AMERICAN VANGUARD CORP (AVD) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AVD - US0303711081 - Common Stock
4.91 USD
-0.04 (-0.81%)
4.91 USD
0 (0%)
Taking everything into account, AVD scores 3 out of 10 in our fundamental rating. AVD was compared to 83 industry peers in the Chemicals industry. Both the profitability and financial health of AVD have multiple concerns. AVD has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- In the past year AVD has reported negative net income.
- AVD had a positive operating cash flow in the past year.
- 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 of 24.11%. This is comparable to the rest of the industry: AVD outperforms 42.17% of its industry peers.
- In the last couple of years the Gross Margin of AVD has declined.
- 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.
- Compared to 1 year ago, AVD has more shares outstanding
- The number of shares outstanding for AVD has been reduced compared to 5 years ago.
- AVD has a worse debt/assets ratio than last year.
2.2 Solvency
- AVD has an Altman-Z score of 1.66. This is a bad value and indicates that AVD is not financially healthy and even has some risk of bankruptcy.
- AVD's Altman-Z score of 1.66 is on the low side compared to the rest of the industry. AVD is outperformed by 60.24% of its industry peers.
- The Debt to FCF ratio of AVD is 63.88, which is on the high side as it means it would take AVD, 63.88 years of fcf income to pay off 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.
- With a Debt to Equity ratio value of 0.82, AVD perfoms like the industry average, outperforming 42.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | 63.88 | ||
| Altman-Z | 1.66 |
ROIC/WACCN/A
WACC11.85%
2.3 Liquidity
- AVD has a Current Ratio of 1.77. This is a normal value and indicates that AVD is financially healthy and should not expect problems in meeting its short term obligations.
- AVD has a Current ratio (1.77) which is comparable to the rest of the industry.
- A Quick Ratio of 0.90 indicates that AVD may have some problems paying its short term obligations.
- AVD has a Quick ratio of 0.90. This is in the lower half of the industry: AVD underperforms 67.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
- AVD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -112.50%.
- Looking at the last year, AVD shows a decrease in Revenue. The Revenue has decreased by -4.29% in the last year.
- 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
- AVD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.31% yearly.
- 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
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings Ratio is negative for AVD. In the last year negative earnings were reported.
- AVD is valuated correctly with a Price/Forward Earnings ratio of 12.79.
- Based on the Price/Forward Earnings ratio, AVD is valued a bit cheaper than the industry average as 74.70% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, AVD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 12.79 |
4.2 Price Multiples
- AVD's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. AVD is more expensive than 83.13% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVD is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49 | ||
| EV/EBITDA | 36.1 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- AVD's earnings are expected to grow with 46.31% in the coming years. This may justify a more expensive valuation.
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%.
- 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 1.81, 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 been paying a dividend for at least 10 years, so it has 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.