Avon Protection (AVON) AI Stock Analysis

• Market Cap: £427.90M
• Dividend Yield: 1.27%
• Average Volume (3M): 59.53K
• Price to Earnings (P/E): 185.4
• Beta (1Y): 0.81
• Revenue Growth: 9.11%
• EPS Growth: N/A
• Country: UK
• Employees: 917
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.08
• Shares Outstanding: 30,258,194
• 10 Day Avg. Volume: 70,490
• 30 Day Avg. Volume: 59,535
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.96
• Price to Cash Flow (P/CF): 17.10
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 1,647.50p
• Price Target Upside: 15.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Avon Protection demonstrates solid financial performance with robust revenue and cash flow growth. However, its high P/E ratio raises overvaluation concerns. The recent contracts and strategic initiatives positively impact its market outlook, despite the stock's current downward technical momentum.

Positive Factors

Contract Wins

Avon, via the Team Wendy division, has confirmed a delivery order worth US$17.6m from the U.S. Army under the Next Generation Integrated Head Protection System contract.

Financial Performance

Avon's FY24 Results are ahead of JEFe across the board, with PBT/EPS ahead by 9%/19%.

Negative Factors

Valuation

The shares are not cheap on near-term multiples, trading on an annualized EV/EBITA of 17x.

Avon Protection Business Overview & Revenue Model

Company Description

Avon Protection (AVON) is a leading provider of life-critical personal protection systems, specializing in respiratory and ballistic protection solutions. The company primarily serves the military, law enforcement, and fire service sectors, offering innovative products such as advanced respirators, ballistic helmets, and body armor. Avon Protection is dedicated to ensuring the safety and protection of those who risk their lives in challenging environments.

How the Company Makes Money

Avon Protection makes money by designing, manufacturing, and selling high-performance protective equipment to government and commercial customers globally. Its revenue model is primarily based on long-term contracts and direct sales of its respiratory and ballistic protection products. The company generates significant revenue from defense and government agencies, which require advanced protection solutions. Additionally, Avon Protection benefits from partnerships and collaborations that enhance its product development and market reach. Key revenue streams include contracts with military organizations for the supply of specialized respirators and ballistic protection gear, as well as sales to law enforcement and fire service agencies seeking reliable and high-quality protective equipment.

Avon Protection Financial Statement Overview

Summary

Avon Protection shows strong revenue growth and cash flow generation. However, the low net profit margin and modest ROE indicate room for improvement in profitability and efficiency.

Income Statement

Avon Protection demonstrated a solid revenue growth rate of 12.76% year-over-year, with a recovery in profitability as evidenced by a positive EBIT margin of 3.89% and an improved EBITDA margin of 11.24%. The gross profit margin stands strong at 38.47%, indicating efficient production cost management. However, the net profit margin is low at 1.09%, suggesting potential issues with cost control or non-operating expenses.

Balance Sheet

The company's debt-to-equity ratio of 0.48 indicates a moderate level of leverage, which is manageable given the industry norms. The return on equity (ROE) is modest at 1.80%, reflecting potential areas for improvement in profitability. The equity ratio of 53.23% demonstrates a healthy capital structure with a strong equity base supporting its assets.

Cash Flow

Free cash flow growth is robust, improving substantially from a negative position to a positive $42.7 million. The operating cash flow to net income ratio is high at 17.97, highlighting strong cash generation relative to net income. The free cash flow to net income ratio of 14.23 further emphasizes positive cash flow dynamics, suggesting efficient cash utilization and management.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
205.94M	275.00M	243.80M	228.58M	245.15M	168.00M
	Gross Profit
70.91M	105.80M	85.90M	66.10M	59.83M	58.50M
	EBIT
18.33M	10.70M	-12.60M	15.18M	21.42M	11.20M
	EBITDA
9.33M	30.90M	8.00M	24.70M	-2.27M	23.00M
	Net Income Common Stockholders
-10.88M	3.00M	-14.40M	―	-25.28M	7.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.80M	14.00M	13.20M	9.42M	14.13M	147.00M
	Total Assets
262.70M	312.90M	348.10M	344.90M	399.42M	356.80M
	Total Debt
74.70M	79.40M	98.60M	76.81M	70.13M	53.80M
	Net Debt
66.90M	65.40M	85.40M	67.39M	56.00M	-93.20M
	Total Liabilities
182.30M	146.40M	188.70M	136.28M	193.65M	176.70M
	Stockholders Equity
80.40M	166.50M	159.40M	208.63M	205.77M	180.10M
Cash Flow		Free Cash Flow
19.94M	42.70M	-3.90M	14.83M	-25.47M	-13.20M
	Operating Cash Flow
28.83M	53.90M	7.10M	22.55M	5.73M	2.40M
	Investing Cash Flow
-2.43M	-9.50M	-2.60M	-10.50M	-157.67M	76.20M
	Financing Cash Flow
-29.39M	-43.70M	-800.00K	-15.70M	-19.55M	19.20M

Avon Protection Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1430.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AVON, the sentiment is Negative. The current price of 1430 is below the 20-day moving average (MA) of 1456.90, below the 50-day MA of 1469.96, and above the 200-day MA of 1324.08, indicating a neutral trend. The MACD of -3.28 indicates Positive momentum. The RSI at 38.89 is Neutral, neither overbought nor oversold. The STOCH value of 17.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:AVON.

Avon Protection Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMIN	75 Outperform	£6.66B	27.67	10.84%	2.23%	3.13%	13.36%
AVON	66 Neutral	£427.90M	185.35	1.82%	1.27%	9.11%	―
Sector *	62 Neutral	$8.16B	12.85	0.64%	3.04%	3.83%	-15.83%

Avon Protection Corporate Events

Avon Technologies CFO Engages in Share Transactions Under Incentive Plan

Avon Technologies plc announced that its Chief Financial Officer, Rich Cashin, has acquired and sold shares as part of the company’s Long Term Incentive Plan. The transaction involved acquiring 16,653 shares at no cost, selling 7,827 shares to cover tax liabilities, and retaining 8,826 shares. This transaction, conducted outside of a trading venue, reflects the company’s adherence to the Market Abuse Regulation and highlights the financial strategies employed by its executive management.

Avon Technologies Sees Shift in Voting Rights with abrdn plc

Avon Technologies Plc has announced a significant change in its voting rights structure, with abrdn plc’s affiliated investment entities increasing their voting rights to 5.057526% as of February 28, 2025. This shift, resulting from trading activities, marks a notable development in the company’s shareholder dynamics, potentially impacting its governance and strategic decision-making.

Avon Technologies Secures $17.6 Million U.S. Army Order

Avon Technologies plc announced that Team Wendy Ceradyne has secured a $17.6 million delivery order from the U.S. Army for the Next Generation Integrated Head Protection System (NG-IHPS) helmet contract. This order highlights the strong demand for Avon’s head protection technology and underscores the company’s efforts to enhance production capabilities at its Cleveland factory to meet U.S. Department of Defense requirements.

Avon Technologies Announces Vesting of Long Term Incentive Awards

Avon Technologies plc announced the vesting of awards under its Long Term Incentive Plan for key managerial personnel, reflecting a vesting percentage of 46.145% based on performance conditions. This move highlights the company’s commitment to aligning leadership incentives with performance, with implications for stakeholder confidence in the strategic direction and operational management of the company.

Avon Technologies Reports Change in Voting Rights Structure

Avon Technologies Plc announced a change in their voting rights structure due to an acquisition or disposal by Van Lanschot Kempen Investment Management NV. The notification indicates a reduction in the voting rights held from 6.980% to 5.98328%, suggesting a strategic adjustment in shareholder influence, which could impact future company decisions and stakeholder interests.

Avon Technologies Announces Final Dividend Exchange Rate

Avon Technologies plc has announced the currency exchange rate for its final dividend of 16.1 US cents per share, which will be paid in GBP Sterling at a rate of 13.01 pence per share. This dividend will be distributed to eligible shareholders on 7 March 2025. The announcement reflects the company’s ongoing commitment to its shareholders and may impact investor sentiment positively, reinforcing its stable financial performance.

Avon Technologies Strengthens Stakeholder Alignment with Share Incentive Plan

Avon Technologies plc has announced that several managerial personnel have acquired ordinary shares under the company’s Share Incentive Plan (SIP), a scheme approved by HM Revenue and Customs allowing employees to purchase shares through salary deductions. This move showcases Avon’s commitment to aligning management interests with shareholder value, and it complies with legal requirements such as the EU Market Abuse Regulation, reinforcing transparency and trust among stakeholders.

Avon Technologies Reports Steady Q1 Performance and Strategic Advances

Avon Technologies announced that its trading in the first quarter aligned with expectations, maintaining a consistent outlook for the full year. The company secured significant orders, including an $18 million delivery order for the U.S. Army and a £10 million contract renewal with Thales UK. Avon is progressing well with its STAR strategy, focusing on operational excellence and footprint optimization. The board is confident in the strategic initiatives supporting long-term growth and shareholder value.

Avon Technologies Reports Major Change in Voting Rights

Avon Technologies has announced a significant change in the voting rights held by Aberforth Partners LLP. The voting rights have decreased from 9.61% to 4.68%, indicating a substantial disposal of shares. This shift may impact Avon’s market positioning and influence among its stakeholders, as Aberforth Partners reduces its stake in the company.

Avon Technologies Secures £10 Million Thales UK Contract Renewal

Avon Technologies plc announced a significant renewal of its contract with Thales UK, worth up to £10 million, to supply critical defense capabilities for the UK over the next six years. This renewal underscores Avon’s strategic role in the UK defense industry, highlighting its contribution to national security through the design, development, and supply of essential military solutions.

Avon Technologies Enhances Shareholder Alignment with Management Share Purchases

Avon Technologies plc has announced the purchase of ordinary shares by several key members of its management team under its Share Incentive Plan (SIP). This strategic move, executed on the London Stock Exchange, highlights the company’s commitment to aligning employee interests with shareholder value, potentially strengthening its market position and stakeholder relationships.

Avon Technologies Announces Retail Investor Presentation

Avon Technologies plc has announced a presentation for retail investors on January 31, 2025, which will include an overview of the company’s strategy and market position. This event, led by CEO Jos Sclater and CFO Rich Cashin, aims to engage both existing and potential shareholders, reflecting the company’s commitment to transparency and investor relations.

Avon Technologies Secures Major U.S. Army Helmet Contract

Avon Technologies plc, through its subsidiary Team Wendy Ceradyne, has secured an $18 million delivery order from the Defense Logistics Agency to supply the U.S. Army’s Next Generation Integrated Head Protection System. This order reflects the strong demand for their advanced ballistic and brain injury mitigation technologies, reinforcing Avon’s position as a key supplier to the U.S. military and indicating a positive outlook for their continued support in providing essential protective equipment.

Avon Technologies Announces Change in Shareholder Structure

Avon Technologies Plc, based in the UK, has announced a significant change in its shareholder structure due to a shift in voting rights. The notification reveals that Van Lanschot Kempen Investment Management NV, an investment entity from the Netherlands, has acquired a 6.98% stake in voting rights, marking a notable increase from previous holdings. This acquisition could potentially influence Avon Technologies’ strategic decisions and impact its market positioning, given the substantial voting power now held by the Dutch investment firm.