Capitalcube gives Revlon, Inc. a score of 41.
Our analysis is based on comparing Revlon, Inc. with the following peers – Avon Products, Inc., Estee Lauder Companies Inc. Class A, Inter Parfums, Inc., Nu Skin Enterprises, Inc. Class A, L’Oreal SA Unsponsored ADR, Edgewell Personal Care Co., Procter & Gamble Company, Coty Inc. Class A and CCA Industries, Inc. (AVP-US, EL-US, IPAR-US, NUS-US, LRLCY-US, EPC-US, PG-US, COTY-US and CAW-US).
Revlon, Inc. has a fundamental score of 41 and has a relative valuation of UNDERVALUED.
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- Considering peers, relative outperformance over the last year and the last month suggest a leading position.
- Revlon, Inc. Class A currently has a negative book value and its current Price/Assets ratio of 0.52 is lower than its peer median (1.52).
- REV-US‘s book value of equity is not positive and suggests that that it is not meaningful to analyze its ROE versus P/E in order to determine whether the company has an operating or growth advantage.
- REV-US has relatively low profit margins and median asset efficiency.
- The company’s year-on-year change in revenues and earnings are better than the median among its peer group.
- REV-US‘s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
- The company’s median gross margin and relatively low pre-tax margin suggest high operating costs versus peers.
- Compared with the peers chosen, REV-US has had faster revenue growth in prior years and a current P/E ratio that suggests faster growth in the future suggesting superior growth expectations.
- The company’s capital investment program and to-date returns suggest that the company is likely making big bets on the future.
- REV-US seems to be constrained by the current level of debt.
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Leverage & Liquidity
REV-US is debt-constrained.
- With debt at a relatively high 59.95% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 13.65%), and interest coverage level of 2.68x, REV-US seems debt-constrained.
- All 9 peers for the company have an outstanding debt balance.
REV-US has moved to a relatively high leverage from an Some Capacity profile at the recent year-end.
- REV-US‘s interest coverage is similar to last year’s high of 3.01x, which compares to a low of 1.95x in 2011.
- Compared to 2015, interest coverage has remained relatively stable for both the company (2.68x) and the peer median (13.39x).
- Interest coverage fell 0.76 points relative to peers.
- REV-US‘s debt-EV is less than (but within one standard deviation of) its five-year average debt-EV of 62.24%.
- The decrease in its debt-EV to 59.95% from 61.94% (in 2015) was also accompanied by a decrease in its peer median during this period to 13.65% from 14.44%.
- Relative to peers, debt-EV fell 1.20 percentage points. Unlike the peer median, it is also above the 25% leverage benchmark.
Access the detailed analysis for Revlon, Inc.
Key Liquidity Items
|Company||Debt/Enterprise Value (%)||Current Ratio||Interest Coverage (x)||Cash Flow To Total Debt (%)|
|Avon Products, Inc.||53.56||1.54||2.67||13.33|
|Estee Lauder Companies Inc. Class A||7.4||1.62||22.37||68.78|
|Inter Parfums, Inc.||8.53||3.65||21.88||57.54|
|Nu Skin Enterprises, Inc. Class A||12.23||2.18||30.71||60.65|
|L’Oreal SA Unsponsored ADR||0.91||1.06||267.27||363.72|
|Edgewell Personal Care Co.||32.3||1.67||4.91||10.93|
|Procter & Gamble Company||12.11||1.09||24.6||42.03|
|Coty Inc. Class A||36.54||1.12||3.36||6.65|
|CCA Industries, Inc.||15.07||0.77||0.98||-2.97|
|Revlon, Inc. Class A||59.95||1.61||2.68||9.75|
|Best In Class||0.91||3.65||267.27||363.72|
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Revlon, Inc. manufactures, markets and sells beauty and personal care products. The company’s products include cosmetics, hair color, hair care and hair treatments, beauty tools, men’s grooming products, anti-perspirant deodorants, fragrances, skincare and other beauty care products. It operates its business through the following segments: consumer segment, professional segment and other segment. The Consumer segment is comprised of products that are manufactured, marketed and sold primarily within the mass retail channel in the U.S. and internationally, as well as certain department stores and other specialty stores outside the U.S., under brands such as Revlon, Almay, SinfulColors and Pure Ice in cosmetics; Revlon ColorSilk in women’s hair color; Revlon in beauty tools; and Mitchum in anti-perspirant deodorants. The Professional segment manufactures, markets and sells professional products primarily to hair and nail salons and distributors in the U.S. and internationally under brands such as Revlon Professional in hair color, hair care and hair treatments; CND in nail polishes and enhancements, including CND Shellac and CND Vinylux nail polishes; and American Crew in men’s grooming products. The Other segment includes the operating results of the CBB business and related purchase accounting for the CBB Acquisition. Revlon was founded by Charles Revson, Joseph Revson, and Charles Lachman in March 1932 and is headquartered in New York, NY.
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