NYSE:AVD

Stock Analysis Report

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.

Rewards

Trading at 87.9% below its fair value

Earnings are forecast to grow 21.99% per year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Profit margins (3.7%) are lower than last year (5.7%)



Snowflake Analysis

Fair value with moderate growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.6%

AVD

0.6%

US Chemicals

0.8%

US Market


1 Year Return

12.2%

AVD

4.2%

US Chemicals

22.0%

US Market

Return vs Industry: AVD exceeded the US Chemicals industry which returned 4.2% over the past year.

Return vs Market: AVD underperformed the US Market which returned 22% over the past year.


Shareholder returns

AVDIndustryMarket
7 Day7.6%0.6%0.8%
30 Day16.1%-1.5%1.7%
90 Day5.8%3.0%5.2%
1 Year12.8%12.2%19.8%4.2%24.7%22.0%
3 Year-6.3%-7.4%34.9%9.2%46.9%37.3%
5 Year57.0%54.4%45.3%14.1%65.5%47.3%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AVD ($17.6) is trading below our estimate of fair value ($145.96)

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


Price To Earnings Ratio

PE vs Industry: AVD is poor value based on its PE Ratio (29.1x) compared to the Chemicals industry average (20.4x).

PE vs Market: AVD is poor value based on its PE Ratio (29.1x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: AVD is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: AVD is good value based on its PB Ratio (1.6x) 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 3 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVD's forecast earnings growth (22% per year) is above the savings rate (1.7%).

Earnings vs Market: AVD's earnings (22% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: AVD's revenue (3.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: AVD's revenue (3.6% 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?

33.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVD has high quality earnings.

Growing Profit Margin: AVD's current net profit margins (3.7%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: AVD's earnings have grown significantly by 33% 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 (-30.3%) over the past year, making it difficult to compare to the Chemicals industry average (-17%).


Return on Equity

High ROE: AVD's Return on Equity (5.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is American Vanguard's financial position?


Financial Position Analysis

Short Term Liabilities: AVD's short term assets ($357.0M) exceed its short term liabilities ($143.2M).

Long Term Liabilities: AVD's short term assets ($357.0M) exceed its long term liabilities ($200.1M).


Debt to Equity History and Analysis

Debt Level: AVD's debt to equity ratio (48.8%) is considered high.

Reducing Debt: AVD's debt to equity ratio has increased from 36.7% to 48.8% over the past 5 years.

Debt Coverage: AVD's debt is not well covered by operating cash flow (2.9%).

Interest Coverage: AVD's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

Inventory Level: AVD has a high level of physical assets or inventory.

Debt Coverage by Assets: AVD's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

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

0.45%

Current Dividend Yield


Upcoming Dividend Payment

Purchase American Vanguard before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company0.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: AVD's dividend (0.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: AVD's dividend (0.45%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: AVD is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: AVD is not paying a notable dividend for the US market, therefore no need to check if payments are 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

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

10.6yrs

Average management tenure


CEO

Eric Wintemute (63yo)

25.4yrs

Tenure

US$2,296,114

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 ($USD2.30M) is above average for companies of similar size in the US market ($USD1.68M).

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


Management Age and Tenure

10.6yrs

Average Tenure

61yo

Average Age

Experienced Management: AVD's management team is seasoned and experienced (10.6 years average tenure).


Board Age and Tenure

8.5yrs

Average Tenure

67yo

Average Age

Experienced Board: AVD's board of directors are considered experienced (8.5 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.


Recent Insider Transactions

BuyUS$7,61006 Sep 19
John Killmer
EntityIndividual
Role
Lead Director
Lead Director
Shares500
Max PriceUS$15.22
BuyUS$28,48005 Sep 19
Ulrich Trogele
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP of AMVAC Chemical Corporation
Shares2,000
Max PriceUS$14.24
BuyUS$2,56004 Sep 19
Ulrich Trogele
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP of AMVAC Chemical Corporation
Shares200
Max PriceUS$12.80
BuyUS$70,40030 Aug 19
Eric Wintemute
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares5,000
Max PriceUS$14.08

Ownership Breakdown

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


Management Team

  • Eric Wintemute (63yo)

    Chairman & CEO

    • Tenure: 25.4yrs
    • Compensation: US$2.30m
  • Bob Gilbane (68yo)

    President of Gemchem Inc

    • Tenure: 20.5yrs
    • Compensation: US$352.78k
  • Tim Donnelly (59yo)

    General Counsel

    • Tenure: 9.5yrs
    • Compensation: US$628.24k
  • Bill Kuser

    Director of Investor Relations & Corporate Communications

    • Tenure: 12.4yrs
  • David Johnson (62yo)

    VP, CFO & Treasurer

    • Tenure: 11.8yrs
    • Compensation: US$729.81k
  • Peter Eilers (55yo)

    Managing Director of AMVAC Netherlands BV

    • Tenure: 1.5yrs
    • Compensation: US$498.62k
  • Bob Trogele (61yo)

    COO & Executive VP of AMVAC Chemical Corporation

    • Tenure: 4.9yrs
    • Compensation: US$763.65k
  • Anthony Hendrix (49yo)

    Senior Vice President of Crop Sales for U.S. & Canada

    • Tenure: 1.3yrs
    • Compensation: US$518.30k

Board Members

  • Eric Wintemute (63yo)

    Chairman & CEO

    • Tenure: 25.4yrs
    • Compensation: US$2.30m
  • Alfred Ingulli (77yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$171.00k
  • John Killmer (70yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$174.50k
  • Morton Erlich (74yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$159.50k
  • Larry Clark (60yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$163.50k
  • M. Zirakparvar (69yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$161.50k
  • Debbie Edwards (65yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$153.50k
  • Scott Baskin (65yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$149.50k
  • Émer Gunter

    Director

    • Tenure: 0yrs

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$531.288m
  • Shares outstanding: 30.19m
  • 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 Analysis2019/12/15 23:31
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.