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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.26
AVP's Cash to Debt is ranked lower than
66% of the 1404 Companies
in the Global Household & Personal Products industry.

( Industry Median: 0.64 vs. AVP: 0.26 )
Ranked among companies with meaningful Cash to Debt only.
AVP' s 10-Year Cash to Debt Range
Min: 0.06  Med: 0.36 Max: 0.94
Current: 0.26
0.06
0.94
Interest Coverage 3.60
AVP's Interest Coverage is ranked lower than
82% of the 777 Companies
in the Global Household & Personal Products industry.

( Industry Median: 26.11 vs. AVP: 3.60 )
Ranked among companies with meaningful Interest Coverage only.
AVP' s 10-Year Interest Coverage Range
Min: 3.54  Med: 12.31 Max: 36.36
Current: 3.6
3.54
36.36
F-Score: 4
Z-Score: 3.46
M-Score: -3.28
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 4/10

vs
industry
vs
history
Operating margin (%) 4.89
AVP's Operating margin (%) is ranked higher than
52% of the 1401 Companies
in the Global Household & Personal Products industry.

( Industry Median: 4.58 vs. AVP: 4.89 )
Ranked among companies with meaningful Operating margin (%) only.
AVP' s 10-Year Operating margin (%) Range
Min: 4.29  Med: 11.01 Max: 15.86
Current: 4.89
4.29
15.86
Net-margin (%) -4.34
AVP's Net-margin (%) is ranked lower than
86% of the 1404 Companies
in the Global Household & Personal Products industry.

( Industry Median: 3.11 vs. AVP: -4.34 )
Ranked among companies with meaningful Net-margin (%) only.
AVP' s 10-Year Net-margin (%) Range
Min: -4.39  Med: 5.92 Max: 10.92
Current: -4.34
-4.39
10.92
ROE (%) -60.19
AVP's ROE (%) is ranked lower than
95% of the 1384 Companies
in the Global Household & Personal Products industry.

( Industry Median: 6.86 vs. AVP: -60.19 )
Ranked among companies with meaningful ROE (%) only.
AVP' s 10-Year ROE (%) Range
Min: -55.52  Med: 70.67 Max: 545.81
Current: -60.19
-55.52
545.81
ROA (%) -6.41
AVP's ROA (%) is ranked lower than
88% of the 1427 Companies
in the Global Household & Personal Products industry.

( Industry Median: 3.29 vs. AVP: -6.41 )
Ranked among companies with meaningful ROA (%) only.
AVP' s 10-Year ROA (%) Range
Min: -6.48  Med: 12.19 Max: 21.89
Current: -6.41
-6.48
21.89
ROC (Joel Greenblatt) (%) 21.91
AVP's ROC (Joel Greenblatt) (%) is ranked higher than
70% of the 1413 Companies
in the Global Household & Personal Products industry.

( Industry Median: 10.96 vs. AVP: 21.91 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
AVP' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 15.01  Med: 77.59 Max: 194.28
Current: 21.91
15.01
194.28
Revenue Growth (3Y)(%) -8.00
AVP's Revenue Growth (3Y)(%) is ranked lower than
84% of the 1151 Companies
in the Global Household & Personal Products industry.

( Industry Median: 3.80 vs. AVP: -8.00 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
AVP' s 10-Year Revenue Growth (3Y)(%) Range
Min: -8  Med: 7.20 Max: 12.9
Current: -8
-8
12.9
EBITDA Growth (3Y)(%) -24.30
AVP's EBITDA Growth (3Y)(%) is ranked lower than
87% of the 953 Companies
in the Global Household & Personal Products industry.

( Industry Median: 2.20 vs. AVP: -24.30 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
AVP' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -25.6  Med: 4.80 Max: 23
Current: -24.3
-25.6
23
» AVP's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2014

AVP Guru Trades in Q2 2014

Wallace Weitz 2,949,000 sh (+40.83%)
Yacktman Fund 12,338,500 sh (+9.39%)
Charles Brandes 704,689 sh (+8.59%)
Donald Yacktman 27,054,646 sh (+8.22%)
Yacktman Focused Fund 10,377,372 sh (+7.62%)
NWQ Managers 7,079,890 sh (+7.15%)
Mario Gabelli 1,172,400 sh (+4.46%)
Brian Rogers 10,582,400 sh (+4.44%)
Steven Cohen 2,500,000 sh (unchged)
Richard Snow 75,000 sh (unchged)
Ray Dalio Sold Out
Murray Stahl Sold Out
Ken Fisher Sold Out
Joel Greenblatt 2,466,879 sh (-0.50%)
Jeff Auxier 176,661 sh (-14.00%)
Jim Simons 1,375,200 sh (-62.60%)
» More
Q3 2014

AVP Guru Trades in Q3 2014

Ray Dalio 69,400 sh (New)
Joel Greenblatt 5,337,862 sh (+116.38%)
Wallace Weitz 4,908,498 sh (+66.45%)
Charles Brandes 815,417 sh (+15.71%)
NWQ Managers 7,445,239 sh (+5.16%)
Mario Gabelli 1,173,800 sh (+0.12%)
Brian Rogers 10,582,400 sh (unchged)
Richard Snow 75,000 sh (unchged)
Yacktman Focused Fund 10,377,372 sh (unchged)
Steven Cohen 2,730,000 sh (unchged)
Yacktman Fund 12,338,500 sh (unchged)
Donald Yacktman 26,990,234 sh (-0.24%)
Jim Simons 1,192,302 sh (-13.30%)
Jeff Auxier 144,586 sh (-18.16%)
» More
Q4 2014

AVP Guru Trades in Q4 2014

David Dreman 47,066 sh (New)
Paul Tudor Jones 259,827 sh (New)
First Eagle Investment 69,500 sh (New)
Jim Simons 3,881,300 sh (+225.53%)
Joel Greenblatt 9,726,651 sh (+82.22%)
Ray Dalio 112,140 sh (+61.59%)
Wallace Weitz 6,043,429 sh (+23.12%)
Yacktman Focused Fund 12,377,372 sh (+19.27%)
Charles Brandes 957,760 sh (+17.46%)
Donald Yacktman 31,470,712 sh (+16.60%)
Yacktman Fund 14,338,500 sh (+16.21%)
Brian Rogers 10,582,400 sh (unchged)
Donald Yacktman 31,470,712 sh (unchged)
Steven Cohen 2,500,000 sh (unchged)
Richard Snow Sold Out
NWQ Managers Sold Out
Mario Gabelli 1,056,200 sh (-10.02%)
Jeff Auxier 24,950 sh (-82.74%)
» More
Q1 2015

AVP Guru Trades in Q1 2015

Richard Snow 337,435 sh (New)
Michael Price 400,000 sh (New)
Louis Moore Bacon 138,265 sh (New)
First Eagle Investment 143,000 sh (+105.76%)
Yacktman Fund 16,400,000 sh (+14.38%)
Wallace Weitz 6,895,500 sh (+14.10%)
Donald Yacktman 35,815,717 sh (+13.81%)
Yacktman Focused Fund 13,700,000 sh (+10.69%)
Louis Moore Bacon 300,000 sh (unchged)
Brian Rogers 10,582,400 sh (unchged)
Jeff Auxier Sold Out
Ray Dalio Sold Out
Mario Gabelli 1,027,900 sh (-2.68%)
Charles Brandes 878,914 sh (-8.23%)
Joel Greenblatt 8,219,102 sh (-15.50%)
David Dreman 34,076 sh (-27.60%)
Jim Simons 2,630,270 sh (-32.23%)
Paul Tudor Jones 142,255 sh (-45.25%)
» More
» Details

Insider Trades

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Guru Investment Theses on Avon Products Inc

Wallace Weitz Comments on Avon Products - Oct 16, 2014

We bought relatively small new positions in Willis Group Holdings and Avon Products in the third quarter. Avon (AVP) is a direct selling, branded beauty business undergoing a turnaround in the U.S. market. The overwhelming majority of Avon’s business value comes from its stronger positions in Latin America and other emerging markets. Our investment thesis is that well-run direct selling can be a decent business with solid margins and high returns, that the Avon brand is not fundamentally broken, and that the U.S. business is bottoming as evidenced by break-even results in the most recent quarter. Avon has a wider range of potential outcomes than our typical investment and is sized accordingly.

From Wallace Weitz (Trades, Portfolio)'s Partners Value Fund Q3 2014 Commentary.

Check out Wallace Weitz latest stock trades

Yacktman Funds Comments on Avon Products - Mar 12, 2014

Avon Products Inc. shares declined due to poor quarterly results and increased market concerns about fines related to the Foreign Corrupt Practices Act (FCPA) investigation. Turnarounds generally take time, and we continue to have confidence that the new management team is taking the correct steps to improve the business. We believe the concerns about the potential magnitude of FCPA fines are overstated given the practices that Avon Products Inc. is being investigated for as well as previous FCPA fines levied on other firms. The shares remain inexpensive based on our assessment of normalized earnings and the potential value to a strategic buyer.





From Yacktman Funds' 2013 Annual Report - Portfolio Manager's Comments



Check out Donald Yacktman latest stock trades

Yacktman Fund Comments on Avon Products - Jan 30, 2014

Avon Products Inc. (AVP) shares declined due to poor quarterly results and increased market concerns about fines related to the Foreign Corrupt Practices Act (FCPA) investigation. Turnarounds generally take time, and we continue to have confidence that the new management team is taking the correct steps to improve the business. We believe the concerns about the potential magnitude of FCPA fines are overstated given the practices that Avon Products Inc. is being investigated for as well as previous FCPA fines levied on other firms. The shares remain inexpensive based on our assessment of normalized earnings and the potential value to a strategic buyer.

From the Yacktman Fund (Trades, Portfolio)s' fourth quarter 2013 shareholder update.

Check out Donald Yacktman latest stock trades

Top Ranked Articles about Avon Products Inc

Consumer Defensive Stocks Trading Near 52-Week Lows
The consumer defensive sector is generally a stable segment of the market, due to the fact that demands for these products hardly fluctuate, even during hard times. Read more...
Avon, Energizer Top List of Most Widely-Held Mid-Caps
While large and small caps often receive the most attention in the market, mid-cap stocks (those with a capitalization between $2-10 billion), can be thought of as the “Goldilocks” of stocks — less volatile than small caps, but more room for growth than large caps. Read more...
Wallace Weitz Comments on Avon Products
We bought relatively small new positions in Willis Group Holdings and Avon Products in the third quarter. Avon (AVP) is a direct selling, branded beauty business undergoing a turnaround in the U.S. market. The overwhelming majority of Avon’s business value comes from its stronger positions in Latin America and other emerging markets. Our investment thesis is that well-run direct selling can be a decent business with solid margins and high returns, that the Avon brand is not fundamentally broken, and that the U.S. business is bottoming as evidenced by break-even results in the most recent quarter. Avon has a wider range of potential outcomes than our typical investment and is sized accordingly. Read more...

Ratios

vs
industry
vs
history
Forward P/E 11.03
AVP's Forward P/E is ranked higher than
75% of the 453 Companies
in the Global Household & Personal Products industry.

( Industry Median: 16.50 vs. AVP: 11.03 )
Ranked among companies with meaningful Forward P/E only.
N/A
P/S 0.32
AVP's P/S is ranked higher than
77% of the 1383 Companies
in the Global Household & Personal Products industry.

( Industry Median: 0.88 vs. AVP: 0.32 )
Ranked among companies with meaningful P/S only.
AVP' s 10-Year P/S Range
Min: 0.32  Med: 1.16 Max: 2.88
Current: 0.32
0.32
2.88
PFCF 17.89
AVP's PFCF is ranked higher than
58% of the 649 Companies
in the Global Household & Personal Products industry.

( Industry Median: 21.61 vs. AVP: 17.89 )
Ranked among companies with meaningful PFCF only.
AVP' s 10-Year PFCF Range
Min: 10.52  Med: 25.94 Max: 90.57
Current: 17.89
10.52
90.57
POCF 9.94
AVP's POCF is ranked higher than
63% of the 892 Companies
in the Global Household & Personal Products industry.

( Industry Median: 13.37 vs. AVP: 9.94 )
Ranked among companies with meaningful POCF only.
AVP' s 10-Year POCF Range
Min: 7.47  Med: 15.63 Max: 43.85
Current: 9.94
7.47
43.85
EV-to-EBIT 13.91
AVP's EV-to-EBIT is ranked higher than
58% of the 1096 Companies
in the Global Household & Personal Products industry.

( Industry Median: 15.70 vs. AVP: 13.91 )
Ranked among companies with meaningful EV-to-EBIT only.
AVP' s 10-Year EV-to-EBIT Range
Min: 6.8  Med: 15.70 Max: 89.7
Current: 13.91
6.8
89.7
Shiller P/E 14.55
AVP's Shiller P/E is ranked higher than
73% of the 649 Companies
in the Global Household & Personal Products industry.

( Industry Median: 22.22 vs. AVP: 14.55 )
Ranked among companies with meaningful Shiller P/E only.
AVP' s 10-Year Shiller P/E Range
Min: 9.39  Med: 18.63 Max: 40.19
Current: 14.55
9.39
40.19
Current Ratio 1.29
AVP's Current Ratio is ranked lower than
64% of the 1270 Companies
in the Global Household & Personal Products industry.

( Industry Median: 1.59 vs. AVP: 1.29 )
Ranked among companies with meaningful Current Ratio only.
AVP' s 10-Year Current Ratio Range
Min: 0.78  Med: 1.32 Max: 1.84
Current: 1.29
0.78
1.84
Quick Ratio 0.88
AVP's Quick Ratio is ranked lower than
60% of the 1269 Companies
in the Global Household & Personal Products industry.

( Industry Median: 1.07 vs. AVP: 0.88 )
Ranked among companies with meaningful Quick Ratio only.
AVP' s 10-Year Quick Ratio Range
Min: 0.45  Med: 0.91 Max: 1.38
Current: 0.88
0.45
1.38
Days Inventory 102.19
AVP's Days Inventory is ranked lower than
72% of the 1358 Companies
in the Global Household & Personal Products industry.

( Industry Median: 63.59 vs. AVP: 102.19 )
Ranked among companies with meaningful Days Inventory only.
AVP' s 10-Year Days Inventory Range
Min: 86.75  Med: 95.32 Max: 101.8
Current: 102.19
86.75
101.8
Days Sales Outstanding 21.97
AVP's Days Sales Outstanding is ranked higher than
73% of the 1088 Companies
in the Global Household & Personal Products industry.

( Industry Median: 38.42 vs. AVP: 21.97 )
Ranked among companies with meaningful Days Sales Outstanding only.
AVP' s 10-Year Days Sales Outstanding Range
Min: 23.24  Med: 29.33 Max: 37.9
Current: 21.97
23.24
37.9

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.83
AVP's Dividend Yield is ranked higher than
80% of the 1582 Companies
in the Global Household & Personal Products industry.

( Industry Median: 1.96 vs. AVP: 3.83 )
Ranked among companies with meaningful Dividend Yield only.
AVP' s 10-Year Dividend Yield Range
Min: 1.09  Med: 2.39 Max: 6.59
Current: 3.83
1.09
6.59
Dividend Payout 1.40
AVP's Dividend Payout is ranked lower than
91% of the 931 Companies
in the Global Household & Personal Products industry.

( Industry Median: 0.39 vs. AVP: 1.40 )
Ranked among companies with meaningful Dividend Payout only.
AVP' s 10-Year Dividend Payout Range
Min: 0.19  Med: 0.47 Max: 3.83
Current: 1.4
0.19
3.83
Dividend growth (3y) -36.10
AVP's Dividend growth (3y) is ranked lower than
79% of the 566 Companies
in the Global Household & Personal Products industry.

( Industry Median: 3.50 vs. AVP: -36.10 )
Ranked among companies with meaningful Dividend growth (3y) only.
AVP' s 10-Year Dividend growth (3y) Range
Min: -36.1  Med: 5.90 Max: 18.6
Current: -36.1
-36.1
18.6
Yield on cost (5-Year) 0.87
AVP's Yield on cost (5-Year) is ranked lower than
82% of the 1596 Companies
in the Global Household & Personal Products industry.

( Industry Median: 2.35 vs. AVP: 0.87 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
AVP' s 10-Year Yield on cost (5-Year) Range
Min: 0.25  Med: 0.54 Max: 1.5
Current: 0.87
0.25
1.5
Share Buyback Rate -0.20
AVP's Share Buyback Rate is ranked higher than
59% of the 710 Companies
in the Global Household & Personal Products industry.

( Industry Median: -0.70 vs. AVP: -0.20 )
Ranked among companies with meaningful Share Buyback Rate only.
AVP' s 10-Year Share Buyback Rate Range
Min: 4.3  Med: 1.00 Max: -0.9
Current: -0.2

Valuation & Return

vs
industry
vs
history
Price/Projected FCF 0.85
AVP's Price/Projected FCF is ranked higher than
75% of the 611 Companies
in the Global Household & Personal Products industry.

( Industry Median: 1.45 vs. AVP: 0.85 )
Ranked among companies with meaningful Price/Projected FCF only.
AVP' s 10-Year Price/Projected FCF Range
Min: 1.08  Med: 2.18 Max: 6.63
Current: 0.85
1.08
6.63
Price/Median PS Value 0.27
AVP's Price/Median PS Value is ranked higher than
97% of the 1272 Companies
in the Global Household & Personal Products industry.

( Industry Median: 1.08 vs. AVP: 0.27 )
Ranked among companies with meaningful Price/Median PS Value only.
AVP' s 10-Year Price/Median PS Value Range
Min: 0.35  Med: 1.40 Max: 2.58
Current: 0.27
0.35
2.58
Earnings Yield (Greenblatt) (%) 7.20
AVP's Earnings Yield (Greenblatt) (%) is ranked higher than
67% of the 1376 Companies
in the Global Household & Personal Products industry.

( Industry Median: 4.80 vs. AVP: 7.20 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
AVP' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 1.1  Med: 6.40 Max: 14.7
Current: 7.2
1.1
14.7
Forward Rate of Return (Yacktman) (%) -16.17
AVP's Forward Rate of Return (Yacktman) (%) is ranked lower than
82% of the 652 Companies
in the Global Household & Personal Products industry.

( Industry Median: 3.30 vs. AVP: -16.17 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
AVP' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: -20.8  Med: 6.30 Max: 17.3
Current: -16.17
-20.8
17.3

Business Description

Industry: Consumer Packaged Goods » Household & Personal Products
Compare:LRLCY, KMB, RBGPF, EL, UNLRY » details
Traded in other countries:AVP.Argentina, AVP.Chile, AVP.Mexico, AVON34.Brazil, AVP.Germany,
Avon Products Inc was incorporated in the State of New York on January 27, 1916. It is the manufacturer and marketer of beauty and related products. The Company's reportable segments are based on geographic operations in four regions: Latin America; Europe, Middle East & Africa; North America; and Asia Pacific. Its product categories are Beauty and Fashion & Home. Beauty consists of color, fragrance, skincare and personal care. Fashion & Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children's products and nutritional products. The Company conducts its business through direct selling. The Company competes with other consumer packaged goods ("CPG") and direct-selling companies to create, manufacture and market beauty and non-beauty-related products. The Company purchases its raw materials, consisting of essential oils, chemicals, containers and packaging components, for its Beauty products from various suppliers and Fashion & Home products are purchased from various third-party suppliers. The Company markets its products through sales aids such as brochures, product samples and demonstration products. Packages, consisting of containers and packaging components, are designed by the company's staff of artists and designers. The design and development of new Beauty products are affected by the cost and availability of materials such as glass, plastics and chemicals.
» More Articles for AVP

Headlines

Articles On GuruFocus.com
Consumer Defensive Stocks Trading Near 52-Week Lows Jun 25 2015 
Avon, Energizer Top List of Most Widely-Held Mid-Caps Jun 18 2015 
Donald Yacktman's Top Dividend Paying Stocks Jun 15 2015 
Donald Yacktman's Top Dividend Paying Stocks Jun 15 2015 
Two Reasons why Investors Should Dump Avon Products Jun 15 2015 
Nu Skin Enterprises - Is It Worth Investing In? May 21 2015 
Here's Why Herbalife Is Better Than Avon Products May 20 2015 
The Street Suffers From The Fraudulent Avon Bid May 20 2015 
Michael Price Invests in 11 Companies in First Quarter May 19 2015 
Avon Products: Is It Worth Investing? May 18 2015 

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