Advantage Solutions Inc (ADV, Financial) has experienced a notable fluctuation in its stock price over recent periods. With a current market capitalization of $1.43 billion and a stock price of $4.48, investors have witnessed a 5.76% gain over the past week. However, the past three months have painted a different picture, with a 12.66% loss in stock value. The GF Value, which is a measure of intrinsic value, currently stands at $4.34, indicating that the stock is fairly valued. This is a shift from the past GF Value of $5.04, which suggested that investors should think twice as the stock might have been a possible value trap.
Understanding Advantage Solutions Inc
Advantage Solutions Inc operates within the diversified media industry, providing outsourced sales and marketing solutions to consumer goods companies and retailers. The company leverages a technology-enabled platform to offer services such as headquarter sales, retail merchandising, in-store sampling, digital commerce, and shopper marketing. With a global presence, Advantage Solutions caters to the needs of multinational, regional, and local manufacturers, aiming to enhance their sales while optimizing expenses. The company operates through two segments: sales and marketing.
Profitability Insights
Advantage Solutions Inc's Profitability Rank stands at 4 out of 10, reflecting its position relative to industry peers. The company's operating margin is 1.77%, which is better than 45.35% of its industry counterparts. However, the Return on Equity (ROE) is at -5.77%, which, while better than 30.14% of industry peers, indicates a negative return on shareholder equity. The Return on Assets (ROA) of -1.55% and Return on Invested Capital (ROIC) of 1.44% also suggest that the company is performing better than 38.5% and 47.83% of its industry peers, respectively. Over the past decade, Advantage Solutions has managed to be profitable for three years, surpassing 25.49% of its competitors.
Growth Trajectory
The company's Growth Rank is currently at 3 out of 10. The 3-Year Revenue Growth Rate per Share has decreased by 2.60%, which is still better than 39.1% of industry peers. The 5-Year Revenue Growth Rate per Share has seen a more significant decline of 8.30%, outperforming 27.72% of competitors. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is estimated at -1.73%, which is better than 11.11% of industry peers. Notably, the 3-Year EPS without NRI Growth Rate has surged by 36.80%, placing the company ahead of 77.92% of its competitors.
Investor Holdings
Notable investors have taken positions in Advantage Solutions Inc, with Jim Simons (Trades, Portfolio) holding 719,800 shares, representing a 0.22% share percentage. Another significant holder is Barrow, Hanley, Mewhinney & Strauss, albeit with a much smaller stake of 1,214 shares, equating to a negligible share percentage.
Competitive Landscape
When compared to its competitors, Advantage Solutions Inc stands in a strong market position. Deluxe Corp (DLX, Financial) has a market capitalization of $895.104 million, while Clear Channel Outdoor Holdings Inc (CCO, Financial) is valued at $754.602 million. Magnite Inc (MGNI, Financial), another competitor, has a slightly higher market cap of $1.52 billion, indicating a competitive field within the diversified media industry.
Conclusion
In summary, Advantage Solutions Inc's recent stock performance has been a mixed bag, with short-term gains overshadowing longer-term losses. The company is currently fairly valued according to the GF Value, and while its profitability metrics show some challenges, they also reveal areas where Advantage Solutions outperforms a significant portion of its peers. Growth prospects appear subdued, but the company has demonstrated strong EPS growth in recent years. The presence of major investors like Jim Simons (Trades, Portfolio) suggests a vote of confidence in the company's potential. Finally, Advantage Solutions maintains a competitive stance in the market when compared to its closest rivals, suggesting that it remains a relevant player in the diversified media industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
