Avon Products Inc

Find Ratings Reports
AVP : NYSE : Consumer Goods
$4.07 | %
Today's Range: 3.81 - 4.10
Avg. Daily Volume: 4,925,200
07/29/16 - 4:03 PM ET

Financial Analysis


AVON PRODUCTS's gross profit margin for the first quarter of its fiscal year 2016 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 0.74 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 13,984.37% 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 FY16 Q1 FY15
Net Sales ($mil)1306.51552.1
EBITDA ($mil)82.2136.4
EBIT ($mil)54.6100.7
Net Income ($mil)-165.8-147.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)755.4693.2
Total Assets ($mil)3629.14872.3
Total Debt ($mil)2214.02587.0
Equity ($mil)-450.7-3.2


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin62.463.87
EBITDA Margin6.298.78
Operating Margin4.186.49
Sales Turnover1.561.69
Return on Assets-32.03-7.53
Return on Equity0.00.0
Debt Q1 FY16 Q1 FY15
Current Ratio1.381.29
Debt/Capital1.261.0
Interest Expense32.728.1
Interest Coverage1.673.58


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)436.79435.08
Div / share0.00.06
EPS-0.36-0.33
Book value / share-1.03-0.01
Institutional Own % n/a n/a
Avg Daily Volume5064945.07871116.0

Valuation


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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AVP NM Peers 27.33   AVP 22.10 Peers 16.16

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.

 

Premium. 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 premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
AVP 12.46 Peers 21.40   AVP NA Peers 1.94

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AVP NM Peers 20.17   AVP -120.48 Peers -19.06

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AVP 0.29 Peers 2.25   AVP -30.99 Peers 1.24

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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