Forensic Analysis · Healthcare / Pharmaceuticals / Biotech · as of Jun 27, 2026
AVANOS MEDICAL, INC. (AVNS)
A forensic read on AVANOS MEDICAL, INC. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Grey Zone
Financial health
1.2
Altman Z-score
Clean
Earnings quality
3
Forensic signals
-9.6%
ROE
$1.2B
Market cap
AVANOS MEDICAL, INC. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is 1.2, placing it in the Grey zone. 3 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-6%Return on invested capital.Return on invested capital is -6% and slipping from 2% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
2% of revStock-based comp load.Stock-based compensation ran 2% of revenue and 29% of free cash flow in FY2025 — about $0.27 per diluted share. Meaningful — reported free cash flow flatters the economics, since SBC is a real cost paid in shares.
$414MGoodwill impairments.Took $414M of goodwill writedowns across 2 year(s) (FY2024 ($336M), FY2025 ($77M)). Writedowns mean past acquisitions underperformed what was paid for them — worth weighing on capital-allocation skill.
Key fundamentals
Net Margin-10.4%
Debt / Equity0.13x
Free Cash Flow$43.1M
Latest Revenue$701.2M
Return on Equity-9.4%
Revenue Growth YoY+1.9%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on AVANOS MEDICAL, INC.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about AVNS's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown