American Vanguard (AVD) AI Stock Analysis

• Market Cap: $153.53M
• Dividend Yield: 0.78%
• Average Volume (3M): 194.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.96
• Revenue Growth: -9.57%
• EPS Growth: -3226.39%
• Country: US
• Employees: 845
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): -0.03
• Shares Outstanding: 28,431,276
• 10 Day Avg. Volume: 199,964
• 30 Day Avg. Volume: 194,298
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.99
• 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: 55 Neutral
• Price Target: $5.50 ▲(1.85% Upside)

American Vanguard's overall stock score is primarily impacted by its poor financial performance, which poses significant risks to long-term stability. However, positive technical indicators and recent corporate events provide some optimism, suggesting potential for recovery if financial challenges are addressed.

Positive Factors

Improved EBITDA

The significant improvement in EBITDA indicates better operational efficiency and cost management, which can enhance profitability and financial stability over the long term.

Debt Reduction

Reducing debt levels strengthens the balance sheet, lowers financial risk, and increases the company's flexibility to invest in growth opportunities.

Extended Credit Facility

Extending the credit facility maturity enhances financial stability and provides the company with more time to execute its strategic initiatives without immediate refinancing pressures.

Negative Factors

Revenue Decline

Declining revenue indicates potential challenges in market demand or competitive positioning, which could impact long-term growth and market share.

Negative Profitability Margins

Negative profitability margins suggest operational inefficiencies and financial distress, which can hinder the company's ability to reinvest in growth and innovation.

High Financial Leverage

High financial leverage increases financial risk and can limit the company's ability to respond to market changes or invest in new opportunities, impacting long-term sustainability.

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 faces significant financial challenges, including declining revenues, negative profitability margins, and high financial leverage. Cash flow volatility further exacerbates these issues, suggesting the need for strategic improvements in operational efficiency and financial management.

Income Statement

American Vanguard has experienced significant revenue declines over the past few years. The TTM (Trailing-Twelve-Months) shows a decrease in total revenue from the previous periods. Gross Profit Margin has also decreased significantly, indicating cost management issues. The company is currently operating with negative EBIT and EBITDA margins, reflecting operational inefficiencies and financial distress.

Balance Sheet

The company's balance sheet shows a high Debt-to-Equity ratio, suggesting a reliance on debt financing, which could pose a risk in terms of financial stability. The Return on Equity (ROE) has turned negative, indicating that the company is not generating sufficient returns from its equity base. The Equity Ratio remains moderate, suggesting some level of balance between debt and equity, but overall financial leverage is high.

Cash Flow

Cash flow analysis indicates challenges, with volatile free cash flow and negative Operating Cash Flow to Net Income ratios in recent years. The Free Cash Flow to Net Income ratio has improved but still indicates inefficiencies in cash generation relative to net income. The growth rate of free cash flow has been unstable, reflecting inconsistent cash flow management.

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 below the 20-day moving average (MA) of 5.47, above the 50-day MA of 4.74, and above the 200-day MA of 4.69, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 52.76 is Neutral, neither overbought nor oversold. The STOCH value of 63.41 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	72 Outperform	962.05M	10.94	27.79%	9.99%	8.15%	77.68%
BIOX	62 Neutral	104.73M	-2.03	0.00%	―	-28.28%	-1718.93%
AVD	55 Neutral	$153.53M	―	-42.97%	0.78%	-9.57%	-3226.39%
IPI	52 Neutral	376.18M	-1.81	-41.55%	―	11.93%	-311.34%
SMG	52 Neutral	3.35B	75.63	-31.07%	4.55%	-2.05%	0.00%
LVRO	44 Neutral	215.26M	-1.16	0.00%	―	0.00%	0.00%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

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.