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Fundamental analysis: American Vanguard Corporation (AVD)

Awarener score: 5.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Modest) and growth (Very poor), and the company's inclination to return cash to the stockholders (Average).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 3.5

  • Business has been shrinking at a fast pace. It's been last-in-rank when measured against peer companies.
  • American Vanguard Corporation business trend isn't so stable. The higher the stability, the lower the risk. It looks slightly better than rivals.

Margins score: 6.0

  • AVD profit margins -on goods and services sold- are usually hardly sufficient. They stand slightly worse than rival companies.
  • Business profit on sales tends to be good. It's similar to competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually sufficient. They remain close to average when compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still slightly better than similar companies.
  • Profits -before income taxes- are usually sufficient considering total sales, and remain encouraging in relation to rivals.
  • Total net profit tends to be sufficient when confronted to sales. Company stands similar to comparable firms.

Growth score: 4.0

  • American Vanguard Corporation couldn't always profit -on goods and services sold- in the past years. It's been a disappointment compared to competitors.
  • In recent years, earnings -on operations- have been growing at a low step, which has been mediocre against comparable firms.
  • Profits growth -available to repay debt and purchase properties- have been almost stagnant, which compares weak when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at a very low tempo. It turns to be in a weak position compared to similar stocks.
  • In past years, profits -before income taxes- grew at a normal speed. It was somewhat worse than rivals.
  • In the previous years, growth on total net profit has been very low, and below average when measured against peer companies.
  • Earnings per share have grown at a low rhythm in past years. It's been lacking compared to industry peers.

Miscellaneous score: 4.7

  • AVD had to pay substantial income taxes in relation to profits made in the past years. It's been somewhat worse than peers.
  • Research and development expenses consume a very little portion of revenues. It's encouraging in relation to competitors.
  • Business has seen substantial shrinking, despite research and development efforts. It stands a disappointment compared to rival companies.

Profitability score: 6.5

  • American Vanguard Corporation usually gets good returns on the resources it controls. It proves almost average when measured against peer firms.
  • The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain close to average when compared to similar companies.
  • There's usually some profitability -in relation to owned resources-. It ranks almost average when measured against competitors.
  • In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's similar to comparable enterprises.

Usage of Funds score: 6.1

  • AVD usually uses a sparse portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is modest. It stands similar to rival firms.
  • The company is usually investing in new property, plant, and equipment, to improve its operating capabilities, which is more than average in relation to industry peers.
  • In the past twelve months it paid very little dividends, considering the current stock price. It came worse than most competitors.
  • Has somewhat increased dividend payments in the past years. Business prospects may have improved. The company has behaved lacking compared to similar firms.
  • Dividend payments usually represent a modest portion of genuine funds generation and should be reasonable safe. Sustainability looks well ranked against comparable companies.
  • The company barely enlarges the pool of investors, resulting in slightly more mouths feeding on the pie of profits. It remains close to average when compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
  • The company uses a moderate portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn very sour. It still looks encouraging in relation to competitors.

Balance Sheet score: 4.1

  • American Vanguard Corporation intangible assets (like brands and goodwill) represent a portion of resources controlled, according to accounting books. There could be difficulties in liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
  • The company has roughly double short-term resources than short-term obligations. Liquidity concerns are normally not an issue. It turns to be rather normal in relation to similar firms.
  • Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains slightly better than rival firms.
  • Controlled resources might be turned into cash and equivalents neither fast nor too slow. Liquidity and risk might be run-of-the-mill. It looks below average when measured against rivals.
  • For every dollar of short-term obligations, the company has roughly another of cash and short-term receivables. It's lacking compared to peer firms.
  • For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is worse than most similar enterprises.
  • Usually, sales are on many months credit. It still ranks last-in-rank when measured against peers.
  • Normally has approximately six months of sales worth in inventory. It comes up as lacking compared to competitors.
  • On average, it takes plenty of months from the purchase to charging customers. It happens to be bottom tier against peers.
  • On average pays suppliers approximately three months after the purchase. It ranks below average when measured against industry peers.
  • The company pays its suppliers plenty of months before charging its customers, so there's a lot of money invested in working capital. It's a disappointment compared to similar companies.
  • Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
  • Business earnings have usually been quite good when measured against loans taken. Cutting back reinvesting in the business, it could take around three years to repay the obligations with current profitability. It ranks almost average when measured against comparable enterprises.
  • Revenues are modest in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks rather normal in relation to similar firms.
  • Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat worse than peer companies.

Valuation score: 5.2

  • American Vanguard Corporation looks expensive in relation to profits and financial position. It happens to be substantially worse when measured against competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains in a weak position compared to peers.
  • In the past twelve months, the company neither generated nor consumed funds. Whatever funds it could get, it reinvested in the business, which stands mediocre against similar companies.
  • In the past years the company barely generated enough genuine funds to cover up for its business needs. Business prospects should improve to be in a better position to reward investors. It's still weak when measured against industry firms.
  • In the past twelve months, the company hasn't rewarded investors, considering both dividends and share on the pie of earnings. It came up lacking compared to peer ventures.
  • The company is somewhat indebted, loan repayment needs to be taken into account. It looks somewhat worse than similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks substantially worse when measured against peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a roughly two to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks rather normal in relation to rival firms.
  • The relation between the stock price and accounting book value is somewhat high. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly better than peer firms.
  • In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be below average when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown a good earnings power ability when measured against the current stock price and financial position. It's still close to average when compared to peer companies.

Total score: 5.0


AVD logos

Company at a glance: American Vanguard Corporation (AVD)

Sector, industry: Basic Materials, Agricultural Inputs

Market Cap: 0.58 billions

Revenues TTM: 0.32 billions

American Vanguard Corporation, through its subsidiaries, develops, manufactures, and markets specialty chemicals for agricultural, commercial, and consumer uses in the United States and internationally. It manufactures and formulates chemicals, including insecticides, fungicides, herbicides, molluscicides, soil health, plant nutrition, growth regulators, and soil fumigants in liquid, powder, and granular forms for crops, turf and ornamental plants, and human and animal health protection. The company also markets, sells, and distributes end-use chemical and biological products for crop applications; and distributes chemicals for turf and ornamental markets. It distributes its products through national distribution companies, and buying groups or co-operatives; and through sales offices, sales force executives, sales agents, and wholly owned distributors. The company was incorporated in 1969 and is headquartered in Newport Beach, California.

Awarener score: 5.1

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Average), the business stability (Modest) and growth (Very poor), and the company's inclination to return cash to the stockholders (Average).