NYSE:AVD

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

American Vanguard Corporation, through its subsidiaries, develops, manufactures, and markets specialty chemicals for agricultural, commercial, and consumer uses in the United States and internationally. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AVD is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AVD's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

4.9%

AVD

3.4%

US Chemicals

2.8%

US Market


1 Year Return

-3.1%

AVD

16.3%

US Chemicals

20.9%

US Market

Return vs Industry: AVD underperformed the US Chemicals industry which returned 16.3% over the past year.

Return vs Market: AVD underperformed the US Market which returned 20.9% over the past year.


Shareholder returns

AVDIndustryMarket
7 Day4.9%3.4%2.8%
30 Day20.7%15.0%11.1%
90 Day10.2%11.8%6.5%
1 Year-2.9%-3.1%19.1%16.3%23.6%20.9%
3 Year-20.7%-21.6%24.9%1.8%47.3%37.6%
5 Year4.5%2.9%77.5%35.8%94.3%72.9%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVD ($15.6) is trading below our estimate of fair value ($16.73)

Significantly Below Fair Value: AVD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AVD is poor value based on its PE Ratio (42.5x) compared to the US Chemicals industry average (29.7x).

PE vs Market: AVD is poor value based on its PE Ratio (42.5x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: AVD is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: AVD is good value based on its PB Ratio (1.4x) compared to the US Chemicals industry average (2.2x).


Next Steps

Future Growth

How is American Vanguard forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

57.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVD's forecast earnings growth (57.5% per year) is above the savings rate (2.2%).

Earnings vs Market: AVD's earnings (57.5% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: AVD's revenue (6.1% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: AVD's revenue (6.1% 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 AVD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has American Vanguard performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVD has a large one-off loss of $3.5M impacting its September 30 2020 financial results.

Growing Profit Margin: AVD's current net profit margins (2.4%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: AVD's earnings have grown by 9.4% per year over the past 5 years.

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

Earnings vs Industry: AVD had negative earnings growth (-38.6%) over the past year, making it difficult to compare to the Chemicals industry average (-16.3%).


Return on Equity

High ROE: AVD's Return on Equity (3.1%) is considered low.


Next Steps

  • Explore strong past performing companies in the Materials industry.

Financial Health

How is American Vanguard's financial position?


Financial Position Analysis

Short Term Liabilities: AVD's short term assets ($353.0M) exceed its short term liabilities ($150.5M).

Long Term Liabilities: AVD's short term assets ($353.0M) exceed its long term liabilities ($180.4M).


Debt to Equity History and Analysis

Debt Level: AVD's debt to equity ratio (43.3%) is considered high.

Reducing Debt: AVD's debt to equity ratio has increased from 34.7% to 43.3% over the past 5 years.

Debt Coverage: AVD's debt is well covered by operating cash flow (33.2%).

Interest Coverage: AVD's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Next Steps

Dividend

What is American Vanguard current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate AVD'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 AVD's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: AVD is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AVD'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?

11.5yrs

Average management tenure


CEO

Eric Wintemute (64 yo)

26.33yrs

Tenure

US$1,954,942

Compensation

Mr. Eric G. Wintemute serves as the Chairman, Chief Executive Officer and President at AMVAC Chemical Corporation. Mr. Wintemute has been the Chairman and Chief Executive Officer of American Vanguard Corp....


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD1.95M) is about average for companies of similar size in the US market ($USD1.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Eric Wintemute
Chairman & CEO26.33yrsUS$1.95m3.44%
$ 16.3m
David Johnson
VP, CFO & Treasurer12.67yrsUS$697.83k0.21%
$ 983.3k
Ulrich Trogele
COO & Executive VP5.83yrsUS$661.02k0.49%
$ 2.3m
Timothy Donnelly
General Counsel10.42yrsUS$607.64k0.24%
$ 1.1m
Anthony Hendrix
Senior Vice President of Crop Sales for U.S. & Canada2.25yrsUS$474.12kno data
Peter Eilers
Managing Director of AMVAC Netherlands BV2.42yrsUS$514.97k0.15%
$ 692.6k
William Kuser
Director of Investor Relations & Corporate Communications13.33yrsno datano data
Robert Gilbane
President of Gemchem Inc21.42yrsUS$352.78kno data

11.5yrs

Average Tenure

62yo

Average Age

Experienced Management: AVD's management team is seasoned and experienced (11.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eric Wintemute
Chairman & CEO26.33yrsUS$1.95m3.44%
$ 16.3m
Alfred Ingulli
Independent Director10.42yrsUS$168.50k0.072%
$ 337.9k
John Killmer
Independent Lead Directorno dataUS$172.00k0.17%
$ 796.4k
Morton Erlich
Independent Director7.08yrsUS$165.50k0.082%
$ 388.9k
Lawrence Clark
Independent Director14.67yrsUS$164.00k0.13%
$ 609.6k
M. Zirakparvar
Independent Director10.42yrsUS$160.00k0.14%
$ 654.3k
Debra Edwards
Independent Director9.42yrsUS$151.00k0.074%
$ 350.7k
Scott Baskin
Independent Director6.83yrsUS$157.00k0.074%
$ 350.5k
Émer Gunter
Independent Director0.92yrUS$43.11k0.027%
$ 127.5k

9.4yrs

Average Tenure

66yo

Average Age

Experienced Board: AVD's board of directors are considered experienced (9.4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

American Vanguard Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Vanguard Corporation
  • Ticker: AVD
  • Exchange: NYSE
  • Founded: 1969
  • Industry: Fertilizers and Agricultural Chemicals
  • Sector: Materials
  • Market Cap: US$472.486m
  • Shares outstanding: 30.29m
  • Website: https://www.american-vanguard.com

Number of Employees


Location

  • American Vanguard Corporation
  • 4695 MacArthur Court
  • Newport Beach
  • California
  • 92660
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVDNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 1987

Biography

American Vanguard Corporation, through its subsidiaries, develops, manufactures, and markets specialty chemicals for agricultural, commercial, and consumer uses in the United States and internationally. Th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/29 23:23
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.