(ADV) Advantage Solutions - Overview
Sector: Communication Services | Industry: Advertising Agencies | Exchange: NASDAQ (USA) | Market Cap: 547m USD | Total Return: 20.7% in 12m
Avg Turnover: 3.29M
Qual. Beats: 0
Rev. Trend: -92.0%
Qual. Beats: 0
Warnings
High Debt/EBITDA (5.0) with thin interest coverage (0.6)
Interest Coverage Ratio 0.6 is critical
Altman Z'' -4.02 < 1.0 - financial distress zone
Below Avwap Earnings
Tailwinds
Supp Ema20, Rs Leader, Idiosyncratic Leader
Advantage Solutions Inc. (ADV) is a global provider of outsourced sales and marketing services for consumer packaged goods (CPG) manufacturers and retailers. Operating through three segments-Branded, Experiential, and Retailer Services-the company manages essential retail functions including brokerage, in-store merchandising, digital marketing, and product sampling events.
The business model relies on high-volume execution across diverse channels such as grocery, mass merchandise, and club stores. In the CPG sector, outsourcing these functions allows manufacturers to convert fixed labor costs into variable expenses while leveraging the service provider’s established relationships with major retail chains.
Headquartered in Saint Louis, Missouri, the firm supports private brand development and retail media initiatives to drive consumer conversion at the point of sale. Investors may find more granular performance metrics by reviewing the company profile on ValueRay.
- CPG manufacturer outsourcing shifts drive core Branded Services revenue growth
- Labor cost inflation pressures margins across labor-intensive merchandising segments
- Experiential marketing demand recovers as in-store sampling and events normalize
- Retailer private label expansion increases demand for strategic advisory services
- Debt servicing costs and leverage ratios impact valuation in high-interest environments
| Net Income: -243.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 2.19 > 1.0 |
| NWC/Revenue: 10.94% < 20% (prev 12.39%; Δ -1.46% < -1%) |
| CFO/TA 0.04 > 3% & CFO 111.2m > Net Income -243.4m |
| Net Debt (1.43b) to EBITDA (286.4m): 5.01 < 3 |
| Current Ratio: 1.95 > 1.5 & < 3 |
| Outstanding Shares: last quarter (13.1m) vs 12m ago 1.63% < -2% |
| Gross Margin: 9.76% > 18% (prev 0.13%; Δ 963.7% > 0.5%) |
| Asset Turnover: 128.7% > 50% (prev 117.0%; Δ 11.70% > 0%) |
| Interest Coverage Ratio: 0.59 > 6 (EBITDA TTM 286.4m / Interest Expense TTM 139.4m) |
| A: 0.15 (Total Current Assets 804.8m - Total Current Liabilities 412.0m) / Total Assets 2.56b |
| B: -1.15 (Retained Earnings -2.94b / Total Assets 2.56b) |
| C: 0.03 (EBIT TTM 82.9m / Avg Total Assets 2.79b) |
| D: -1.41 (Book Value of Equity -2.95b / Total Liabilities 2.09b) |
| Altman-Z'' = -4.02 = D |
| DSRI: 0.88 (Receivables 572.6m/641.7m, Revenue 3.59b/3.53b) |
| GMI: 1.30 (GM 9.76% / 12.66%) |
| AQI: 0.95 (AQ_t 0.64 / AQ_t-1 0.68) |
| SGI: 1.02 (Revenue 3.59b / 3.53b) |
| TATA: -0.14 (NI -243.4m - CFO 111.2m) / TA 2.56b) |
| Beneish M = -3.02 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 37.42 with a total of 106,548 shares traded.
Over the past week, the price has changed by -8.35%,
over one month by +13.05%,
over three months by +186.74% and
over the past year by +20.71%.
Advantage Solutions has received a consensus analysts rating of 3.67. Therefore, it is recommended to hold ADV.
- StrongBuy: 1
- Buy: 0
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 42.5 | 13.6% |
P/S = 0.1567
P/B = 1.1813
Revenue TTM = 3.59b USD
EBIT TTM = 82.9m USD
EBITDA TTM = 286.4m USD
Long Term Debt = 1.52b USD (from longTermDebt, last quarter)
Short Term Debt = 25.9m USD (from shortTermDebt, last quarter)
Debt = 1.58b USD (corrected: LT Debt 1.52b + ST Debt 25.9m) + Leases 32.1m
Net Debt = 1.43b USD (calculated: Debt 1.58b - CCE 143.9m)
Enterprise Value = 1.98b USD (547.0m + Debt 1.58b - CCE 143.9m)
Interest Coverage Ratio = 0.59 (Ebit TTM 82.9m / Interest Expense TTM 139.4m)
EV/FCF = 31.98x (Enterprise Value 1.98b / FCF TTM 62.0m)
FCF Yield = 3.13% (FCF TTM 62.0m / Enterprise Value 1.98b)
FCF Margin = 1.73% (FCF TTM 62.0m / Revenue TTM 3.59b)
Net Margin = -6.78% (Net Income TTM -243.4m / Revenue TTM 3.59b)
Gross Margin = 9.76% ((Revenue TTM 3.59b - Cost of Revenue TTM 3.24b) / Revenue TTM)
Gross Margin QoQ = 6.49% (prev 8.53%)
Tobins Q-Ratio = 0.77 (Enterprise Value 1.98b / Total Assets 2.56b)
Interest Expense / Debt = 8.83% (Interest Expense 139.4m / Debt 1.58b)
Taxrate = 21.0% (US default 21%)
NOPAT = 65.5m (EBIT 82.9m * (1 - 21.00%))
Current Ratio = 1.95 (Total Current Assets 804.8m / Total Current Liabilities 412.0m)
Debt / Equity = 3.30 (Debt 1.58b / totalStockholderEquity, last quarter 478.0m)
Debt / EBITDA = 5.01 (Net Debt 1.43b / EBITDA 286.4m)
Debt / FCF = 23.15 (Net Debt 1.43b / FCF TTM 62.0m)
Total Stockholder Equity = 606.0m (last 4 quarters mean from totalStockholderEquity)
RoA = -8.73% (Net Income -243.4m / Total Assets 2.56b)
RoE = -6.86% (Net Income TTM -243.4m / Total Stockholder Equity 3.55b)
RoCE = 1.64% (EBIT 82.9m / Capital Employed (Equity 3.55b + L.T.Debt 1.52b))
RoIC = 3.11% (NOPAT 65.5m / Invested Capital 2.11b)
WACC = 8.53% (E(547.0m)/V(2.13b) * Re(13.01%) + D(1.58b)/V(2.13b) * Rd(8.83%) * (1-Tc(0.21)))
Discount Rate = 13.01% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 26.97 | Cagr: -1.77%
[DCF] Terminal Value 77.40% ; FCFF base≈40.0m ; Y1≈45.8m ; Y5≈67.4m
[DCF] Fair Price = N/A (negative equity: EV 983.9m - Net Debt 1.43b = -451.1m; debt exceeds intrinsic value)
EPS Correlation: N/A | EPS CAGR: N/A | SUE: -0.60 | # QB: 0
Revenue Correlation: -91.99 | Revenue CAGR: -5.83% | SUE: 0.66 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.51 | Chg30d=N/A | Revisions=-20% | Analysts=1
EPS next Quarter (2026-09-30): EPS=2.32 | Chg30d=N/A | Revisions=-20% | Analysts=1
EPS current Year (2026-12-31): EPS=4.71 | Chg30d=N/A | Revisions=-20% | GrowthEPS=+241.2% | GrowthRev=+0.9%
EPS next Year (2027-12-31): EPS=9.34 | Chg30d=N/A | Revisions=-20% | GrowthEPS=+98.3% | GrowthRev=+0.7%