Avanos Medical, Inc. (AVNS) | Investment Case

1. Company Snapshot

1.a. 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.

Show Full description

1.b. Last Insights on AVNS

Avanos Medical's recent performance was driven by strong Q4 2025 earnings and revenue beat, with the company exceeding full-year revenue and achieving the top end of full-year earnings-per-share guidance. The company's strategic segments delivered 6% organic growth, and its transformation initiatives are expected to deliver $15 to $20 million of incremental annualized savings by the end of 2026. Additionally, the company's acquisition by American Industrial Partners for $25.00 per share in cash, valued at approximately $1.272 billion, is a significant positive development.

1.c. Company Highlights

Last Price	24.62
Change Percentage	-0.02%
Open	24.65
Previous Close	24.63
Market Cap ( Millions)	1145
Volume	3885795
Year High	24.7
Year Low	9.3
M A 50	14.23
M A 200	12.32

FCF Yield	3.76%
Dividend Yield	0.00%
ROE	-8.56%
Debt / Equity	16.59%
Net Debt / EBIDTA	-201.54%
Price To Book	1.47
Price Earnings Ratio	-16.83
Price To FCF	26.57
Price To sales	1.63
EV / EBITDA	-60.75

2. Avanos Medical's Q4 and Full-Year 2025 Earnings Report

Avanos Medical, Inc. (AVNS) reported solid fourth-quarter and full-year 2025 results, with net sales of $701 million, exceeding the revised guidance range. The company's adjusted diluted earnings per share came in at $0.29, beating estimates of $0.24. The Specialty Nutrition Systems (SNS) portfolio delivered strong results, growing over 8% organically, driven by double-digit growth in short-term enteral feeding and high single-digit growth in long-term feeding.

Publication Date: Mar -09

                                    📋 Highlights
                                    2025 Q4 & Full-Year Results::
                                                Net sales reached $701 million, surpassing guidance, with adjusted diluted EPS at $0.94.
SNS Portfolio Growth::
                                                Organic sales grew over 8%, driven by double-digit growth in short-term enteral feeding and high single-digit long-term feeding.
PM&R Performance::
                                                Normalized organic sales growth of 2.3%, led by double-digit growth in radiofrequency ablation.
2026 Guidance::
                                                Projects net sales of $700–$720 million and adjusted diluted EPS of $0.90–$1.10, with mid-single-digit organic growth in strategic segments.
Financial Strength::
                                                Generated $43 million in free cash flow in 2025, $90 million cash on hand, and $100 million debt outstanding.

                                

Segment Performance

The Pain Management and Recovery portfolio saw normalized organic sales growth of 2.3%, led by double-digit growth in radiofrequency ablation. The company's SNS segment continues to drive growth, with the Nexus product line performing better than expected, contributing to the overall strong performance. According to David Pacitti, Nexus is expected to contribute $5 million in revenue and grow double digits in 2026 and beyond.

Tariff Mitigation and Future Outlook

The company is mitigating the impact of tariffs through various initiatives, with a focus on executing its China exit strategy, which is on track to be completed by June 2026. Avanos expects a $30 million tariff impact in 2026. For 2026, the company expects net sales of $700-$720 million, with mid-single-digit organic sales growth in strategic segments, and adjusted diluted earnings per share of $0.90-$1.10. Analysts estimate revenue growth of 4.2% for the next year.

Valuation and Financials

Avanos' current valuation multiples are as follows: P/E ratio is not applicable due to negative earnings, P/B Ratio is 0.79, P/S Ratio is 0.88, and EV/EBITDA is -33.71. The company's Free Cash Flow Yield is 6.97%, and ROIC is -6.65%. The Net Debt / EBITDA ratio is -2.02, indicating a strong balance sheet with $90 million of cash on hand and $100 million of debt outstanding. The company generated $43 million of free cash flow in 2025.

Management Confidence and R&D Plans

3. NewsRoom

Avanos Medical Inc (AVNS) Stock Up 69.5% but GF Value Says Overvalued -- GF Score: 73/100

Apr -14

Source: gurufocus.com

This Healthcare Stock Is Rising 69%. It's Getting Bought Out for a Big Premium.

Apr -14

Source: barrons.com

$HAREHOLDER ALERT: The M&A Class Action Firm Announces An Investigation of Globalstar, Inc. (NASDAQ: GSAT)

Apr -14

Source: globenewswire.com

Shareholder Alert: Ademi LLP investigates whether Avanos Medical Inc. is obtaining a Fair Price for Public Shareholders

Apr -14

Source: prnewswire.com

AVNS Stock Alert: Halper Sadeh LLC is Investigating Whether Avanos Medical, Inc. is Obtaining a Fair Price for its Shareholders

Apr -14

Source: businesswire.com

AIP to take Avanos Medical private in a deal valued at about $1.27 billion

Apr -14

Source: reuters.com

Avanos Medical, Inc. Agrees To Be Acquired by American Industrial Partners for Approximately $1.272 Billion

Apr -14

Source: prnewswire.com

Reasons to Retain Avanos Medical Stock in Your Portfolio for Now

Mar -19

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.73%)

6. Segments

Digestive Health

Expected Growth: 3.5%

Avanos Medical's Digestive Health segment growth of 3.5% is driven by increasing demand for its innovative enteral feeding tubes and chronic care products, expansion into emerging markets, and strategic partnerships. Additionally, growing awareness of digestive health issues and an aging population contribute to the segment's growth.

Pain Management and Recovery - Interventional Pain

Expected Growth: 4.2%

Avanos Medical's Interventional Pain Management and Recovery segment growth of 4.2% is driven by increasing demand for minimally invasive procedures, rising prevalence of chronic pain, and growing adoption of radiofrequency ablation and minimally invasive spine procedures. Additionally, expansion into new markets and strategic partnerships contribute to the segment's growth.

Pain Management and Recovery - Surgical Pain and Recovery

Expected Growth: 3.8%

Avanos Medical's Pain Management and Recovery segment, specifically Surgical Pain and Recovery, is driven by increasing demand for minimally invasive procedures, growing adoption of regional anesthesia, and a shift towards outpatient surgeries. Additionally, the rising prevalence of chronic pain and opioid abuse has led to increased focus on alternative pain management solutions, contributing to the 3.8% growth.

7. Detailed Products

Game Ready

A cold compression therapy system designed to reduce pain and swelling, and promote healing after surgery or injury.

CoolFlow

A cold compression wrap designed to provide targeted cold therapy to specific areas of the body.

On-Q

A pain management system that provides continuous nerve block therapy for post-operative pain relief.

MICROPORT Access Port

A fully implantable, subcutaneous access port designed for repeated access to the bloodstream.

BioFlo

A portfolio of vascular access products designed to reduce thrombus accumulation and maintain patency.

8. Avanos Medical, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Avanos Medical, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the increasing competition in the medical device industry.

Bargaining Power Of Customers

Avanos Medical, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are critical to its customers' operations, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Avanos Medical, Inc. relies on a few key suppliers for critical components, which gives these suppliers some bargaining power. However, the company's size and scale of operations mitigate this risk to some extent.

Threat Of New Entrants

The medical device industry has high barriers to entry, including regulatory hurdles and significant capital requirements, which makes it difficult for new entrants to enter the market.

Intensity Of Rivalry

The medical device industry is highly competitive, with several established players competing for market share. Avanos Medical, Inc. faces intense competition from companies such as Medtronic, Johnson & Johnson, and Stryker.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	12.76%
Debt Cost	5.72%
Equity Weight	87.24%
Equity Cost	8.82%
WACC	8.42%
Leverage	14.62%

11. Quality Control: Avanos Medical, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

SI-BONE

A-Score: 5.1/10

Value: 6.8

Growth: 5.8

Quality: 5.6

Yield: 0.0

Momentum: 9.0

Volatility: 3.7

1-Year Total Return ->

908 Devices

A-Score: 4.5/10

Value: 7.9

Growth: 2.9

Quality: 5.0

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

Silk Road Medical

A-Score: 4.0/10

Value: 6.4

Growth: 5.6

Quality: 4.8

Yield: 0.0

Momentum: 6.0

Volatility: 1.0

1-Year Total Return ->

Avanos Medical

A-Score: 3.7/10

Value: 9.1

Growth: 2.3

Quality: 4.2

Yield: 0.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

Cerus

A-Score: 3.5/10

Value: 5.2

Growth: 6.8

Quality: 3.4

Yield: 0.0

Momentum: 3.5

Volatility: 2.0

1-Year Total Return ->

TELA Bio

A-Score: 3.1/10

Value: 7.8

Growth: 5.7

Quality: 3.6

Yield: 0.0

Momentum: 0.0

Volatility: 1.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

8.97%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.42%

Avanos Medical, Inc. - US05350V1061

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on AVNS

1.c. Company Highlights

Less Volatile

Stable Momentum

Average Yield

Earnings Beats

Revenues Miss

Average Growth

Fairly Valued

Average Quality

Revenues Beats

Cheaper

Earnings Miss

Lower Growth

Weak Momentum

2. Avanos Medical's Q4 and Full-Year 2025 Earnings Report

Segment Performance

Tariff Mitigation and Future Outlook

Valuation and Financials

Management Confidence and R&D Plans

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.73%)

6. Segments

Digestive Health

Expected Growth: 3.5%

Pain Management and Recovery - Interventional Pain

Expected Growth: 4.2%

Pain Management and Recovery - Surgical Pain and Recovery

Expected Growth: 3.8%

7. Detailed Products

Game Ready

CoolFlow

On-Q

MICRO*PORT* Access Port

BioFlo

8. Avanos Medical, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Avanos Medical, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.62$

Current Price

24.62$

Potential

-0.00%

Expected Cash-Flows

MICROPORT Access Port

12.e Scoring ^Insights

12.f DCF ^BETA