American Vanguard, headquartered in Newport Beach, California, develops and markets specialty agricultural products through subsidiaries AMVAC Chemical and AMVAC Netherlands BV, employing 845 full-time staff. Its product range includes insecticides, fungicides, herbicides, and microbial cleaning products.
Based on our analysis, American Vanguard is currently rated as undervalued with a score of 4 out of 5 stars. Several key financial ratios contribute to this evaluation, indicating potential for growth and stability within the company.
The Price-to-Book (PB) Ratio stands at 0.85, significantly lower than the sector average of 1.63. A PB ratio below 1 suggests that the stock may be undervalued relative to its assets, indicating a potential buying opportunity for investors.
American Vanguard demonstrates a robust Net Profit Margin of 1.30, contrasting sharply with the sector's negative margin of -340.01. This positive margin signals that the company is effectively managing its expenses and generating profit, which is a critical factor for long-term sustainability.
The Return on Equity (ROE) Ratio of 2.03 also supports the undervaluation claim. With the sector average at -20.07, American Vanguard's positive ROE indicates that the company is efficiently using shareholders' equity to generate profits, which can attract more investors.
Additionally, a Dividend Yield of 2.19, surpassing the sector's 1.15, suggests that American Vanguard is rewarding its shareholders well, further enhancing its attractiveness. The Return on Assets Ratio of 0.98, compared to the sector's -17.00, highlights the company's effective asset utilization to generate profits.
These ratios collectively suggest that American Vanguard is undervalued in comparison to its sector peers, presenting an attractive investment opportunity.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
📡️ Materials
More Signals
Feature in Progress
This section is under development. Check back soon for updates!