📊 AVD Key Takeaways
Investment Thesis
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.
AVD 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
AVD 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
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
AVD Financial Metrics
💡 AI Analyst Insight
AMERICAN VANGUARD CORP presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
AVD Profitability Ratios
AVD vs Default Sector
How AMERICAN VANGUARD CORP compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
AVD Balance Sheet & Liquidity
AVD 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 Growth Metrics (YoY)
AVD Quarterly 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.
AVD Capital Allocation
AVD SEC Filings
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 an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are AVD's 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.
What are the risks of investing in AVD?
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.
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?
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.