AeroVironment (AVAV) AI Stock Analysis

• Market Cap: $13.90B
• Dividend Yield: N/A
• Average Volume (3M): 728.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.56
• Revenue Growth: 44.04%
• EPS Growth: -129.81%
• Country: US
• Employees: 1,403
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -0.34
• Shares Outstanding: 49,932,205
• 10 Day Avg. Volume: 670,819
• 30 Day Avg. Volume: 728,504
• PEG Ratio: -3.38
• Price to Book (P/B): 4.79
• Price to Sales (P/S): 5.17
• P/FCF Ratio: -175.91
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 11.36
• Enterprise Value/Gross Profit: 36.65
• Enterprise Value/Ebitda: 132.01
• 1Y Price Target: $386.71
• Price Target Upside: 36.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $298.00 ▲(5.50% Upside)

AeroVironment's overall score is driven by strong revenue growth and a positive outlook from strategic initiatives, despite profitability and cash flow challenges. Technical indicators suggest bearish momentum, and valuation metrics are weak due to net losses.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, positioning the company for sustained expansion.

Strategic Partnerships

Long-term contracts with the U.S. Army enhance revenue stability and reinforce AeroVironment's position as a key defense partner.

Product Innovation

Innovative product introductions align with market needs, driving growth in multibillion-dollar opportunities and enhancing competitive advantage.

Negative Factors

Profitability Challenges

Decreased margins reflect cost pressures and operational inefficiencies, which could hinder long-term profitability if not addressed.

High Operating Expenses

Increased operating expenses from acquisitions may strain financial resources, impacting cash flow and investment capacity.

Net Loss

Sustained net losses can affect the company's ability to reinvest in growth and may necessitate strategic cost management.

AeroVironment Business Overview & Revenue Model

Company Description

AeroVironment, Inc. (AVAV) is a leading provider of unmanned aerial vehicles (UAVs), advanced electrical vehicle (EV) charging, and energy systems. The company operates primarily in the defense and commercial sectors, focusing on innovative technologies that support tactical missions and enhance operational capabilities. AeroVironment's core products include small drones for military applications, such as the Raven and Wasp systems, as well as energy solutions for electric vehicles and renewable energy applications.

How the Company Makes Money

AeroVironment generates revenue through several key streams, primarily from the sale of its UAV systems and related services to military and government customers. The company benefits from long-term contracts and recurring revenue from maintenance and support services. Additionally, AeroVironment has a growing presence in the commercial sector, particularly through its EV charging solutions, which are sold to businesses and municipalities. Strategic partnerships with defense contractors and government agencies enhance its revenue potential, while ongoing investments in research and development ensure innovative product offerings that meet evolving market demands.

AeroVironment Financial Statement Overview

Summary

AeroVironment shows strong revenue growth but faces profitability and cash flow challenges. The balance sheet is robust with low leverage, but negative return on equity and cash flow issues highlight areas for improvement.

Income Statement

AeroVironment's revenue has shown strong growth, particularly with a 32.3% increase in the TTM period. However, profitability metrics such as the net profit margin and EBIT margin are negative, indicating challenges in cost management and operational efficiency. The gross profit margin has decreased from previous periods, suggesting pressure on pricing or cost increases.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.19 in the TTM period, indicating low leverage and financial stability. However, the return on equity is negative, reflecting the company's struggle to generate profits from its equity base. The equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

AeroVironment's cash flow situation is concerning, with negative operating and free cash flows in the TTM period. Despite a significant increase in free cash flow growth, the operating cash flow to net income ratio is negative, indicating inefficiencies in converting income into cash. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.09B	820.63M	716.72M	540.54M	445.73M	394.91M
Gross Profit	336.59M	322.94M	283.93M	173.51M	141.24M	164.56M
EBITDA	93.45M	104.39M	109.45M	61.20M	51.88M	69.54M
Net Income	-44.92M	43.62M	59.67M	-176.21M	-4.19M	23.33M
Balance Sheet
Total Assets	5.62B	1.12B	1.02B	824.58M	914.20M	928.57M
Cash, Cash Equivalents and Short-Term Investments	685.80M	40.86M	73.30M	132.86M	101.95M	180.71M
Total Debt	829.71M	64.29M	59.68M	162.82M	216.57M	222.77M
Total Liabilities	1.20B	234.06M	193.12M	273.61M	305.99M	316.46M
Stockholders Equity	4.43B	886.51M	822.75M	550.97M	607.97M	612.09M
Cash Flow
Free Cash Flow	-183.06M	-24.13M	-9.19M	-3.47M	-31.91M	75.27M
Operating Cash Flow	-153.40M	-1.32M	15.29M	11.40M	-9.62M	86.53M
Investing Cash Flow	-898.52M	-28.49M	-51.71M	-7.00M	-52.29M	-378.77M
Financing Cash Flow	1.66B	-2.86M	-22.85M	50.83M	-16.61M	194.16M

AeroVironment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 282.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVAV, the sentiment is Neutral. The current price of 282.47 is below the 20-day moving average (MA) of 286.02, below the 50-day MA of 335.76, and above the 200-day MA of 233.31, indicating a neutral trend. The MACD of -15.75 indicates Negative momentum. The RSI at 42.28 is Neutral, neither overbought nor oversold. The STOCH value of 71.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AVAV.

AeroVironment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DRS	70 Outperform	$9.02B	34.38	10.35%	1.06%	12.27%	33.16%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SARO	63 Neutral	$8.88B	48.14	9.86%	―	17.79%	815.80%
AVAV	61 Neutral	$13.90B	―	-1.70%	―	44.04%	-129.81%
KRMN	61 Neutral	$8.66B	771.73	―	―	―	―
KTOS	60 Neutral	$12.92B	622.96	1.20%	―	14.00%	23.78%
MRCY	55 Neutral	$4.24B	―	-2.24%	―	8.63%	72.72%

AeroVironment Corporate Events

AeroVironment Updates Bylaws to Enhance Governance

On November 20, 2025, AeroVironment, Inc. amended its bylaws to introduce several changes. These amendments include a right to cure process for director nomination deficiencies, the ability for the Board to manage stockholder meetings, updates to align with Delaware law, and provisions for special meetings and severability, impacting the company’s governance structure.

AeroVironment Stockholders Approve Equity Plan Amendment

On September 25, 2025, AeroVironment, Inc. held its Annual Meeting of Stockholders, where stockholders approved the amendment and restatement of the company’s 2021 Equity Incentive Plan, increasing the shares reserved for issuance by 1,200,000. The plan, effective immediately upon approval, allows for up to 5,000,000 shares to be issued through incentive stock options. Additionally, the meeting saw the election of directors, ratification of Deloitte & Touche LLP as independent auditors, and approval of executive compensation, reflecting strong shareholder support for the company’s strategic initiatives.

AeroVironment Reports Record Revenue Amid BlueHalo Acquisition

On September 9, 2025, AeroVironment announced its fiscal 2026 first quarter results, reporting a record revenue of $454.7 million, a 140% increase year-over-year, largely due to the acquisition of BlueHalo. Despite the revenue growth, the company faced a net loss of $67.4 million, impacted by significant intangible amortization and non-cash purchase accounting expenses. The acquisition of BlueHalo contributed significantly to both product and service revenue, and the company reported a record backlog of $1.1 billion. AeroVironment remains optimistic about future growth opportunities, citing strong demand for its innovative solutions and its ability to scale manufacturing to meet expedited delivery timelines.