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American Vanguard Corporation (AVD)
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American Vanguard (AVD) AI Stock Analysis

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AVD

American Vanguard

(NYSE:AVD)

Rating:43Neutral
Price Target:
$4.00
▼(-12.47% Downside)
American Vanguard's overall stock score of 43 reflects significant financial performance challenges, including declining revenues and high leverage. While there are some positive aspects in technical analysis and corporate events, these are not sufficient to offset the underlying financial distress. The earnings call provides some optimism with cost reductions, but the lowered guidance and market challenges remain concerns.
Positive Factors
Debt Management
Q3’24 saw accelerated debt reduction as net debt declined $26M from $193M ending Q2’24 to $167M ending Q3’24.
Market Potential
Analyst reiterates a Buy rating, suggesting the stock has the potential to multiply in value over the next 12-18 months.
Revenue and Earnings Growth
The converging effects of revenue growth, margin expansion, and debt reduction in FY25 can drive material alpha from severely depressed levels.
Negative Factors
Market Sentiment
Shares have been sliding due to tariff threats and results from peers, which analyst believes are overanalyzed.
Tariff and Trade Concerns
Shares have been sliding following tariff threats and results from peers.

American Vanguard (AVD) vs. SPDR S&P 500 ETF (SPY)

American Vanguard Business Overview & Revenue Model

Company DescriptionAmerican 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 MoneyAmerican Vanguard makes money primarily through the sale of its crop protection and specialty products. The company's revenue streams include the sale of insecticides, herbicides, and fungicides, which are used by farmers and agricultural professionals to protect crops from pests, diseases, and weeds. Additionally, AVD generates income from its non-agricultural offerings, such as products designed for turf and ornamental plant care and vector control for public health. The company also benefits from strategic partnerships and acquisitions that expand its product portfolio and market reach, enhancing its ability to generate revenue.

American Vanguard Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q1-2025)
|
% Change Since: 18.39%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Negative
The earnings call highlighted significant cost reductions and inventory improvements, but these were overshadowed by revenue and EBITDA declines, continued market challenges, and a decline in gross profit margin. Adjustments to future guidance also suggest caution in the company's outlook.
Q1-2025 Updates
Positive Updates
Cost Reduction Achievements
Operating expenses dropped by $5 million and net trade working capital was reduced by $86 million compared to last year.
Product Growth in Metam and Thimet
Metam sales were up 14% and Thimet sales increased by 17% due to increased peanut acreage.
Improved Inventory Management
Inventory increased by only 3% since year-end 2024 and decreased by 20% compared to last year.
Lower Debt Levels
Debt was approximately $20 million or 14% lower than this time last year.
Negative Updates
Revenue and EBITDA Decline
First quarter 2025 revenue was $116 million, a decrease of 14% compared to the first quarter of 2024. Adjusted EBITDA also decreased significantly.
Market Challenges and Destocking
Continued destocking and absence of certain products, along with competition, led to weaker than anticipated first quarter results.
Decline in Gross Profit Margin
Gross profit margin declined to 26% from 31% last year, primarily due to a weaker pricing environment.
Guidance Adjustment
Full year adjusted EBITDA target range decreased to $40 million to $44 million from $45 million to $52 million, with revenue estimate adjusted to $535 million to $545 million.
Company Guidance
During the American Vanguard First Quarter 2025 Earnings Conference Call, the company provided guidance for the remainder of the year. Despite a challenging first quarter with net sales of $116 million, down from $135 million the previous year, and an adjusted EBITDA of $3 million compared to $15.5 million last year, the company remains optimistic. The CEO, Dak Kaye, highlighted key improvements, such as a $5 million reduction in operating expenses and an $86 million reduction in net trade working capital. However, due to continued destocking and market pressures, the company revised its full-year adjusted EBITDA target to a range of $40 million to $44 million, down from $45 million to $52 million, and its revenue estimate to $535 million to $545 million. The company expects that as channel inventory levels normalize, customer activity will increase, contributing to a stronger second quarter and solid performance for the remainder of 2025.

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
45
Neutral
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
50
Neutral
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue529.07M547.31M579.37M609.62M556.87M458.70M
Gross Profit110.87M120.32M179.16M241.35M213.24M172.59M
EBITDA-84.96M-81.59M45.08M66.36M53.41M38.87M
Net Income-125.48M-126.34M7.52M27.40M18.59M15.24M
Balance Sheet
Total Assets651.98M636.72M767.55M726.31M694.16M667.18M
Cash, Cash Equivalents and Short-Term Investments14.48M12.51M11.42M20.33M16.29M15.92M
Total Debt208.53M167.81M162.09M76.25M78.08M119.81M
Total Liabilities421.16M403.61M397.54M356.33M321.42M306.45M
Stockholders Equity230.82M233.11M370.01M369.98M372.74M360.74M
Cash Flow
Free Cash Flow18.30M-3.77M-70.81M42.55M77.28M77.95M
Operating Cash Flow20.54M3.92M-58.75M57.10M87.32M89.20M
Investing Cash Flow-1.28M-6.62M-17.02M-14.47M-20.04M-35.80M
Financing Cash Flow-24.27M4.54M66.74M-38.26M-65.87M-43.21M

American Vanguard Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.57
Price Trends
50DMA
4.06
Positive
100DMA
4.14
Positive
200DMA
4.75
Negative
Market Momentum
MACD
0.05
Negative
RSI
65.78
Neutral
STOCH
84.29
Negative
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 4.57 is above the 20-day moving average (MA) of 3.79, above the 50-day MA of 4.06, and below the 200-day MA of 4.75, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 65.78 is Neutral, neither overbought nor oversold. The STOCH value of 84.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVD.

American Vanguard Risk Analysis

American Vanguard disclosed 33 risk factors in its most recent earnings report. American Vanguard reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

American Vanguard Peers Comparison

Overall Rating
UnderperformOutperform
Sector (44)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$1.01B11.5028.37%7.33%8.15%77.68%
62
Neutral
$217.61M193.48-3.00%-13.98%-403.56%
54
Neutral
$432.66M-35.32%0.63%-369.50%
51
Neutral
$0.0081.914.98%4.27%-2.05%
44
Neutral
$241.58M-69.68%
44
Neutral
C$857.60M-6.73-14.95%2.79%16.39%-27.50%
43
Neutral
$119.70M-42.97%0.78%-9.57%-3226.39%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AVD
American Vanguard
4.57
-4.04
-46.92%
UAN
CVR Partners
96.81
29.63
44.11%
IPI
Intrepid Potash
33.38
10.13
43.57%
SMG
Scotts Miracle-Gro Company
61.37
-6.44
-9.50%
BIOX
Bioceres Crop Solutions
3.59
-6.52
-64.49%
LVRO
Lavoro Limited
2.05
-3.27
-61.47%

American Vanguard Corporate Events

Business Operations and StrategyFinancial Disclosures
American Vanguard Reports Strong Q2 2025 Financial Results
Positive
Aug 1, 2025

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.

The most recent analyst rating on (AVD) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on American Vanguard stock, see the AVD Stock Forecast page.

Executive/Board ChangesShareholder Meetings
American Vanguard Elects Directors at Annual Meeting
Positive
Jul 7, 2025

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.

The most recent analyst rating on (AVD) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on American Vanguard stock, see the AVD Stock Forecast page.

Delistings and Listing ChangesBusiness Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
American Vanguard Regains NYSE Compliance After Filing Delay
Neutral
Jun 9, 2025

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.

The most recent analyst rating on (AVD) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on American Vanguard stock, see the AVD Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
American Vanguard Amends Loan Agreement with BMO Bank
Neutral
May 8, 2025

On May 7, 2025, AMVAC Chemical Corporation, a subsidiary of American Vanguard, amended its loan agreement with a group of commercial lenders led by BMO Bank. The amendment extends the deadlines for delivering financial statements and reduces the borrowing capacity under the revolving credit facility by $60 million, reflecting changes from previous amendments.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 03, 2025