📊 AVD Key Takeaways
Is American Vanguard Corp. (AVD) a Good Investment?
American Vanguard is in financial distress with deteriorating fundamentals across profitability, cash flow, and debt servicing capacity. The company posted a net loss of $4.1M with negative operating cash flow of $35.4M despite $123.6M in revenue, while an interest coverage ratio of 0.3x indicates the firm cannot service its $264.4M debt burden from operations. Revenue declined 5.9% YoY and the company is burning through cash reserves at an unsustainable rate.
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.
American Vanguard Corp. Key Strengths (AVD)
- Gross margin of 31.1% indicates underlying manufacturing efficiency in core operations
- Current ratio of 2.32x provides adequate short-term liquidity cushion
- Positive stockholders' equity of $189.6M provides balance sheet foundation
- 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 $35.4M indicates core business is not generating cash
- Interest coverage ratio of 0.3x signals inability to service debt from operating income
- Net loss of $4.1M with negative net margin of -3.4% indicates fundamental unprofitability
- Negative free cash flow of $35.7M at unsustainable depletion rate of $70.9M cash reserves
- Revenue declining 5.9% YoY with no evidence of stabilization or growth
- Leverage ratio of 1.39x Debt/Equity combined with weak cash generation creates refinancing risk
- 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
- Quarterly operating cash flow and trend toward positive generation
- Interest coverage ratio improvement above 1.0x threshold for debt serviceability
- Revenue stabilization or growth inflection to confirm business stabilization
- Cash balance depletion rate and runway before potential covenant breaches
- Operating cash flow and free cash flow trend
- Operating margin and interest coverage
American Vanguard Corp. (AVD) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.32x current ratio provides a solid financial cushion.
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 |
|---|---|---|---|
| Q1 2026 | $115.8M | -$4.1M | $-0.14 |
| 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 |
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 Grade of C from Claude (D) and ChatGPT (C) with 87% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AVD's key strengths?
Claude: Gross margin of 31.1% indicates underlying manufacturing efficiency in core operations. Current ratio of 2.32x provides adequate short-term liquidity cushion. 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 $35.4M indicates core business is not generating cash. Interest coverage ratio of 0.3x signals inability to service debt from operating income. 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 $123.6M.
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 $-0.14.
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 grade reflects both perspectives for balanced insights.
What is AVD's fundamental grade?
Based on our AI fundamental analysis in June 2026, American Vanguard Corp. has a C grade with 87% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is AVD stock overvalued or undervalued?
Valuation metrics for AVD: ROE of -2.2% (sector avg: 14%), net margin of -3.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is AVD's AI grade for 2026?
Our dual AI analysis gives American Vanguard Corp. a combined C grade 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 $-35.4M, with capital expenditures of $224.0K. FCF margin is -28.9%.
How does AVD compare to other Materials stocks?
Vs Materials sector averages: Net margin -3.4% (avg: 10%), ROE -2.2% (avg: 14%), current ratio 2.32 (avg: 1.6).