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AVAV Stock Analysis - AeroVironment Inc AI Rating

AVAV Nasdaq Aircraft DE CIK: 0001368622
Recently Updated • Analysis: Mar 20, 2026 • SEC Data: 2026-01-31
AI Rating
SELL
85% Confidence

📊 AVAV Key Takeaways

Revenue: $1.3B
Net Margin: -18.1%
Free Cash Flow: $-220.1M
Current Ratio: 5.51x
Debt/Equity: 0.17x
EPS: $-4.94
AI Rating: SELL with 85% confidence

Investment Thesis

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.

AVAV 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

AVAV 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

Key Metrics to Watch

AVAV Financial Metrics

Revenue
$1.3B
Net Income
$-241.0M
EPS (Diluted)
$-4.94
Free Cash Flow
$-220.1M
Total Assets
$5.5B
Cash Position
$289.9M

💡 AI Analyst Insight

Strong liquidity with a 5.51x current ratio provides a solid financial cushion.

AVAV Profitability Ratios

Gross Margin 22.3%
Operating Margin -20.9%
Net Margin -18.1%
ROE -5.6%
ROA -4.4%
FCF Margin -16.5%

AVAV vs Default Sector

How AeroVironment Inc compares to Default sector averages

Net Margin
AVAV -18.1%
vs
Sector Avg 12.0%
AVAV Sector
ROE
AVAV -5.6%
vs
Sector Avg 15.0%
AVAV Sector
Current Ratio
AVAV 5.5x
vs
Sector Avg 1.8x
AVAV Sector
Debt/Equity
AVAV 0.2x
vs
Sector Avg 0.7x
AVAV Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

AVAV Balance Sheet & Liquidity

Current Ratio
5.51x
Quick Ratio
4.54x
Debt/Equity
0.17x
Debt/Assets
0.0%
Interest Coverage
N/A
Long-term Debt
$747.5M

AVAV 5-Year Financial Trend

AVAV 5-year financial data: Year 2020: Revenue $394.9M, Net Income $47.4M, EPS $1.97. Year 2022: Revenue $445.7M, Net Income $41.1M, EPS $1.71. Year 2023: Revenue $540.5M, Net Income $23.3M, EPS $0.96. Year 2024: Revenue $716.7M, Net Income -$4.2M, EPS $-0.17. Year 2025: Revenue $820.6M, Net Income -$176.2M, EPS $-7.04.
Revenue
Net Income
EPS (right axis)

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 Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-16.5%
Free cash flow / Revenue

AVAV Quarterly Performance

Quarterly financial performance data for AeroVironment Inc including revenue, net income, and earnings per share.
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.

AVAV Capital Allocation

Operating Cash Flow
-$173.9M
Cash generated from operations
Stock Buybacks
$3.8M
Shares repurchased (TTM)
Capital Expenditures
$46.1M
Investment in assets
Dividends
None
No dividend program

AVAV SEC Filings

Access official SEC EDGAR filings for AeroVironment Inc (CIK: 0001368622)

📋 Recent SEC Filings

Date Form Document Action
Mar 19, 2026 4 xslF345X06/form4-03192026_070348.xml View →
Mar 18, 2026 8-K tm268917d3_8k.htm View →
Mar 17, 2026 4 xslF345X05/form4-03172026_110342.xml View →
Mar 17, 2026 4 xslF345X05/form4-03172026_110341.xml View →
Mar 16, 2026 8-K tm268917d1_8k.htm View →

Frequently Asked Questions about AVAV

What is the AI rating for AVAV?

AeroVironment Inc (AVAV) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.

What are AVAV's 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.

What are the risks of investing in AVAV?

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.

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?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 20, 2026 | Data as of: 2026-01-31 | Powered by Claude AI