AeroVironment, Inc. (AVAV) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Moog, Inc.

HEICO Corp.

Huntington Ingalls Industries, Inc.

Curtiss-Wright Corp.

Leidos Holdings, Inc.

Leonardo DRS, Inc.

Crane Co.

Axon Enterprise, Inc.

Joby Aviation, Inc.

Hexcel Corp.

AeroVironment, Inc.

Why is AeroVironment, Inc. ?

Poor Management Efficiency with a low ROE of 5.03%

The company has been able to generate a Return on Equity (avg) of 5.03% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -196.26% of over the last 5 years

Flat results in Oct 25

INTEREST(HY) At USD 17.41 MM has Grown at 1,774.6%
PRE-TAX PROFIT(Q) At USD -18.5 MM has Fallen at -394.65%
NET PROFIT(Q) At USD -15 MM has Fallen at -300.25%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 58.44%, its profits have fallen by -149.7%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is AeroVironment, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

AeroVironment, Inc.

65.29%

-0.05

70.58%

S&P 500

16.12%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.42%

EBIT Growth (5y)

-196.26%

EBIT to Interest (avg)

17.57

Debt to EBITDA (avg)

0.44

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.71

Tax Ratio

2.22%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

71.51%

ROCE (avg)

5.62%

ROE (avg)

5.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.39

EV to EBIT

-279.35

EV to EBITDA

80.64

EV to Capital Employed

2.35

EV to Sales

7.84

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.84%

ROE (Latest)

-0.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

20What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

CASH AND EQV(HY)

Highest at USD 1,274.28 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 5.38 times

NET SALES(Q)

Highest at USD 472.51 MM

-29What is not working for the Company

INTEREST(HY)

At USD 17.41 MM has Grown at 1,774.6%

PRE-TAX PROFIT(Q)

At USD -18.5 MM has Fallen at -394.65%

NET PROFIT(Q)

At USD -15 MM has Fallen at -300.25%

OPERATING CASH FLOW(Y)

Lowest at USD -195.99 MM

RAW MATERIAL COST(Y)

Grown by 56.37% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 5.37 %

Here's what is working for AeroVironment, Inc.

Net Sales

At USD 472.51 MM has Grown at 150.72%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (USD MM)

Net Sales

Highest at USD 472.51 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 1,274.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 5.38 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for AeroVironment, Inc.

Interest

At USD 17.41 MM has Grown at 1,774.6%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

At USD -18.5 MM has Fallen at -394.65%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -15 MM has Fallen at -300.25%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD -195.99 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Debt-Equity Ratio

Highest at 5.37 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 56.37% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales