American Vanguard (AVD) AI Stock Analysis

• Market Cap: $110.46M
• Dividend Yield: N/A
• Average Volume (3M): 196.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -4.29%
• EPS Growth: -276.74%
• Country: US
• Employees: 845
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): -0.43
• Shares Outstanding: 28,468,140
• 10 Day Avg. Volume: 247,772
• 30 Day Avg. Volume: 196,681
• PEG Ratio: <0.01
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -34.51
• Enterprise Value/Market Cap: 3.15
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 2.72
• Enterprise Value/Ebitda: -63.85
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.13
• Revenue Forecast (FY): $536.11M

• Rating: 45 Neutral
• Price Target: $4.00 ▼(-10.71% Downside)

American Vanguard's overall stock score is primarily impacted by its weak financial performance and bearish technical indicators. Despite positive sentiment from the earnings call and recent corporate events, the company's financial instability and negative valuation metrics weigh heavily on its score. The stock's current technical position suggests caution, as it is trading below key moving averages with negative momentum indicators.

Positive Factors

EBITDA Growth

The significant increase in EBITDA indicates improved operational efficiency and cost management, enhancing long-term profitability.

Cost Control

Effective cost control measures contribute to margin improvement and financial stability, supporting sustainable growth.

U.S. Crop Business Performance

Strong performance in the U.S. crop segment indicates robust demand and market position, driving revenue growth.

Negative Factors

Rising Leverage

Increased leverage may strain financial flexibility and cash flow, posing risks to long-term financial health.

Declining Profitability

Declining profitability highlights operational challenges, affecting the company's ability to generate sustainable earnings.

Cash Flow Challenges

Weak cash generation limits the company's ability to invest in growth opportunities and manage debt effectively.

American Vanguard Business Overview & Revenue Model

Company Description

American Vanguard Corporation (AVD) is a leading provider of crop protection and soil fertility products, primarily serving the agricultural sector. The company specializes in the development, manufacture, and marketing of a wide range of chemical and biological products designed to enhance crop yield and quality. AVD operates in several sectors, including agricultural chemicals, specialty chemicals, and environmental services, focusing on innovative solutions that promote sustainable agricultural practices.

How the Company Makes Money

American Vanguard generates its revenue primarily through the sale of its crop protection products, which include herbicides, insecticides, fungicides, and other agricultural chemicals. The company has established key revenue streams from its proprietary formulations, which are marketed to farmers and agricultural distributors. Additionally, AVD benefits from licensing agreements and collaborations with other companies in the agricultural space to enhance its product offerings. The company's focus on research and development allows it to introduce new products that meet evolving agricultural needs, contributing to its financial growth. Seasonal demand fluctuations in agriculture and global market trends also significantly impact AVD's earnings.

American Vanguard Financial Statement Overview

Summary

American Vanguard faces significant financial challenges. Despite positive revenue growth, profitability has deteriorated, and leverage has increased, raising concerns about financial stability. Cash flow generation is weak, with negative growth and low cash conversion ratios. The company needs to address operational inefficiencies and manage debt levels to improve its financial health.

Income Statement

American Vanguard's income statement shows a concerning trend with declining profitability. The TTM data reveals a negative net profit margin of -23.72% and a negative EBIT margin of -19.18%, indicating operational challenges. Revenue growth is positive at 19% TTM, but the company has struggled to convert this into profit, as evidenced by the negative EBITDA margin of -16.06%. Historical data shows a decline from positive margins in 2022, highlighting a significant downturn in financial performance.

Balance Sheet

The balance sheet reflects a moderate level of financial stability. The debt-to-equity ratio has increased to 0.90 TTM from 0.21 in 2022, indicating rising leverage. Return on equity has turned negative at -49.15% TTM, a sharp decline from positive returns in previous years, suggesting inefficiencies in generating shareholder value. The equity ratio remains stable, but the increased debt levels pose a potential risk.

Cash Flow

Cash flow analysis shows significant challenges, with free cash flow growth at -83.67% TTM, indicating a substantial decline in cash generation. The operating cash flow to net income ratio is low at 0.10, reflecting weak cash conversion efficiency. Although the free cash flow to net income ratio is relatively high at 0.89, the overall cash flow position is concerning due to negative growth and low operating cash flow coverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	530.07M	547.31M	579.37M	609.62M	557.68M	458.70M
Gross Profit	127.80M	120.32M	179.16M	241.35M	170.72M	172.59M
EBITDA	-5.44M	-9.43M	44.72M	62.79M	57.00M	43.29M
Net Income	-112.10M	-126.34M	7.52M	27.40M	18.59M	15.24M
Balance Sheet
Total Assets	655.01M	636.72M	767.55M	726.31M	694.16M	680.29M
Cash, Cash Equivalents and Short-Term Investments	16.80M	12.51M	11.42M	20.33M	16.29M	15.92M
Total Debt	200.59M	167.81M	162.09M	76.25M	78.08M	119.81M
Total Liabilities	434.02M	403.61M	397.54M	356.33M	321.42M	319.56M
Stockholders Equity	220.99M	233.11M	370.01M	369.98M	372.74M	360.74M
Cash Flow
Free Cash Flow	2.91M	-3.77M	-70.81M	42.55M	76.32M	75.06M
Operating Cash Flow	6.63M	3.92M	-58.75M	57.10M	86.36M	90.32M
Investing Cash Flow	-2.28M	-6.62M	-17.02M	-14.47M	-20.04M	-35.80M
Financing Cash Flow	-222.00K	4.54M	66.74M	-38.26M	-65.87M	-44.44M

American Vanguard Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVD, the sentiment is Negative. The current price of 4.48 is above the 20-day moving average (MA) of 4.24, below the 50-day MA of 4.65, and below the 200-day MA of 4.56, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 37.55 is Neutral, neither overbought nor oversold. The STOCH value of 12.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVD.

American Vanguard Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UAN	69 Neutral	$1.01B	8.03	42.00%	12.33%	16.52%	141.96%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IPI	53 Neutral	$364.41M	-1.88	-33.37%	―	8.88%	-349.99%
BIOX	49 Neutral	$85.36M	-1.47	-20.52%	―	-27.90%	-4194.67%
AVD	45 Neutral	$110.46M	-1.02	-40.84%	―	-4.29%	-276.74%
LVRO	44 Neutral	$75.63M	-0.40	―	―	―	―
BHST	41 Neutral	$125.73M	-7.85	-200.22%	―	45.88%	43.12%

American Vanguard Corporate Events

American Vanguard Reports Q3 2025 Financial Improvement

American Vanguard reported a substantial improvement in its financial performance for the third quarter of 2025, with an adjusted EBITDA of $8.2 million compared to $1.8 million in the same period last year. The company attributes these results to greater manufacturing efficiency, reduced operational expenses, and lower net trade working capital, despite a challenging agricultural environment. The company maintained its full-year 2025 EBITDA guidance of $40 million to $44 million and plans to focus on its business improvement plan, which has already shown positive results. Additionally, American Vanguard intends to rename its non-crop business to the Specialty business to better align with industry peers and highlight its advanced technologies.