Start here if you're new
what it is
Avanos sells tubes, pain-control gear, and other medical supplies that hospitals and patients keep buying.
how it gets paid
Last year Avanos Medical made $701M in revenue. Digestive Health was the main engine at $301M, or 43% of sales.
why it's growing
Revenue grew 1.9% last year. Revenue reached $520 million, up 193% vs. prior year, though that number looks distorted against the annual base and portfolio changes.
what just happened
Avanos reported quarterly EPS of $0.29, beating the $0.25 estimate by 16%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
40/100 earnings predictability — expect surprises
14.6x trailing p/e — the market's not buying it — or you found a deal
6.5% return on capital — nothing to write home about
xvary composite: 62/100 — average
What they do
Avanos sells tubes, pain-control gear, and other medical supplies that hospitals and patients keep buying.
Avanos wins by selling products that sit inside hospital routines, not by being flashy. It reaches customers in 100 countries and posted a 51.5% gross margin in its latest filing. Switching costs (changing suppliers inside care protocols) → retraining, approvals, and procurement headaches → your customer usually sticks unless pricing or quality breaks.
How they make money
$701M
annual revenue · their business grew +1.9% last year
Digestive Health
$301M
+2.0%
Pain Management and Recovery
$260M
+1.0%
Specialty Nutrition Systems
$140M
+4.3%
The products that matter
enteral feeding and neonate devices
Specialty Nutrition Systems
$114.0M quarter sales · +16.0%
this was the clean growth pocket in the recent quarter. sales reached $114.0M, and segment operating margin hit 20.0%. if you are looking for the part of the business doing the heavy lifting, start here.
growth driver
pain procedures and recovery devices
Pain Management and Recovery
+2.4% organic growth
growth was modest at 2.4%, with radiofrequency ablation generators called out as the better pocket. revenue detail is thin here, which is its own signal: you should want cleaner disclosure before treating this as a second engine.
supporting line
Key numbers
$701M
annual revenue
This business is bigger than its $610 million market value, which is why the stock looks cheap before you inspect the margins.
14.6x
trailing p/e
P/E (price-to-earnings) → what investors pay for each dollar of profit → you are not paying a premium here.
6.5%
return on capital
Return on capital → profit from money invested in the business → 6.5% says this company is decent, not elite.
8.8%
operating margin
Operating margin → profit after running the business → negative 8.8% tells you the turnaround is still doing cardio.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 45 / 100
- long-term debt $93M (13% of capital)
- net profit margin 9.4% — keeps 9 cents of every dollar in revenue
- return on equity 8% — $0.08 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in AVNS 3 years ago → it's now worth $4,360.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Avanos reported quarterly EPS of $0.29, beating the $0.25 estimate by 16%.
Revenue reached $520 million, up 193% vs. prior year, though that number looks distorted against the annual base and portfolio changes. Gross margin was 51.5%, which is the cleaner sign the business still has some pricing muscle.
$520M
revenue
$0.29
eps
51.5%
gross margin
the number that mattered
The 51.5% gross margin matters most because margin is the only thing protecting a slow-growth company from becoming dead money.
-
avanos medical stock continues to act constructively.
-
following a ten-month period into august of last year in which avns shares suffered a protracted decline of approximately 60% in value, the stock has rebounded better than 40% from the low.
-
the company reported respectable results for the september quarter, as the specialty nutrition systems (sns) segment posted net sales of $114.0 million, a 16.0% increase over the prior-year period, on continued strong demand across the enteral feeding and neonate solutions categories.
-
segment operating margin checked in at a healthy 20.0%, as operating income increased $4.4 million from the comparable-year period, to $23.0 million.
-
meanwhile, the pain management and recovery segment delivered modest organic sales growth of 2.4%, with radiofrequency ablation (rfa) generator sales continuing to outperform.these have been enabling avanos to capture higher procedural volumes, particularly within its esentec and trident product lines.
source: company earnings report, 2026
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What could go wrong
the #1 risk is $30M of tariff exposure against a $700M–$720M 2026 sales guide.
med
tariff pass-through risk
management's 2026 outlook includes a $30M tariff impact. on a business that produced $701M of revenue last year, that is not rounding error.
if pricing and sourcing do not offset it, margin pressure shows up fast.
med
another earnings miss resets the multiple
full-year EPS fell to $0.90 from $1.35, quarterly EPS was -$0.03, and earnings predictability sits at 40/100.
cheap stocks stay cheap when the E in p/e keeps moving down.
med
one stronger segment is carrying too much weight
specialty nutrition systems grew 16.0% in the recent quarter, while pain management and recovery grew 2.4% organically and total company growth was 1.9% last year.
if the faster pocket cools, there is not much company-wide growth cushion behind it.
put together, you are underwriting a $610M company with thin growth, volatile earnings, and a tariff hit worth more than 4% of annual revenue at the midpoint of 2026 guidance.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
tariff pass-through
management flagged a $30M tariff impact in 2026. the next question is how much gets priced through and how much hits margin.
earnings
next earnings report
you want to see whether quarterly margin improves from -10.4% and whether EPS moves back into positive territory.
segment
specialty nutrition systems growth
$114.0M of sales and 16.0% growth made this the standout business line. if that slows sharply, the whole story gets thinner.
trend
stock bounce versus business repair
the shares rebounded more than 40% from the low after a roughly 60% drop. watch whether fundamentals catch up to the chart.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak: they see rebound potential, not a guaranteed rerating.
risk profile
average
stability score 3 — this sits in the middle of the pack on risk. not reckless, not safe enough to stop checking the quarter.
chart momentum
below average
technical score 4 — the longer chart still carries damage even after the bounce.
earnings predictability
40 / 100
the business does not give you smooth earnings. if you own it, expect a noisier path than the multiple implies.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 129 buyers vs. 119 sellers in 3q2025. total institutional holdings: 45.1M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$10
$19
$13
current price
$15
target midpoint · +14% from current · 3-5yr high: $25 (+90% · 18% ann'l return)
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