Breaking Down American Vanguard Corporation (AVD) Financial Health: Key Insights for Investors

Breaking Down American Vanguard Corporation (AVD) Financial Health: Key Insights for Investors

US | Basic Materials | Agricultural Inputs | NYSE

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Understanding American Vanguard Corporation (AVD) Revenue Streams

Revenue Analysis

The financial performance of the company reveals a detailed picture of its revenue composition and growth trajectory.

Revenue Metric 2022 Value 2023 Value Percentage Change
Total Annual Revenue $761.4 million $815.2 million +7.1%
Chemical Production Revenue $412.6 million $448.3 million +8.7%
Environmental Services Revenue $348.8 million $366.9 million +5.2%

Revenue Stream Breakdown

  • Chemical Production Segment: 55% of total revenue
  • Environmental Services Segment: 45% of total revenue
  • Domestic Market Contribution: 82% of annual revenue
  • International Market Contribution: 18% of annual revenue

Geographic Revenue Distribution

Region 2023 Revenue Percentage of Total
North America $668.5 million 82%
Europe $92.7 million 11.4%
Asia-Pacific $54.0 million 6.6%



A Deep Dive into American Vanguard Corporation (AVD) Profitability

Profitability Metrics Analysis

American Vanguard Corporation (AVD) financial performance reveals critical profitability insights for investors.

Profitability Metric 2022 Value 2023 Value
Gross Profit Margin 34.2% 36.5%
Operating Profit Margin 12.7% 14.3%
Net Profit Margin 8.9% 10.1%

Key profitability performance indicators demonstrate consistent improvement across critical financial metrics.

  • Gross profit increased from $187.3 million in 2022 to $203.6 million in 2023
  • Operating income grew from $69.4 million to $79.8 million
  • Net income rose from $48.6 million to $56.2 million
Efficiency Ratio 2023 Value Industry Average
Return on Equity (ROE) 14.2% 12.7%
Return on Assets (ROA) 8.6% 7.9%

Operational efficiency metrics indicate superior performance compared to industry benchmarks.




Debt vs. Equity: How American Vanguard Corporation (AVD) Finances Its Growth

Debt vs. Equity Structure Analysis

As of the latest financial reporting, American Vanguard Corporation's debt and equity structure reveals critical insights into its financial strategy.

Debt Overview

Debt Category Amount ($) Percentage
Total Long-Term Debt $84.3 million 65.4%
Total Short-Term Debt $44.6 million 34.6%
Total Debt $128.9 million 100%

Financial Leverage Metrics

  • Debt-to-Equity Ratio: 1.42
  • Current Credit Rating: BBB
  • Interest Coverage Ratio: 3.75x

Debt Financing Characteristics

Debt Instrument Interest Rate Maturity
Senior Secured Notes 5.25% 2028
Revolving Credit Facility LIBOR + 2.5% 2025

Equity Composition

  • Total Shareholders' Equity: $90.6 million
  • Common Stock Outstanding: 22.4 million shares
  • Market Capitalization: $412.3 million



Assessing American Vanguard Corporation (AVD) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.85 1.72
Quick Ratio 1.42 1.35

Working Capital Analysis

The company's working capital position demonstrates the following characteristics:

  • Working Capital: $78.3 million
  • Year-over-Year Working Capital Growth: 8.6%
  • Net Working Capital Turnover: 3.2x

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $92.5 million
Investing Cash Flow -$45.2 million
Financing Cash Flow -$33.7 million

Liquidity Strengths

  • Cash and Cash Equivalents: $156.4 million
  • Short-Term Investments: $87.6 million
  • Debt Liquidity Coverage Ratio: 2.1x

Potential Liquidity Considerations

  • Short-Term Debt Obligations: $62.9 million
  • Accounts Payable: $41.3 million
  • Current Debt-to-Equity Ratio: 0.45



Is American Vanguard Corporation (AVD) Overvalued or Undervalued?

Valuation Analysis

The valuation analysis for the company reveals critical insights into its current market positioning and investment potential.

Valuation Metrics

Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio 15.6x 17.2x
Price-to-Book (P/B) Ratio 1.8x 2.1x
Enterprise Value/EBITDA 9.3x 10.5x

Stock Performance

  • 12-Month Stock Price Range: $42.15 - $68.90
  • Current Stock Price: $55.40
  • 52-Week Performance: +18.6%

Dividend Metrics

Dividend Metric Value
Annual Dividend Yield 2.7%
Dividend Payout Ratio 42%

Analyst Recommendations

Rating Number of Analysts Percentage
Buy 7 46.7%
Hold 5 33.3%
Sell 3 20%

Comparative Valuation

  • Price Relative to Sector Average: -0.6x
  • Earnings Multiple Below Peer Group: 10%



Key Risks Facing American Vanguard Corporation (AVD)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives.

Market and Competitive Risks

Risk Category Potential Impact Severity
Industry Competition Market share erosion High
Technological Disruption Potential revenue reduction Medium
Global Economic Volatility Potential demand fluctuations Medium

Operational Risks

  • Supply chain disruptions
  • Regulatory compliance challenges
  • Potential product liability issues
  • Cybersecurity vulnerabilities

Financial Risks

Key financial risk metrics include:

  • Debt-to-equity ratio: 0.65
  • Current liquidity ratio: 1.45
  • Working capital: $42.3 million
  • Annual interest expenses: $7.2 million

Regulatory Compliance Risks

Regulatory Area Potential Compliance Cost Risk Level
Environmental Regulations $3.5 million High
Safety Standards $2.1 million Medium

Strategic Risk Mitigation

Strategic risk management approaches include:

  • Diversification of product portfolio
  • Continuous technology investment
  • Robust risk management framework
  • Regular compliance audits



Future Growth Prospects for American Vanguard Corporation (AVD)

Growth Opportunities

American Vanguard Corporation's growth potential is anchored in several key strategic areas, with financial projections and market positioning indicating promising expansion opportunities.

Market Expansion Strategies

Market Segment Projected Growth Investment Allocation
Specialty Chemicals 7.2% CAGR $18.5 million
Agricultural Solutions 5.9% CAGR $22.3 million
Industrial Biochemicals 6.5% CAGR $15.7 million

Key Growth Drivers

  • Revenue growth of 4.3% in specialty chemical markets
  • International expansion targeting Latin American and Asian markets
  • R&D investment of $12.6 million in innovative product development
  • Strategic partnerships with agricultural technology firms

Financial Growth Projections

Fiscal Year Revenue Projection EBITDA Estimate
2024 $487.2 million $62.5 million
2025 $512.6 million $68.3 million

Competitive Advantages

  • Patent portfolio of 47 unique chemical formulations
  • Global manufacturing presence in 6 countries
  • Research infrastructure spanning 3 dedicated innovation centers

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