Industrials · NYSE/NASDAQ: AVAV

AeroVironment Inc

Aerospace & Defense
Market Cap $8.59B
Verdict: High

Quality Scores

Multi-Bagger
74/100
Compounder Quality
71/100
Management Credibility
78/100
Governance
85/100
Cash Flow Quality
45/100

AI Summary

AeroVironment (AVAV) has evolved from a niche small UAS provider into a critical defense technology leader, driven by the shift towards loitering munitions and tactical unmanned systems. The long-term trajectory shows a massive expansion in balance sheet scale, with assets growing from $397M in 2015 to over $1.1B by 2025. While the company faced significant headwinds in FY2023 due to non-cash impairment charges related to acquisitions, the underlying operational recovery in FY2024 and FY2025 is robust. Revenue and operating income have historically been lumpy due to government contracting…

Top Opportunities

  • Significant debt reduction in 2024
  • Resilient asset base growth over 10 years
  • Dominant position in UAS niche

Top Risks

  • Extremely volatile operating income
  • Massive $178M operating loss in 2023
  • Negative cash flow from operations in 2022 and 2025

Latest report: Read the annual report summary →

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