Download PDF

1. Company Snapshot

1.a. Company Description

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.

Show Full description

1.b. Last Insights on AVD

American Vanguard Corporation's recent performance was driven by strong Q4 2024 earnings, with the company reporting a 12% year-over-year increase in revenue. Dak Kaye, CEO, attributed the growth to the company's diversified product portfolio, which includes crop protection and nutrition solutions, turf and ornamental management, and commercial pest control. The company's ability to expand its offerings and capitalize on emerging trends in the agricultural and pest control industries has contributed to its success. Additionally, American Vanguard's focus on research and development has led to the introduction of new products, further enhancing its market position.

1.c. Company Highlights

2. American Vanguard's Q3 2025 Earnings: A Strong Turnaround

American Vanguard's third-quarter 2025 financial performance showed significant improvement, with adjusted EBITDA increasing to $8.2 million from $1.8 million in the year-ago period, a 350% increase. The company's net sales and gross profit margins also demonstrated positive trends, with gross profit margins expanding by 300 basis points year-over-year, driven by operational improvements. The actual EPS came out at '-0.18', missing estimates at '-0.08'. The company's focus on cost savings and operational efficiencies has yielded positive results, with operating costs down 11% or $5 million in the quarter and $18 million or 14% year-to-date.

Publication Date: Nov -17

📋 Highlights
  • Adjusted EBITDA Surge: Q3 2025 adjusted EBITDA rose to $8.2M, up 350% YoY from $1.8M.
  • Full-Year EBITDA Target: 2025 guidance raised to $40M–$44M, with $520M–$535M net sales anticipated.
  • Gross Margin Expansion: Year-over-year gross profit margin improved 300 bps due to operational efficiencies.
  • Cost Reduction Impact: Operating costs fell 11% ($5M) QoQ and 14% ($18M) YoY via business improvement programs.
  • U.S. Crop Growth: Herbicide sales jumped 50%, while granular soil insecticides rose 5% in the U.S. market.

Operational Highlights

The U.S. crop business performed well, with herbicides up about 50% and granular soil insecticides up about 5%, while the Specialty business was impacted by a product liability matter. However, the company has set up resources to administer claims and expects to get reimbursed for the liability. The business improvement program is having a positive impact, and the company is transferring its transformation process to an internal team, which will focus on long-term growth opportunities and cost savings.

Growth Prospects and Outlook

The company expects a strong finish to the year, with a full-year 2025 adjusted EBITDA target of $40 million to $44 million. Net sales are forecast to be $520 million to $535 million, reflecting market conditions in Mexico, Central America, and Australia. The company is also planning to add to its portfolio through acquisitions in the next 12 to 18 months and expects $100 million in net sales from its pipeline to materialize by 2028. Analysts estimate next year's revenue growth at 3.5%.

Valuation and Financial Metrics

American Vanguard's current valuation metrics are as follows: P/E Ratio at -1.29, P/B Ratio at 0.66, P/S Ratio at 0.27, and EV/EBITDA at -5.05. The company's free cash flow estimate stands at around $20 million, with an interest expense of under $20 million. The company aims to get its leverage ratio under 3, indicating a focus on debt management. The current Free Cash Flow Yield is 2.07%, which may be attractive to income investors.

3. NewsRoom

Card image cap

American Vanguard Expects To Have A Good Q4

Nov -28

Source: seekingalpha.com

Card image cap

Head to Head Survey: Minerals Technologies (NYSE:MTX) & American Vanguard (NYSE:AVD)

Nov -16

Source: defenseworld.net

Card image cap

American Vanguard Corporation (AVD) Q3 2025 Earnings Call Transcript

Nov -10

Source: seekingalpha.com

Card image cap

American Vanguard Reports Third Quarter 2025 Results

Nov -10

Source: accessnewswire.com

Card image cap

American Vanguard Corporation Announces Extension to Existing Credit Agreement

Aug -19

Source: accessnewswire.com

Card image cap

American Vanguard Q2 Moves In The Right Direction

Aug -07

Source: seekingalpha.com

Card image cap

American Vanguard (AVD) Q2 Loss Down 93%

Aug -02

Source: fool.com

Card image cap

American Vanguard Reports Second Quarter 2025 Results

Jul -31

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.72%)

6. Segments

United States Crop

Expected Growth: 6%

The 6% growth of United States Crop from American Vanguard Corporation is driven by increasing demand for crop protection products, favorable weather conditions, and adoption of precision farming practices. Additionally, the company's strategic partnerships, product innovation, and expanding distribution network contribute to its growth momentum.

International

Expected Growth: 5%

Vanguard's international segment growth is driven by increasing demand for low-cost index funds, expansion into new markets, and a growing middle class in emerging economies. Additionally, the company's reputation for investment excellence, strong brand recognition, and strategic partnerships contribute to its 5% growth rate.

United States Non-crop

Expected Growth: 7%

United States Non-crop segment of American Vanguard Corporation is driven by increasing demand for insecticides and herbicides, growth in specialty crops, and rising adoption of precision farming. Additionally, the company's strategic partnerships and expanding product portfolio contribute to its 7% growth.

7. Detailed Products

SIMPASSA

A proprietary, patented, and EPA-registered herbicide for the control of weeds in corn, soybeans, and other crops.

GRANULAR INSECTICIDES

A range of granular insecticides for controlling pests in crops, including corn, soybeans, and cotton.

FUNGICIDES

A range of fungicides for controlling diseases in crops, including corn, soybeans, and wheat.

HERBICIDE TOLERANT CROPS

Genetically modified crops that are resistant to American Vanguard's proprietary herbicides.

SOIL FUMIGANTS

A range of soil fumigants for controlling nematodes, insects, and diseases in crops.

8. American Vanguard Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for American Vanguard Corporation is medium due to the presence of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for American Vanguard Corporation is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for American Vanguard Corporation is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for American Vanguard Corporation is high due to the low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for American Vanguard Corporation is high due to the presence of several competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 28.15%
Debt Cost 9.19%
Equity Weight 71.85%
Equity Cost 9.19%
WACC 9.19%
Leverage 39.18%

11. Quality Control: American Vanguard Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CVR Partners

A-Score: 7.2/10

Value: 7.3

Growth: 4.7

Quality: 5.9

Yield: 10.0

Momentum: 8.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Perimeter Solutions

A-Score: 4.8/10

Value: 3.8

Growth: 6.8

Quality: 6.0

Yield: 0.0

Momentum: 8.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
Valhi

A-Score: 4.5/10

Value: 9.5

Growth: 3.1

Quality: 5.9

Yield: 4.0

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

View Full Report
Stock-Card
FMC

A-Score: 4.4/10

Value: 8.6

Growth: 3.6

Quality: 4.1

Yield: 8.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Intrepid Potash

A-Score: 4.1/10

Value: 7.6

Growth: 1.8

Quality: 3.5

Yield: 0.0

Momentum: 7.5

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
American Vanguard

A-Score: 3.9/10

Value: 9.5

Growth: 2.2

Quality: 3.1

Yield: 0.0

Momentum: 6.0

Volatility: 2.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.28$

Current Price

4.28$

Potential

-0.00%

Expected Cash-Flows