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AVON

Avon ProtectionLSE:AVON Stock Report

Market Cap

UK£334.5m

7D

-4.0%

1Y

-74.2%

Updated

24 Nov, 2021

Data

Company Financials +
AVON fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance2/6
Financial Health5/6
Dividends4/6

AVON Stock Overview

Avon Protection plc designs, manufactures, and sells chemical, biological, radiological, and nuclear respiratory protection systems for military, law enforcement, and fire markets worldwide.

Price History & Performance

Summary of all time highs, changes and price drops for Avon Protection
Historical stock prices
Current Share PriceUK£10.90
52 Week HighUK£46.50
52 Week LowUK£9.14
Beta0.47
1 Month Change-45.77%
3 Month Change-40.89%
1 Year Change-74.23%
3 Year Change-15.18%
5 Year Change3.91%
Change since IPO258.56%

Recent News & Updates

Oct 19
Calculating The Intrinsic Value Of Avon Protection plc (LON:AVON)

Calculating The Intrinsic Value Of Avon Protection plc (LON:AVON)

In this article we are going to estimate the intrinsic value of Avon Protection plc ( LON:AVON ) by estimating the...

Sep 24
Avon Protection (LON:AVON) Has A Pretty Healthy Balance Sheet

Avon Protection (LON:AVON) Has A Pretty Healthy Balance Sheet

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

AVONGB Aerospace & DefenseGB Market
7D-4.0%-0.4%-1.0%
1Y-74.2%14.0%14.8%

Return vs Industry: AVON underperformed the UK Aerospace & Defense industry which returned 12.4% over the past year.

Return vs Market: AVON underperformed the UK Market which returned 13.8% over the past year.

Price Volatility

Is AVON's price volatile compared to industry and market?
AVON volatility
AVON Average Weekly Movement16.4%
Aerospace & Defense Industry Average Movement4.0%
Market Average Movement4.8%
10% most volatile stocks in GB Market9.7%
10% least volatile stocks in GB Market2.4%

Stable Share Price: AVON is more volatile than 90% of UK stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: AVON's weekly volatility has increased from 10% to 16% over the past year.

About the Company

FoundedEmployeesCEOWebsite
18851,125Paul McDonaldhttps://www.avon-protection-plc.com

Avon Protection plc designs, manufactures, and sells chemical, biological, radiological, and nuclear respiratory protection systems for military, law enforcement, and fire markets worldwide. It offers masks and filters with portfolio of respirators, filters, powered air, and supplied air and long term pedigree for military contracting and supplying chain; escape hoods; underwater rebreathers; and thermal image camera technology and self-contained breathing apparatus, as well as accessories. The company also provides ballistic protection, such as helmets, helmet liner, impact protection, retention system, and body and flat armor.

Avon Protection Fundamentals Summary

How do Avon Protection's earnings and revenue compare to its market cap?
AVON fundamental statistics
Market CapUS$445.86m
Earnings (TTM)US$8.50m
Revenue (TTM)US$266.94m

52.4x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AVON income statement (TTM)
RevenueUS$266.94m
Cost of RevenueUS$164.74m
Gross ProfitUS$102.20m
ExpensesUS$93.70m
EarningsUS$8.50m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.28
Gross Margin38.29%
Net Profit Margin3.19%
Debt/Equity Ratio6.0%

How did AVON perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

146%

Payout Ratio

Valuation

Is Avon Protection undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVON (£10.9) is trading below our estimate of fair value (£22.43)

Significantly Below Fair Value: AVON is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AVON is poor value based on its PE Ratio (52.4x) compared to the UK Aerospace & Defense industry average (26.8x).

PE vs Market: AVON is poor value based on its PE Ratio (52.4x) compared to the UK market (20.3x).


Price to Earnings Growth Ratio

PEG Ratio: AVON is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: AVON is good value based on its PB Ratio (2.1x) compared to the GB Aerospace & Defense industry average (2.3x).


Future Growth

How is Avon Protection forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

73.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVON's forecast earnings growth (73.2% per year) is above the savings rate (0.9%).

Earnings vs Market: AVON's earnings (73.2% per year) are forecast to grow faster than the UK market (12.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AVON's revenue (12.4% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: AVON's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AVON's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Avon Protection performed over the past 5 years?

-25.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVON has a high level of non-cash earnings.

Growing Profit Margin: AVON's current net profit margins (3.2%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: AVON's earnings have declined by 25% per year over the past 5 years.

Accelerating Growth: AVON's earnings growth over the past year (16.3%) exceeds its 5-year average (-25% per year).

Earnings vs Industry: AVON earnings growth over the past year (16.3%) exceeded the Aerospace & Defense industry 13.6%.


Return on Equity

High ROE: AVON's Return on Equity (4%) is considered low.


Financial Health

How is Avon Protection's financial position?


Financial Position Analysis

Short Term Liabilities: AVON's short term assets ($109.4M) exceed its short term liabilities ($69.7M).

Long Term Liabilities: AVON's short term assets ($109.4M) do not cover its long term liabilities ($140.8M).


Debt to Equity History and Analysis

Debt Level: AVON has more cash than its total debt.

Reducing Debt: AVON's debt to equity ratio has reduced from 18% to 6% over the past 5 years.

Debt Coverage: AVON's debt is well covered by operating cash flow (129.8%).

Interest Coverage: AVON's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


Dividend

What is Avon Protection current dividend yield, its reliability and sustainability?

2.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AVON's dividend (2.61%) is higher than the bottom 25% of dividend payers in the UK market (1.35%).

High Dividend: AVON's dividend (2.61%) is low compared to the top 25% of dividend payers in the UK market (4.08%).


Stability and Growth of Payments

Stable Dividend: AVON's dividends per share have been stable in the past 10 years.

Growing Dividend: AVON's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (146.3%), AVON's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AVON's dividends in 3 years are forecast to be well covered by earnings (46.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Paul McDonald (47 yo)

4.75yrs

Tenure

US$2,233,286

Compensation

Mr. Paul McDonald has been Chief Executive at Avon Protection plc (formerly known as Avon Rubber p.l.c.) since February 15, 2017 and serves as its Director. Mr. McDonald served as the Managing Director of...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD2.23M) is above average for companies of similar size in the UK market ($USD787.09K).

Compensation vs Earnings: Paul's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: AVON's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: AVON's board of directors are not considered experienced ( 3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AVON insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Avon Protection plc's employee growth, exchange listings and data sources


Key Information

  • Name: Avon Protection plc
  • Ticker: AVON
  • Exchange: LSE
  • Founded: 1885
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: UK£334.503m
  • Shares outstanding: 30.69m
  • Website: https://www.avon-protection-plc.com

Number of Employees


Location

  • Avon Protection plc
  • Hampton Park West
  • Semington Road
  • Melksham
  • Wiltshire
  • SN12 6NB
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/24 22:38
End of Day Share Price2021/11/24 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.