American Vanguard (AVD) AI Stock Analysis

• Market Cap: $137.96M
• Dividend Yield: 3.02%
• Average Volume (3M): 182.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -10.46%
• EPS Growth: -2007.33%
• Country: US
• Employees: 845
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Agricultural Inputs
• EPS (TTM): -0.30
• Shares Outstanding: 34,751,320
• 10 Day Avg. Volume: 236,102
• 30 Day Avg. Volume: 182,041
• PEG Ratio: -0.96
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -157.79
• Enterprise Value/Market Cap: 5.21
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 6.65
• Enterprise Value/Ebitda: -5.22
• 1Y Price Target: $12.00
• Price Target Upside: 202.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: $4.00 ▲(0.76%Upside)

American Vanguard's overall stock score is 45, primarily driven by significant financial challenges, including declining revenue and profitability, increased leverage, and cash flow struggles. Technical analysis and valuation metrics also reflect a weak outlook. The earnings call provided some positive cost management insights, but these were outweighed by negative guidance. The NYSE noncompliance notice adds to the risk profile, impacting the stock's appeal.

Positive Factors

Debt Reduction

Accelerated debt reduction with net debt declining from $193M to $167M showcases financial improvement and stability.

Financial Performance

Analyst believes internal efforts will drive over 20% improvement in EBITDA and significantly reduce leverage, enhancing financial performance.

Stock Valuation

Analyst reiterates a Buy rating, suggesting the stock has the potential to multiply in value over the next 12-18 months, indicating strong valuation potential.

Negative Factors

Market Challenges

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

Tariff Impact

Despite some insulation, American Vanguard faces challenges from tariff threats which have contributed to share price declines.

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 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 Financial Statement Overview

Summary

American Vanguard is facing substantial financial challenges. The income statement reveals significant declines in revenue and profitability, with negative EBIT, EBITDA, and net income. The balance sheet shows increased leverage and declining equity, and cash flow issues underscore difficulties in generating sustainable cash flows.

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
527.96M	547.31M	579.37M	609.62M	556.87M	458.70M
	Gross Profit
108.09M	120.32M	179.16M	241.35M	213.24M	172.59M
	EBIT
-111.96M	-101.56M	23.30M	40.65M	30.95M	23.63M
	EBITDA
-93.22M	-81.59M	45.08M	66.36M	53.41M	38.87M
	Net Income Common Stockholders
-136.35M	-126.34M	7.52M	27.40M	18.59M	15.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.80M	12.51M	11.42M	20.33M	16.29M	15.92M
	Total Assets
631.59M	636.72M	767.55M	726.31M	694.16M	667.18M
	Total Debt
186.56M	167.81M	162.09M	76.25M	78.08M	119.81M
	Net Debt
174.75M	155.29M	150.68M	55.92M	61.79M	103.88M
	Total Liabilities
404.23M	403.61M	397.54M	356.33M	321.42M	306.45M
	Stockholders Equity
227.35M	233.11M	370.01M	369.98M	372.74M	360.74M
Cash Flow		Free Cash Flow
21.21M	-3.77M	-70.81M	42.55M	77.28M	77.95M
	Operating Cash Flow
25.77M	3.92M	-58.75M	57.10M	87.32M	89.20M
	Investing Cash Flow
-3.50M	-6.62M	-17.02M	-14.47M	-20.04M	-35.80M
	Financing Cash Flow
-23.36M	4.54M	66.74M	-38.26M	-65.87M	-43.21M

American Vanguard Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.97
• 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 3.97 is below the 20-day moving average (MA) of 4.44, below the 50-day MA of 4.23, and below the 200-day MA of 5.03, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.26 is Neutral, neither overbought nor oversold. The STOCH value of 5.90 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	79 Outperform	$942.60M	12.50	25.16%	10.14%	-7.27%	-9.30%
IPI	60 Neutral	$503.11M	―	-35.32%	―	0.63%	-369.50%
BIOX	60 Neutral	$296.62M	193.48	0.51%	―	-13.98%	-403.35%
SMG	57 Neutral	$3.51B	121.51	4.98%	4.34%	0.75%	―
Sector *	51 Neutral	$2.01B	-1.27	-21.11%	5.15%	2.92%	-30.46%
LVRO	47 Neutral	$292.47M	―	-69.68%	―	―	―
AVD	45 Neutral	$137.96M	―	-45.53%	3.02%	-10.46%	-2007.33%

American Vanguard Corporate Events

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.

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.

American Vanguard Amends Loan Agreement with BMO Bank

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.

American Vanguard Faces NYSE Noncompliance Notice

On March 31, 2025, AMVAC Chemical Corporation, a subsidiary of American Vanguard, amended its loan agreement with commercial lenders to extend the deadline for delivering its audited financial statements for the fiscal year ended December 31, 2024, from 90 to 120 days. Subsequently, on April 2, 2025, American Vanguard received a notice of noncompliance from the New York Stock Exchange due to a delay in filing its Annual Report on Form 10-K for the same fiscal year. The company has six months from March 31, 2025, to file the report and regain compliance, and it expects its stock to continue being listed on the NYSE during this period.