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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 0.29
AVP's Cash to Debt is ranked higher than
53% of the 1463 Companies
in the Global Household & Personal Products industry.

( Industry Median: 0.84 vs. AVP: 0.29 )
AVP' s 10-Year Cash to Debt Range
Min: 0.06   Max: 1.21
Current: 0.29

0.06
1.21
Equity to Asset 0.15
AVP's Equity to Asset is ranked lower than
60% of the 1452 Companies
in the Global Household & Personal Products industry.

( Industry Median: 0.53 vs. AVP: 0.15 )
AVP' s 10-Year Equity to Asset Range
Min: -0.16   Max: 0.27
Current: 0.15

-0.16
0.27
Interest Coverage 3.54
AVP's Interest Coverage is ranked higher than
51% of the 827 Companies
in the Global Household & Personal Products industry.

( Industry Median: 15.78 vs. AVP: 3.54 )
AVP' s 10-Year Interest Coverage Range
Min: 3.54   Max: 36.36
Current: 3.54

3.54
36.36
F-Score: 3
Z-Score: 3.34
M-Score: -3.08
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 (%) 4.29
AVP's Operating margin (%) is ranked higher than
66% of the 1393 Companies
in the Global Household & Personal Products industry.

( Industry Median: 6.18 vs. AVP: 4.29 )
AVP' s 10-Year Operating margin (%) Range
Min: 4.29   Max: 15.86
Current: 4.29

4.29
15.86
Net-margin (%) -0.57
AVP's Net-margin (%) is ranked higher than
50% of the 1395 Companies
in the Global Household & Personal Products industry.

( Industry Median: 4.38 vs. AVP: -0.57 )
AVP' s 10-Year Net-margin (%) Range
Min: -0.57   Max: 10.92
Current: -0.57

-0.57
10.92
ROE (%) -5.08
AVP's ROE (%) is ranked lower than
53% of the 1379 Companies
in the Global Household & Personal Products industry.

( Industry Median: 7.90 vs. AVP: -5.08 )
AVP' s 10-Year ROE (%) Range
Min: -5.08   Max: 179.05
Current: -5.08

-5.08
179.05
ROA (%) -0.87
AVP's ROA (%) is ranked lower than
51% of the 1399 Companies
in the Global Household & Personal Products industry.

( Industry Median: 4.15 vs. AVP: -0.87 )
AVP' s 10-Year ROA (%) Range
Min: -0.87   Max: 20.4
Current: -0.87

-0.87
20.4
ROC (Joel Greenblatt) (%) 25.42
AVP's ROC (Joel Greenblatt) (%) is ranked higher than
85% of the 1390 Companies
in the Global Household & Personal Products industry.

( Industry Median: 16.49 vs. AVP: 25.42 )
AVP' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 25.01   Max: 102.95
Current: 25.42

25.01
102.95
Revenue Growth (%) -3.00
AVP's Revenue Growth (%) is ranked higher than
52% of the 1258 Companies
in the Global Household & Personal Products industry.

( Industry Median: 5.00 vs. AVP: -3.00 )
AVP' s 10-Year Revenue Growth (%) Range
Min: -3   Max: 12.8
Current: -3

-3
12.8
EBITDA Growth (%) -25.70
AVP's EBITDA Growth (%) is ranked higher than
50% of the 1125 Companies
in the Global Household & Personal Products industry.

( Industry Median: 3.00 vs. AVP: -25.70 )
AVP' s 10-Year EBITDA Growth (%) Range
Min: -25.7   Max: 19.8
Current: -25.7

-25.7
19.8
» AVP's 10-Y Financials

Financials


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

» Details

Guru Trades

Q3 2013

AVP Guru Trades in Q3 2013

Joel Greenblatt 380,957 sh (+294.46%)
Steven Cohen 52,734 sh (+86.23%)
Mario Gabelli 1,081,900 sh (+2.87%)
Charles Brandes 451,604 sh (+0.68%)
Murray Stahl 39,118 sh (+0.51%)
Brian Rogers 10,132,400 sh (unchged)
Yacktman Fund 8,400,000 sh (unchged)
Steven Cohen 600,000 sh (unchged)
Yacktman Focused Fund 7,200,000 sh (unchged)
Wallace Weitz 15,000 sh (unchged)
Ray Dalio Sold Out
Donald Yacktman 18,778,080 sh (-0.87%)
Jeff Auxier 211,266 sh (-5.29%)
Ken Fisher 455,239 sh (-27.12%)
» More
Q4 2013

AVP Guru Trades in Q4 2013

Paul Tudor Jones 17,626 sh (New)
Jeremy Grantham 36,809 sh (New)
NWQ Managers 6,848,110 sh (New)
Wallace Weitz 730,000 sh (+4766.67%)
Joel Greenblatt 811,077 sh (+112.91%)
Charles Brandes 532,114 sh (+17.83%)
Mario Gabelli 1,151,800 sh (+6.46%)
Steven Cohen 54,799 sh (+3.92%)
Donald Yacktman 18,800,116 sh (+0.12%)
Yacktman Focused Fund 7,200,000 sh (unchged)
Steven Cohen 600,000 sh (unchged)
Brian Rogers 10,132,400 sh (unchged)
Yacktman Fund 8,400,000 sh (unchged)
Ken Fisher 447,764 sh (-1.64%)
Jeff Auxier 207,216 sh (-1.92%)
Murray Stahl 31,818 sh (-18.66%)
» More
Q1 2014

AVP Guru Trades in Q1 2014

Ray Dalio 37,169 sh (New)
Richard Snow 75,000 sh (New)
Jim Simons 3,676,546 sh (New)
Joel Greenblatt 2,479,214 sh (+205.67%)
Wallace Weitz 2,094,000 sh (+186.85%)
Yacktman Fund 11,279,500 sh (+34.28%)
Yacktman Focused Fund 9,642,500 sh (+33.92%)
Donald Yacktman 24,999,556 sh (+32.98%)
Charles Brandes 648,944 sh (+21.96%)
Steven Cohen 66,664 sh (+21.65%)
Steven Cohen 2,501,800 sh (unchged)
Brian Rogers 10,132,400 sh (unchged)
Jeremy Grantham Sold Out
Paul Tudor Jones Sold Out
Jeff Auxier 205,416 sh (-0.87%)
Ken Fisher 440,794 sh (-1.56%)
Mario Gabelli 1,122,300 sh (-2.56%)
NWQ Managers 6,607,312 sh (-3.52%)
Murray Stahl 12,300 sh (-61.34%)
» More
Q2 2014

AVP Guru Trades in Q2 2014

Yacktman Fund 12,338,500 sh (+9.39%)
Yacktman Focused Fund 10,377,372 sh (+7.62%)
Brian Rogers 10,582,400 sh (+4.44%)
Ken Fisher Sold Out
» More
» Details

Insider Trades

Latest Guru Trades with AVP

» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Avon Products Inc

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

Yacktman Funds Comments on Avon - Mar 13, 2013

Avon (AVP)'s shares disappointed in 2012, though we believe Avon's global distribution channel and products have significantly more value than the current share price. We like the management changes that occurred at the company and believe that the shares are very attractive given the expected earnings power of the business.

From Yacktman Funds 2012 annual letter.


Check out Donald Yacktman latest stock trades

Top Ranked Articles about Avon Products Inc

Weekly 3-Year Low Highlights: AVP, STAY, RAX, LDR, PFSI
According to GuruFocus' list of three-year lows; Avon Products Inc., Extended Stay America Inc., Rackspace Hosting Inc., Landauer Inc. and PennyMac Financial Services Inc. have all reached their three-year lows. Read more...
Yacktman Funds Comments on Avon Products
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. Read more...
Why Donald Yacktman Is Holding on to Avon and Cisco Despite Stock Drops
Donald Yacktman (Trades, Portfolio)’s fourth quarter portfolio, recently released, revealed that his Yacktkman Funds (YACKX) team opted to stick with two companies whose stock prices have pulled back in recent months. Their fourth-quarter letter, released today, provide insight into why the holdings still represent good values. Read more...
Yacktman Fund Comments on Avon Products
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. Read more...

Ratios

vs
industry
vs
history
P/B 6.30
AVP's P/B is ranked lower than
52% of the 1580 Companies
in the Global Household & Personal Products industry.

( Industry Median: 1.99 vs. AVP: 6.30 )
AVP' s 10-Year P/B Range
Min: 3.79   Max: 86.74
Current: 6.3

3.79
86.74
P/S 0.60
AVP's P/S is ranked higher than
78% of the 1580 Companies
in the Global Household & Personal Products industry.

( Industry Median: 1.09 vs. AVP: 0.60 )
AVP' s 10-Year P/S Range
Min: 0.56   Max: 3.02
Current: 0.6

0.56
3.02
PFCF 16.20
AVP's PFCF is ranked higher than
84% of the 1580 Companies
in the Global Household & Personal Products industry.

( Industry Median: 51.08 vs. AVP: 16.20 )
AVP' s 10-Year PFCF Range
Min: 14.68   Max: 90.57
Current: 16.2

14.68
90.57
EV-to-EBIT 39.51
AVP's EV-to-EBIT is ranked higher than
60% of the 1580 Companies
in the Global Household & Personal Products industry.

( Industry Median: 19.68 vs. AVP: 39.51 )
AVP' s 10-Year EV-to-EBIT Range
Min: 6.8   Max: 42.1
Current: 39.51

6.8
42.1
Shiller P/E 14.50
AVP's Shiller P/E is ranked higher than
92% of the 1580 Companies
in the Global Household & Personal Products industry.

( Industry Median: 9999.00 vs. AVP: 14.50 )
AVP' s 10-Year Shiller P/E Range
Min: 9.45   Max: 43.46
Current: 14.5

9.45
43.46
Current Ratio 1.46
AVP's Current Ratio is ranked higher than
64% of the 1464 Companies
in the Global Household & Personal Products industry.

( Industry Median: 1.62 vs. AVP: 1.46 )
AVP' s 10-Year Current Ratio Range
Min: 0.78   Max: 1.84
Current: 1.46

0.78
1.84
Quick Ratio 1.01
AVP's Quick Ratio is ranked higher than
67% of the 1464 Companies
in the Global Household & Personal Products industry.

( Industry Median: 1.06 vs. AVP: 1.01 )
AVP' s 10-Year Quick Ratio Range
Min: 0.45   Max: 1.38
Current: 1.01

0.45
1.38

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.80
AVP's Dividend Yield is ranked lower than
52% of the 1104 Companies
in the Global Household & Personal Products industry.

( Industry Median: 1.80 vs. AVP: 1.80 )
AVP' s 10-Year Dividend Yield Range
Min: 1.02   Max: 6.59
Current: 1.8

1.02
6.59
Dividend growth (3y) -35.20
AVP's Dividend growth (3y) is ranked higher than
58% of the 790 Companies
in the Global Household & Personal Products industry.

( Industry Median: 2.70 vs. AVP: -35.20 )
AVP' s 10-Year Dividend growth (3y) Range
Min: -35.2   Max: 18.6
Current: -35.2

-35.2
18.6
Yield on cost (5-Year) 0.47
AVP's Yield on cost (5-Year) is ranked lower than
86% of the 1109 Companies
in the Global Household & Personal Products industry.

( Industry Median: 1.94 vs. AVP: 0.47 )
AVP' s 10-Year Yield on cost (5-Year) Range
Min: 0.27   Max: 1.74
Current: 0.47

0.27
1.74
Share Buyback Rate -0.20
AVP's Share Buyback Rate is ranked higher than
75% of the 880 Companies
in the Global Household & Personal Products industry.

( Industry Median: -0.30 vs. AVP: -0.20 )
AVP' s 10-Year Share Buyback Rate Range
Min: 3.4   Max: -0.3
Current: -0.2

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 9.60
AVP's Price/Tangible Book is ranked higher than
52% of the 1580 Companies
in the Global Household & Personal Products industry.

( Industry Median: 3.13 vs. AVP: 9.60 )
AVP' s 10-Year Price/Tangible Book Range
Min: 7.33   Max: 388.75
Current: 9.6

7.33
388.75
Price/DCF (Projected) 1.30
AVP's Price/DCF (Projected) is ranked higher than
89% of the 1580 Companies
in the Global Household & Personal Products industry.

( Industry Median: 9999.00 vs. AVP: 1.30 )
AVP' s 10-Year Price/DCF (Projected) Range
Min: 1.2   Max: 6.63
Current: 1.3

1.2
6.63
Price/Median PS Value 0.40
AVP's Price/Median PS Value is ranked higher than
98% of the 1580 Companies
in the Global Household & Personal Products industry.

( Industry Median: 1.17 vs. AVP: 0.40 )
AVP' s 10-Year Price/Median PS Value Range
Min: 0.43   Max: 2.19
Current: 0.4

0.43
2.19
Earnings Yield (Greenblatt) 2.60
AVP's Earnings Yield (Greenblatt) is ranked higher than
50% of the 1375 Companies
in the Global Household & Personal Products industry.

( Industry Median: 6.10 vs. AVP: 2.60 )
AVP' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.4   Max: 14.7
Current: 2.6

2.4
14.7
Forward Rate of Return (Yacktman) -14.44
AVP's Forward Rate of Return (Yacktman) is ranked higher than
51% of the 1051 Companies
in the Global Household & Personal Products industry.

( Industry Median: 6.10 vs. AVP: -14.44 )
AVP' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -13.9   Max: 19.4
Current: -14.44

-13.9
19.4

Business Description

Industry: Consumer Packaged Goods » Household & Personal Products
Compare:LRLCY, KMB, RBGPF, EL, UNLRY » details
Traded in other countries:AVP.Germany
Avon Products Inc. commenced operations in 1886 and was incorporated in the State of New York on January 27, 1916. It is a manufacturer and marketer of beauty and related products. The reportable segments of the Company are based on geographic operations in six regions: Latin America; North America; Central & Eastern Europe; Western Europe, Middle East & Africa; Asia Pacific; and China. The Company's product categories are Beauty, Fashion and Home. Beauty consists of color cosmetics, fragrances, skin care and personal care. Fashion consists of fashion jewelry, watches, apparel, footwear and accessories. Home consists of gift and decorative products, housewares, entertainment and leisure products and children's and nutritional products. Sales from Health and Wellness products and mark., a global cosmetics brand that focuses on the market for young women, are included among these three categories based on product type. The Company presently has sales operations in 65 countries and territories, including the U.S., and distributes its products in 43 or more countries. The Company manufactures and package almost all of is Beauty products. Raw materials, consisting chiefly of essential oils, chemicals, containers and packaging components, are purchased for its Beauty products from various suppliers. Almost all of the company's Fashion and Home products are purchased from various suppliers. 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. Worldwide, the company competes against products sold to consumers by other direct-selling and direct-sales companies and through the Internet, and against products sold through the mass market and prestige retail channels.
» More Articles for AVP

Headlines

Articles On GuruFocus.com
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Yacktman Funds Comments on Avon Products Mar 12 2014 
Why Donald Yacktman Is Holding on to Avon and Cisco Despite Stock Drops Jan 31 2014 
Yacktman Fund Comments on Avon Products Jan 30 2014 

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