AeroVironment (AVAV) AI Stock Analysis

• Market Cap: $8.73B
• Dividend Yield: N/A
• Average Volume (3M): 596.02K
• Price to Earnings (P/E): 165.3
• Beta (1Y): 1.18
• Revenue Growth: 14.50%
• EPS Growth: -29.76%
• Country: US
• Employees: 1,403
• Sector: Industrials
• Sector Strength: 84
• Industry: Aerospace & Defense
• EPS (TTM): 1.61
• Shares Outstanding: 45,644,690
• 10 Day Avg. Volume: 763,092
• 30 Day Avg. Volume: 596,023
• PEG Ratio: -5.03
• Price to Book (P/B): 6.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -337.43
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 2.91
• Enterprise Value/Gross Profit: 29.81
• Enterprise Value/Ebitda: 24.91
• 1Y Price Target: $218.00
• Price Target Upside: -7.21% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 72 Outperform
• Price Target: $261.00 ▲(11.09%Upside)

AeroVironment's strengths lie in its bullish technical indicators and positive earnings call outlook, highlighting significant growth prospects. However, concerns about valuation and cash flow management weigh on the overall score. The company's strategic acquisitions and product innovations provide a promising path forward.

Positive Factors

Earnings

Revenue grew 40% organically, a significant acceleration from last quarter.

Investor Confidence

More than 99% of shareholders voted in favor of the acquisition, indicating strong confidence that the deal will add value and lead to both near- and long-term success for AeroVironment.

Market Position

AeroVironment's unique position as a comprehensive defense tech systems provider and its strategic alignment to high-growth areas of U.S. and global defense spending.

Negative Factors

Funded Backlog

The funded backlog for standalone AeroVironment of $727 million decreased from $764 million at the end of January.

Profit Margins

The acquisition will not be accretive to adjusted EBITDA margins due to BlueHalo's exposure to services revenues, which are generally margin-dilutive.

AeroVironment Business Overview & Revenue Model

Company Description

AeroVironment, Inc. (AVAV) is a leading American technology company that designs, develops, and manufactures unmanned aircraft systems (UAS) and tactical missile systems. The company primarily serves the defense and commercial sectors, providing innovative solutions for intelligence, surveillance, and reconnaissance (ISR) missions, as well as precision strike capabilities. AeroVironment's core products include small UAS such as the Raven, Wasp, and Puma systems, along with the Switchblade loitering missile system. The company is recognized for its cutting-edge technology and its contribution to enhancing the operational effectiveness of its clients.

How the Company Makes Money

AeroVironment generates revenue through the sale of its unmanned aircraft systems and tactical missile systems primarily to government and defense organizations. A significant portion of its income comes from contracts with the U.S. Department of Defense, as well as international military customers. The company also earns from providing support services, including training and maintenance for its products. Additionally, it engages in research and development contracts to create advanced solutions, which further contribute to its earnings. Key partnerships and collaborations with defense agencies and commercial entities enhance AeroVironment's market reach and revenue potential.

AeroVironment Financial Statement Overview

Summary

AeroVironment shows strong revenue growth and a robust balance sheet with low leverage, positioning it well in the Aerospace & Defense industry. However, challenges exist with profitability margins and cash flow generation, indicating areas needing improvement for sustained financial health.

Income Statement

AeroVironment has demonstrated solid revenue growth with a TTM (Trailing-Twelve-Months) revenue of $714.67M compared to $445.73M in 2022. The gross profit margin improved over time, indicating efficient cost management, but the net profit margin shows volatility, with recent margins at 4.62% in TTM. The EBIT and EBITDA margins have seen fluctuations, with TTM margins at about 4.63% and 7.03%, respectively. Overall, the company exhibits growth potential with some profitability challenges.

Balance Sheet

AeroVironment boasts a strong balance sheet with a high equity ratio of approximately 82.1% in TTM, reflecting financial stability. The debt-to-equity ratio is low at 0.04, indicating low leverage risk. However, the return on equity (ROE) is modest at 3.83%, suggesting room for improving shareholder returns. The company's solid equity position strengthens its financial footing.

Cash Flow

The cash flow statement reveals challenges in generating free cash flow, with a negative free cash flow of $-21.81M in TTM. While operating cash flow was negative at $-12.73M, the ratio of operating cash flow to net income suggests inefficiencies in cash generation. The company needs to improve its cash generation capabilities to enhance financial flexibility.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	742.56M	716.72M	540.54M	445.73M	394.91M	367.30M
Gross Profit	290.75M	283.93M	173.51M	141.24M	164.56M	153.10M
EBITDA	60.50M	102.50M	-79.08M	43.35M	54.24M	57.02M
Net Income	33.00M	59.67M	-173.71M	-8.77M	33.83M	41.07M
Balance Sheet
Total Assets	1.05B	1.02B	824.58M	914.20M	928.57M	584.95M
Cash, Cash Equivalents and Short-Term Investments	47.00M	73.30M	132.86M	101.95M	180.71M	302.65M
Total Debt	59.19M	59.68M	162.82M	216.57M	222.77M	10.21M
Total Liabilities	187.09M	193.12M	273.61M	305.99M	316.46M	75.05M
Stockholders Equity	861.05M	822.75M	550.97M	607.97M	612.09M	509.90M
Cash Flow
Free Cash Flow	-25.65M	-9.19M	-3.47M	-31.91M	75.27M	13.88M
Operating Cash Flow	-12.73M	15.29M	11.40M	-9.62M	86.53M	25.10M
Investing Cash Flow	-26.88M	-51.71M	-7.00M	-52.29M	-378.77M	59.17M
Financing Cash Flow	-20.62M	-22.85M	50.83M	-16.61M	194.16M	-1.83M

AeroVironment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 234.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVAV, the sentiment is Positive. The current price of 234.94 is above the 20-day moving average (MA) of 189.45, above the 50-day MA of 170.49, and above the 200-day MA of 172.91, indicating a bullish trend. The MACD of 10.07 indicates Negative momentum. The RSI at 82.50 is Negative, neither overbought nor oversold. The STOCH value of 63.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVAV.

AeroVironment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KTOS	74 Outperform	$6.26B	322.80	1.45%	―	7.32%	―
AVAV	72 Outperform	$8.73B	165.34	5.10%	―	14.50%	-29.76%
KRMN	65 Neutral	$6.23B	―		―	―	―
Sector *	62 Neutral	C$6.38B	7.49	3.30%	3.21%	6.91%	-13.05%
MRCY	58 Neutral	$3.00B	―	-4.45%	―	5.66%	52.71%
ACHR	49 Neutral	$6.34B	―	-73.89%	―	―	17.43%
SPR	37 Underperform	$4.31B	―	81.63%	―	-2.91%	-109.95%

AeroVironment Corporate Events

AeroVironment Reports Record Q4 and FY 2025 Results

AeroVironment reported record financial results for the fourth quarter and fiscal year 2025, with a 40% increase in fourth-quarter revenue and a 14% rise in annual revenue. The company achieved significant growth in its Uncrewed Systems and Loitering Munition Systems, leading to record bookings of $1.2 billion. The acquisition of BlueHalo is expected to enhance AeroVironment’s position in the defense-technology sector, aligning with strategic priorities and expanding capabilities. Despite a goodwill impairment charge in the Uncrewed Ground Vehicle business, the company anticipates strong growth in fiscal year 2026, projecting revenue between $1.9 billion and $2.0 billion.

The most recent analyst rating on (AVAV) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on AeroVironment stock, see the AVAV Stock Forecast page.

AeroVironment Highlights BlueHalo Acquisition at Conference

On June 3, 2025, AeroVironment, Inc. presented an overview of its business at the William Blair Annual Growth Stock Conference in Chicago. The company highlighted its recent acquisition of BlueHalo, which closed on May 1, 2025, and is expected to enhance revenue and market position. The acquisition is anticipated to provide significant synergies and strengthen AeroVironment’s portfolio of mission-critical capabilities, positioning it as a diversified defense technology provider. The company also outlined its strategic focus on expanding into new markets and maintaining its role as a market innovator, despite the inherent risks and uncertainties involved.

The most recent analyst rating on (AVAV) stock is a Buy with a $200.00 price target. To see the full list of analyst forecasts on AeroVironment stock, see the AVAV Stock Forecast page.

AeroVironment Completes Acquisition of BlueHalo

AeroVironment, Inc. announced that it will meet with investors from May 5-8, 2025, to discuss its recent acquisition of BlueHalo, which was completed on May 1, 2025. The acquisition is expected to drive significant growth and strengthen AeroVironment’s position in the defense technology sector. The company aims to leverage BlueHalo’s capabilities to enhance its product offerings and expand into new markets, despite potential risks and uncertainties associated with the integration process.

AeroVironment Completes Acquisition of BlueHalo, LLC

On May 1, 2025, AeroVironment, Inc. completed its acquisition of BlueHalo, LLC, enhancing its position as a global defense technology leader. The merger, which involved a new $700 million loan and the issuance of 17,425,849 shares of AeroVironment’s common stock, aims to accelerate innovation and strengthen customer partnerships. The transaction also led to the appointment of new executives and board members, including Brad Truesdell as Chief Operating Officer, and expanded AeroVironment’s operational scale and capabilities across multiple domains.

AeroVironment Advances with BlueHalo Acquisition Approval

On April 1, 2025, AeroVironment’s stockholders approved the issuance of common stock to facilitate the company’s acquisition of BlueHalo LLC, marking a significant step towards becoming a leading next-generation defense technology company. The transaction, expected to close in May 2025, aims to enhance AeroVironment’s capabilities in delivering integrated, all-domain solutions, thereby creating new growth and value opportunities.