# Avon Rubber p.l.c. (AVON.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Aerospace & Defense. Price 1836p, market value 541 millionp.

## Valuation
- **P/E (trailing): 41.7×** (5-yr avg 9323.0×, 3-yr avg 9323.0×). Avon Rubber p.l.c. trades at 41.7× trailing earnings, well below its own five-year average of 9323.0×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 18.3×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.07**. A PEG of 0.07 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.1×**. Each dollar of revenue is priced at 1.1×.
- **Price / book: 4.1×**. The shares trade at 4.1× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 9.4×**. Enterprise value is 9.4× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 6.4%** (5-yr avg 0.0%). Free cash flow equals 6.4% of the market value, above its five-year average of 0.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 2.4%**. The inverse of the P/E: 2.4% of the price is earned each year.

## Profitability
- **Gross margin: 40.8%**. Avon Rubber p.l.c. keeps 40.8% of revenue after the direct cost of what it sells.
- **Operating margin: 6.8%**. 6.8% of revenue is left after running the business.
- **Net margin: 3.3%**. 3.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 6.4%**. 6.4% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 15.3%**. Return on all capital, debt included, is 15.3%: comfortably above what that capital costs.
- **Return on assets: 7.7%**. Each dollar of assets produces 7.7% of profit.

## Growth
- **Revenue growth (1 yr): 17.6%** (3-yr 12.3%/yr, 5-yr 14.0%/yr). Revenue grew 17.6% over the last year, against 14.0% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 260.8%** (5-yr 29.7%/yr). Earnings per share rose 260.8%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 1.8%/yr**. Free cash flow has compounded at 1.8% a year over three years.

## Financial health
- **Debt to equity: 0.49**. Debt is 0.49 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.8×**. It would take 0.8 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 3.4×**. Operating profit covers interest 3.4× over, a safe margin.
- **Current ratio: 2.39** (quick 1.29). Current assets cover the next year's liabilities 2.39 times.
- **Altman Z-score: 4.48**. A Z-score of 4.48 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 1.01%** (0p per share, trailing). Avon Rubber p.l.c. yields 1.01%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 70%** (32% of free cash flow). 70% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 1**. 1 straight year of increases.
- **Dividend growth (5 yr): -4.1%/yr** (1-yr 4.8%). The dividend has not grown over five years.
- **Shareholder yield: 2.9%**. Dividends plus net buybacks return 2.9% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (1 analyst). 1 analysts cover Avon Rubber p.l.c.; the consensus is strong_buy, with an average price target of 2391p (+30% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -5.0%** (YTD 0.4%, 3-mo 9.2%). The shares are down 5.0% over twelve months including dividends.
- **From 52-week high: -15.8%** (25.9% above the low). Trading 16% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 50**. An RSI of 50 is neutral.
- **Beta (1 yr): 0.69** (volatility 29%). Beta of 0.69 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=AVON.L · Page: https://foliofundamentals.com/stocks/avon.l

Not investment advice.