Advantage Solutions, headquartered in Clayton, Missouri, employs 20,000 people and went public on July 18, 2019, offering data-driven services across branded, experiential, and retailer segments to enhance consumer goods sales. Their services include sales, merchandising, sampling, digital commerce, and marketing to help brands reach consumers effectively.
Based on our analysis, Advantage Solutions has received an undervalued rating of 4 out of 5 stars, reflecting several financial metrics that indicate potential for future growth.
The company's price-to-book (PB) ratio stands at 1.25, significantly lower than the sector average of 2.16. A lower PB ratio suggests that the stock may be undervalued relative to its book value, indicating that investors might be paying less for the company's net assets compared to its peers.
Additionally, Advantage Solutions reports a net profit margin of -9.17%, which is an improvement over the sector average of -15.28%. This metric measures how much profit a company makes for each dollar of revenue. The narrower loss indicates that Advantage is managing its costs more effectively than many of its competitors, potentially positioning it for better profitability in the future.
The return on equity (ROE) for Advantage Solutions is -43.67%, while the sector average is -25.52%. Although both figures are negative, Advantage's performance suggests that it is facing challenges in generating returns for its shareholders. However, the significant difference indicates that the company might have room for improvement compared to others in the industry.
Lastly, the return on assets (ROA) ratio of -10.53% compared to the sector’s -13.19% shows that Advantage Solutions is utilizing its assets more efficiently than its peers, despite still being in the negative territory.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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