First, forgive the intrusion. The idea for this thread was from one Jim Stewart, a Financial writer, who would ask his daughter ( or was it niece?) For tips about fashion related products for his financial column.
AVON stock has plummetted 60% in the last year. The venerable investor Warren Buffet backed COTY ( a competitor?) to bid for AVON at a 75% premium to current price. Thus implying the shares now may be undervalued.
AVON appears to deploy its assets ( capital) more efficiently than its competitors. A metric - assets/revenues was used by The WSJ to quantify this efficiency. The lower this ratio, the more efficient the deployment. Why? I think because for a fixed revenue generated, less capital is used. So here is this ratio for AVON and its competitors:
AVON. 0.8
PROCTOR & GAMBLE. 2.6
L,'OREAL. 2.5
ESTIE LAUDER. 2.5
REVLON. 1.5
Balance sheet:
Current assets 4b
Current liabilities 2.8b$
So that is good.
No info was provided on total debt, operating leases, unfunded obligations. The first and last - info easily obtainable.
Wild card - how promising are its products?
Any input those in the know can provide will be useful.
Again, sorry for the intrusion.