AVNSAvanos Medical, Inc.
Is the business good?
The checks split: nothing decisive, though margins compressing.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is AVNS?
Avanos Medical, Inc. earns −6.2% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 15 points below what the capital costs: growth destroys value
- Operating margin
- −8.8%
Operating margin · Medical Devices median 0.61% · 12 months to Q1 2026
- Share count, year on year
- +1.5%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 3.2%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | −6.8% |
| FY2021 | −6.6% |
| FY2022 | 5.2% |
| FY2023 | 0.62% |
| FY2024 | −58% |
| FY2025 | −8.8% |
Details›
- Gross margin12 months to Q1 2026
- 50%
- Operating margin12 months to Q1 2026
- −8.8%
- Net margin12 months to Q1 2026
- −10%
- Free cash flow margin
- 1.1%
- R&D as % of revenue
- 3.2%
- Revenue, trailing twelve months
- $716M
- Free cash flow, trailing twelve months
- $7.5M
- Net income, trailing twelve months
- −$74M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −6.2%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Medical Devices
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