📊 AVAV Key Takeaways
Is AeroVironment Inc (AVAV) a Good Investment?
Despite exceptional 140.9% revenue growth, AVAV is experiencing severe operational distress with -$311M operating losses and negative free cash flow of -$140.9M, indicating the growth strategy is not generating sustainable cash returns. While strong liquidity (4.3x current ratio) and conservative leverage (0.17x debt/equity) provide a financial cushion, the deteriorating operational cash flow amid massive revenue expansion suggests fundamental profitability challenges that require urgent resolution.
Revenue growth of 140.9% is exceptional, but its quality is undermined by a 25.3% gross margin, substantial operating and net losses, and negative operating cash flow. Strong liquidity and modest debt relative to equity provide a financial cushion, but profitability and cash conversion must improve materially for the growth to become sustainable.
AeroVironment Inc Key Strengths (AVAV)
- Exceptional revenue growth of 140.9% YoY demonstrates strong market demand
- Fortress-like balance sheet with $377.3M cash and conservative 0.17x debt/equity ratio
- Reasonable gross margin of 25.3% indicates products are not commoditized and have underlying viability
- Revenue increased 140.9% year over year
- Strong liquidity with a 4.30x current ratio and 3.59x quick ratio
- Modest balance-sheet leverage with debt-to-equity of 0.17x
AVAV Stock Risks: AeroVironment Inc Investment Risks
- Operating losses of -$311M and net losses of -$265.1M while revenue doubled suggests broken unit economics or unsustainable acquisition-driven growth
- Negative free cash flow of -$140.9M despite massive revenue growth indicates severe operational cash generation failure
- Negative interest coverage (-12.9x) means operating income cannot service debt obligations; company is operating at a loss before interest expense
- Operating cash flow declined to -$78.4M contradicts revenue growth trajectory and suggests working capital deterioration or integration issues
- Operating loss of $311.00 million and negative 15.7% operating margin
- Negative free cash flow of $140.95 million indicates weak growth conversion
- Negative interest coverage and $747.50 million of long-term debt increase execution risk
Key Metrics to Watch
- Path to operating profitability and positive operating margin trend
- Free cash flow recovery and cash burn rate sustainability given current cash position
- Gross margin stability and operating leverage as revenue matures
- Composition of 31 insider Form 4 filings (accumulation vs distribution) as signal of management confidence
- Operating margin and path to profitability
- Operating cash flow and free cash flow
AeroVironment Inc (AVAV) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 4.30x 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 remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $2.18 reflects profitable operations.
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
| Date | Form | Document | Action |
|---|---|---|---|
| Jul 29, 2026 | 8-K | tm2621437d1_8k.htm | View → |
| Jul 16, 2026 | 4 | xslF345X06/form4-07162026_090729.xml | View → |
| Jul 16, 2026 | 4 | xslF345X06/form4-07162026_040740.xml | View → |
| Jul 15, 2026 | 4 | xslF345X06/form4-07152026_050701.xml | View → |
| Jul 15, 2026 | 4 | xslF345X06/form4-07152026_050754.xml | View → |
❓ Frequently Asked Questions about AVAV
What is the AI rating for AVAV?
AeroVironment Inc (AVAV) has a Combined AI Grade of C from Claude (C) and ChatGPT (C) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are AVAV's key strengths?
Claude: Exceptional revenue growth of 140.9% YoY demonstrates strong market demand. Fortress-like balance sheet with $377.3M cash and conservative 0.17x debt/equity ratio. ChatGPT: Revenue increased 140.9% year over year. Strong liquidity with a 4.30x current ratio and 3.59x quick ratio.
What are the risks of investing in AVAV?
Claude: Operating losses of -$311M and net losses of -$265.1M while revenue doubled suggests broken unit economics or unsustainable acquisition-driven growth. Negative free cash flow of -$140.9M despite massive revenue growth indicates severe operational cash generation failure. ChatGPT: Operating loss of $311.00 million and negative 15.7% operating margin. Negative free cash flow of $140.95 million indicates weak growth conversion.
What is AVAV's revenue and growth?
AeroVironment Inc reported revenue of $2.0B.
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 $-5.40.
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 AVAV's fundamental grade?
Based on our AI fundamental analysis in August 2026, AeroVironment Inc has a C grade with 78% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is AVAV stock overvalued or undervalued?
Valuation metrics for AVAV: ROE of -6.0% (sector avg: 12%), net margin of -13.4% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is AVAV's AI grade for 2026?
Our dual AI analysis gives AeroVironment Inc a combined C grade 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 $-78.4M, with capital expenditures of $62.5M. FCF margin is -7.1%.
How does AVAV compare to other Automotive stocks?
Vs Automotive sector averages: Net margin -13.4% (avg: 6%), ROE -6.0% (avg: 12%), current ratio 4.30 (avg: 1.2).