Avon Rubber
Market Cap
UK£848.4m
Last Updated
2020/02/22 20:38 UTC
Data Sources
Company Financials +
Executive Summary
Avon Rubber p.l.c. designs, manufactures, and sells chemical, biological, radiological, and nuclear respiratory protection systems for military, law enforcement, and fire markets worldwide.
Rewards
Risk Analysis
Snowflake Analysis
High growth potential with excellent balance sheet.
Share Price & News
How has Avon Rubber's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AVON's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
2.8%
AVON
1.7%
GB Aerospace & Defense
0.2%
GB Market
1 Year Return
113.8%
AVON
36.2%
GB Aerospace & Defense
6.4%
GB Market
Return vs Industry: AVON exceeded the UK Aerospace & Defense industry which returned 36.2% over the past year.
Return vs Market: AVON exceeded the UK Market which returned 6.4% over the past year.
Shareholder returns
| AVON | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.8% | 1.7% | 0.2% |
| 30 Day | 25.2% | 1.5% | -1.4% |
| 90 Day | 39.6% | 11.1% | 3.8% |
| 1 Year | 115.9%113.8% | 40.9%36.2% | 11.9%6.4% |
| 3 Year | 191.8%182.5% | 31.4%17.7% | 18.6%3.8% |
| 5 Year | 287.8%268.2% | 33.3%6.0% | 34.8%4.0% |
Price Volatility Vs. Market
How volatile is Avon Rubber's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Is Avon Rubber p.l.c. (LON:AVON) Expensive For A Reason? A Look At Its Intrinsic Value3 weeks ago | Simply Wall St
Are Avon Rubber p.l.c.’s (LON:AVON) High Returns Really That Great?1 month ago | Simply Wall St
The Avon Rubber (LON:AVON) Share Price Is Up 210% And Shareholders Are Boasting About ItValuation
Is Avon Rubber undervalued compared to its fair value and its price relative to the market?
59.32x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AVON (£27.8) is trading above our estimate of fair value (£21.91)
Significantly Below Fair Value: AVON is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AVON is poor value based on its PE Ratio (59.3x) compared to the Aerospace & Defense industry average (32x).
PE vs Market: AVON is poor value based on its PE Ratio (59.3x) compared to the UK market (18.6x).
Price to Earnings Growth Ratio
PEG Ratio: AVON is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: AVON is overvalued based on its PB Ratio (9.8x) compared to the GB Aerospace & Defense industry average (2.6x).
Next Steps
Future Growth
How is Avon Rubber forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
26.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AVON's forecast earnings growth (26.4% per year) is above the savings rate (0.5%).
Earnings vs Market: AVON's earnings (26.4% per year) are forecast to grow faster than the UK market (12.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AVON's revenue (11.4% per year) is forecast to grow faster than the UK market (3.6% per year).
High Growth Revenue: AVON's revenue (11.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AVON's Return on Equity is forecast to be high in 3 years time (27.6%)
Next Steps
Past Performance
How has Avon Rubber performed over the past 5 years?
5.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AVON has a large one-off loss of £16.7M impacting its September 30 2019 financial results.
Growing Profit Margin: AVON's current net profit margins (8%) are lower than last year (12%).
Past Earnings Growth Analysis
Earnings Trend: AVON's earnings have grown by 5.8% per year over the past 5 years.
Accelerating Growth: AVON's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AVON had negative earnings growth (-27.8%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-13.2%).
Return on Equity
High ROE: AVON's Return on Equity (16.6%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Avon Rubber's financial position?
Financial Position Analysis
Short Term Liabilities: AVON's short term assets (£104.5M) exceed its short term liabilities (£36.6M).
Long Term Liabilities: AVON's short term assets (£104.5M) exceed its long term liabilities (£50.7M).
Debt to Equity History and Analysis
Debt Level: AVON's debt to equity ratio (0.1%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if AVON's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: AVON's debt is well covered by operating cash flow (15800%).
Interest Coverage: AVON earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: AVON has a high level of physical assets or inventory.
Debt Coverage by Assets: AVON's debt is covered by short term assets (assets are 1045x debt).
Next Steps
Dividend
What is Avon Rubber's current dividend yield, its reliability and sustainability?
0.75%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: AVON's dividend (0.75%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.8%).
High Dividend: AVON's dividend (0.75%) is low compared to the top 25% of dividend payers in the UK market (5.1%).
Stability and Growth of Payments
Stable Dividend: AVON is not paying a notable dividend for the UK market, therefore no need to check if payments are stable.
Growing Dividend: AVON is not paying a notable dividend for the UK market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: AVON is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of AVON's dividend in 3 years as they are not forecast to pay a notable one for the UK market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Paul McDonald (45yo)
3yrs
Tenure
UK£772,000
Compensation
Mr. Paul McDonald has been Chief Executive at Avon Rubber p.l.c. since February 15, 2017 and serves as its Director. Mr. McDonald served as the Managing Director of Avon Dairy Solutions at Avon Rubber plc ...
CEO Compensation Analysis
Compensation vs Market: Paul's total compensation ($USD1.00M) is about average for companies of similar size in the UK market ($USD1.19M).
Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3yrs | UK£772.00k | 0.11% £951.5k | |
| CFO & Director | 2.7yrs | UK£461.00k | 0.038% £326.5k | |
| Vice President of Operations | 0yrs | no data | no data | |
| Chief Technical Officer | 8.1yrs | no data | no data | |
| General Counsel & Company Secretary | 0yrs | no data | 0.072% £608.8k | |
| Vice President of Sales & Marketing | 0yrs | no data | no data | |
| Managing Director of Milkrite | Interpuls | 0yrs | no data | no data | |
| President of Avon Protection | 0yrs | no data | no data | |
| President of Military | 0yrs | no data | no data | |
| President of Law Enforcement & Fire | 0yrs | no data | no data |
3.0yrs
Average Tenure
48.5yo
Average Age
Experienced Management: AVON's management team is considered experienced (3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3yrs | UK£772.00k | 0.11% £951.5k | |
| CFO & Director | 2.7yrs | UK£461.00k | 0.038% £326.5k | |
| Independent Chairman | 8yrs | UK£18.00k | 0.082% £695.0k | |
| Independent Non-Executive Director | 0yrs | no data | no data | |
| Senior Independent Non-Executive Director | 0yrs | UK£56.00k | 0.025% £208.5k | |
| Non-Executive Director | 3.9yrs | UK£51.00k | 0.015% £126.5k |
3.5yrs
Average Tenure
51.5yo
Average Age
Experienced Board: AVON's board of directors are considered experienced (3.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if 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 Rubber p.l.c.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Avon Rubber p.l.c.
- Ticker: AVON
- Exchange: LSE
- Founded: 1885
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: UK£848.373m
- Shares outstanding: 30.52m
- Website: https://www.avon-rubber.com
Number of Employees
Location
- Avon Rubber p.l.c.
- Hampton Park West
- Semington Road
- Melksham
- Wiltshire
- SN12 6NB
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AVON | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| AVNB.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| AVONl | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
Biography
Avon Rubber p.l.c. designs, manufactures, and sells chemical, biological, radiological, and nuclear respiratory protection systems for military, law enforcement, and fire markets worldwide. It operates in two segments, Avon Protection and milkrite | InterPuls. The company 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. It also provides milking point solutions, such as milking cluster technology products, which include liner, tubing, claw, and calf nurser products to remove milk from the animal for dairy farmers; precision air systems within the milking process to maximize the performance and efficiency of the system; control solution, a physical control system of the milking system to provide automation opportunities to minimize labor inputs; and intelligence solution, a critical part of the dairy system, which extracts data from the animal and integrates this within the farm herd management system or dairy management system, as well as farm services offerings, such as clusters, pulsators, and tags to the farm on a lease hire basis. The company was founded in 1885 and is headquartered in Melksham, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/22 20:38 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/09/30 |
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.