NasdaqGS:AVAV

Stock Analysis Report

Executive Summary

AeroVironment, Inc. designs, develops, produces, supports, and operates a portfolio of products and services for government agencies and businesses.

Rewards

Trading at 43.5% below its fair value

Earnings are forecast to grow 16.63% per year

Risk Analysis

No risks detected for AVAV from our risk checks.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has AeroVironment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AVAV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

AVAV

-0.9%

US Aerospace & Defense

0.3%

US Market


1 Year Return

-10.5%

AVAV

26.7%

US Aerospace & Defense

18.5%

US Market

Return vs Industry: AVAV underperformed the US Aerospace & Defense industry which returned 26.7% over the past year.

Return vs Market: AVAV underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

AVAVIndustryMarket
7 Day1.9%-0.9%0.3%
30 Day1.2%-0.3%1.5%
90 Day9.4%2.6%5.7%
1 Year-10.5%-10.5%29.1%26.7%21.1%18.5%
3 Year116.4%116.4%48.0%40.1%45.9%36.4%
5 Year133.6%133.6%93.1%74.6%71.4%52.5%

Price Volatility Vs. Market

How volatile is AeroVironment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AeroVironment undervalued compared to its fair value and its price relative to the market?

43.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVAV ($62.5) is trading below our estimate of fair value ($110.67)

Significantly Below Fair Value: AVAV is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AVAV is poor value based on its PE Ratio (37.9x) compared to the Aerospace & Defense industry average (21.3x).

PE vs Market: AVAV is poor value based on its PE Ratio (37.9x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: AVAV is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: AVAV is overvalued based on its PB Ratio (3x) compared to the US Aerospace & Defense industry average (2.6x).


Next Steps

Future Growth

How is AeroVironment forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

16.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVAV's forecast earnings growth (16.6% per year) is above the savings rate (1.7%).

Earnings vs Market: AVAV's earnings (16.6% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: AVAV's earnings are forecast to grow, but not significantly.

Revenue vs Market: AVAV's revenue (14.4% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: AVAV's revenue (14.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AVAV's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has AeroVironment performed over the past 5 years?

44.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVAV has high quality earnings.

Growing Profit Margin: AVAV's current net profit margins (11.7%) are lower than last year (14.5%).


Past Earnings Growth Analysis

Earnings Trend: AVAV's earnings have grown significantly by 44.3% per year over the past 5 years.

Accelerating Growth: AVAV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AVAV had negative earnings growth (-16%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (8.7%).


Return on Equity

High ROE: AVAV's Return on Equity (8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AeroVironment's financial position?


Financial Position Analysis

Short Term Liabilities: AVAV's short term assets ($456.2M) exceed its short term liabilities ($44.8M).

Long Term Liabilities: AVAV's short term assets ($456.2M) exceed its long term liabilities ($9.3M).


Debt to Equity History and Analysis

Debt Level: AVAV is debt free.

Reducing Debt: AVAV has not had any debt for past 5 years.

Debt Coverage: AVAV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: AVAV has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: AVAV has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AVAV's debt is covered by short term assets.


Next Steps

Dividend

What is AeroVironment's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AVAV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AVAV's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AVAV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AVAV's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AVAV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of AeroVironment's salary, the management and board of directors tenure and is there insider trading?

0.7yrs

Average management tenure


CEO

Wahid Nawabi (50yo)

3.6yrs

Tenure

US$2,052,107

Compensation

Mr. Wahid Nawabi has been the Chief Executive Officer and President of AeroVironment, Inc. since May 2, 2016 and January 16, 2016 respectively. Mr. Nawabi has served as the President of AeroVironment, Inc. ...


CEO Compensation Analysis

Compensation vs Market: Wahid's total compensation ($USD2.05M) is below average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Wahid's compensation has been consistent with company performance over the past year.


Management Age and Tenure

0.7yrs

Average Tenure

50yo

Average Age

Experienced Management: AVAV's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Age and Tenure

6.9yrs

Average Tenure

72yo

Average Age

Experienced Board: AVAV's board of directors are considered experienced (6.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Teresa Covington (56yo)

    Consultant

    • Tenure: 0.2yrs
    • Compensation: US$831.39k
  • Steven Gitlin

    Chief Marketing Officer & VP of Investor Relations

    • Tenure: 0yrs
  • Ken Karklin (50yo)

    Senior Vice President of Operations

    • Tenure: 1yrs
    • Compensation: US$565.34k
  • Melissa Brown (42yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 4.7yrs
    • Compensation: US$536.22k
  • Wahid Nawabi (50yo)

    CEO, President & Director

    • Tenure: 3.6yrs
    • Compensation: US$2.05m
  • Kirk Flittie (57yo)

    Consultant

    • Tenure: 0.4yrs
    • Compensation: US$807.14k
  • Brian Shackley (42yo)

    Interim Chief Financial Officer & Chief Accounting Officer

    • Tenure: 0.2yrs
  • Alison Roelke

    Vice President of People & Culture

    • Tenure: 0yrs
  • Scott Newbern

    VP & Chief Technology Officer

    • Tenure: 0yrs
  • Rick Pedigo

    Vice President of Sales & Business Development

    • Tenure: 0yrs

Board Members

  • Stephen Page (79yo)

    Lead Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$174.13k
  • Catharine Merigold (63yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$177.88k
  • Ed Muller (67yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$175.01k
  • Tim Conver (75yo)

    Chairman of the Board

    • Tenure: 12.3yrs
    • Compensation: US$218.65k
  • Arnie Fishman (74yo)

    Independent Director

    • Tenure: 21.9yrs
    • Compensation: US$165.01k
  • Tom Burbage (71yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$163.51k
  • Charles Holland (73yo)

    Independent Director

    • Tenure: 15.6yrs
    • Compensation: US$203.01k
  • Wahid Nawabi (50yo)

    CEO, President & Director

    • Tenure: 3.6yrs
    • Compensation: US$2.05m

Company Information

AeroVironment, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AeroVironment, Inc.
  • Ticker: AVAV
  • Exchange: NasdaqGS
  • Founded: 1971
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$1.535b
  • Shares outstanding: 23.76m
  • Website: https://www.avinc.com

Number of Employees


Location

  • AeroVironment, Inc.
  • 900 Innovators Way
  • Simi Valley
  • California
  • 93065
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVAVNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 2007
JPXDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2007
0HALLSE (London Stock Exchange)YesCommon StockGBUSDJan 2007

Biography

AeroVironment, Inc. designs, develops, produces, supports, and operates a portfolio of products and services for government agencies and businesses. The company offers unmanned aircraft systems (UAS) and r ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 23:55
End of Day Share Price2019/12/06 00:00
Earnings2019/10/26
Annual Earnings2019/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.