Latest Ratios: P/E Ratio -17.1x · EV/EBITDA N/A · ROE -8.5%. (2012–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.2B | $521M | $732M | $1.0B | $1.3B | $1.7B | $2.2B | $1.6B | $2.1B | $2.2B | $1.7B |
| Enterprise Value | $1.2B | $560M | $795M | $1.2B | $1.4B | $1.8B | $2.3B | $1.7B | $2.0B | $2.5B | $2.2B |
| P/E Ratio → | -17.07 | — | — | — | 25.29 | 266.69 | — | — | 36.71 | 27.33 | 43.51 |
| P/S Ratio | 1.66 | 0.74 | 1.06 | 1.55 | 1.87 | 2.26 | 3.07 | 2.30 | 3.24 | 3.53 | 3.07 |
| P/B Ratio | 1.49 | 0.67 | 0.88 | 0.85 | 0.99 | 1.33 | 1.75 | 1.27 | 1.63 | 1.78 | 1.58 |
| P/FCF | 27.07 | 12.09 | 8.83 | 71.59 | 17.88 | 25.41 | — | — | — | 21.40 | 10.88 |
| P/OCF | 15.62 | 6.98 | 7.27 | 32.26 | 14.08 | 19.30 | — | — | — | 14.99 | 9.21 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.80 | 1.16 | 1.73 | 2.09 | 2.36 | 3.26 | 2.47 | 3.03 | 4.12 | 3.89 |
| EV / EBITDA | — | — | 9.30 | 10.75 | 17.22 | 14.02 | 20.48 | 54.74 | 28.91 | 105.10 | — |
| EV / EBIT | — | — | — | 164.32 | 38.94 | 165.47 | — | — | 564.94 | — | — |
| EV / FCF | — | 13.00 | 9.59 | 79.91 | 19.96 | 26.45 | — | — | — | 24.97 | 13.80 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 49.8% | 49.8% | 55.4% | 56.4% | 57.6% | 51.0% | 54.6% | 57.7% | 59.9% | 55.1% | 52.5% |
| Operating Margin | -8.8% | -8.8% | 5.8% | 9.7% | 6.1% | 11.7% | 9.9% | -0.8% | 5.4% | -2.6% | -12.3% |
| Net Profit Margin | -9.7% | -9.7% | -57.0% | -9.2% | 7.4% | 0.8% | -3.8% | -6.6% | 8.8% | 13.0% | 7.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -8.5% | -8.5% | -38.0% | -4.9% | 3.9% | 0.5% | -2.2% | -3.6% | 4.6% | 6.8% | 3.7% |
| ROA | -6.1% | -6.1% | -27.5% | -3.6% | 3.0% | 0.4% | -1.6% | -2.5% | 2.9% | 3.7% | 2.0% |
| ROIC | -5.4% | -5.4% | 2.7% | 3.5% | 2.3% | 4.8% | 3.8% | -0.3% | 1.9% | -0.8% | -3.4% |
| ROCE | -6.5% | -6.5% | 3.3% | 4.3% | 2.7% | 5.8% | 4.6% | -0.3% | 2.1% | -0.9% | -4.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.17 | 0.17 | 0.21 | 0.17 | 0.21 | 0.15 | 0.20 | 0.26 | 0.19 | 0.48 | 0.53 |
| Debt / EBITDA | — | — | 1.99 | 1.93 | 3.34 | 1.50 | 2.19 | 10.33 | 3.62 | 24.20 | — |
| Net Debt / Equity | — | 0.05 | 0.08 | 0.10 | 0.12 | 0.05 | 0.11 | 0.09 | -0.11 | 0.30 | 0.42 |
| Net Debt / EBITDA | — | — | 0.73 | 1.12 | 1.80 | 0.55 | 1.21 | 3.81 | -2.00 | 15.05 | — |
| Debt / FCF | — | 0.91 | 0.75 | 8.32 | 2.09 | 1.04 | — | — | — | 3.58 | 2.91 |
| Interest Coverage | -15.55 | -15.55 | -32.06 | 0.47 | 3.67 | 3.21 | -2.88 | -3.27 | 0.13 | -1.28 | -3.26 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.15 | 2.15 | 2.37 | 2.08 | 3.27 | 3.07 | 2.81 | 2.53 | 2.70 | 2.98 | 1.83 |
| Quick Ratio | 1.26 | 1.26 | 1.53 | 1.38 | 2.57 | 1.93 | 1.79 | 1.85 | 2.24 | 2.74 | 0.99 |
| Cash Ratio | 0.54 | 0.54 | 0.65 | 0.37 | 0.67 | 0.85 | 0.67 | 0.97 | 1.45 | 0.56 | 0.35 |
| Asset Turnover | — | 0.65 | 0.60 | 0.40 | 0.38 | 0.46 | 0.43 | 0.39 | 0.36 | 0.28 | 0.27 |
| Inventory Turnover | 2.38 | 2.38 | 2.21 | 1.80 | 2.19 | 2.29 | 1.92 | 2.02 | 2.15 | 3.02 | 0.99 |
| Days Sales Outstanding | — | 54.03 | 70.47 | 77.41 | 89.58 | 64.31 | 85.74 | 85.70 | 84.21 | 121.15 | 121.52 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | 4.0% | 0.4% | — | — | 2.7% | 3.7% | 2.3% |
| FCF Yield | 3.7% | 8.3% | 11.3% | 1.4% | 5.6% | 3.9% | — | — | — | 4.7% | 9.2% |
| Buyback Yield | 0.3% | 0.6% | 1.7% | 1.8% | 3.6% | 0.7% | 0.0% | 0.2% | 0.0% | 0.1% | 0.1% |
| Total Shareholder Yield | 0.3% | 0.6% | 1.7% | 1.8% | 3.6% | 0.7% | 0.0% | 0.2% | 0.0% | 0.1% | 0.1% |
| Shares Outstanding | — | $46M | $46M | $47M | $47M | $49M | $48M | $48M | $47M | $47M | $47M |
Persistent operating margin volatility
According to current market data, AVNS trades at a P/S ratio of 1.67, which, when contrasted with the negative TTM P/E of -17.09, suggests that investors are pricing the company as a distressed turnaround play rather than a stable medical device compounder with predictable earnings growth.
The forward P/E of 24.95 implies that the market is baking in a significant recovery in profitability that has yet to materialize in the income statement. This valuation gap relative to peers like Merit Medical suggests that the market remains skeptical of management's ability to convert its specialized product portfolio into sustainable bottom-line growth.
Based on reported figures, Avanos has struggled to generate meaningful returns, with ROIC fluctuating between -8.1% and 1.2% over the last ten quarters, indicating that the company is currently failing to compound capital effectively within its core digestive and pain management segments.
The persistent inability to maintain a positive ROIC above the cost of capital suggests that the company's asset base is not being utilized to generate economic value. Investors should monitor whether the recent divestiture of the respiratory business allows for a more focused allocation of capital that can finally drive returns into positive territory.
As reported in financial statements, the company's cash conversion cycle remains elevated, peaking at 213 days in 2024Q1 and settling at 144 days in 2026Q1, which highlights significant inefficiencies in inventory management and the collection of receivables relative to its medical device industry peers.
The high days inventory outstanding (DIO) of 148 days suggests that Avanos may be carrying excessive stock, potentially due to the transition to new product standards like ENFit. This working capital drag consumes liquidity that could otherwise be deployed toward R&D or debt reduction, further complicating the path to operational break-even.
Based on the most recent quarterly filings, Avanos maintains a healthy current ratio of 2.48 and a low debt-to-equity ratio of 0.18, providing a robust liquidity buffer that shields the company from immediate solvency risks despite its ongoing struggle to achieve consistent operational profitability.
While the balance sheet is structurally sound, the decline in cash reserves warrants investigation as the company continues to fund its transformation program. This liquidity position is a critical defensive feature, allowing management the time to execute its restructuring without the immediate pressure of debt service or refinancing requirements.
The P/E ratio is frequently misapplied to Avanos, as the metric is severely distorted by recurring restructuring charges and non-cash impairments that mask the underlying cash-generating capacity of the core digestive health business, leading to an inaccurate assessment of the company's true fundamental value.
Analysts should instead prioritize free cash flow (FCF) yield and adjusted EBITDA to better understand the company's operational performance. Relying on P/E in a turnaround context like this obscures the impact of the transformation program and fails to capture the value of the company's defensive, recurring revenue streams.
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Quick answers to the most common questions about buying AVNS stock.
Avanos Medical, Inc.'s current P/E ratio is -17.1x. The historical average is 42.2x.
Avanos Medical, Inc.'s return on equity (ROE) is -8.5%. The historical average is -3.9%.
Based on historical data, Avanos Medical, Inc. is trading at a P/E of -17.1x. Compare with industry peers and growth rates for a complete picture.
Avanos Medical, Inc. has 49.8% gross margin and -8.8% operating margin.