NYSE:AVP

Stock Analysis Report

Executive Summary

Avon Products, Inc. manufactures and markets beauty and related products in Europe, the Middle East, Africa, south Latin America, north Latin America, and the Asia Pacific.


Snowflake Analysis

Moderate growth potential with worrying balance sheet.


Similar Companies

Share Price & News

How has Avon Products's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AVP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.4%

AVP

-1.4%

US Personal Products

0.06%

US Market


1 Year Return

231.4%

AVP

17.0%

US Personal Products

19.3%

US Market

Return vs Industry: AVP exceeded the US Personal Products industry which returned 47.6% over the past year.

Return vs Market: AVP exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

AVPIndustryMarket
7 Day-1.4%-1.4%0.06%
30 Day17.2%-0.4%1.7%
90 Day24.4%7.2%9.0%
1 Year232.3%231.4%18.8%17.0%21.8%19.3%
3 Year2.1%1.8%68.3%60.3%49.5%39.9%
5 Year-28.2%-31.5%67.2%49.9%73.1%54.1%

Price Volatility Vs. Market

How volatile is Avon Products's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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


Share Price vs. Fair Value

Below Fair Value: AVP ($5.6) is trading above our estimate of fair value ($4.6)

Significantly Below Fair Value: AVP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AVP is unprofitable, so we can't compare its PE Ratio to the Personal Products industry average.

PE vs Market: AVP is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AVP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AVP has negative assets, so we can't compare its PB Ratio to the US Personal Products industry average.


Next Steps

Future Growth

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

60.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: AVP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AVP's is expected to become profitable in the next 3 years.

Revenue vs Market: AVP's revenue (0.1% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: AVP's revenue (0.1% 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 AVP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Avon Products performed over the past 5 years?

51.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVP is currently unprofitable.

Growing Profit Margin: AVP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AVP is unprofitable, but has reduced losses over the past 5 years at a rate of 51.9% per year.

Accelerating Growth: Unable to compare AVP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AVP is unprofitable, making it difficult to compare its past year earnings growth to the Personal Products industry (21.4%).


Return on Equity

High ROE: AVP's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Avon Products's financial position?


Financial Position Analysis

Short Term Liabilities: AVP has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: AVP has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: AVP has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: AVP's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: AVP has a high level of physical assets or inventory.

Debt Coverage by Assets: AVP has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AVP has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if AVP has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Avon Products's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AVP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AVP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AVP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AVP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AVP is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AVP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Jan Zijderveld (54yo)

1.9yrs

Tenure

US$6,092,058

Compensation

Mr. Jan Zijderveld has been Chief Executive Officer and Director of Avon Products, Inc. since February 05, 2018. Mr. Zijderveld served as President of Western Europe at Unilever South Africa (Pty) Ltd. sin ...


CEO Compensation Analysis

Compensation vs Market: Jan's total compensation ($USD6.09M) is about average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: Insufficient data to compare Jan's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Jan Zijderveld
CEO & Director1.9yrsUS$6.09m0.056% $1.4m
Miguel Fernandez
Executive VP & Global President2.4yrsUS$3.46m0.023% $565.1k
Jonathan Myers
Executive VP & COO2.3yrsUS$1.58mno data
Gustavo Arnal
Executive VP & Chief Financial Officer0.7yrsno data0.028% $706.2k
Laura Barbrook
Principal Accounting Officer2yrsno datano data
Heather Payne
Chief Technology Officer1.5yrsno datano data
Louise Scott
Group VP of Research & Development and Chief Scientific Officer 0yrsno datano data
Amy Greene
Chief Communications Office & Head of Investor Relations0yrsno datano data
Ginny Edwards
Deputy General Counsel & Interim Lead General Counsel0yrsno data0.0052% $130.3k
Luis Vázquez
Group Vice President of Global Sales0.5yrsno datano data

1.9yrs

Average Tenure

49yo

Average Age

Experienced Management: AVP's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jan Zijderveld
CEO & Director1.9yrsUS$6.09m0.056% $1.4m
W. Cornwell
Lead Independent Director3.8yrsUS$333.56k0.0033% $81.9k
James Mitarotonda
Independent Director1.7yrsUS$171.04k0.0019% $47.1k
Lenard Tessler
Independent Director1.8yrsUS$181.48kno data
Andrew McMaster
Independent Director1.7yrsUS$205.04kno data
Chan Galbato
Non-Executive Chairman3.8yrsUS$346.06kno data
José Armario
Independent Director3.3yrsUS$206.06k0.0041% $103.0k
Helen McCluskey
Independent Director5.5yrsUS$205.06kno data
Nancy Killefer
Independent Director6.3yrsUS$208.06kno data
Michael Sanford
Independent Director3.8yrsUS$202.06kno data

3.6yrs

Average Tenure

64.5yo

Average Age

Experienced Board: AVP's board of directors are considered experienced (3.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: AVP insiders have only sold shares 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 Products, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Avon Products, Inc.
  • Ticker: AVP
  • Exchange: NYSE
  • Founded: 1886
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: US$2.506b
  • Shares outstanding: 443.53m
  • Website: https://www.avonworldwide.com

Number of Employees


Location

  • Avon Products, Inc.
  • Building 6
  • Chiswick Park
  • London
  • Greater London
  • W4 5HR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVPNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
AVP *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
AVPDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
AVPSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1968
0HK8LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
AVON34BOVESPA (Bolsa de Valores de Sao Paulo)BDR REPR 1/2 COM STK NPVBRBRLOct 2011

Biography

Avon Products, Inc. manufactures and markets beauty and related products in Europe, the Middle East, Africa, south Latin America, north Latin America, and the Asia Pacific. The company offers beauty products, including skincare, fragrance, and color cosmetics; and fashion and home products, such as fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products, and nutritional products. It sells its products through direct selling by representatives, who are independent contractors. The company was founded in 1886 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/03 23:31
End of Day Share Price2020/01/03 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.