Avon Technologies (AVON) AI Stock Analysis

• Market Cap: £604.46M
• Dividend Yield: 0.91%
• Average Volume (3M): 126.28K
• Price to Earnings (P/E): 118.6
• Beta (1Y): 0.87
• Revenue Growth: 14.69%
• EPS Growth: N/A
• Country: UK
• Employees: 917
• Sector: Industrials
• Sector Strength: 72
• Industry: Medical - Specialties
• EPS (TTM): 0.27
• Shares Outstanding: 30,258,194
• 10 Day Avg. Volume: 140,669
• 30 Day Avg. Volume: 126,280
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £2,189.50
• Price Target Upside: 7.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: 2,124.00p ▲(4.37% Upside)

Avon Technologies' overall stock score is driven by strong financial performance and positive earnings call highlights, indicating growth potential. However, the high P/E ratio suggests overvaluation, and technical indicators point to a bearish short-term trend. The company's strategic initiatives and operational improvements provide a positive outlook, but profitability metrics need enhancement.

Positive Factors

Revenue Growth

A 17% increase in revenue signifies strong demand for Avon's products and services, suggesting a robust market position and effective sales strategy.

Operational Efficiency

Streamlining production processes enhances operational efficiency, reducing costs and potentially increasing profit margins over time.

Order Book Growth

A record order book indicates strong future revenue potential, reflecting customer confidence and market demand for Avon's offerings.

Negative Factors

Low Net Profit Margins

Persistently low net profit margins suggest challenges in cost management or pricing power, potentially affecting long-term profitability.

Recruitment Challenges

Recruitment issues could hinder production scaling and operational efficiency, impacting the company's ability to meet demand.

Tariff Impact

Tariff impacts increase costs and can strain supply chains, potentially reducing competitiveness and profit margins.

Avon Technologies Business Overview & Revenue Model

Company Description

Avon Technologies Plc engages in the manufacture and design of respiratory protection products for defense and industrial users. The firm also offers polymer based products for the dairy and defense industries. It operates through the Respiratory Protection and Head Protection segments. The company was founded in 1885 and is headquartered in Melksham, the United Kingdom.

How the Company Makes Money

Avon Technologies generates revenue primarily through the sale of its core products and services, which include network hardware, software licenses, and managed services. The company has a tiered pricing model for its software solutions, offering subscriptions and one-time purchase options to suit different customer needs. Additionally, Avon capitalizes on its partnerships with telecommunications providers and technology firms, enabling it to offer bundled solutions and access to new markets. Revenue is also supplemented through maintenance contracts and consultancy services, which provide ongoing support and expertise to clients. Overall, the diverse product offerings and strategic partnerships play a crucial role in driving the company’s earnings.

Avon Technologies Financial Statement Overview

Summary

Avon Technologies demonstrates strong revenue growth and improved gross profit margins, with a stable balance sheet and significant improvements in cash flow. However, low net profit margins and return on equity indicate areas for improvement.

Income Statement

Avon Technologies has shown a strong revenue growth rate of 12.77% from 2023 to 2024, indicating positive business momentum. The gross profit margin improved to 38.47% in 2024, reflecting efficient cost management. However, the net profit margin remains low at 1.09%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are 3.89% and 11.24%, respectively, indicating moderate operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.48 in 2024 shows a balanced capital structure with manageable leverage. Return on equity is low at 1.8%, indicating limited profitability relative to shareholder equity. The equity ratio of 53.21% suggests a strong equity base, providing financial stability.

Cash Flow

Avon Technologies has demonstrated a significant improvement in free cash flow, moving from negative to a positive $42.7 million in 2024. The operating cash flow to net income ratio is robust at 17.97, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 14.23, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	275.00M	275.00M	243.80M	228.58M	245.15M	168.00M
Gross Profit	105.80M	105.80M	85.90M	66.10M	59.83M	58.50M
EBITDA	30.90M	30.90M	8.00M	24.70M	-2.27M	23.00M
Net Income	3.00M	3.00M	-14.40M	―	-25.28M	7.00M
Balance Sheet
Total Assets	312.90M	312.90M	348.10M	344.90M	399.42M	356.80M
Cash, Cash Equivalents and Short-Term Investments	14.00M	14.00M	13.20M	9.42M	14.13M	147.00M
Total Debt	79.40M	79.40M	98.60M	76.81M	70.13M	53.80M
Total Liabilities	146.40M	146.40M	188.70M	136.28M	193.65M	176.70M
Stockholders Equity	166.50M	166.50M	159.40M	208.63M	205.77M	180.10M
Cash Flow
Free Cash Flow	42.70M	42.70M	-3.90M	14.83M	-25.47M	-13.20M
Operating Cash Flow	53.90M	53.90M	7.10M	22.55M	5.73M	2.40M
Investing Cash Flow	-9.50M	-9.50M	-2.60M	-10.50M	-157.67M	76.20M
Financing Cash Flow	-43.70M	-43.70M	-800.00K	-15.70M	-19.55M	19.20M

Avon Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2035.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 2035 is above the 20-day moving average (MA) of 2009.05, below the 50-day MA of 2039.81, and above the 200-day MA of 1673.96, indicating a neutral trend. The MACD of 11.52 indicates Negative momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 18.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:AVON.

Avon Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSI	71 Outperform	221.30M	14.84	23.75%	1.70%	7.23%	26.46%
CHG	71 Outperform	1.51B	38.26	11.09%	1.40%	8.00%	674.47%
BA	70 Outperform	58.80B	30.37	16.84%	1.64%	11.60%	8.03%
AVON	69 Neutral	£604.46M	118.63	4.18%	0.91%	14.69%	―
BC88	63 Neutral	1.51B	―	11.09%	7.22%	―	―
QQ	56 Neutral	2.86B	-15.64	-29.64%	1.66%	1.02%	-240.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Avon Technologies Corporate Events

Avon Technologies Executives Acquire Shares Under Incentive Plan

Avon Technologies plc announced the acquisition of ordinary shares by two key managerial figures, CEO Jos Sclater and CFO Rich Cashin, under the company’s Share Incentive Plan. This move, disclosed in compliance with the EU Market Abuse Regulation, underscores 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 Hold with a £2075.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Avon Technologies Announces Interim Dividend Exchange Rate

Avon Technologies has announced the currency exchange rate for its interim dividend of 7.6 US cents per share, which will be paid in GBP Sterling at a rate of 1.3567, equating to 5.60 pence per share. This dividend will be distributed to eligible shareholders on 5 September 2025, with implications for shareholder returns and company financial strategies.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1535.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Avon Technologies Executives Participate in Share Incentive Plan

Avon Technologies plc announced that its Share Incentive Plan (SIP) facilitated the purchase of ordinary shares by two of its senior executives, CEO Jos Sclater and CFO Rich Cashin. The transactions, conducted on the London Stock Exchange, align with the company’s strategy to involve employees in its ownership structure, potentially enhancing stakeholder alignment and commitment.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1535.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Avon Technologies Executives Acquire Shares Under Incentive Plan

Avon Technologies announced that three of its senior executives, including the CEO, CFO, and Director of Corporate Affairs, have acquired ordinary shares in the company through its Share Incentive Plan. This move, conducted in compliance with the EU Market Abuse Regulation, underscores the company’s commitment to aligning management interests with those of its shareholders, potentially strengthening stakeholder confidence.

The most recent analyst rating on (GB:AVON) stock is a Buy with a £1535.00 price target. To see the full list of analyst forecasts on Avon Technologies stock, see the GB:AVON Stock Forecast page.

Avon Technologies Secures £10.2 Million UK MoD Order for Ukraine

Avon Technologies plc has secured a £10.2 million order from the UK Ministry of Defence for FM50 respirators to support the Armed Forces of Ukraine. This order highlights Avon’s critical role in the UK’s defense industrial base and its commitment to international military support, reinforcing trust in its products and expanding its order book for the fiscal year 2026.

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.