AMERICAN VANGUARD CORP (AVD)
US0303711081 - Common Stock
Taking everything into account, AVD scores 4 out of 10 in our fundamental rating. AVD was compared to 83 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 has a decent growth rate and is not valued too expensively.
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 4 of the past 5 years.
1.2 Ratios
AVD has a worse Return On Assets (0.91%) than 60.24% of its industry peers.
AVD's Return On Equity of 1.92% is on the low side compared to the rest of the industry. AVD is outperformed by 60.24% of its industry peers.
AVD has a Return On Invested Capital (3.60%) which is comparable to the rest of the industry.
AVD had an Average Return On Invested Capital over the past 3 years of 4.94%. This is in line with the industry average of 6.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 1.92% | ||
| ROIC | 3.6% |
ROA(3y)2.48%
ROA(5y)2.34%
ROE(3y)4.81%
ROE(5y)4.52%
ROIC(3y)4.94%
ROIC(5y)4.23%
1.3 Margins
The Profit Margin of AVD (1.21%) is worse than 61.45% of its industry peers.
AVD's Profit Margin has declined in the last couple of years.
AVD has a worse Operating Margin (4.80%) than 63.86% of its industry peers.
AVD's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 31.05%, AVD is doing good in the industry, outperforming 61.45% of the companies in the same industry.
AVD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.8% | ||
| PM (TTM) | 1.21% | ||
| GM | 31.05% |
OM growth 3Y1.8%
OM growth 5Y-13.38%
PM growth 3Y-26.84%
PM growth 5Y-24.6%
GM growth 3Y-6.33%
GM growth 5Y-5.11%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVD 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 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.25 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 2.25. This is in the better half of the industry: AVD outperforms 60.24% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that AVD is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.50, AVD is in the better half of the industry, outperforming 61.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.25 |
ROIC/WACC0.4
WACC9.02%
2.3 Liquidity
A Current Ratio of 2.29 indicates that AVD has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.29, AVD is in line with its industry, outperforming 54.22% of the companies in the same industry.
AVD has a Quick Ratio of 1.12. 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 Quick ratio value of 1.12, AVD is not doing good in the industry: 60.24% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for AVD have decreased strongly by -62.35% in the last year.
Measured over the past years, AVD shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -20.52% on average per year.
The Revenue has been growing slightly by 0.72% in the past year.
AVD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.98% yearly.
EPS 1Y (TTM)-62.35%
EPS 3Y-11.88%
EPS 5Y-20.52%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)0.72%
Revenue growth 3Y8.1%
Revenue growth 5Y4.98%
Sales Q2Q%8.21%
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 90.58% on average per year.
AVD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.80% yearly.
EPS Next Y127.25%
EPS Next 2Y90.58%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year6.6%
Revenue Next 2Y6.8%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 38.24, the valuation of AVD can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as AVD.
Compared to an average S&P500 Price/Earnings ratio of 24.41, AVD is valued quite expensively.
With a Price/Forward Earnings ratio of 10.12, the valuation of AVD can be described as very reasonable.
Based on the Price/Forward Earnings ratio, AVD is valued a bit cheaper than 77.11% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, AVD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.24 | ||
| Fwd PE | 10.12 |
4.2 Price Multiples
AVD's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AVD is cheaper than 75.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.79 |
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.
A more expensive valuation may be justified as AVD's earnings are expected to grow with 90.58% in the coming years.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y90.58%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AVD has a Yearly Dividend Yield of 1.29%. Purely for dividend investing, there may be better candidates out there.
AVD's Dividend Yield is comparable with the industry average which is at 3.07.
Compared to an average S&P500 Dividend Yield of 2.30, AVD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
5.2 History
The dividend of AVD is nicely growing with an annual growth rate of 9.54%!
AVD has been paying a dividend for at least 10 years, so it has a reliable track record.
AVD has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)9.54%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
AVD pays out 47.23% of its income as dividend. This is a bit on the high side, but may be sustainable.
AVD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP47.23%
EPS Next 2Y90.58%
EPS Next 3YN/A
AMERICAN VANGUARD CORP
NYSE:AVD (7/26/2024, 7:17:44 PM)
After market: 9.56 0 (0%)9.56
+0.05 (+0.53%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap267.49M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.24 | ||
| Fwd PE | 10.12 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 1.92% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.8% | ||
| PM (TTM) | 1.21% | ||
| GM | 31.05% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.29 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-62.35%
EPS 3Y-11.88%
EPS 5Y
EPS Q2Q%
EPS Next Y127.25%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.72%
Revenue growth 3Y8.1%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y