American Vanguard Corporation ($0.10 Par Value) (AVD): Price and Financial Metrics

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AVD Price/Volume Stats

American Vanguard Corporation ($0.10 Par Value) (AVD) Company Bio

American Vanguard Corporation develops, manufactures, and markets specialty chemicals for agricultural, commercial, and consumer uses in the United States and internationally. The company was founded in 1969 and is based in Newport Beach, California.

AVD Price Forecast Based on DCF Valuation

We started the process of determining a valid price forecast for American Vanguard Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that American Vanguard Corp ranked in the 70th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for AVD, they are:

• The company's balance sheet shows it gets 84% of its capital from equity, and 16% of its capital from debt. Notably, its equity weight is greater than 61.14% of US equities in the Basic Materials sector yielding a positive free cash flow.
• American Vanguard Corp's weighted average cost of capital (WACC) is 9%; for context, that number is higher than only 23.37% of tickers in our DCF set.
• American Vanguard Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 4.54. This coverage rate is greater than that of 57.46% of stocks we're observing for the purpose of forecasting via discounted cash flows.

For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as AVD, try MPVDF, EXK, WMS, GOLD, and TROX.