AVON PRODUCTS's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. AVON PRODUCTS has weak liquidity. Currently, the Quick Ratio is 0.60 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 100.34% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||1794.2||2183.6|
|Net Income ($mil)||-147.3||-168.3|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||693.2||825.1|
|Total Assets ($mil)||4872.3||6084.9|
|Total Debt ($mil)||2587.0||2706.7|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||63.73||63.7|
|Return on Assets||-7.54||-3.45|
|Return on Equity||0.0||-17.6|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||435.08||434.45|
|Div / share||0.06||0.06|
|Book value / share||-0.01||2.11|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.4197329E7||1.1683223E7|
SELL. This stock?s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
|AVP NM||Peers 28.09||AVP 11.19||Peers 16.20|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
AVP's P/E is negative making this valuation measure meaningless.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
AVP is trading at a significant discount to its peers.
|AVP 12.30||Peers 25.95||AVP NA||Peers 1.19|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
AVP is trading at a discount to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|AVP NM||Peers 8.19||AVP -130.55||Peers -55.08|
Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
AVP's P/B is negative making this valuation measure meaningless.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, AVP is expected to significantly trail its peers on the basis of its earnings growth rate.
|AVP 0.36||Peers 2.18||AVP -12.61||Peers 0.58|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
AVP is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
AVP significantly trails its peers on the basis of sales growth
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