AVON PRODUCTS's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. AVON PRODUCTS has weak liquidity. Currently, the Quick Ratio is 0.63 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 186.00% 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||Q3 FY15||Q3 FY14|
|Net Sales ($mil)||1666.9||2138.2|
|Net Income ($mil)||-697.0||91.4|
|Balance Sheet||Q3 FY15||Q3 FY14|
|Cash & Equiv. ($mil)||624.2||863.1|
|Total Assets ($mil)||3774.7||6090.4|
|Total Debt ($mil)||2313.5||2629.7|
|Profitability||Q3 FY15||Q3 FY14|
|Gross Profit Margin||63.33||64.23|
|Return on Assets||-30.36||-2.08|
|Return on Equity||0.0||-13.97|
|Debt||Q3 FY15||Q3 FY14|
|Share Data||Q3 FY15||Q3 FY14|
|Shares outstanding (mil)||435.4||434.66|
|Div / share||0.06||0.06|
|Book value / share||-1.79||2.09|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1.1347013E7||1.0340358E7|
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 24.66||AVP 10.53||Peers 15.82|
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 13.32||Peers 20.61||AVP NA||Peers 1.16|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
AVP is trading at a significant premium 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 7.54||AVP -793.10||Peers -14.09|
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 0.19||Peers 2.13||AVP -16.92||Peers -3.76|
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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