Avgol (AVGL) AI Stock Analysis

• Market Cap: 424.20M
• Dividend Yield: N/A
• Average Volume (3M): 28.06K
• Price to Earnings (P/E): 97.2
• Beta (1Y): 0.28
• Revenue Growth: 7.20%
• EPS Growth: -65.65%
• Country: IL
• Employees: 915
• Sector: Industrials
• Sector Strength: 87
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.60
• Shares Outstanding: 296,853,100
• 10 Day Avg. Volume: 19,642
• 30 Day Avg. Volume: 28,061
• PEG Ratio: 0.36
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -18.39
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 5.36
• Enterprise Value/Ebitda: 1.50
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: 144.00 ▲(0.77%Upside)

Avgol's overall stock score is primarily influenced by its mixed financial performance, highlighted by low profitability and negative cash flow, coupled with a bearish technical outlook. The high P/E ratio further indicates potential overvaluation concerns.

Avgol Business Overview & Revenue Model

Company Description

Avgol (AVGL) is a leading global manufacturer specializing in the production of nonwoven fabrics. The company operates primarily within the hygiene, medical, and industrial sectors, delivering high-performance fabrics that are integral to products such as diapers, sanitary napkins, and medical gowns. With a commitment to innovation and quality, Avgol provides its clients with solutions that meet the demanding standards of these industries.

How the Company Makes Money

Avgol generates revenue through the manufacture and sale of nonwoven fabric products. The company's key revenue streams include the supply of high-quality fabrics to manufacturers of hygiene products like diapers and feminine care items, as well as materials for medical applications such as surgical masks and gowns. Avgol's earnings are bolstered by long-term contracts with major consumer product companies and healthcare providers. Additionally, the company invests in research and development to maintain a competitive edge and expand its product offerings, ensuring sustained demand and profitability.

Avgol Financial Statement Overview

Summary

Avgol's financial performance presents a mixed picture. While there is some operational efficiency, profitability has been under pressure with low net profit margins and declining revenue over recent years. The balance sheet remains moderately stable, but the low return on equity and negative free cash flow raise concerns about long-term financial health. The company needs to focus on improving profitability and cash flow management to enhance its financial position.

Income Statement

The income statement shows a mixed performance with a modest TTM revenue growth of 0.2% compared to the previous year, and a significant decline from 2022. Gross profit margin stands at 13.95%, indicating moderate cost control. However, the net profit margin is low at 0.35%, suggesting challenges in converting sales into profit. The EBIT and EBITDA margins are 5.68% and 13.83% respectively, showing operational efficiency but also reflecting pressures on profitability.

Balance Sheet

The balance sheet indicates moderate stability with a debt-to-equity ratio of 0.96, implying a balanced approach to leverage. The return on equity is low at 0.6%, highlighting limited effectiveness in using shareholder funds to generate profit. The equity ratio of 42.24% suggests a reasonable level of asset financing through equity, but the declining trend in stockholders' equity from previous years could pose a risk.

Cash Flow

Cash flow analysis reveals challenges with a negative free cash flow in the TTM period, a decrease from the previous year's negative free cash flow. The operating cash flow to net income ratio is high at 33.11, indicating good cash earnings, but the free cash flow to net income ratio is negative, reflecting cash outflows related to capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	350.03M	318.07M	426.82M	471.41M	383.02M
Gross Profit	48.37M	45.36M	76.85M	64.33M	95.06M
EBITDA	44.71M	42.35M	72.40M	50.60M	86.46M
Net Income	-620.00K	3.99M	27.51M	8.14M	36.76M
Balance Sheet
Total Assets	469.00M	441.64M	465.68M	489.01M	463.83M
Cash, Cash Equivalents and Short-Term Investments	60.89M	50.71M	61.51M	65.94M	75.47M
Total Debt	196.36M	179.96M	187.42M	221.87M	216.72M
Total Liabilities	277.33M	242.63M	255.83M	304.90M	289.04M
Stockholders Equity	191.39M	198.69M	209.48M	183.65M	174.38M
Cash Flow
Free Cash Flow	-3.64M	-2.87M	22.47M	-17.83M	91.59M
Operating Cash Flow	42.51M	31.14M	50.70M	25.70M	101.55M
Investing Cash Flow	-45.89M	-33.42M	-29.92M	-43.15M	-6.02M
Financing Cash Flow	16.10M	-8.05M	-24.10M	7.59M	-56.81M

Avgol Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 142.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:AVGL, the sentiment is Positive. The current price of 142.9 is below the 20-day moving average (MA) of 147.75, below the 50-day MA of 147.35, and below the 200-day MA of 144.65, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 59.85 is Neutral, neither overbought nor oversold. The STOCH value of 86.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:AVGL.

Avgol Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KAFR	80 Outperform	661.21M	9.77		288.18%	15.45%	26.50%
Sector *	67 Neutral	£2.82B	10.43	4.69%	234.75%	2.73%	-20.52%
AVGL	51 Neutral	424.20M	97.21		―	7.20%	-65.65%

Avgol Corporate Events

Avgol to Release 2024 Financial Reports and Host Webinar

Avgol has announced the forthcoming release of its financial reports for the fourth quarter and full year of 2024, scheduled for March 6, 2025. The company will host a webinar on March 9, 2025, to discuss these reports, reflecting its commitment to transparency and stakeholder engagement by making the call recording available online. This approach underscores Avgol’s proactive communication strategy and may impact its market perception positively.