NasdaqGS:AVAV

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with high 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: AVAV's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

37.0%

AVAV

0.1%

US Aerospace & Defense

0.3%

US Market


1 Year Return

88.6%

AVAV

-28.5%

US Aerospace & Defense

21.1%

US Market

Return vs Industry: AVAV exceeded the US Aerospace & Defense industry which returned -28.5% over the past year.

Return vs Market: AVAV exceeded the US Market which returned 19.5% over the past year.


Shareholder returns

AVAVIndustryMarket
7 Day37.0%0.1%0.3%
30 Day52.2%0.9%3.3%
90 Day72.6%11.0%14.2%
1 Year88.6%88.6%-13.7%-28.5%23.8%21.1%
3 Year147.6%147.6%3.4%-18.2%45.0%35.4%
5 Year415.1%415.1%76.1%33.2%127.7%102.3%

Long-Term 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?

108.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AVAV ($131.09) is trading above our estimate of fair value ($77.01)

Significantly Below Fair Value: AVAV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AVAV is poor value based on its PE Ratio (108.3x) compared to the US Aerospace & Defense industry average (31.2x).

PE vs Market: AVAV is poor value based on its PE Ratio (108.3x) compared to the US market (21x).


Price to Earnings Growth Ratio

PEG Ratio: AVAV is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: AVAV is overvalued based on its PB Ratio (6x) compared to the US Aerospace & Defense industry average (3x).


Next Steps

Future Growth

How is AeroVironment forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

34.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVAV's forecast earnings growth (34.2% per year) is above the savings rate (2%).

Earnings vs Market: AVAV's earnings (34.2% per year) are forecast to grow faster than the US market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AVAV's revenue (25.6% per year) is forecast to grow faster than the US market (10.3% per year).

High Growth Revenue: AVAV's revenue (25.6% per year) is forecast to grow faster 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?

28.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVAV has high quality earnings.

Growing Profit Margin: AVAV's current net profit margins (7.7%) are lower than last year (11.6%).


Past Earnings Growth Analysis

Earnings Trend: AVAV's earnings have grown significantly by 28.6% 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 (-25%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (-6.7%).


Return on Equity

High ROE: AVAV's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is AeroVironment's financial position?


Financial Position Analysis

Short Term Liabilities: AVAV's short term assets ($507.6M) exceed its short term liabilities ($53.5M).

Long Term Liabilities: AVAV's short term assets ($507.6M) exceed its long term liabilities ($10.7M).


Debt to Equity History and Analysis

Debt Level: AVAV is debt free.

Reducing Debt: AVAV has no debt compared to 5 years ago when its debt to equity ratio was 0%.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Wahid Nawabi (51 yo)

4.67yrs

Tenure

US$3,056,944

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 served as Chief Operating Officer of AeroVironment...


CEO Compensation Analysis

Compensation vs Market: Wahid's total compensation ($USD3.06M) is below average for companies of similar size in the US market ($USD5.00M).

Compensation vs Earnings: Wahid's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Wahid Nawabi
CEO, President & Director4.67yrsUS$3.06m0.27%
$ 8.6m
Kevin McDonnell
Senior VP & CFO0.92yrUS$735.90k0.025%
$ 773.9k
Kenneth Karklin
Senior VP & COO2.08yrsUS$945.77k0.053%
$ 1.7m
Melissa Brown
VP, General Counsel & Corporate Secretary5.75yrsUS$840.28k0.034%
$ 1.1m
Alison Roelke
VP & Chief People Officerno dataUS$555.91k0.017%
$ 530.8k
Brian Shackley
VP & Controller3.08yrsUS$550.84k0.017%
$ 547.7k
Scott Newbern
VP & Chief Technology Officerno datano datano data
Regine Lawton
VP & Chief Information Officer0.67yrno datano data
Steven Gitlin
Chief Marketing Officer & VP of Investor Relationsno datano datano data
Rick Pedigo
Vice President of Sales & Business Developmentno datano datano data
Thomas Vaneck
VP & MD of NEIC1.75yrsno datano data
John Burkholder
Senior Counselno datano datano data

2.1yrs

Average Tenure

48.5yo

Average Age

Experienced Management: AVAV's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wahid Nawabi
CEO, President & Director4.67yrsUS$3.06m0.27%
$ 8.6m
Stephen Page
Independent Director7.75yrsUS$188.46k0.13%
$ 4.2m
Catharine Merigold
Independent Director5.5yrsUS$180.96k0.081%
$ 2.5m
Edward Muller
Independent Director8yrsUS$184.96k0.12%
$ 3.7m
Timothy Conver
Chairman of the Board13.42yrsUS$347.88k5.93%
$ 185.8m
Arnold Fishman
Independent Director23yrsUS$168.96k1.38%
$ 43.4m
Charles Burbage
Lead Independent Directorno dataUS$184.46k0.11%
$ 3.6m
Charles Holland
Independent Director16.67yrsUS$644.96k0.26%
$ 8.3m

8.0yrs

Average Tenure

73yo

Average Age

Experienced Board: AVAV's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

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$3.133b
  • Shares outstanding: 23.90m
  • Website: https://www.avinc.com

Number of Employees


Location

  • AeroVironment, Inc.
  • 900 Innovators Way
  • Simi Valley
  • California
  • 93065-0906
  • 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 supplies unmanned aircraft systems (UAS) and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/19 23:33
End of Day Share Price2021/01/19 00:00
Earnings2020/10/31
Annual Earnings2020/04/30


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.