📊 AVD Key Takeaways
Is American Vanguard Corp. (AVD) a Good Investment?
American Vanguard is experiencing severe operational distress with negative operating income, negative free cash flow, and deteriorating profitability despite maintaining a gross margin of 28.6%. The company is burning cash operationally while carrying substantial debt ($174M long-term debt with -1.5x interest coverage), indicating serious difficulty servicing obligations and funding operations.
American Vanguard's fundamentals are weak: revenue declined, operating and net margins are solidly negative, and both operating cash flow and free cash flow were negative in the latest period. Financial flexibility is pressured by low cash, meaningful long-term debt, and negative interest coverage, although liquidity is not yet critical given a 1.77x current ratio and positive equity base. Overall, the business shows poor earnings quality and limited evidence of a durable turnaround in the reported data.
Why Buy American Vanguard Corp. Stock? AVD Key Strengths
- Adequate gross margin of 28.6% suggests core product pricing power remains intact
- Current ratio of 1.77x indicates near-term liquidity capacity to meet obligations
- Debt-to-equity ratio of 0.90x is moderate relative to industry peers in agricultural chemicals
- Gross margin remains positive at 28.6%, indicating the core product portfolio still has underlying pricing/value support
- Current ratio of 1.77x suggests near-term obligations are still manageable relative to current assets
- Debt/equity of 0.90x is elevated but not yet extreme for a stressed industrial business
AVD Stock Risks: American Vanguard Corp. Investment Risks
- Negative operating cash flow of -$21.2M indicates core business cannot sustain itself without external funding
- Operating margin of -5.5% and net margin of -9.7% show structural unprofitability, not temporary disruption
- Negative interest coverage of -1.5x means operating earnings insufficient to cover debt service; refinancing risk is critical
- Revenue declining 5.9% YoY while maintaining negative profitability indicates market share loss or pricing pressure
- Minimal cash position ($12.4M) relative to $174M long-term debt creates distress vulnerability
- Operating loss and net loss indicate the company is not covering its cost structure
- Negative operating cash flow and free cash flow point to weak cash generation and poor growth quality
- Low cash balance combined with $174.00M of long-term debt and negative interest coverage raises refinancing and balance-sheet risk
Key Metrics to Watch
- Operating cash flow trend - currently negative and critical to stabilization
- Debt refinancing schedule and covenant compliance status
- Quarterly revenue stabilization and gross margin sustainability
- Management's capital allocation decisions and working capital management
- Operating cash flow and free cash flow trend
- Operating margin and interest coverage
American Vanguard Corp. (AVD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
American Vanguard Corp. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
AVD Profit Margin, ROE & Profitability Analysis
AVD vs Materials Sector: How American Vanguard Corp. Compares
How American Vanguard Corp. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is American Vanguard Corp. Stock Overvalued? AVD Valuation Analysis 2026
Based on fundamental analysis, American Vanguard Corp. shows some fundamental concerns relative to the Materials 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.
American Vanguard Corp. Balance Sheet: AVD Debt, Cash & Liquidity
AVD Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: American Vanguard Corp.'s revenue has shown modest growth of 4% over the 5-year period. The most recent EPS of $0.26 reflects profitable operations.
AVD Revenue Growth, EPS Growth & YoY Performance
AVD Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $118.3M | -$12.4M | $-0.43 |
| Q2 2025 | $128.2M | -$849.0K | $-0.03 |
| Q1 2025 | $115.8M | $1.6M | $0.06 |
| Q3 2024 | $118.3M | -$325.0K | $-0.01 |
| Q2 2024 | $128.2M | $865.0K | $0.03 |
| Q1 2024 | $124.9M | $1.6M | $0.06 |
| Q3 2023 | $149.5M | -$325.0K | $-0.01 |
| Q2 2023 | $132.8M | $865.0K | $0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
American Vanguard Corp. Dividends, Buybacks & Capital Allocation
AVD SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for American Vanguard Corp. (CIK: 0000005981)
📋 Recent SEC Filings
❓ Frequently Asked Questions about AVD
What is the AI rating for AVD?
American Vanguard Corp. (AVD) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 89% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AVD's key strengths?
Claude: Adequate gross margin of 28.6% suggests core product pricing power remains intact. Current ratio of 1.77x indicates near-term liquidity capacity to meet obligations. ChatGPT: Gross margin remains positive at 28.6%, indicating the core product portfolio still has underlying pricing/value support. Current ratio of 1.77x suggests near-term obligations are still manageable relative to current assets.
What are the risks of investing in AVD?
Claude: Negative operating cash flow of -$21.2M indicates core business cannot sustain itself without external funding. Operating margin of -5.5% and net margin of -9.7% show structural unprofitability, not temporary disruption. ChatGPT: Operating loss and net loss indicate the company is not covering its cost structure. Negative operating cash flow and free cash flow point to weak cash generation and poor growth quality.
What is AVD's revenue and growth?
American Vanguard Corp. reported revenue of $515.1M.
Does AVD pay dividends?
American Vanguard Corp. does not currently pay dividends.
Where can I find AVD SEC filings?
Official SEC filings for American Vanguard Corp. (CIK: 0000005981) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is AVD's EPS?
American Vanguard Corp. has a diluted EPS of $-1.75.
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 AVD a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, American Vanguard Corp. has a SELL rating with 89% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is AVD stock overvalued or undervalued?
Valuation metrics for AVD: ROE of -25.9% (sector avg: 14%), net margin of -9.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy AVD stock in 2026?
Our dual AI analysis gives American Vanguard Corp. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is AVD's free cash flow?
American Vanguard Corp.'s operating cash flow is $-21.2M, with capital expenditures of $224.0K. FCF margin is -4.2%.
How does AVD compare to other Materials stocks?
Vs Materials sector averages: Net margin -9.7% (avg: 10%), ROE -25.9% (avg: 14%), current ratio 1.77 (avg: 1.6).