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Avon Technologies (GB:AVON)
LSE:AVON

Avon Technologies (AVON) AI Stock Analysis

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Avon Technologies

(LSE:AVON)

Rating:78Outperform
Price Target:
2,018.00p
▲(16.51%Upside)
Avon Protection demonstrates strong financial performance and technical momentum, supported by positive earnings guidance and corporate developments. However, high valuation metrics suggest some caution.
Positive Factors
Contract Wins
Avon Protection has received two European NATO contracts to supply FM50 respirators and C50 protective masks to the Ukrainian Armed Forces.
Earnings
Sales were +17% yoy on a CC basis, while EBITA/EBITA margins were +48% CC & +240bps yoy, respectively.
Financial Outlook
Management is raising its sales growth guidance and margin guidance, likely driving significant EBITA upgrades for the current year.
Negative Factors
Valuation
The shares are not cheap on near-term multiples, trading on an annualized EV/EBITA of 17x.

Avon Technologies (AVON) vs. iShares MSCI United Kingdom ETF (EWC)

Avon Technologies Business Overview & Revenue Model

Company DescriptionAvon 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. It offers its products under the Avon Protection and Team Wendy brands. The company was formerly known as Avon Rubber p.l.c. and changed its name to Avon Protection plc in July 2021. Avon Protection plc was founded in 1885 and is headquartered in Melksham, the United Kingdom.
How the Company Makes MoneyAvon Protection makes money through the design, manufacture, and sale of high-performance protective equipment. Its key revenue streams include contracts and sales to military organizations, law enforcement agencies, and emergency services worldwide. The company often secures long-term contracts with government entities, providing a stable source of income. Additionally, Avon Protection invests in research and development to maintain technological leadership, which helps in securing strategic partnerships and repeat business from its clients. The company's revenue is further supported by after-sales services, including maintenance and training programs for equipment users.

Avon Technologies Earnings Call Summary

Earnings Call Date:May 21, 2025
(Q2-2025)
|
% Change Since: 10.74%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment overall, with substantial growth in revenue, operating profit, and EPS. Strategic operational improvements and a strong order book offer confidence in future growth. However, challenges such as the impact of tariffs, inventory management, and production ramp-up issues present notable concerns.
Q2-2025 Updates
Positive Updates
Record Order Book and Revenue Growth
Order book hit a record high, up 24%, providing confidence in future growth. Revenue increased by 17% compared to the previous year.
Operating Profit and EPS Increase
Operating profit rose by 48% and EPS increased by 76%, demonstrating strong financial performance.
Strategic Operational Improvements
Successfully moved production out of the Californian helmet facility ahead of schedule, with new factories ramping up in Salem and Cleveland.
Respiratory Business Success
The respiratory segment performed extremely well, benefiting from increased defense spending and a strong competitive position.
Team Wendy Growth
Team Wendy reported a 20% revenue increase and significant backlog growth, with improvements in operating margins.
Continued Investment in R&D and Capability Building
Increased spending on R&D and developing new products, with a focus on building organizational capability.
Positive Impact of Continuous Improvement Initiatives
Operational metrics are improving due to the implementation of the strengthen system, focusing on safety, quality, delivery, inventory turns, and productivity.
Negative Updates
Tariff Impacts
Tariffs have a direct impact of around $800,000, with potential indirect effects through the supply chain.
Inventory and Cash Conversion Challenges
Higher inventory levels negatively impacted cash flow and inventory turns, with cash conversion below the full year guidance of 80%.
Production Ramp-Up Challenges
The speed of production ramp-up in Cleveland for Team Wendy presents challenges, with high attrition rates in the first month of employment.
Uncertain Impact of Geopolitical Factors
Geopolitical and economic uncertainties continue to pose risks, particularly in terms of tariffs and defense spending shifts.
Company Guidance
During the recent call, guidance for the fiscal year 2025 was provided with several key metrics highlighted. The company reported a 24% increase in their order book, a 17% rise in revenue, a 48% growth in operating profit, and a 76% increase in earnings per share (EPS), all on a constant currency basis. The return on invested capital (ROIC) improved by 660 basis points to 16.3%, approaching their medium-term target of 17% or above. The company remains committed to achieving a 14% to 16% operating profit margin by 2026, a year ahead of schedule. Despite geopolitical and economic uncertainties, confidence in their growth strategy is underscored by record high order intake and continued operational and strategic progress. They noted the impact of tariffs, with an $800,000 direct effect largely offset through pricing adjustments. Additionally, the company has been engaging in strategic operational shifts, such as moving production from California to Cleveland, and aims to leverage their strengthen system to drive improvements in safety, quality, delivery, inventory turns, and productivity. Overall, the company is focused on maintaining robust revenue growth, expected to exceed 10% for the full year, while continuing to invest in transformation and operational excellence initiatives.

Avon Technologies 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
75
Positive
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
70
Positive
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
80
Positive
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
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
205.94M275.00M243.80M228.58M245.15M168.00M
Gross Profit
70.91M105.80M85.90M66.10M59.83M58.50M
EBIT
18.33M10.70M-12.60M15.18M21.42M11.20M
EBITDA
9.33M30.90M8.00M24.70M-2.27M23.00M
Net Income Common Stockholders
-10.88M3.00M-14.40M-25.28M7.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
7.80M14.00M13.20M9.42M14.13M147.00M
Total Assets
262.70M312.90M348.10M344.90M399.42M356.80M
Total Debt
74.70M79.40M98.60M76.81M70.13M53.80M
Net Debt
66.90M65.40M85.40M67.39M56.00M-93.20M
Total Liabilities
182.30M146.40M188.70M136.28M193.65M176.70M
Stockholders Equity
80.40M166.50M159.40M208.63M205.77M180.10M
Cash FlowFree Cash Flow
19.94M42.70M-3.90M14.83M-25.47M-13.20M
Operating Cash Flow
28.83M53.90M7.10M22.55M5.73M2.40M
Investing Cash Flow
-2.43M-9.50M-2.60M-10.50M-157.67M76.20M
Financing Cash Flow
-29.39M-43.70M-800.00K-15.70M-19.55M19.20M

Avon Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1732.00
Price Trends
50DMA
1527.40
Positive
100DMA
1490.10
Positive
200DMA
1397.38
Positive
Market Momentum
MACD
67.61
Positive
RSI
61.76
Neutral
STOCH
24.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AVON, the sentiment is Positive. The current price of 1732 is above the 20-day moving average (MA) of 1704.20, above the 50-day MA of 1527.40, and above the 200-day MA of 1397.38, indicating a bullish trend. The MACD of 67.61 indicates Positive momentum. The RSI at 61.76 is Neutral, neither overbought nor oversold. The STOCH value of 24.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AVON.

Avon Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£518.02M102.174.18%1.49%14.69%
GBQQ
78
Outperform
£2.80B17.97-23.92%1.08%10.36%32.77%
66
Neutral
$4.52B12.345.41%3.62%4.15%-12.18%
$74.59B30.3617.85%1.75%
GBMSI
77
Outperform
£203.45M16.8825.71%0.79%8.40%69.42%
GBCHG
74
Outperform
£1.51B38.8111.62%1.85%8.00%674.47%
63
Neutral
£1.52B
7.22%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AVON
Avon Technologies
1,732.00
461.06
36.28%
BAESF
BAE Systems
25.83
9.04
53.84%
GB:CHG
Chemring
569.00
201.87
54.99%
GB:MSI
MS International
1,265.00
289.09
29.62%
GB:BC88
Chemring
97.00
0.00
0.00%
GB:QQ
QinetiQ
505.00
74.70
17.36%

Avon Technologies Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Announces Change in Major Holdings
Neutral
Jun 10, 2025

Avon Technologies Plc, a UK-based company, has announced a change in its major holdings as Alantra EQMC Asset Management SGIIC, S.A., based in Madrid, Spain, has adjusted its voting rights in the company. The adjustment involves a decrease in voting rights from 17.76% to 16.18%, which was officially notified on June 9, 2025. This change reflects a shift in the shareholder structure, potentially impacting the company’s governance and strategic decision-making.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1510.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Executives Participate in Share Incentive Plan
Positive
Jun 9, 2025

Avon Technologies plc announced that three of its senior managers, including the CEO, CFO, and Director of Corporate Affairs, have acquired shares through the company’s Share Incentive Plan. This move, conducted under the EU Market Abuse Regulation, reflects the company’s commitment to aligning managerial interests with shareholder value, potentially strengthening stakeholder confidence.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1510.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Avon Technologies Secures $18.3 Million DoD Order for M50 Masks
Positive
Jun 5, 2025

Avon Technologies’ Avon Protection unit has secured an $18.3 million order from the US Department of Defense for M50 Joint Service General Purpose masks and carriers, reinforcing its role as the sole supplier of these critical CBRN respirators to the US military. This order, part of an existing framework contract, highlights the ongoing demand for Avon’s products in a growing CBRN threat environment and strengthens its order book for the upcoming financial year.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1745.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Other
Avon Technologies Announces Change in Major Holdings
Neutral
May 29, 2025

Avon Technologies Plc, a UK-based company, has reported a change in its major holdings. Alantra EQMC Asset Management SGIIC, S.A., based in Madrid, Spain, has adjusted its voting rights in Avon Technologies, reducing its stake from 18.12% to 17.76%. This change reflects a decrease in the total number of voting rights held by Alantra EQMC Asset Management, which may influence the company’s decision-making and shareholder dynamics.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1510.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Avon Technologies Reports Strong Interim Results Amid Rising Global Demand
Positive
May 21, 2025

Avon Technologies Plc reported strong financial performance for the first half of FY2025, with a significant increase in order book, revenue, and profit margins. The company has seen substantial growth in orders, particularly from NATO countries and the US Department of Defense, driven by global instability and increased defense spending. Avon Technologies is on track to meet its medium-term financial targets ahead of schedule, with ongoing operational improvements and strategic investments expected to further enhance its market position.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1510.00 price target. To see the full list of analyst forecasts on Avon Protection stock, see the GB:AVON Stock Forecast page.

Executive/Board ChangesRegulatory Filings and Compliance
Avon Technologies Announces Board Change
Neutral
May 20, 2025

Avon Technologies, a company involved in various technological sectors, has announced a change in its board of directors. Bindi Foyle, currently serving as the Senior Independent Non-Executive Director, will take on a new role as a Non-Executive Director at Hilton Food Group plc starting June 1, 2025. This move is part of the company’s compliance with UK Listing Rule 6.4.9(2) and may influence both companies’ strategic directions.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1510.00 price target. To see the full list of analyst forecasts on Avon Protection stock, see the GB:AVON Stock Forecast page.

Executive/Board Changes
Avon Technologies Announces Director Change
Neutral
May 16, 2025

Avon Technologies Plc has announced a change in its board of directors. Bindi Foyle, the Senior Independent Non-Executive Director, will be stepping down from her position as Group Finance Director on May 16, 2025. This change is in compliance with UK Listing Rule 6.4.9R and may impact the company’s governance structure.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1510.00 price target. To see the full list of analyst forecasts on Avon Protection stock, see the GB:AVON Stock Forecast page.

M&A TransactionsRegulatory Filings and Compliance
Avon Technologies Announces Change in Voting Rights Structure
Neutral
May 15, 2025

Avon Technologies Plc, a UK-based company, has announced a change in its voting rights structure following an acquisition or disposal of voting rights by JTC Share Plan Trustees (Guernsey) Limited. The transaction, which occurred on May 12, 2025, resulted in JTC Share Plan Trustees holding a total of 3.104339% of the voting rights in Avon Technologies. This adjustment in voting rights is significant for stakeholders as it reflects changes in shareholder influence and control within the company.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1510.00 price target. To see the full list of analyst forecasts on Avon Protection stock, see the GB:AVON Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Announces Share Purchases by Key Executives
Positive
May 7, 2025

Avon Technologies plc announced that its Share Incentive Plan (SIP) facilitated the purchase of ordinary shares by key managerial personnel, including the CEO, CFO, and Director of Corporate Affairs. This move, compliant with the EU Market Abuse Regulation, underscores Avon’s commitment to aligning employee interests with company performance, potentially strengthening stakeholder confidence and market positioning.

Financial Disclosures
Avon Technologies to Announce 2025 Interim Results and Host Investor Presentations
Neutral
May 6, 2025

Avon Technologies plc has announced that it will release its 2025 Interim Results for the six months ending 31 March 2025 on 21 May 2025. The company will host presentations for investors and analysts, including a live Q&A session for retail investors, providing an opportunity for stakeholders to engage directly with the company’s leadership.

Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Announces Change in Major Holdings
Neutral
Apr 11, 2025

Avon Technologies Plc, a UK-based company, has announced a change in its major holdings. Van Lanschot Kempen Investment Management NV, based in Amsterdam, Netherlands, has reduced its voting rights in Avon Technologies to 2.496980% from a previous 3.965860%. This change in holdings, effective as of April 9, 2025, reflects a significant adjustment in the investment strategy of Van Lanschot Kempen, potentially impacting Avon’s shareholder dynamics and market perception.

Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Enhances Employee Investment with Share Incentive Plan
Positive
Apr 8, 2025

Avon Technologies plc announced that its Share Incentive Plan (SIP) facilitated the purchase of ordinary shares by three key managerial figures, including the CEO and CFO, on April 7, 2025. This initiative, approved by HM Revenue and Customs, allows employees to acquire shares through salary deductions, aligning with the EU Market Abuse Regulation. The transactions, conducted on the London Stock Exchange, underscore Avon’s commitment to employee investment and regulatory compliance, potentially strengthening stakeholder confidence and market positioning.

M&A TransactionsBusiness Operations and Strategy
Avon Technologies Announces Change in Voting Rights Structure
Neutral
Mar 27, 2025

Avon Technologies Plc, a UK-based company, has announced a change in its voting rights structure due to an acquisition or disposal of shares by Van Lanschot Kempen Investment Management NV, a Netherlands-based investment management firm. The transaction resulted in Van Lanschot Kempen holding 3.965860% of the voting rights in Avon Technologies, down from a previous position of 4.970798%. This adjustment in shareholding could impact the company’s governance and influence within the market.

Business Operations and StrategyFinancial Disclosures
Avon Technologies Upgrades Full-Year Expectations Amid Strong Q2 Performance
Positive
Mar 26, 2025

Avon Technologies plc has announced an upgrade to its full-year expectations following strong trading momentum in the second quarter. The company has seen significant revenue growth driven by increased sales of helmets to the US Department of Defense and respirators and rebreathers through Avon Protection. Additionally, Avon has secured new orders from European NATO for respirators to be delivered to the Ukrainian Armed Forces and a framework contract for rebreathers with two European navies. These developments are expected to lead to revenue growth exceeding 10% for FY2025, with operating profit margins also expected to surpass previous guidance. The company remains focused on mitigating risks and capitalizing on opportunities, particularly in ramping up production for the US DOD.

M&A TransactionsBusiness Operations and Strategy
Avon Technologies Announces Change in Voting Rights
Neutral
Mar 20, 2025

Avon Technologies Plc, a UK-based company, has announced a change in its voting rights structure due to an acquisition or disposal of shares by Van Lanschot Kempen Investment Management NV, based in Amsterdam, Netherlands. The transaction resulted in a decrease of voting rights from 5.983280% to 4.970798%, impacting the company’s shareholder composition and potentially influencing future corporate decisions.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.