiture. Cost savings and tariff mitigation efforts are underway, with strong liquidity supporting future M&A.
Q2 2025 Q2 2025 2025-08-05
Second quarter saw strong organic growth in core segments, robust demand, and the divestiture of the HA product line. Full-year revenue and EPS guidance were reaffirmed despite tariff and macroeconomic headwinds, with continued focus on transformation and cost management.
Q1 2025 Q1 2025 2025-05-06
Q1 2025 saw strong organic growth in Specialty Nutrition Systems and solid progress in Pain Management and Recovery, with robust cash flow and a maintained revenue outlook. Tariffs and executive transition costs led to a lower adjusted EPS range, but transformation initiatives and M&A activity continue to support growth.
Q4 2024 Q4 2024 2025-02-26
Q4 and full-year results showed strong organic growth in Enteral Feeding and solid progress in transformation initiatives, despite a significant impairment charge and ongoing HA pricing pressures. 2025 guidance anticipates stable sales and earnings, with continued focus on portfolio optimization and M&A in Specialty Nutrition Systems.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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