Download PDF

1. Company Snapshot

1.a. Company Description

Avon Protection plc designs, manufactures, and sells chemical, biological, radiological, and nuclear respiratory protection systems for military, law enforcement, and fire markets worldwide.It offers masks and filters with portfolio of respirators, filters, powered air, and supplied air and long term pedigree for military contracting and supplying chain; escape hoods; underwater rebreathers; and thermal image camera technology and self-contained breathing apparatus, as well as accessories.The company also provides ballistic protection, such as helmets, helmet liner, impact protection, retention system, and body and flat armor.


It offers its products under the Avon Protection and Team Wendy brands.The company was formerly known as Avon Rubber p.l.c. and changed its name to Avon Protection plc in July 2021.Avon Protection plc was founded in 1885 and is headquartered in Melksham, the United Kingdom.

Show Full description

1.b. Last Insights on AVON

Avon Technologies' recent performance was driven by its undervalued intrinsic value, estimated at £17.43. The company's institutional ownership, with 67% of shares held by institutions, suggests significant influence over the company's direction. This, combined with the UK stock market's current volatility, may present opportunities for investors seeking undervalued stocks. Additionally, the company's recent valuation analysis suggests it may be trading at a significant discount, potentially offering a margin of safety for investors.

1.c. Company Highlights

2. Avon Protection Delivers Strong Financial Performance Amid Global Uncertainty

Avon Protection reported a robust financial performance for the period, with revenue increasing by 17% year-over-year and operating profit surging 48% on a constant currency basis. Adjusted earnings per share (EPS) rose significantly to $0.388, beating consensus estimates and reflecting strong operational execution. The company's return on invested capital (ROIC) improved by 660 basis points to 16.3%, underscoring efficient capital allocation. Management highlighted the resilience of the business, driven by strategic initiatives and operational improvements, despite geopolitical and economic headwinds. Richard Cashin noted, "The company's ability to maintain medium-term guidance while investing in growth initiatives demonstrates its strong fundamentals."

Publication Date: May -22

📋 Highlights
  • Order Book Growth: 24% increase in the order book, reflecting strong demand across key markets.
  • Revenue and Profit Growth: 17% revenue growth and 48% rise in operating profit on a constant currency basis.
  • Operational Milestones: Successful relocation of Californian helmet facility and production ramp-up in Salem and Cleveland.
  • Margin Expansion: Adjusted EPS rose by 76% to $0.388 per share, with ROIC improving by 660 basis points to 16.3%.
  • Future Growth Prospects: Record order book and strong demand for respirators and rebreathers, with full-year revenue growth guidance above 10%.

Operational Excellence and Strategic Progress

Avon Protection made notable strides in operational efficiency, with key milestones including the early relocation of its Californian helmet facility and the ramp-up of production in Salem and Cleveland. The company's order book grew 24% year-over-year, reflecting strong demand for its respiratory and head protection solutions. The successful launch of new products, such as the MITR tactical mask and the RIFLETECH helmet, further bolstered growth prospects. Management emphasized the progress under the STAR strategy, particularly in continuous improvement initiatives, which have reduced scrap levels and lead times while enhancing product quality.

Valuation and Growth Outlook

Trading at an EV/EBITDA ratio of 23.98 and a price-to-sales (P/S) ratio of 2.46, Avon Protection's valuation reflects its premium positioning in the market. The company's strong free cash flow yield of 6.32% and ROIC of 16.3% highlight its ability to generate returns for shareholders. Despite current challenges, including production ramp-up inefficiencies, management remains confident in achieving its 2026 operating profit margin target of 14-16%. The company's focus on organic growth, supported by increased R&D investment and commercial optimization, positions it well to capitalize on expanding defense budgets and new market opportunities.

Product Development and Market Expansion

Avon Protection continues to expand its portfolio, with significant progress in core markets such as chemical, biological, and respiratory protection. The successful launch of integrated CBRN solutions, including EXOSKIN, has garnered interest from eight NATO countries, while underwater rebreathers saw contract wins with European NATO navies. Team Wendy's $153 million order book, driven by next-gen helmet demand, further highlights the company's leadership in personal protection systems. Management also emphasized the growing importance of aftermarket support, which is expected to contribute meaningfully to recurring revenues.

Future Expectations and Challenges

Looking ahead, Avon Protection is well-positioned to benefit from strong demand for advanced protective equipment, particularly in light of increased global defense spending. While production challenges in Cleveland remain a near-term focus, management is confident in its ability to address these issues through quality improvements and cultural changes. The company's disciplined approach to capital allocation and its focus on operational excellence provide a solid foundation for long-term growth and shareholder value creation.

3. NewsRoom

Card image cap

How the Story Around Avon Technologies Is Evolving with Stronger Leadership and Upgraded Targets

Nov -26

Source:

Card image cap

UK Value Stocks Trading At Estimated Discounts

Nov -19

Source:

Card image cap

How the Narrative Around Avon Technologies Is Evolving With Analyst Optimism and New Risks

Nov -11

Source:

Card image cap

What Catalysts Are Driving a New Narrative for Avon Technologies Investors

Oct -28

Source:

Card image cap

UK Stock Market's October 2025 Picks For Estimated Value Opportunities

Oct -21

Source:

Card image cap

Exploring the Changing Narrative for Avon Technologies After Recent Analyst Updates

Oct -13

Source:

Card image cap

Taylor Wimpey (LSE:TW.): A Fresh Look at Valuation After a Year of Share Price Pressure

Sep -09

Source:

Card image cap

Assessing Diageo (LSE:DGE) Shares: Is the Current Valuation a Missed Opportunity?

Sep -09

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.71%)

6. Segments

Respiratory Protection

Expected Growth: 3%

Avon Protection's Respiratory Protection segment growth is driven by increasing demand for respiratory protective equipment (RPE) in industrial and military markets, stringent regulations and standards for workplace safety, and rising awareness of airborne threats. Additionally, the company's innovative products, such as the M50 mask, and strategic partnerships contribute to its growth.

Head Protection

Expected Growth: 5%

Avon Protection's Head Protection segment growth is driven by increasing demand for advanced ballistic helmets from military and law enforcement agencies, growing adoption of respiratory protection products in industrial and healthcare markets, and strategic acquisitions expanding product offerings and geographic presence.

7. Detailed Products

Respiratory Protection

Avon Protection plc provides a range of respiratory protection products, including masks, filters, and breathing apparatus, designed to protect individuals from airborne contaminants and hazardous materials.

Ballistic Protection

Avon Protection plc offers a range of ballistic protection products, including helmets, body armor, and shields, designed to protect individuals from ballistic threats.

Operational Clothing

Avon Protection plc provides operational clothing, including uniforms, gloves, and footwear, designed to provide comfort, durability, and protection for individuals in demanding environments.

Escape and Rescue

Avon Protection plc offers escape and rescue products, including escape respirators, escape hoods, and rescue ropes, designed to facilitate safe escape and rescue operations.

Detection and Identification

Avon Protection plc provides detection and identification products, including chemical detectors and identification kits, designed to detect and identify hazardous substances.

8. Avon Protection plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Avon Protection plc's products are specialized, making substitutes less likely. However, the company's reliance on a few key customers increases the threat of substitutes.

Bargaining Power Of Customers

Avon Protection plc's customers, primarily government agencies, have significant bargaining power due to their large orders and ability to negotiate prices.

Bargaining Power Of Suppliers

Avon Protection plc's suppliers have limited bargaining power due to the company's large scale and diversified supply chain.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the defense industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The defense industry is highly competitive, but Avon Protection plc's specialized products and strong relationships with customers mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.97%
Debt Cost 5.46%
Equity Weight 66.03%
Equity Cost 5.46%
WACC 5.46%
Leverage 51.44%

11. Quality Control: Avon Protection plc passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Avon Protection

A-Score: 5.1/10

Value: 1.8

Growth: 5.6

Quality: 3.8

Yield: 3.8

Momentum: 10.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Lisi

A-Score: 4.5/10

Value: 3.4

Growth: 5.0

Quality: 3.9

Yield: 1.2

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Montana Aerospace

A-Score: 4.4/10

Value: 3.6

Growth: 7.4

Quality: 4.9

Yield: 0.0

Momentum: 8.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Fincantieri

A-Score: 4.4/10

Value: 2.8

Growth: 9.4

Quality: 2.4

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

View Full Report
Stock-Card
Senior

A-Score: 4.4/10

Value: 4.3

Growth: 3.6

Quality: 3.6

Yield: 0.6

Momentum: 8.5

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
Exail

A-Score: 3.1/10

Value: 1.1

Growth: 5.1

Quality: 2.3

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.94$

Current Price

17.94$

Potential

-0.00%

Expected Cash-Flows