AMERICAN VANGUARD CORP (AVD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVD - US0303711081 - Common Stock
4.86 USD
+0.05 (+1.04%)
4.95 USD
+0.09 (+1.85%)
Overall AVD gets a fundamental rating of 3 out of 10. We evaluated AVD against 83 industry peers in the Chemicals industry. AVD may be in some trouble as it scores bad on both profitability and health. AVD has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year AVD has reported negative net income.
- In the past year AVD had a positive cash flow from operations.
- Of the past 5 years AVD 4 years were profitable.
- Of the past 5 years AVD 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of -17.11%, AVD is doing worse than 84.34% of the companies in the same industry.
- AVD's Return On Equity of -50.73% is on the low side compared to the rest of the industry. AVD is outperformed by 83.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -17.11% | ||
| ROE | -50.73% | ||
| ROIC | N/A |
ROA(3y)-5.03%
ROA(5y)-2.04%
ROE(3y)-14.92%
ROE(5y)-7.11%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- AVD has a Gross Margin (24.11%) which is in line with its industry peers.
- AVD's Gross Margin has declined in the last couple of years.
- The Profit Margin and Operating Margin are not available for AVD so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 24.11% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-16.88%
GM growth 5Y-10.32%
2. Health
2.1 Basic Checks
- AVD does not have a ROIC to compare to the WACC, probably because it is not profitable.
- AVD has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for AVD has been reduced compared to 5 years ago.
- The debt/assets ratio for AVD is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.66, we must say that AVD is in the distress zone and has some risk of bankruptcy.
- AVD has a Altman-Z score of 1.66. This is comparable to the rest of the industry: AVD outperforms 40.96% of its industry peers.
- AVD has a debt to FCF ratio of 63.88. This is a negative value and a sign of low solvency as AVD would need 63.88 years to pay back of all of its debts.
- AVD has a Debt to FCF ratio of 63.88. This is comparable to the rest of the industry: AVD outperforms 43.37% of its industry peers.
- AVD has a Debt/Equity ratio of 0.82. This is a neutral value indicating AVD is somewhat dependend on debt financing.
- The Debt to Equity ratio of AVD (0.82) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 63.88 | ||
| Altman-Z | 1.66 |
ROIC/WACCN/A
WACC11.83%
2.3 Liquidity
- A Current Ratio of 1.77 indicates that AVD should not have too much problems paying its short term obligations.
- AVD has a Current ratio of 1.77. This is comparable to the rest of the industry: AVD outperforms 43.37% of its industry peers.
- AVD has a Quick Ratio of 1.77. This is a bad value and indicates that AVD is not financially healthy enough and could expect problems in meeting its short term obligations.
- AVD's Quick ratio of 0.90 is on the low side compared to the rest of the industry. AVD is outperformed by 67.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- The earnings per share for AVD have decreased strongly by -112.50% in the last year.
- AVD shows a decrease in Revenue. In the last year, the revenue decreased by -4.29%.
- The Revenue has been growing slightly by 3.17% on average over the past years.
EPS 1Y (TTM)-112.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%53.26%
Revenue 1Y (TTM)-4.29%
Revenue growth 3Y-0.58%
Revenue growth 5Y3.17%
Sales Q2Q%0.85%
3.2 Future
- Based on estimates for the next years, AVD will show a very strong growth in Earnings Per Share. The EPS will grow by 46.31% on average per year.
- The Revenue is expected to grow by 0.27% on average over the next years.
EPS Next Y95.19%
EPS Next 2Y46.31%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-2.9%
Revenue Next 2Y0.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- AVD reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Based on the Price/Forward Earnings ratio of 12.66, the valuation of AVD can be described as correct.
- Based on the Price/Forward Earnings ratio, AVD is valued a bit cheaper than 74.70% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, AVD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.66 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVD indicates a rather expensive valuation: AVD more expensive than 83.13% of the companies listed in the same industry.
- AVD's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.5 | ||
| EV/EBITDA | 35.93 |
4.3 Compensation for Growth
- AVD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as AVD's earnings are expected to grow with 46.31% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y46.31%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- AVD has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.23, AVD has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, AVD is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
- The dividend of AVD has a limited annual growth rate of 2.42%.
- AVD has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.42%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- The dividend of AVD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP0%
EPS Next 2Y46.31%
EPS Next 3YN/A
AMERICAN VANGUARD CORP / AVD FAQ
What is the ChartMill fundamental rating of AMERICAN VANGUARD CORP (AVD) stock?
ChartMill assigns a fundamental rating of 3 / 10 to AVD.
Can you provide the valuation status for AMERICAN VANGUARD CORP?
ChartMill assigns a valuation rating of 4 / 10 to AMERICAN VANGUARD CORP (AVD). This can be considered as Fairly Valued.
Can you provide the profitability details for AMERICAN VANGUARD CORP?
AMERICAN VANGUARD CORP (AVD) has a profitability rating of 2 / 10.
Can you provide the expected EPS growth for AVD stock?
The Earnings per Share (EPS) of AMERICAN VANGUARD CORP (AVD) is expected to grow by 95.19% in the next year.