AeroVironment AVAV
United StatesIndustrials · Aerospace & DefenseUSD
216.63 USD (+56.0%)
20 analysts
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AeroVironment is a U.S. defense company that designs and manufactures unmanned aerial systems (UAVs), precision munitions, and energy solutions for military and government applications.
Key points
from its scores- ✕Poor share-price trend0.3
- ✕Little competitive advantage1.4
- ✕Little or no dividend1.5
AI analysis
bottom line, main risk, context and newsHold only for investors with high risk tolerance and a long horizon; the valuation offers no margin of safety until a sustainable margin improvement is demonstrated.
AeroVironment has a healthy balance sheet (net debt/EBITDA of 1.24) but poor profitability (ROE -4.60%, operating margin -2.27%) and a demanding valuation (forward P/E 31.13) not supported by current earnings. The sharp 62.6% decline over 12 months reflects market disappointment with execution, and recovery depends on converting its order book into positive margins.
The main risk is the inability to translate revenue growth into profits: with a negative operating margin and a free cash flow conversion of -11.85%, the company is burning cash, and its high valuation (EV/EBITDA 33.37) leaves little room for disappointment in defense contract execution.
Context and risks
AeroVironment operates in the U.S. defense sector, where demand is backed by government budgets, but its business depends on contract awards and the continuity of specific defense programs. The recent 62.6% drop in the stock price over 12 months reflects a severe correction, and the current valuation (forward P/E of 31, despite negative margins) suggests the market already discounts recovery expectations. The main risk is the execution of its order book and its ability to convert revenue into profits, given its negative operating margin.
Is AeroVironment stock cheap or expensive?
at the analysis dateOn EV / EBITDA, it trades 130% above the Industrials median.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| EV / EBITDA | 33.4 | 14.5 | +130% |
| Price / book | 1.6 | 4.1 | −61% |
| Price / sales | 3.5 | 2.1 | +71% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 2.2 out of 10 (median for Industrials: 5.0).
Average analyst target: 216.63 USD, +56.0% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 1.4 (sector 5.8), Growth 5.8 (sector 6.6).
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- Forward P/E
- 31.1
- EV / EBITDA
- 33.4
- Price / book
- 1.6
- Price / sales
- 3.5
- PEG
- 1.57
- Market cap
- 7.1B USD
- Enterprise value
- 7.3B USD
Profitability
- ROE
- −4.6%
- ROA
- −0.1%
- ROIC (approx.)
- −0.9%
- Gross margin
- 26.5%
- Operating margin
- −2.3%
- Net margin
- −10.1%
- Free cash flow
- −25.9M USD
- FCF yield
- −0.4%
- Cash conversion
- −12%
Solvency
- Total debt
- 850.8M USD
- Net debt
- 270.6M USD
- Cash
- 580.2M USD
- EBITDA
- 218.8M USD
- Net debt / EBITDA
- 1.24
- Debt / equity
- 19.35
- Current ratio
- 4.26
- Quick ratio
- 3.19
Growth
- Revenue growth
- +5.7%
- EPS (TTM)
- −4.05 USD
- EPS (forward)
- 4.46 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.36
- Analyst consensus
- Buy (20)
- Target price
- 216.63 USD
- 52-week range
- 134.25 – 417.86
Recent news
All AVAV news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about AeroVironment
Is AeroVironment stock cheap or expensive?
On EV / EBITDA, it trades 130% above the Industrials median. Valuation score: 2.2 out of 10 (median for Industrials: 5.0). Average analyst target: 216.63 USD, +56.0% versus the price. This is not investment advice.
What score does AeroVironment get on MeridIAn Screener?
It scores 3.0 out of 10, rank 2,086 of 2,130 (better than 2% of the companies analysed). Its strongest category is Financial health (6.5) and its weakest, Momentum (0.3). Analysis of 08/10/2026.
How much is AeroVironment worth on the stock market?
Its market capitalisation is 7.1B USD and its enterprise value, debt included, is 7.3B USD.
How much debt does AeroVironment have?
Its net debt (debt minus cash) is 270.6M USD. That is 1.24 times its EBITDA; the Industrials median is 1.58.
Does AeroVironment pay a dividend?
It pays no dividend, or almost none.
How has AeroVironment stock performed over the last year?
It has fallen 64.6% over the last year, excluding dividends. Over the last 52 weeks it has traded between 134.25 and 417.86 USD. Past performance does not guarantee future results.
What do analysts think of AeroVironment?
20 analysts cover it; their average recommendation is “Buy” and their average target is 216.63 USD (+56.0% versus the price). It is an estimate, not market data.