AMERICAN VANGUARD CORP (AVD)
US0303711081 - Common Stock
Overall AVD gets a fundamental rating of 4 out of 10. We evaluated AVD against 86 industry peers in the Chemicals industry. AVD scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. AVD is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AVD had positive earnings in the past year.
AVD had a negative operating cash flow in the past year.
AVD had positive earnings in each of the past 5 years.
AVD had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AVD has a worse Return On Assets (1.49%) than 67.44% of its industry peers.
The Return On Equity of AVD (3.12%) is worse than 65.12% of its industry peers.
AVD's Return On Invested Capital of 2.85% is on the low side compared to the rest of the industry. AVD is outperformed by 72.09% of its industry peers.
AVD had an Average Return On Invested Capital over the past 3 years of 4.61%. This is below the industry average of 8.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 3.12% | ||
| ROIC | 2.85% |
ROA(3y)2.89%
ROA(5y)2.96%
ROE(3y)5.54%
ROE(5y)5.58%
ROIC(3y)4.61%
ROIC(5y)4.76%
1.3 Margins
AVD has a worse Profit Margin (2.02%) than 67.44% of its industry peers.
AVD's Profit Margin has declined in the last couple of years.
AVD's Operating Margin of 3.88% is on the low side compared to the rest of the industry. AVD is outperformed by 72.09% of its industry peers.
AVD's Operating Margin has declined in the last couple of years.
AVD has a better Gross Margin (35.42%) than 73.26% of its industry peers.
In the last couple of years the Gross Margin of AVD has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.88% | ||
| PM | 2.02% | ||
| GM | 35.42% |
OM growth 3Y6.02%
OM growth 5Y-2.45%
PM growth 3Y15.67%
PM growth 5Y-4.7%
GM growth 3Y1.47%
GM growth 5Y-0.95%
2. Health
2.1 Basic Checks
AVD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AVD has less shares outstanding
Compared to 5 years ago, AVD has less shares outstanding
The debt/assets ratio for AVD has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.26 indicates that AVD is not a great score, but indicates only limited risk for bankruptcy at the moment.
AVD has a Altman-Z score of 2.26. This is comparable to the rest of the industry: AVD outperforms 52.33% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that AVD is not too dependend on debt financing.
AVD has a better Debt to Equity ratio (0.44) than 60.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.26 |
ROIC/WACC0.52
WACC9.46%
2.3 Liquidity
AVD has a Current Ratio of 2.13. This indicates that AVD is financially healthy and has no problem in meeting its short term obligations.
AVD has a Current ratio (2.13) which is in line with its industry peers.
A Quick Ratio of 0.98 indicates that AVD may have some problems paying its short term obligations.
AVD's Quick ratio of 0.98 is on the low side compared to the rest of the industry. AVD is outperformed by 72.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.13 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
AVD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.09%.
AVD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.52% yearly.
Looking at the last year, AVD shows a decrease in Revenue. The Revenue has decreased by -5.61% in the last year.
AVD shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.42% yearly.
EPS 1Y-58.09%
EPS 3Y24.82%
EPS 5Y9.52%
EPS growth Q2Q-117.39%
Revenue growth 1Y-5.61%
Revenue growth 3Y9.2%
Revenue growth 5Y11.42%
Revenue growth Q2Q-10.33%
3.2 Future
AVD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.86% yearly.
Based on estimates for the next years, AVD will show a small growth in Revenue. The Revenue will grow by 6.64% on average per year.
EPS Next Y14.93%
EPS Next 2Y19.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.29%
Revenue Next 2Y6.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.03 indicates a quite expensive valuation of AVD.
Based on the Price/Earnings ratio, AVD is valued a bit more expensive than 68.60% of the companies in the same industry.
AVD is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.79, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.32, which indicates a very decent valuation of AVD.
86.05% of the companies in the same industry are more expensive than AVD, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AVD to the average of the S&P500 Index (18.89), we can say AVD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.03 | ||
| Fwd PE | 8.32 |
4.2 Price Multiples
AVD's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.49 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AVD's earnings are expected to grow with 19.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.88
PEG (5Y)2.94
EPS Next 2Y19.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AVD has a Yearly Dividend Yield of 1.02%. Purely for dividend investing, there may be better candidates out there.
The stock price of AVD dropped by -39.17% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.66, AVD has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.64, AVD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
5.2 History
The dividend of AVD is nicely growing with an annual growth rate of 11.30%!
AVD has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of AVD decreased in the last 3 years.
Dividend Growth(5Y)11.3%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
AVD pays out 27.46% of its income as dividend. This is a sustainable payout ratio.
The dividend of AVD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.46%
EPS Next 2Y19.86%
EPS Next 3YN/A
AMERICAN VANGUARD CORP
NYSE:AVD (9/29/2023, 3:02:58 PM)
After market: 10.93 0 (0%)10.93
+0.06 (+0.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)08-08 2023-08-08/amc
Earnings (Next)11-06 2023-11-06/amc
Inst Owners80.1%
Inst Owner Change2.92%
Ins Owners6.29%
Ins Owner Change5.33%
Market Cap320.22M
Analysts80
Price Target30.09 (175.3%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.02% |
Dividend Growth(5Y)11.3%
DP27.46%
Div Incr Years2
Div Non Decr Years2
Ex-Date09-21 2023-09-21 (0.03)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-93.35%
Min EPS beat(2)-112.38%
Max EPS beat(2)-74.33%
EPS beat(4)1
Avg EPS beat(4)-30.58%
Min EPS beat(4)-112.38%
Max EPS beat(4)76.81%
Revenue beat(2)2
Avg Revenue beat(2)78092.9%
Min Revenue beat(2)77083.8%
Max Revenue beat(2)79102%
Revenue beat(4)4
Avg Revenue beat(4)87667.9%
Min Revenue beat(4)77083.8%
Max Revenue beat(4)99802.3%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.03 | ||
| Fwd PE | 8.32 | ||
| P/S | 0.56 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.87 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 10.49 |
EPS(TTM)0.39
EY3.57%
EPS(NY)1.31
Fwd EY12.01%
FCF(TTM)-0.93
FCFYN/A
OCF(TTM)-0.42
OCFYN/A
SpS19.45
BVpS12.6
TBVpS4.85
PEG (NY)1.88
PEG (5Y)2.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 3.12% | ||
| ROCE | 3.9% | ||
| ROIC | 2.85% | ||
| ROICexc | 2.92% | ||
| ROICexgc | 4.96% | ||
| OM | 3.88% | ||
| PM | 2.02% | ||
| GM | 35.42% | ||
| FCFM | N/A |
ROA(3y)2.89%
ROA(5y)2.96%
ROE(3y)5.54%
ROE(5y)5.58%
ROIC(3y)4.61%
ROIC(5y)4.76%
ROICexc(3y)4.8%
ROICexc(5y)4.9%
ROICexgc(3y)10.14%
ROICexgc(5y)9.94%
ROCE(3y)6.32%
ROCE(5y)6.52%
ROICexcg growth 3Y27.87%
ROICexcg growth 5Y7.31%
ROICexc growth 3Y22.84%
ROICexc growth 5Y6.57%
OM growth 3Y6.02%
OM growth 5Y-2.45%
PM growth 3Y15.67%
PM growth 5Y-4.7%
GM growth 3Y1.47%
GM growth 5Y-0.95%
F-Score3
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.63 | ||
| Cap/Depr | 68.01% | ||
| Cap/Sales | 2.65% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.13 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 2.26 |
F-Score3
WACC9.46%
ROIC/WACC0.52
Cap/Depr(3y)62.53%
Cap/Depr(5y)59.98%
Cap/Sales(3y)2.51%
Cap/Sales(5y)2.41%
Profit Quality(3y)350.78%
Profit Quality(5y)N/A
Growth
EPS 1Y-58.09%
EPS 3Y24.82%
EPS 5Y9.52%
EPS growth Q2Q-117.39%
EPS Next Y14.93%
EPS Next 2Y19.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue growth 1Y-5.61%
Revenue growth 3Y9.2%
Revenue growth 5Y11.42%
Revenue growth Q2Q-10.33%
Revenue Next Year5.29%
Revenue Next 2Y6.64%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-49.28%
EBIT growth 3Y15.77%
EBIT growth 5Y8.69%
EBIT Next Year93.73%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-154.22%
FCF growth 3YN/A
FCF growth 5Y-4.05%
OCF growth 1Y-118.99%
OCF growth 3Y82.47%
OCF growth 5Y-0.65%