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.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|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||1.1795256E7||1.384188E7|
SELL. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. 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 22.74||AVP 10.70||Peers 15.93|
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 11.66||Peers 23.23||AVP NA||Peers 1.26|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
AVP is trading at a valuation on par with 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 7.59||AVP -130.55||Peers -9.87|
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 0.35||Peers 2.03||AVP -12.61||Peers 0.10|
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
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV