AMERICAN VANGUARD CORP (AVD)
US0303711081 - Common Stock
Overall AVD gets a fundamental rating of 3 out of 10. We evaluated AVD against 84 industry peers in the Chemicals industry. AVD may be in some trouble as it scores bad on both profitability and health. AVD is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AVD was profitable.
In the past year AVD has reported a negative cash flow from operations.
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
With a Return On Assets value of 0.97%, AVD is not doing good in the industry: 63.10% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 2.02%, AVD is doing worse than 61.90% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.38%, AVD is in line with its industry, outperforming 42.86% of the companies in the same industry.
AVD had an Average Return On Invested Capital over the past 3 years of 4.94%. This is below the industry average of 7.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | 2.02% | ||
| ROIC | 3.38% |
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 1.29%. This is in the lower half of the industry: AVD underperforms 64.29% of its industry peers.
AVD's Profit Margin has declined in the last couple of years.
AVD's Operating Margin of 4.20% is on the low side compared to the rest of the industry. AVD is outperformed by 67.86% of its industry peers.
AVD's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 30.92%, AVD is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
AVD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.2% | ||
| PM (TTM) | 1.29% | ||
| GM | 30.92% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVD is destroying value.
AVD has less shares outstanding than it did 1 year ago.
AVD has less shares outstanding than it did 5 years ago.
AVD has a worse debt/assets ratio than last year.
2.2 Solvency
AVD has an Altman-Z score of 2.29. This is not the best score and indicates that AVD is in the grey zone with still only limited risk for bankruptcy at the moment.
AVD has a Altman-Z score of 2.29. This is comparable to the rest of the industry: AVD outperforms 59.52% of its industry peers.
AVD has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
AVD has a better Debt to Equity ratio (0.38) than 65.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.29 |
ROIC/WACC0.36
WACC9.28%
2.3 Liquidity
AVD has a Current Ratio of 1.87. 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 Current ratio (1.87) which is in line with its industry peers.
AVD has a Quick Ratio of 1.87. This is a bad value and indicates that AVD is not financially healthy enough and could expect problems in meeting its short term obligations.
AVD has a Quick ratio of 0.92. This is in the lower half of the industry: AVD underperforms 76.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.87 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
The earnings per share for AVD have decreased strongly by -71.55% 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 decreased by -5.04% in the past year.
The Revenue has been growing slightly by 4.98% on average over the past years.
EPS 1Y (TTM)-71.55%
EPS 3Y-11.88%
EPS 5Y-20.52%
EPS growth Q2Q79.2%
Revenue 1Y (TTM)-5.04%
Revenue growth 3Y8.1%
Revenue growth 5Y4.98%
Revenue growth Q2Q7.61%
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 81.71% on average per year.
Based on estimates for the next years, AVD will show a small growth in Revenue. The Revenue will grow by 3.68% on average per year.
EPS Next Y199.12%
EPS Next 2Y81.71%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.64%
Revenue Next 2Y3.68%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 45.27, AVD can be considered very expensive at the moment.
AVD's Price/Earnings ratio is a bit more expensive when compared to the industry. AVD is more expensive than 65.48% of the companies in the same industry.
When comparing the Price/Earnings ratio of AVD to the average of the S&P500 Index (28.06), we can say AVD is valued expensively.
Based on the Price/Forward Earnings ratio of 15.13, 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 65.48% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.72. AVD is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.27 | ||
| Fwd PE | 15.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVD is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.06 |
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 81.71% in the coming years.
PEG (NY)0.23
PEG (5Y)N/A
EPS Next 2Y81.71%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.07%, AVD has a reasonable but not impressive dividend return.
AVD's Dividend Yield is comparable with the industry average which is at 3.14.
Compared to an average S&P500 Dividend Yield of 2.41, AVD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
5.2 History
The dividend of AVD is nicely growing with an annual growth rate of 9.54%!
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
45.25% of the earnings are spent on dividend by AVD. 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.
DP45.25%
EPS Next 2Y81.71%
EPS Next 3YN/A
AMERICAN VANGUARD CORP
NYSE:AVD (5/2/2024, 7:04:00 PM)
After market: 11.77 0 (0%)11.77
+0.08 (+0.68%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap338.98M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.07% |
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)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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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 | 45.27 | ||
| Fwd PE | 15.13 | ||
| 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)0.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | 2.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.2% | ||
| PM (TTM) | 1.29% | ||
| GM | 30.92% | ||
| 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 | 0.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.87 | ||
| Quick Ratio | 0.92 | ||
| 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)
Growth
EPS 1Y (TTM)-71.55%
EPS 3Y-11.88%
EPS 5Y
EPS growth Q2Q
EPS Next Y199.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.04%
Revenue growth 3Y8.1%
Revenue growth 5Y
Revenue growth 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