AeroVironment (AVAV) AI Stock Analysis

• Market Cap: $8.50B
• Dividend Yield: N/A
• Average Volume (3M): 407.41K
• Price to Earnings (P/E): 157.0
• Beta (1Y): 1.15
• Revenue Growth: 5.21%
• EPS Growth: N/A
• Country: US
• Employees: 1,403
• Sector: Industrials
• Sector Strength: 93
• Industry: Aerospace & Defense
• EPS (TTM): 0.30
• Shares Outstanding: 45,644,690
• 10 Day Avg. Volume: 504,103
• 30 Day Avg. Volume: 407,410
• PEG Ratio: -4.39
• Price to Book (P/B): 5.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -182.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $201.25
• Price Target Upside: 7.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: $203.00 ▲(8.79%Upside)

AeroVironment's overall score is buoyed by strong financial stability and strategic acquisitions like BlueHalo, which enhance its market position. However, high valuation concerns and profitability challenges temper the score, with technical indicators suggesting potential short-term risks.

Positive Factors

Acquisition

The BlueHalo sellers’ willingness to do an all-stock transaction is a major vote of confidence for the long-term business prospects.

Revenue Growth

AeroVironment is targeting nearly $1 billion in revenue in the fiscal year 2026, indicating strong growth ambitions.

Strategic Alignment

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

EBITDA Margins

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

Market Concerns

The Italian order was finalized during the Trump administration, which is significant amid investor concerns that Europe is looking to decrease reliance on American defense contractors.

Revenue Dependency

International customers represent approximately 40% of AeroVironment’s revenue, though this will decrease when the BlueHalo merger closes.

AeroVironment Business Overview & Revenue Model

Company Description

AeroVironment, Inc. designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates through four segments: Unmanned Aircraft Systems (UAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS). The company supplies UAS, TMS, unmanned ground vehicle, and related services primarily to organizations within the U.S. Department of Defense and to international allied governments. It also designs, engineers, tools, and manufactures unmanned aerial and aircraft systems, including airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to unmanned aircraft systems. In addition, the company offers small UAS products, including spare equipment, alternative payload modules, batteries, chargers, repair services, and customer support, as well as multiple aircraft, hand-held ground control system, and spare parts and accessories. Further, it develops high-altitude pseudo-satellite UAS systems. The company was incorporated in 1971 and is headquartered in Arlington, Virginia.

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, but faces challenges with profitability margins and cash flow generation. These areas need improvement to enhance financial health and maximize shareholder value.

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
	EBIT
33.08M	71.82M	-22.99M	-20.20M	43.31M	47.13M
	EBITDA
60.50M	102.50M	-79.08M	43.35M	54.24M	57.02M
	Net Income Common Stockholders
33.00M	59.67M	-173.71M	-8.77M	33.83M	41.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
47.00M	73.30M	132.86M	101.95M	180.71M	302.65M
	Total Assets
1.05B	1.02B	824.58M	914.20M	928.57M	584.95M
	Total Debt
59.19M	59.68M	162.82M	216.57M	222.77M	10.21M
	Net Debt
12.19M	-13.62M	29.96M	139.34M	74.03M	-244.93M
	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: 186.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 186.59 is above the 20-day moving average (MA) of 171.83, above the 50-day MA of 152.48, and above the 200-day MA of 172.59, indicating a bullish trend. The MACD of 8.39 indicates Negative momentum. The RSI at 69.86 is Neutral, neither overbought nor oversold. The STOCH value of 86.18 is Negative, 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	$6.00B	317.50	1.45%	―	7.32%	―
AVAV	68 Neutral	$8.50B	156.95	3.94%	―	5.21%	―
Sector *	66 Neutral	$4.49B	12.28	5.32%	248.53%	4.08%	-12.00%
KRMN	65 Neutral	$5.78B	―		―	―	―
MRCY	58 Neutral	$3.04B	―	-4.45%	―	5.66%	52.71%
ACHR	49 Neutral	$5.34B	―	-73.89%	―	―	17.43%
SPR	37 Underperform	$4.48B	―	81.63%	―	-2.91%	-109.95%

AeroVironment Corporate Events

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.

AeroVironment Reports Record Backlog Amid Revenue Decline

AeroVironment reported its fiscal 2025 third-quarter results, highlighting a record funded backlog of $763.5 million and a 10% year-over-year revenue decrease to $167.6 million. The company faced challenges such as high winds and fires in Southern California, impacting its operations. Despite these hurdles, AeroVironment made progress in its long-term growth strategy, including record orders for Switchblade and Jump-20, and announced a new Utah manufacturing facility to increase capacity. The company also advanced its acquisition of BlueHalo, expected to close in the second quarter of 2025. AeroVironment anticipates a strong fiscal year 2025 with record fourth-quarter revenue, despite transitioning away from Ukraine demand.