American Vanguard (AVD) AI Stock Analysis

• Market Cap: $149.26M
• Dividend Yield: 0.78%
• Average Volume (3M): 268.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -9.57%
• EPS Growth: -3226.39%
• Country: US
• Employees: 845
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Agricultural Inputs
• EPS (TTM): -0.03
• Shares Outstanding: 28,431,276
• 10 Day Avg. Volume: 210,988
• 30 Day Avg. Volume: 268,333
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.04
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 2.75
• Enterprise Value/Ebitda: -3.59
• 1Y Price Target: $8.75
• Price Target Upside: 62.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 53 Neutral
• Price Target: $5.50 ▲(1.85% Upside)

The overall stock score of 53 reflects significant financial challenges and valuation concerns, despite positive technical indicators and some operational improvements. The financial performance heavily influences the score, highlighting the need for strategic improvements to ensure long-term stability.

Positive Factors

Debt Reduction

Q3’24 saw accelerated debt reduction as net debt declined $26M from $193M ending Q2’24 to $167M ending Q3’24.

EBITDA Improvement

Analyst believes American Vanguard's internal efforts will drive over 20% improvement in EBITDA and significantly reduce leverage.

Financial Performance

The converging effects of revenue growth, margin expansion, and debt reduction in FY25 can drive material alpha from severely depressed levels.

Negative Factors

Peer Performance

Shares have been sliding following tariff threats and results from peers.

Tariff Threats

Shares have been sliding due to tariff threats and results from peers, which analyst believes are overanalyzed.

American Vanguard Business Overview & Revenue Model

Company Description

American Vanguard Corporation (AVD) is a diversified specialty chemical company that focuses on the development and marketing of innovative crop protection products and other agricultural solutions. Operating primarily in the agricultural sector, the company offers a range of products, including insecticides, herbicides, fungicides, and soil fumigants. AVD is dedicated to enhancing agricultural productivity and sustainability through its advanced chemical formulations and technologies.

How the Company Makes Money

American Vanguard generates revenue through the sale of its agricultural products, which are sold to distributors and directly to farmers. The company’s primary revenue streams include the sale of crop protection chemicals, specialty fertilizers, and other related products. Additionally, AVD often engages in partnerships and collaborations with other agricultural companies and research institutions to develop new products and technologies, which can enhance its market reach and product offerings. The company's focus on innovation and sustainability also positions it well in a market increasingly driven by environmental considerations, potentially leading to additional revenue opportunities through the development of eco-friendly products.

American Vanguard Financial Statement Overview

Summary

American Vanguard is experiencing substantial financial challenges, with declining revenue and profitability as shown in its financial statements. The income statement highlights a significant drop in profit margins and negative earnings. The balance sheet indicates increased leverage and declining equity, while cash flow remains weak, suggesting ongoing operational difficulties.

Income Statement

American Vanguard's income statement shows notable challenges. The TTM data reveals a decline in revenue with a negative EBIT, EBITDA, and net income, indicating operational difficulties. Gross profit margin and net profit margin have deteriorated substantially from previous years, highlighting a significant drop in profitability. Revenue growth has been negative, reflecting a concerning trend in sales performance.

Balance Sheet

The balance sheet shows a moderate level of stability but highlights some areas of concern. The debt-to-equity ratio is increasing, suggesting higher leverage risk. Stockholders' equity has decreased, impacting the equity ratio. The return on equity is negative due to recent net losses, indicating inefficiencies in generating shareholder returns. Overall, the balance sheet reflects financial strain, although total assets have remained relatively stable.

Cash Flow

The cash flow statement reflects significant challenges. Operating cash flow has improved in the TTM period but remains weak relative to net income, which is negative. Free cash flow has improved, yet the growth rate is concerning due to past negative values. Cash flow ratios indicate difficulties in converting income into cash flow, and the company faces pressures in sustaining positive cash flows amidst operational challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	529.07M	547.31M	579.37M	609.62M	556.87M	458.70M
Gross Profit	110.87M	120.32M	179.16M	241.35M	213.24M	172.59M
EBITDA	-84.96M	-81.59M	45.08M	66.36M	53.41M	38.87M
Net Income	-125.48M	-126.34M	7.52M	27.40M	18.59M	15.24M
Balance Sheet
Total Assets	651.98M	636.72M	767.55M	726.31M	694.16M	667.18M
Cash, Cash Equivalents and Short-Term Investments	14.48M	12.51M	11.42M	20.33M	16.29M	15.92M
Total Debt	208.53M	167.81M	162.09M	76.25M	78.08M	119.81M
Total Liabilities	421.16M	403.61M	397.54M	356.33M	321.42M	306.45M
Stockholders Equity	230.82M	233.11M	370.01M	369.98M	372.74M	360.74M
Cash Flow
Free Cash Flow	18.30M	-3.77M	-70.81M	42.55M	77.28M	77.95M
Operating Cash Flow	20.54M	3.92M	-58.75M	57.10M	87.32M	89.20M
Investing Cash Flow	-1.28M	-6.62M	-17.02M	-14.47M	-20.04M	-35.80M
Financing Cash Flow	-24.27M	4.54M	66.74M	-38.26M	-65.87M	-43.21M

American Vanguard Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVD, the sentiment is Positive. The current price of 5.4 is above the 20-day moving average (MA) of 4.98, above the 50-day MA of 4.26, and above the 200-day MA of 4.72, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 60.75 is Neutral, neither overbought nor oversold. The STOCH value of 59.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVD.

American Vanguard Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UAN	75 Outperform	$960.36M	10.92	28.37%	10.04%	8.15%	77.68%
BIOX	62 Neutral	$176.22M	193.48	-3.00%	―	-13.98%	-403.56%
Sector *	61 Neutral	$10.31B	6.29	0.76%	2.95%	3.36%	-36.41%
IPI	56 Neutral	$399.22M	―	-34.48%	―	11.93%	-311.34%
AVD	53 Neutral	$149.26M	―	-42.97%	0.78%	-9.57%	-3226.39%
SMG	51 Neutral	$3.59B	81.07	4.98%	4.31%	-2.05%	―
LVRO	44 Neutral	$202.39M	―	-69.68%	―	―	―

American Vanguard Corporate Events

American Vanguard Extends Loan Agreement with BMO Bank

On August 18, 2025, American Vanguard‘s subsidiary, AMVAC Chemical Corporation, amended its senior credit facility with a group of commercial lenders led by BMO Bank. The amendment extends the maturity date of the loan agreement to December 31, 2026, and adjusts the borrowing capacity under the revolving credit facility. This extension is seen as a vote of confidence in American Vanguard’s ongoing transformation and improvement, allowing the management to better demonstrate the company’s earnings potential to investors.

American Vanguard Reports Strong Q2 2025 Financial Results

On July 31, 2025, American Vanguard reported its financial results for the second quarter ended June 30, 2025. The company achieved a substantial improvement in adjusted EBITDA, which increased by more than 80% compared to the previous year, reaching $11 million. The gross profit margin improved to 31% from 29% last year, driven by enhancements in manufacturing and procurement processes. The company also reduced its debt by $22 million and inventory by $53 million compared to the previous year. CEO Dak Kaye highlighted the company’s progress in business transformation and operational improvements, which have been supported by an early recovery in the agriculture economy. American Vanguard reiterated its full-year 2025 revenue and adjusted EBITDA targets, emphasizing continued efforts to control expenses and maximize investor returns.

American Vanguard Elects Directors at Annual Meeting

At the 2025 Annual Meeting of Stockholders held on July 2, 2025, American Vanguard Corporation announced the election of nine directors, the ratification of Deloitte & Touche LLP as its independent registered public accounting firm for the year ending December 31, 2025, and the approval of its executive compensation policies. All measures received strong support from shareholders, indicating confidence in the company’s leadership and strategic direction.

American Vanguard Regains NYSE Compliance After Filing Delay

On April 2, 2025, American Vanguard Corporation received a notice of noncompliance from the NYSE due to delayed filing of its 2024 Annual Report. By June 6, 2025, the company had resolved the issue, regaining compliance after filing the necessary reports. During its first quarter of 2025, American Vanguard faced challenges such as a 14% revenue decrease compared to the previous year, attributed to continued destocking and strategic adjustments. Despite these hurdles, the company reported improvements in operating expenses and net working capital, and anticipates a stronger second quarter with a solid remainder of 2025.