AVAV

AeroVironment

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Industrials

industry

Aerospace & Defense

Exchange

Nasdaq

County of HQ

Israel

Next Earnings Date

06/23/26

Business Summary

The company provides network intelligence, traffic management, and security solutions to telecommunications providers and enterprises, monetizing the flow of data across carrier networks. Its value proposition lies in embedding software deep within service provider infrastructure, where switching costs are high and integrations are complex. Revenue is driven by software licenses, recurring maintenance, and service agreements tied to mission-critical network performance. The moat is not brand-driven but operational: once deployed within carrier-grade environments, displacement risk is reduced due to technical integration depth and the cost of network disruption.

VALUATION

P/E

-

Market Cap ($M USD)

$9,094

Forward P/E

44.4

PEG

1.8

PRICE TO SALES

4.9

PRICE TO BOOK

2.1

EV / EBITDA

89.3

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

-$4.34

Next Year EPS Growth Estimate

$4.05

Next Year Revenue Growth Estimate

15.20%

Return on Equity (ROE)

-5.20%

Operating Margin

-5.90%

Debt-to-Equity

0.2

Piotroski F-Score

2

Altman Z-Score

5.2

Return on Invested Capital (ROIC)

-4.20%%

Current Ratio

5.5

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 82.6x trailing earnings, the stock screens optically expensive, but the 16.3x forward P/E combined with a 0.6 PEG Forward ratio signals a sharp inflection in earnings power that the market may not be fully underwriting. A $322M market cap against a 3x Price/Sales and 2.8x Price/Book suggests modest expectations for a software infrastructure name, particularly with 12.20% ROE and a Piotroski F-Score of 7 indicating improving financial quality. The Altman Z-Score of 2.3 places the company in the grey zone—neither distressed nor fortress-like—while a 2.7 current ratio offsets some balance sheet concerns. This is a speculative turnaround-to-growth rerating story: not pristine, but potentially mispriced if forward estimates materialize.

AI Exposure / Tech Reliance

Operating in Software – Infrastructure, the company sits in a segment directly exposed to AI-driven network traffic, cybersecurity demands, and carrier-grade data monetization trends. Infrastructure software vendors that enable traffic visibility and control are structurally advantaged as AI workloads expand bandwidth and security requirements. The key question is not relevance but execution—whether it can translate industry tailwinds into durable margin expansion beyond its current 3.30% operating margin.

The Bull Case

A GARP investor sees asymmetry: a 0.6 forward PEG with a 16.3x forward P/E is classic growth-at-a-reasonable-price territory if earnings normalize. Financial quality is quietly improving, with a Piotroski F-Score of 7 signaling strengthening fundamentals and a 12.20% ROE that exceeds its 1.40% ROIC but still reflects positive capital productivity. The 3x Price/Sales ratio is not demanding for infrastructure software, especially with projected sales growth next year of $0.41 and positive EPS next year estimated at $0.08. Liquidity is solid with a 2.7 current ratio, suggesting the company has the balance sheet flexibility to execute without immediate capital stress.

The Bear Case

The capital structure is the biggest red flag: Debt/Equity of 3.50 is elevated for a company generating only a 3.30% operating margin and 1.40% ROIC, leaving little room for execution error. An Altman Z-Score of 2.3 signals balance sheet vulnerability if growth stalls, and the trailing P/E of 82.6 reflects how thin current earnings are relative to valuation. ROIC at 1.40% is weak, suggesting capital is not yet being deployed at attractive rates, and without dividend support (0 payout, 0 five-year average), investors are fully dependent on multiple expansion and earnings acceleration. This is a leveraged turnaround masquerading as a growth stock.

Market Sentiment & Smart Money

Short Interest %

10.20%

Analyst Consensus

1.5

Average Analyst Price Target

$314.06

Institutional Ownership %

91.50%

1-Year Beta

1.47

Insider Buying % (6 Mo)

0.80%%

Distance to 52-Week High

43.00%%

Distance to 52-Week Low

130.80%%