American Vanguard (AVD) AI Stock Analysis

• Market Cap: $99.89M
• Dividend Yield: N/A
• Average Volume (3M): 196.68K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: -4.29%
• EPS Growth: -276.74%
• Country: US
• Employees: 845
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): -0.99
• Shares Outstanding: 28,468,140
• 10 Day Avg. Volume: 247,772
• 30 Day Avg. Volume: 196,681
• PEG Ratio: 0.04
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -32.36
• Enterprise Value/Market Cap: 2.65
• Enterprise Value/Revenue: 0.51
• Enterprise Value/Gross Profit: 1.83
• Enterprise Value/Ebitda: 15.90
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.38
• Revenue Forecast (FY): $555.00M

• Rating: 42 Neutral
• Price Target: $3.50 ▼(-7.65% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is held down primarily by weakening financial performance (recent losses, higher leverage, and negative free cash flow) and very bearish technical momentum (price below all key moving averages with negative MACD). The latest earnings call provides a modest offset due to improving EBITDA/margins and cost controls, but lowered sales outlook and limited valuation support keep the overall score low.

Positive Factors

EBITDA & Margin Improvement

Sustained EBITDA and margin improvement driven by optimized manufacturing and cost control signals structural operating leverage. If maintained, higher margins increase free cash flow potential, improve coverage of fixed costs and support deleveraging and reinvestment over the next several quarters.

Cost Controls & Working Capital Reduction

Meaningful cuts to SG&A/R&D and a $24M reduction in trade working capital materially lower the company’s cash burn profile. These structural efficiency gains improve liquidity and capacity to allocate incremental cash to debt reduction or targeted product investment over the coming 2–6 months.

Strong U.S. Crop Segment

Outperformance in core U.S. crop products reflects durable demand and a competitive product mix in the company’s largest market. A resilient domestic revenue base helps stabilize cash flows and margins even while international markets fluctuate, supporting near-term recovery efforts.

Negative Factors

Multi-year Revenue Decline

A persistent top-line decline over several years reduces scale economics and manufacturing utilization. Lower revenue makes it harder to absorb fixed costs, constrains R&D/product registration budgets and increases sensitivity to crop cycles and pricing over the medium term.

Sustained Net Losses

Large, recurring losses have eroded retained earnings and weaken the company’s internal funding capacity. Continued loss-making limits flexibility to invest in growth, raises reliance on external financing, and heightens execution risk during normalization of margins.

Rising Leverage & Weak Cash Flow

Leverage near 1.0 combined with three years of negative free cash flow materially reduces financial flexibility. This constrains the company’s ability to refinance, invest in registrations or capex, and raises refinancing and covenant risks if operating improvements stall.

American Vanguard Business Overview & Revenue Model

Company Description

American Vanguard Corporation, through its subsidiaries, develops, manufactures, and markets specialty chemicals for agricultural, commercial, and consumer uses in the United States and internationally. It manufactures and formulates chemicals, including insecticides, fungicides, herbicides, molluscicides, soil health, plant nutrition, growth regulators, and soil fumigants in liquid, powder, and granular forms for crops, turf and ornamental plants, and human and animal health protection. The company also markets, sells, and distributes end-use chemical and biological products for crop applications; and distributes chemicals for turf and ornamental markets. It distributes its products through national distribution companies, and buying groups or co-operatives; and through sales offices, sales force executives, sales agents, and wholly owned distributors. The company was incorporated in 1969 and is headquartered in Newport Beach, California.

How the Company Makes Money

American Vanguard makes money primarily by selling crop protection and pest control products. Revenue is generated from (1) sales of formulated products (finished, branded or labeled pesticides and pest management solutions) to distributors, retailers, and other channel partners that supply growers and professional users, and (2) sales of technical/active ingredient products and/or intermediate chemicals where applicable, including supply to third parties that may formulate or use these materials in their own products. The company’s earnings are influenced by product mix (higher-margin differentiated or proprietary offerings versus more commodity-like products), volumes tied to planting and pest pressure, and pricing dynamics in the crop protection market. Additional factors affecting profitability typically include manufacturing utilization and costs (as it operates manufacturing capabilities for certain products), regulatory compliance and product registrations (which enable continued market access and new product introductions), and working-capital needs driven by seasonal demand patterns. Specific significant partnerships and their quantitative contribution to revenue are null.

American Vanguard Financial Statement Overview

Summary

Fundamentals are weak: revenue has trended down (from ~$610M in 2022 to ~$515M in 2025), the company posted large net losses in 2024 and remained loss-making in 2025, leverage rose sharply (debt-to-equity ~0.99 in 2025), and free cash flow has been negative for three consecutive years (2023–2025). Gross margin improvement in 2025 is a partial positive but not enough to offset the broader deterioration.

Income Statement

Revenue has trended down over the last several years (from $610M in 2022 to $515M in 2025), and profitability has deteriorated materially. After modest profits in 2020–2023, the company posted large net losses in 2024 (-$126M) and remained loss-making in 2025 (-$50M). While gross margin improved in 2025 (~29%) versus 2024 (~22%), it is still below 2022 levels (~40%), and negative net margins in 2024–2025 highlight weak earnings power and elevated cost pressure.

Balance Sheet

Leverage has increased meaningfully: debt-to-equity rose from ~0.21 in 2021–2022 to ~0.72 in 2024 and ~0.99 in 2025, reducing financial flexibility. Equity has also declined versus prior years (from ~$370M in 2021–2023 to ~$192M in 2025), consistent with recent losses. Total assets have come down since 2023, and returns on equity turned sharply negative in 2024–2025, though the company is not yet in an extreme over-levered position based on equity still being positive.

Cash Flow

Cash generation is weak and volatile. Operating cash flow was strong in 2020–2022 but swung sharply negative in 2023 and only slightly positive in 2024–2025 (~$4M each year). Free cash flow is negative in each of the last three years (2023–2025), and the very low ability of operating cash flow to cover net income in 2024–2025 reflects ongoing cash strain during a period of reported losses. Overall, the recent pattern points to limited internal funding capacity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	515.11M	547.31M	579.37M	609.62M	557.68M
Gross Profit	147.56M	120.32M	179.16M	241.35M	170.72M
EBITDA	25.32M	-9.43M	44.72M	62.79M	57.00M
Net Income	-49.88M	-126.34M	7.52M	27.40M	18.59M
Balance Sheet
Total Assets	596.54M	636.72M	767.55M	726.31M	694.16M
Cash, Cash Equivalents and Short-Term Investments	12.43M	12.51M	11.42M	20.33M	16.29M
Total Debt	191.39M	167.81M	162.09M	76.25M	78.08M
Total Liabilities	404.14M	403.61M	397.54M	356.33M	321.42M
Stockholders Equity	192.40M	233.11M	370.01M	369.98M	372.74M
Cash Flow
Free Cash Flow	-3.36M	-3.77M	-70.81M	42.55M	76.32M
Operating Cash Flow	3.92M	3.92M	-58.75M	57.10M	86.36M
Investing Cash Flow	-6.62M	-6.62M	-17.02M	-14.47M	-20.04M
Financing Cash Flow	4.54M	4.54M	66.74M	-38.26M	-65.87M

American Vanguard Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 3.79 is below the 20-day moving average (MA) of 4.61, below the 50-day MA of 4.63, and below the 200-day MA of 4.65, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 19.80 is Positive, neither overbought nor oversold. The STOCH value of 11.11 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
IPI	73 Outperform	$562.29M	32.26	2.30%	―	8.88%	-349.99%
UAN	67 Neutral	$1.36B	10.98	32.82%	12.33%	16.52%	141.96%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
BIOX	48 Neutral	$26.18M	-3.05	-18.69%	―	-27.90%	-4194.67%
BHST	45 Neutral	$98.77M	-16.31	-1198.89%	―	45.88%	43.12%
AVD	42 Neutral	$99.89M	―	-22.89%	―	-4.29%	-276.74%