Avon Technologies (GB:AVON)
LSE:AVON
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Avon Technologies
(LSE:AVON)
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Rating:54Neutral
Price Target:
1,744.00 p
▲(0.46% Upside)
Action:ReiteratedDate:03/24/26
The score is held back mainly by weak technicals (below key moving averages with bearish momentum) and expensive valuation (very high P/E with a low yield). Financial performance is improving but tempered by volatile cash flow and a recent revenue decline. These negatives are partly offset by a constructive earnings outlook and positive recent contract/news flow.
Positive Factors
Record order book and backlog
A record $263m order book provides durable revenue visibility and production planning flexibility across the next several quarters. Large backlog supports revenue realization, reduces short-term demand exposure, and enables operational gearing that can sustain margins as orders convert.
Negative Factors
Volatile cash generation and sharp FCF drop
Large swings in free cash flow and repeated years of negative FCF signal working-capital volatility and lumpy investment cycles. That pattern raises liquidity and conversion risk during downturns and constrains steady funding for capex or acquisitions without higher buffers or external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Record order book and backlog
A record $263m order book provides durable revenue visibility and production planning flexibility across the next several quarters. Large backlog supports revenue realization, reduces short-term demand exposure, and enables operational gearing that can sustain margins as orders convert.
Read all positive factors
Avon Technologies (AVON) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£515.64M
Dividend Yield1.02%
Average Volume (3M)101.06K
Price to Earnings (P/E)79.4
Beta (1Y)0.90
Revenue Growth10.74%
EPS Growth237.07%
CountryUK
Employees917
SectorIndustrials
Sector Strength72
IndustryMedical - Specialties
Share Statistics
EPS (TTM)0.37
Shares Outstanding30,258,194
10 Day Avg. Volume74,572
30 Day Avg. Volume101,055
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)3.76
Price to Sales (P/S)2.61
P/FCF Ratio53.82
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£2,330.00Price Target Upside34.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.17
Revenue Forecast (FY)£338.10M
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 ...
How the Company Makes Money
null...
Avon Technologies Earnings Call Summary
Earnings Call Date:Nov 11, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 26, 2026
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook with significant growth in revenue, profitability, and a record order book. There were challenges related to production ramp-up and potential new competition, but the company's strategic initiatives and transformation efforts have been successful. The impact of the U.S. government shutdown was noted as a temporary issue.Positive Updates
Significant Revenue and Profit Growth
Revenue grew by 14%, leading to a 31% increase in adjusted operating profit, reaching $40.3 million. This reflects a strong performance across the board, with 16% growth in Avon Protection and 12% growth in Team Wendy.
Negative Updates
Challenges with Production Ramp-Up
Operational risk in Team Wendy associated with production ramp-up and the move from batch to flow manufacturing, with a need for further increases in production rates.
Read all updates
Q4-2025 Updates
Positive
Negative
Significant Revenue and Profit Growth
Revenue grew by 14%, leading to a 31% increase in adjusted operating profit, reaching $40.3 million. This reflects a strong performance across the board, with 16% growth in Avon Protection and 12% growth in Team Wendy.
Read all positive updates
Company Guidance
During the call, Avon Protection provided a comprehensive overview of their financial progress and future guidance. The company reported a 14% revenue growth for the year, with adjusted operating profit up 31% to $40.3 million and a return on invested capital (ROIC) of 18.6%. The order book reached a record $263 million, 16% higher than the previous year. Cash conversion stood at 90%, and net debt leverage was below 0.9x. The operating profit margin improved by 130 basis points to 12.8%, with a target range of 14% to 16% expected in 2026. The adjusted basic EPS rose by 35% to $0.912 per share. Avon Protection's order intake increased by 18%, while their order book grew by 63%, leading to a 16% rise in revenue. The company's strategic focus includes enhancing their scalable platform, investing in R&D, and considering acquisitions to complement organic growth. They expect high single-digit revenue growth and operating margins within their target range in 2026. The transformation program, which is nearing completion, aims to further optimize operations and reduce costs, with a planned $6 million investment in FY '26.Avon Technologies Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
70
Positive
Cash Flow
45
Neutral
| Breakdown | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 240.43M | 275.00M | 243.80M | 228.58M | 245.15M |
| Gross Profit | 98.58M | 105.80M | 85.90M | 66.10M | 59.83M |
| EBITDA | 30.48M | 30.90M | 8.00M | 24.70M | -2.27M |
| Net Income | 7.89M | 3.00M | -14.40M | ― | -25.28M |
Balance Sheet | |||||
| Total Assets | 314.63M | 312.90M | 348.10M | 344.90M | 399.42M |
| Cash, Cash Equivalents and Short-Term Investments | 13.39M | 14.00M | 13.20M | 9.42M | 14.13M |
| Total Debt | 81.36M | 79.40M | 98.60M | 76.81M | 70.13M |
| Total Liabilities | 148.02M | 146.40M | 188.70M | 136.28M | 193.65M |
| Stockholders Equity | 166.61M | 166.50M | 159.40M | 208.63M | 205.77M |
Cash Flow | |||||
| Free Cash Flow | 11.64M | 42.70M | -3.90M | 14.83M | -25.47M |
| Operating Cash Flow | 17.85M | 53.90M | 7.10M | 22.55M | 5.73M |
| Investing Cash Flow | -6.59M | -9.50M | -2.60M | -10.50M | -157.67M |
| Financing Cash Flow | -11.72M | -43.70M | -800.00K | -15.70M | -19.55M |
Avon Technologies Technical Analysis
Negative
1736.00
Price Trends
1772.39
Negative
1809.30
Negative
1899.57
Negative
Market Momentum
-34.56
Positive
47.80
Neutral
64.14
Neutral
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 1736 is below the 20-day moving average (MA) of 1769.50, below the 50-day MA of 1772.39, and below the 200-day MA of 1899.57, indicating a bearish trend. The MACD of -34.56 indicates Positive momentum. The RSI at 47.80 is Neutral, neither overbought nor oversold. The STOCH value of 64.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:AVON.
Avon Technologies Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £514.49M | 12.56 | 30.42% | 4.70% | 2.34% | 8.14% | |
72 Outperform | £489.75M | 7.10 | 27.48% | 3.65% | 5.78% | -6.80% | |
70 Neutral | £509.84M | ― | 22.71% | 5.91% | -4.70% | -2.21% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £564.85M | 28.89 | 8.04% | 4.87% | -7.30% | -59.71% | |
54 Neutral | £515.64M | 79.43 | 4.62% | 1.02% | 10.74% | 237.07% | |
54 Neutral | £657.28M | -3.71 | -39.26% | ― | 12.58% | 12.39% |
* Industrials Sector Average
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Avon Technologies Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Executives Add Shares Under Employee Incentive Plan
Neutral
Mar 6, 2026
Avon Technologies has disclosed small share purchases by its chief executive officer Jos Sclater and chief financial officer Rich Cashin under the company’s HMRC-approved all-employee Share Incentive Plan. Each executive acquired eight ordin...
Business Operations and StrategyFinancial Disclosures
Avon Technologies Secures $12.7m CBRN Filter Order Bolstering FY2026 Outlook
Positive
Mar 6, 2026
Avon Technologies has announced a new order worth about $12.7 million for its MILCF50 CBRN filters from an existing Middle Eastern customer that already deploys the firm’s respirators. The filters are designed to protect against chemical and...
Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Executive Buys Shares in Regulatory-Disclosed Deal
Positive
Feb 13, 2026
Avon Technologies plc disclosed that Steve Elwell, President of its Avon Protection division and a person discharging managerial responsibilities, acquired 1,478 ordinary shares in the company on 11 February 2026. The purchase, executed on the Lon...
Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Executives Buy Shares Under Employee Incentive Plan
Positive
Feb 6, 2026
Avon Technologies has disclosed that its chief executive officer, Jos Sclater, and chief financial officer, Rich Cashin, have each acquired nine ordinary shares in the company under its all-employee Share Incentive Plan, at a price of £16.68 ...
Dividends
Avon Technologies Sets Sterling Value for Final Dividend Payment
Positive
Feb 6, 2026
Avon Technologies plc has confirmed the sterling value of its previously announced final dividend, converting the 17.0 US cents per share payout to 12.52 pence per share at an exchange rate of 1.3575 GBP/USD. The dividend will be paid on 6 March 2...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Avon Technologies Shareholders Back All Resolutions at 2026 AGM
Positive
Feb 2, 2026
Avon Technologies plc reported that all 17 resolutions proposed at its 30 January 2026 Annual General Meeting were approved by shareholders via a poll, including the receipt of the annual report and accounts, approval of the directors’ remun...
Business Operations and StrategyFinancial Disclosures
Avon Technologies Posts Record Q1 in CBRN Business, Keeps Full‑Year Outlook Intact
Positive
Jan 30, 2026
Avon Technologies reported a record start to its 2026 financial year, driven by sustained demand for its CBRN protection products, strong operational gearing and a healthy order book and sales pipeline, underpinning unchanged full‑year guida...
Executive/Board ChangesRegulatory Filings and Compliance
Avon Technologies CEO Increases Stake After Long-Term Incentive Award Vests
Positive
Jan 20, 2026
Avon Technologies has disclosed that chief executive officer Jos Sclater acquired 45,404 ordinary shares for nil cost on 19 January 2026 following the partial vesting, at 50%, of an award under the company’s Long Term Incentive Plan. Of thes...
Business Operations and StrategyRegulatory Filings and Compliance
Avon Technologies Executives Buy Shares Under Employee Incentive Plan
Positive
Jan 6, 2026
Avon Technologies has disclosed that its chief executive officer, Jos Sclater, and chief financial officer, Rich Cashin, each acquired ordinary shares in the company under its HMRC-approved all-employee Share Incentive Plan. The transactions, exec...
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.