AEROVIRONMENT INC (AVAV) Stock Fundamental Analysis
NASDAQ:AVAV - Nasdaq - US0080731088 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to AVAV. AVAV was compared to 65 industry peers in the Aerospace & Defense industry. While AVAV has a great health rating, its profitability is only average at the moment. AVAV is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AVAV had positive earnings in the past year.
AVAV had a positive operating cash flow in the past year.
In multiple years AVAV reported negative net income over the last 5 years.
AVAV had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of AVAV (5.90%) is better than 70.31% of its industry peers.
AVAV's Return On Equity of 6.97% is in line compared to the rest of the industry. AVAV outperforms 53.13% of its industry peers.
The Return On Invested Capital of AVAV (6.25%) is better than 60.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.9% | ||
| ROE | 6.97% | ||
| ROIC | 6.25% |
ROA(3y)-5.32%
ROA(5y)-1.28%
ROE(3y)-8.47%
ROE(5y)-2.71%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
AVAV's Profit Margin of 7.82% is fine compared to the rest of the industry. AVAV outperforms 67.19% of its industry peers.
In the last couple of years the Profit Margin of AVAV has declined.
The Operating Margin of AVAV (9.25%) is better than 62.50% of its industry peers.
AVAV's Operating Margin has been stable in the last couple of years.
AVAV has a better Gross Margin (39.76%) than 84.38% of its industry peers.
In the last couple of years the Gross Margin of AVAV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.25% | ||
| PM (TTM) | 7.82% | ||
| GM | 39.76% |
OM growth 3Y-2.12%
OM growth 5Y-0.89%
PM growth 3Y12.16%
PM growth 5Y-11.2%
GM growth 3Y-1.68%
GM growth 5Y-0.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVAV is destroying value.
AVAV has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AVAV has been increased compared to 5 years ago.
Compared to 1 year ago, AVAV has an improved debt to assets ratio.
2.2 Solvency
AVAV has an Altman-Z score of 19.21. This indicates that AVAV is financially healthy and has little risk of bankruptcy at the moment.
AVAV's Altman-Z score of 19.21 is amongst the best of the industry. AVAV outperforms 98.44% of its industry peers.
AVAV has a debt to FCF ratio of 0.49. This is a very positive value and a sign of high solvency as it would only need 0.49 years to pay back of all of its debts.
AVAV has a better Debt to FCF ratio (0.49) than 93.75% of its industry peers.
AVAV has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
AVAV has a Debt to Equity ratio of 0.01. This is amongst the best in the industry. AVAV outperforms 92.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | 19.21 |
ROIC/WACC0.67
WACC9.28%
2.3 Liquidity
A Current Ratio of 4.26 indicates that AVAV has no problem at all paying its short term obligations.
AVAV has a Current ratio of 4.26. This is amongst the best in the industry. AVAV outperforms 84.38% of its industry peers.
A Quick Ratio of 3.04 indicates that AVAV has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.04, AVAV belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.26 | ||
| Quick Ratio | 3.04 |
3. Growth
3.1 Past
The earnings per share for AVAV have decreased strongly by -26.44% in the last year.
The Earnings Per Share has been growing by 11.60% on average over the past years. This is quite good.
Looking at the last year, AVAV shows a very strong growth in Revenue. The Revenue has grown by 32.60%.
AVAV shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.92% yearly.
EPS 1Y (TTM)-26.44%
EPS 3Y13%
EPS 5Y11.6%
EPS Q2Q%-51.55%
Revenue 1Y (TTM)32.6%
Revenue growth 3Y21.98%
Revenue growth 5Y17.92%
Sales Q2Q%4.23%
3.2 Future
The Earnings Per Share is expected to grow by 17.66% on average over the next years. This is quite good.
Based on estimates for the next years, AVAV will show a quite strong growth in Revenue. The Revenue will grow by 13.04% on average per year.
EPS Next Y16.08%
EPS Next 2Y23.69%
EPS Next 3Y22.21%
EPS Next 5Y17.66%
Revenue Next Year16.03%
Revenue Next 2Y19.18%
Revenue Next 3Y18.04%
Revenue Next 5Y13.04%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 63.96, the valuation of AVAV can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of AVAV is on the same level as its industry peers.
AVAV's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.63.
A Price/Forward Earnings ratio of 33.39 indicates a quite expensive valuation of AVAV.
AVAV's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, AVAV is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.96 | ||
| Fwd PE | 33.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVAV indicates a slightly more expensive valuation: AVAV is more expensive than 60.94% of the companies listed in the same industry.
AVAV's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 126.82 | ||
| EV/EBITDA | 40.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AVAV does not grow enough to justify the current Price/Earnings ratio.
AVAV's earnings are expected to grow with 22.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.98
PEG (5Y)5.51
EPS Next 2Y23.69%
EPS Next 3Y22.21%
5. Dividend
5.1 Amount
AVAV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
154.79
-3.34 (-2.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners91.81%
Inst Owner Change4.43%
Ins Owners1.08%
Ins Owner Change-0.29%
Market Cap4.37B
Analysts85
Price Target211.36 (36.55%)
Short Float %10.28%
Short Ratio5.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)64.36%
Min EPS beat(2)34.58%
Max EPS beat(2)94.15%
EPS beat(4)4
Avg EPS beat(4)67.69%
Min EPS beat(4)34.58%
Max EPS beat(4)94.15%
EPS beat(8)5
Avg EPS beat(8)52.54%
EPS beat(12)7
Avg EPS beat(12)19.39%
EPS beat(16)11
Avg EPS beat(16)272.78%
Revenue beat(2)2
Avg Revenue beat(2)1.27%
Min Revenue beat(2)0.12%
Max Revenue beat(2)2.42%
Revenue beat(4)4
Avg Revenue beat(4)3.37%
Min Revenue beat(4)0.12%
Max Revenue beat(4)7.2%
Revenue beat(8)7
Avg Revenue beat(8)5.31%
Revenue beat(12)8
Avg Revenue beat(12)1.34%
Revenue beat(16)11
Avg Revenue beat(16)1.43%
PT rev (1m)-3.68%
PT rev (3m)-6.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.24%
EPS NY rev (3m)-1.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.96 | ||
| Fwd PE | 33.39 | ||
| P/S | 5.79 | ||
| P/FCF | 126.82 | ||
| P/OCF | 71.91 | ||
| P/B | 5.16 | ||
| P/tB | 8.69 | ||
| EV/EBITDA | 40.93 |
EPS(TTM)2.42
EY1.56%
EPS(NY)4.64
Fwd EY2.99%
FCF(TTM)1.22
FCFY0.79%
OCF(TTM)2.15
OCFY1.39%
SpS26.73
BVpS29.98
TBVpS17.8
PEG (NY)3.98
PEG (5Y)5.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.9% | ||
| ROE | 6.97% | ||
| ROCE | 7.91% | ||
| ROIC | 6.25% | ||
| ROICexc | 6.88% | ||
| ROICexgc | 12.05% | ||
| OM | 9.25% | ||
| PM (TTM) | 7.82% | ||
| GM | 39.76% | ||
| FCFM | 4.57% |
ROA(3y)-5.32%
ROA(5y)-1.28%
ROE(3y)-8.47%
ROE(5y)-2.71%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-4.36%
ROICexcg growth 5Y-7.43%
ROICexc growth 3Y11.62%
ROICexc growth 5Y-17.4%
OM growth 3Y-2.12%
OM growth 5Y-0.89%
PM growth 3Y12.16%
PM growth 5Y-11.2%
GM growth 3Y-1.68%
GM growth 5Y-0.61%
F-Score7
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.49 | ||
| Debt/EBITDA | 0.06 | ||
| Cap/Depr | 69.81% | ||
| Cap/Sales | 3.49% | ||
| Interest Coverage | 12.88 | ||
| Cash Conversion | 56.54% | ||
| Profit Quality | 58.4% | ||
| Current Ratio | 4.26 | ||
| Quick Ratio | 3.04 | ||
| Altman-Z | 19.21 |
F-Score7
WACC9.28%
ROIC/WACC0.67
Cap/Depr(3y)40%
Cap/Depr(5y)58.38%
Cap/Sales(3y)3.72%
Cap/Sales(5y)3.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-26.44%
EPS 3Y13%
EPS 5Y11.6%
EPS Q2Q%-51.55%
EPS Next Y16.08%
EPS Next 2Y23.69%
EPS Next 3Y22.21%
EPS Next 5Y17.66%
Revenue 1Y (TTM)32.6%
Revenue growth 3Y21.98%
Revenue growth 5Y17.92%
Sales Q2Q%4.23%
Revenue Next Year16.03%
Revenue Next 2Y19.18%
Revenue Next 3Y18.04%
Revenue Next 5Y13.04%
EBIT growth 1Y750.2%
EBIT growth 3Y19.4%
EBIT growth 5Y16.87%
EBIT Next Year61.15%
EBIT Next 3Y46.02%
EBIT Next 5Y28.41%
FCF growth 1Y5161.76%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y181.42%
OCF growth 3Y-43.88%
OCF growth 5Y-4.51%