AMERICAN VANGUARD CORP (AVD)

US0303711081 - Common Stock

8.79  +0.16 (+1.85%)

After market: 8.7916 +0 (+0.02%)

Fundamental Rating

4

Taking everything into account, AVD scores 4 out of 10 in our fundamental rating. AVD was compared to 84 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 not valued too expensively and it also shows a decent growth rate.



3

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.
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 0.91%, AVD is in line with its industry, outperforming 40.48% of the companies in the same industry.
AVD has a Return On Equity (1.92%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 3.60%, AVD perfoms like the industry average, outperforming 48.81% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AVD is in line with the industry average of 6.70%.
Industry RankSector 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

AVD has a Profit Margin of 1.21%. This is in the lower half of the industry: AVD underperforms 60.71% of its industry peers.
In the last couple of years the Profit Margin of AVD has declined.
Looking at the Operating Margin, with a value of 4.80%, AVD is doing worse than 64.29% of the companies in the same industry.
In the last couple of years the Operating Margin of AVD has declined.
AVD has a better Gross Margin (31.05%) than 61.90% of its industry peers.
In the last couple of years the Gross Margin of AVD has declined.
Industry RankSector 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%

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVD is destroying value.
AVD has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AVD has less shares outstanding
AVD has a worse debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 2.21 indicates that AVD is not a great score, but indicates only limited risk for bankruptcy at the moment.
AVD has a better Altman-Z score (2.21) than 60.71% 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 60.71% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF N/A
Altman-Z 2.21
ROIC/WACC0.4
WACC9.05%

2.3 Liquidity

A Current Ratio of 2.29 indicates that AVD has no problem at all paying its short term obligations.
AVD has a Current ratio (2.29) which is comparable to the rest of the 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.
AVD has a Quick ratio of 1.12. This is comparable to the rest of the industry: AVD outperforms 40.48% of its industry peers.
Industry RankSector Rank
Current Ratio 2.29
Quick Ratio 1.12

4

3. Growth

3.1 Past

AVD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -62.35%.
AVD shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.52% yearly.
Looking at the last year, AVD shows a small growth in Revenue. The Revenue has grown by 0.72% in the last 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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 35.16, the valuation of AVD can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as AVD.
AVD's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.63.
With a Price/Forward Earnings ratio of 9.31, the valuation of AVD can be described as very reasonable.
AVD's Price/Forward Earnings ratio is rather cheap when compared to the industry. AVD is cheaper than 84.52% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.22, AVD is valued rather cheaply.
Industry RankSector Rank
PE 35.16
Fwd PE 9.31

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVD indicates a somewhat cheap valuation: AVD is cheaper than 79.76% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 8.3

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 90.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.28
PEG (5Y)N/A
EPS Next 2Y90.58%
EPS Next 3YN/A

5

5. Dividend

5.1 Amount

AVD has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
The stock price of AVD dropped by -30.35% 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.
AVD's Dividend Yield is comparable with the industry average which is at 3.18.
With a Dividend Yield of 1.39, AVD pays less dividend than the S&P500 average, which is at 2.38.
Industry RankSector Rank
Dividend Yield 1.39%

5.2 History

On average, the dividend of AVD grows each year by 9.54%, which is quite nice.
AVD has paid a dividend for at least 10 years, which is 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

47.23% of the earnings are spent on dividend by AVD. This is a bit on the high side, but may be sustainable.
The dividend of AVD is growing, but earnings are growing more, so the dividend growth is sustainable.
DP47.23%
EPS Next 2Y90.58%
EPS Next 3YN/A

AMERICAN VANGUARD CORP

NYSE:AVD (6/21/2024, 7:04:00 PM)

After market: 8.7916 +0 (+0.02%)

8.79

+0.16 (+1.85%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap245.94M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.39%
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
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)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 RankSector Rank
PE 35.16
Fwd PE 9.31
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)0.28
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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