AEROVIRONMENT INC (AVAV) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:AVAV - US0080731088 - Common Stock

307.23 USD

-4.89 (-1.57%)

Last: 1/23/2026, 3:42:08 PM

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to AVAV. AVAV was compared to 73 industry peers in the Aerospace & Defense industry. The financial health of AVAV is average, but there are quite some concerns on its profitability. AVAV shows excellent growth, but is valued quite expensive already.

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1. Profitability

1.1 Basic Checks

AVAV had positive earnings in the past year.
AVAV had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AVAV reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: AVAV reported negative operating cash flow in multiple years.

1.2 Ratios

AVAV has a Return On Assets (-1.23%) which is comparable to the rest of the industry.
AVAV's Return On Equity of -1.57% is in line compared to the rest of the industry. AVAV outperforms 45.21% of its industry peers.

		Industry Rank	Sector Rank
ROA	-1.23%
ROE	-1.57%
ROIC	N/A

ROA(3y)-3.87%

ROA(5y)-1.91%

ROE(3y)-6.6%

ROE(5y)-3.34%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

In the last couple of years the Profit Margin of AVAV has declined.
In the last couple of years the Operating Margin of AVAV has declined.
AVAV has a Gross Margin of 26.48%. This is comparable to the rest of the industry: AVAV outperforms 56.16% of its industry peers.
In the last couple of years the Gross Margin of AVAV has remained more or less at the same level.
The Profit Margin and Operating Margin are not available for AVAV so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	26.48%

OM growth 3YN/A

OM growth 5Y-10.88%

PM growth 3YN/A

PM growth 5Y-13.83%

GM growth 3Y7.02%

GM growth 5Y-1.41%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

AVAV does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for AVAV has been increased compared to 1 year ago.
Compared to 5 years ago, AVAV has more shares outstanding
The debt/assets ratio for AVAV is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 8.21 indicates that AVAV is not in any danger for bankruptcy at the moment.
The Altman-Z score of AVAV (8.21) is better than 71.23% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that AVAV is not too dependend on debt financing.
The Debt to Equity ratio of AVAV (0.16) is better than 75.34% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.16
Debt/FCF	N/A
Altman-Z	8.21

ROIC/WACCN/A

WACC9.85%

2.3 Liquidity

A Current Ratio of 5.08 indicates that AVAV has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.08, AVAV belongs to the best of the industry, outperforming 83.56% of the companies in the same industry.
A Quick Ratio of 4.29 indicates that AVAV has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 4.29, AVAV belongs to the top of the industry, outperforming 84.93% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	5.08
Quick Ratio	4.29

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 10.33% over the past year.
The Earnings Per Share has been growing by 12.43% on average over the past years. This is quite good.
The Revenue has grown by 79.89% in the past year. This is a very strong growth!
The Revenue has been growing by 17.44% on average over the past years. This is quite good.

EPS 1Y (TTM)10.33%

EPS 3Y38.53%

EPS 5Y12.43%

EPS Q2Q%-6.38%

Revenue 1Y (TTM)79.89%

Revenue growth 3Y22.57%

Revenue growth 5Y17.44%

Sales Q2Q%150.72%

3.2 Future

AVAV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.79% yearly.
Based on estimates for the next years, AVAV will show a very strong growth in Revenue. The Revenue will grow by 37.65% on average per year.

EPS Next Y8%

EPS Next 2Y20.25%

EPS Next 3Y24.21%

EPS Next 5Y22.79%

Revenue Next Year153.96%

Revenue Next 2Y72.39%

Revenue Next 3Y50.75%

Revenue Next 5Y37.65%

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 Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 115.07, which means the current valuation is very expensive for AVAV.
The rest of the industry has a similar Price/Earnings ratio as AVAV.
When comparing the Price/Earnings ratio of AVAV to the average of the S&P500 Index (27.30), we can say AVAV is valued expensively.
A Price/Forward Earnings ratio of 64.97 indicates a quite expensive valuation of AVAV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVAV is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of AVAV to the average of the S&P500 Index (24.32), we can say AVAV is valued expensively.

		Industry Rank	Sector Rank
PE	115.07
Fwd PE	64.97

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AVAV is valued a bit more expensive than 61.64% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	116.58

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as AVAV's earnings are expected to grow with 24.21% in the coming years.