📊 AVAV Key Takeaways
Is AeroVironment Inc (AVAV) a Good Investment?
AeroVironment faces severe operational challenges despite 14.5% revenue growth, with massive operating losses of -$278.5M and negative free cash flow of -$220.1M indicating the company is burning cash faster than it generates it. While strong liquidity metrics and low leverage provide a financial cushion, the deteriorating profitability trend with negative net margins and operating margins suggests the business model is unprofitable at scale and requires urgent operational restructuring.
AeroVironment is still growing revenue at a healthy double-digit rate, but that growth is currently low quality because it is paired with deeply negative operating margins, net losses, and substantial cash burn. The balance sheet is a meaningful cushion, with strong liquidity and modest leverage relative to equity, but the core fundamental question is whether management can restore profitability and convert growth into positive cash flow.
Why Buy AeroVironment Inc Stock? AVAV Key Strengths
- Strong revenue growth of 14.5% year-over-year demonstrates market demand for products
- Excellent liquidity position with 5.51x current ratio and $289.9M cash provides runway for turnaround
- Conservative leverage with 0.17x debt-to-equity ratio limits financial distress risk
- Revenue growth remains solid at 14.5% YoY, indicating continued demand and business expansion
- Liquidity is strong, with a 5.51x current ratio and 4.54x quick ratio, reducing near-term financial stress
- Leverage appears manageable, with debt-to-equity of 0.17x and a large equity base
AVAV Stock Risks: AeroVironment Inc Investment Risks
- Severe unprofitability with -$278.5M operating loss and -18.1% net margin indicates core business is not economically viable
- Negative operating cash flow of -$173.9M and free cash flow of -$220.1M mean company is consuming capital despite revenue growth
- Deteriorating EPS of -$4.94 (down 28.9% YoY) and negative ROE/ROA suggest management cannot convert growth into shareholder value
- Operating margin of -20.9% and net margin of -18.1% show severe profitability weakness
- Negative operating cash flow of -173.92M and free cash flow of -220.05M indicate weak cash conversion and poor growth quality
- Gross margin of 22.3% is relatively thin for absorbing operating costs, raising execution risk if costs remain elevated
Key Metrics to Watch
- Path to operating cash flow positivity and timeline to profitability
- Gross margin sustainability as revenue scales and product mix evolution
- Operating expense reduction initiatives and restructuring effectiveness
- Operating margin and net margin improvement
- Operating cash flow and free cash flow trend
AeroVironment Inc (AVAV) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 5.51x current ratio provides a solid financial cushion.
AVAV Profit Margin, ROE & Profitability Analysis
AVAV vs Automotive Sector: How AeroVironment Inc Compares
How AeroVironment Inc compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is AeroVironment Inc Stock Overvalued? AVAV Valuation Analysis 2026
Based on fundamental analysis, AeroVironment Inc has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
AeroVironment Inc Balance Sheet: AVAV Debt, Cash & Liquidity
AVAV Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: AeroVironment Inc's revenue has grown significantly by 108% over the 5-year period, indicating strong business expansion. The most recent EPS of $-7.04 indicates the company is currently unprofitable.
AVAV Revenue Growth, EPS Growth & YoY Performance
AVAV Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $167.6M | -$1.8M | $-0.06 |
| Q2 2026 | $188.5M | $7.5M | $0.27 |
| Q1 2026 | $189.5M | $21.2M | $0.75 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
AeroVironment Inc Dividends, Buybacks & Capital Allocation
AVAV SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for AeroVironment Inc (CIK: 0001368622)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AVAV
What is the AI rating for AVAV?
AeroVironment Inc (AVAV) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AVAV's key strengths?
Claude: Strong revenue growth of 14.5% year-over-year demonstrates market demand for products. Excellent liquidity position with 5.51x current ratio and $289.9M cash provides runway for turnaround. ChatGPT: Revenue growth remains solid at 14.5% YoY, indicating continued demand and business expansion. Liquidity is strong, with a 5.51x current ratio and 4.54x quick ratio, reducing near-term financial stress.
What are the risks of investing in AVAV?
Claude: Severe unprofitability with -$278.5M operating loss and -18.1% net margin indicates core business is not economically viable. Negative operating cash flow of -$173.9M and free cash flow of -$220.1M mean company is consuming capital despite revenue growth. ChatGPT: Operating margin of -20.9% and net margin of -18.1% show severe profitability weakness. Negative operating cash flow of -173.92M and free cash flow of -220.05M indicate weak cash conversion and poor growth quality.
What is AVAV's revenue and growth?
AeroVironment Inc reported revenue of $1.3B.
Does AVAV pay dividends?
AeroVironment Inc does not currently pay dividends.
Where can I find AVAV SEC filings?
Official SEC filings for AeroVironment Inc (CIK: 0001368622) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AVAV's EPS?
AeroVironment Inc has a diluted EPS of $-4.94.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is AVAV a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, AeroVironment Inc has a SELL rating with 84% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AVAV stock overvalued or undervalued?
Valuation metrics for AVAV: ROE of -5.6% (sector avg: 12%), net margin of -18.1% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy AVAV stock in 2026?
Our dual AI analysis gives AeroVironment Inc a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AVAV's free cash flow?
AeroVironment Inc's operating cash flow is $-173.9M, with capital expenditures of $46.1M. FCF margin is -16.5%.
How does AVAV compare to other Automotive stocks?
Vs Automotive sector averages: Net margin -18.1% (avg: 6%), ROE -5.6% (avg: 12%), current ratio 5.51 (avg: 1.2).