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ADV Advantage Solutions Inc. - Fundamental Analysis

BEARISH
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ADV Stock | Fundamental Analysis & Investment Insights
NASDAQ Communication Services Advertising Agencies
Current Price Live
$0.62
Analyst Target
$2.0
+222.6% Upside
52W High
$2.69
52W Low
$0.53

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Confidence Score
85%
Analysis Accuracy
ADV's Advanced Deterministic Scorecard reveals severe financial distress: a Piotroski F-Score of 2/9 indicates poor operational health and deteriorating fundamentals, while the absence of an Altman Z-Score raises red flags for potential bankruptcy risk. The company trades at a deeply discounted valuation (Price/Sales: 0.06, Price/Book: 0.29), but this is justified by negative profitability (ROE: -29.73%, Profit Margin: -6.97%), declining revenue (-2.60% YoY), and a dangerously high debt/equity ratio of 2.37. Despite a recent spike in EPS growth, the track record of earnings misses and negative surprises underscores unreliable execution. The stock's 5-year decline of 93.5% and weak analyst consensus further reflect deep skepticism about its long-term viability.

Key Strengths

Trading at a significant discount to book value (Price/Book: 0.29)
Strong recent quarterly EPS growth (Q/Q: +250.0%, YoY: +125.0%)
Positive operating margin (3.31%) despite negative net margin
High current and quick ratios (2.20 and 1.95) indicating short-term liquidity
Analyst recommendation of 'buy' despite weak fundamentals

Key Risks

Piotroski F-Score of 2/9 signals extreme financial distress and poor operational quality
Negative ROE (-29.73%) and net profit margin (-6.97%) indicate unsustainable earnings
Debt/Equity ratio of 2.37 is dangerously high, especially for a small-cap firm
Revenue declining at -2.60% YoY, with a history of significant earnings misses
No insider buying activity in 6 months, and no dividend history, indicating weak confidence

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