AMERICAN VANGUARD CORP (AVD) Stock Fundamental Analysis
NYSE:AVD - New York Stock Exchange, Inc. - US0303711081 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to AVD. AVD was compared to 85 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
AVD had negative earnings in the past year.
AVD had a positive operating cash flow in the past year.
AVD had positive earnings in 4 of the past 5 years.
AVD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of AVD (-21.59%) is worse than 82.35% of its industry peers.
AVD has a worse Return On Equity (-59.97%) than 83.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -21.59% | ||
| ROE | -59.97% | ||
| 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
With a Gross Margin value of 20.47%, AVD is not doing good in the industry: 67.06% of the companies in the same industry are doing better.
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 | 20.47% |
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.
AVD has a worse debt/assets ratio than last year.
2.2 Solvency
AVD has an Altman-Z score of 1.53. This is a bad value and indicates that AVD is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.53, AVD is not doing good in the industry: 67.06% of the companies in the same industry are doing better.
AVD has a debt to FCF ratio of 7.90. This is a slightly negative value and a sign of low solvency as AVD would need 7.90 years to pay back of all of its debts.
AVD has a better Debt to FCF ratio (7.90) than 68.24% of its industry peers.
AVD has a Debt/Equity ratio of 0.74. This is a neutral value indicating AVD is somewhat dependend on debt financing.
AVD has a Debt to Equity ratio of 0.74. This is comparable to the rest of the industry: AVD outperforms 47.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 7.9 | ||
| Altman-Z | 1.53 |
ROIC/WACCN/A
WACC10.31%
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.
With a Current ratio value of 1.77, AVD perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
A Quick Ratio of 0.91 indicates that AVD may have some problems paying its short term obligations.
AVD has a Quick ratio of 0.91. This is in the lower half of the industry: AVD underperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
AVD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -1336.00%.
The Revenue for AVD has decreased by -10.46% in the past year. This is quite bad
The Revenue has been growing slightly by 3.17% on average over the past years.
EPS 1Y (TTM)-1336%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-600%
Revenue 1Y (TTM)-10.46%
Revenue growth 3Y-0.58%
Revenue growth 5Y3.17%
Sales Q2Q%-14.31%
3.2 Future
AVD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.18% yearly.
AVD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.27% yearly.
EPS Next Y97.41%
EPS Next 2Y46.18%
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
AVD reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 9.71 indicates a reasonable valuation of AVD.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVD indicates a somewhat cheap valuation: AVD is cheaper than 77.65% of the companies listed in the same industry.
AVD's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, AVD is valued cheaply inside the industry as 94.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.83 | ||
| EV/EBITDA | N/A |
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 46.18% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y46.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.02%, AVD has a reasonable but not impressive dividend return.
AVD's Dividend Yield is a higher than the industry average which is at 3.53.
Compared to an average S&P500 Dividend Yield of 2.35, AVD pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
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 earnings of AVD are negative and hence is the payout ratio. AVD will probably not be able to sustain this dividend level.
AVD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-1.23%
EPS Next 2Y46.18%
EPS Next 3YN/A
3.63
-0.15 (-3.97%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners72.47%
Inst Owner Change0%
Ins Owners8.4%
Ins Owner Change0.08%
Market Cap102.47M
Analysts80
Price Target12.24 (237.19%)
Short Float %3.52%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.02% |
Yearly Dividend0.09
Dividend Growth(5Y)2.42%
DP-1.23%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-571.08%
Min EPS beat(2)-817.82%
Max EPS beat(2)-324.33%
EPS beat(4)0
Avg EPS beat(4)-706.27%
Min EPS beat(4)-858.83%
Max EPS beat(4)-324.33%
EPS beat(8)0
Avg EPS beat(8)-388.77%
EPS beat(12)2
Avg EPS beat(12)-259.72%
EPS beat(16)5
Avg EPS beat(16)-187.95%
Revenue beat(2)0
Avg Revenue beat(2)-6.62%
Min Revenue beat(2)-9.72%
Max Revenue beat(2)-3.53%
Revenue beat(4)0
Avg Revenue beat(4)-8.52%
Min Revenue beat(4)-15.85%
Max Revenue beat(4)-3.53%
Revenue beat(8)0
Avg Revenue beat(8)-8.01%
Revenue beat(12)0
Avg Revenue beat(12)-7.76%
Revenue beat(16)4
Avg Revenue beat(16)-3.2%
PT rev (1m)-14.29%
PT rev (3m)-14.29%
EPS NQ rev (1m)-83.33%
EPS NQ rev (3m)-650%
EPS NY rev (1m)-133.33%
EPS NY rev (3m)-133.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.41%
Revenue NY rev (1m)-6.13%
Revenue NY rev (3m)-6.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 9.71 | ||
| P/S | 0.19 | ||
| P/FCF | 4.83 | ||
| P/OCF | 3.98 | ||
| P/B | 0.45 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | N/A |
EPS(TTM)-3.09
EYN/A
EPS(NY)0.37
Fwd EY10.29%
FCF(TTM)0.75
FCFY20.7%
OCF(TTM)0.91
OCFY25.15%
SpS18.7
BVpS8.05
TBVpS2.1
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -21.59% | ||
| ROE | -59.97% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 20.47% | ||
| FCFM | 4.02% |
ROA(3y)-5.03%
ROA(5y)-2.04%
ROE(3y)-14.92%
ROE(5y)-7.11%
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score3
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | 7.9 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 21.07% | ||
| Cap/Sales | 0.86% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.53 |
F-Score3
WACC10.31%
ROIC/WACCN/A
Cap/Depr(3y)51.85%
Cap/Depr(5y)55.48%
Cap/Sales(3y)1.96%
Cap/Sales(5y)2.2%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1336%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-600%
EPS Next Y97.41%
EPS Next 2Y46.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.46%
Revenue growth 3Y-0.58%
Revenue growth 5Y3.17%
Sales Q2Q%-14.31%
Revenue Next Year-2.9%
Revenue Next 2Y0.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-246.17%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year346.68%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-39.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-46.29%
OCF growth 3Y-64.32%
OCF growth 5Y-16.03%