AVP shares have a strong debt-to-equity ratio but their quick ratio which reads 0.80 is strong and might cause problems for them later in the future.
Even though there was a rise of +0.45% in revenue, the company failed to succeed in outperforming the industry average of 8.24%. For the most recent quarter, the net income has jumped by +819.51%. This strength in their income has affected them and thus increased their earnings to $232.70 M. The 0.45% yoy growth of AVP’s revenue has gone up that of the industry average by 0.04%. For the past 12 months, Avon Products, Inc. revenue has gone up by 0.41%. The sustained growth in their revenue has helped boost their earnings per share.
Avon Products, Inc. (AVP) has seen their earnings per share increased to $0.21 during the last quarter in comparison to the same quarter last year. They have recorded a 326.09% growing earnings per share earnings. They have recorded a 326.09% growing earnings per share earnings. Analysts expect increase in earnings is also on the cards next quarter with an average estimate at $0.01.
Comparing them to other companies in the industry and the overall Consumer Goods sector, the industry average is 18.44 while 60.82 is of the sector.
Also, looking at the price to cash flow of the company and the industry average, the 3.98 ratio of the stock is lower than the industry’s 69.29.
Avon Products, Inc. (NYSE:AVP) has a price-to-earnings ratio of 7.41 which is lower than the 79.57 industry average at the moment. In addition to their unfavorable P/E ratio, Avon Products, Inc. has maintained a gross margin of 60.49. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is 4.24 when compared to 8.59 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, Avon Products, Inc. ROE is above 60.82 that of both the sector average.
The operating profit margin for Avon Products, Inc. (AVP) is 7.18%, a figure which is considered to be weak. It has gone 14.73 from the 4.87 over the past 5 years. In addition to this, their operating margin is -7.55 lower than the industry average.
The net profit margin which stood at -3.47 on average in the past 5 years has jumped to 2.44 in the last 12 months. Added to that, this ratio has missed the industry net margin that stands at 11.20.
Still some above discussed indicators of the $804.99M company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the AVP shares to either perform positively or negatively when compared to other stocks. The primary strengths of Avon Products, Inc. can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.