Overall AVD gets a fundamental rating of 3 out of 10. We evaluated AVD against 83 industry peers in the Chemicals industry. AVD has a bad profitability rating. Also its financial health evaluation is rather negative. AVD has a valuation in line with the averages, but it does not seem to be growing.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
With a Return On Equity value of -50.73%, AVD is not doing good in the industry: 83.13% of the companies in the same industry are doing better.

		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

The Gross Margin of AVD (24.11%) is comparable to the rest of the industry.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 1 year ago, AVD has a worse debt to assets ratio.

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 worse Altman-Z score (1.66) than 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.
Looking at the Debt to FCF ratio, with a value of 63.88, AVD is in line with its industry, outperforming 43.37% of the companies in the same industry.
AVD has a Debt/Equity ratio of 0.82. This is a neutral value indicating AVD is somewhat dependend on debt financing.
AVD's Debt to Equity ratio of 0.82 is in line compared to the rest of the industry. AVD outperforms 42.17% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.82
Debt/FCF	63.88
Altman-Z	1.66

ROIC/WACCN/A

WACC11.93%

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 (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.
Looking at the Quick ratio, with a value of 0.90, AVD is doing worse than 67.47% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.77
Quick Ratio	0.9

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for AVD have decreased strongly by -112.50% in the last year.
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

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.
Based on estimates for the next years, AVD will show a small growth in Revenue. The Revenue will grow by 0.27% on average per year.

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.

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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 13.24, the valuation of AVD can be described as correct.
AVD's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AVD is cheaper than 71.08% of the companies in the same industry.
AVD is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	13.24

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AVD is valued expensively inside the industry as 83.13% of the companies are valued cheaper.
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	50.69
EV/EBITDA	36.47

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

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.27%, AVD has a reasonable but not impressive dividend return.
AVD's Dividend Yield is comparable with the industry average which is at 2.27.
Compared to the average S&P500 Dividend Yield of 1.83, 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

AVD's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP0%

EPS Next 2Y46.31%

EPS Next 3YN/A

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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.