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AeroVironment (AVAV) Stock Fundamentals, Analysis & Risk Signals

Health score, competitive moat, risk signals, and key metrics at a glance.

NasdaqGS•Industrials•Aerospace & Defense
C
AverageMetricSide Score: 45/100
ProfitabilityProfit0/30
GrowthGrowth14/25
Balance SheetBalance23/25
Cash QualityCash8/20
Price & Volume
Market Cap $9.54B

AeroVironment, Inc. designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates in two segments, Autonomous Systems; and Space, Cyber and Directed Energy. The company provides uncrewed aircraft systems (UAS), which include small and medium UAS, and kinesis command and control software; and counter-UAS and precision strike, a loitering munitions solution that deliver actionable intelligence and precision firepower modern warfighters, including precision strike, radio frequency and kinetic C-UAS, and electronic warfare systems. It also offers autonomy, AI, and platform technologies; unmanned maritime; uncrewed ground systems; and high-altitude pseudo-satellites. The company provides digital beamforming technology, a multi-band/beam software defined antenna tile that allows simultaneous communication with multiple satellites; laser communications, a data transmission systems for space operations; space-qualified hardware for line of sight stabilization and control electronics in low, medium, and geostationary earth orbit, as well as cislunar orbits; phased array antenna technology to supports hypersonic telemetry and tracking, and other missile testing; and directed energy solution. It also offers cyber solution for national security and defense operations; and HaloCortex OSINT, an AI-powered OSINT analysis platform to provide insights and solve department of defense and commercial challenges. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Arlington, Virginia.

Moat Signals

Competitive analysis based on 55 quarters of fundamental data

Pricing Power

Weak Moat

Operating margins are under pressure, averaging -6.4%. The business may lack pricing power or face rising costs.'

Competitive Advantage

Weak Moat

ROE is low or negative, suggesting limited competitive advantage or capital allocation challenges.

Risk Signals

Data-driven red flags and warnings across 55 quarters

High Risk

Margin Pressure

Red Flag

Operating margins dropped 470.1% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.

Earnings Quality

Red Flag

Free cash flow has been negative in 6 of the last 8 quarters — earnings are not translating to cash.

Leverage Risk

Watch

Debt-to-equity has risen 389.5% recently — increasing financial risk even if the current ratio is manageable.

Revenue Decline

Healthy

Revenue is stable or growing over recent quarters — demand appears durable.

Cash Burn

Red Flag

The last 6 consecutive quarters had negative FCF — the company is burning cash and may need external funding.

Share Dilution

Red Flag

Shares outstanding increased 78.8% — significant dilution, likely from stock compensation or capital raises.

Metrics at a Glance

as of April 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue
$1.98B
140.9%
Q. Revenue
$641.62M
TTM EBITDA
$-45.96M
156.2%
TTM Op. Income
$-311.00M
862.3%
Q. Op. Income
$-32.46M
TTM Net Income
$-265.12M
707.8%
Q. Net Income
$-24.10M
EPS
$-5.302
Shares Out.
$50.00M
78.1%
$1.98B in TTM revenue grew 140.9% YoY, reaching $641.62M last quarter. TTM EBITDA of $-45.96M and TTM operating income of $-311.00M shows growth is flowing through. However, net income is negative at $265.12M — growth is not yet reaching the bottom line. Revenue is growing at a healthy pace — a signal to hold.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin
31.6%
13.4%
EBITDA Margin
4.6%
Op. Margin
-5.1%
200.7%
Net Margin
-3.8%
162.0%
Op. margin of -5.1% is down 10.1% YoY — costs are rising relative to revenue. Net margin at -3.8% and gross margin of 31.6% — earnings take a bigger bite when COGS stays lean..

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio
N/A
P/S Ratio
4.8x
P/B Ratio
2.2x
P/S of 4.8x and P/B of 2.2x.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets
$5.72B
Cash
$377.32M
Long-Term Debt
$728.97M
Book Value
$4.40B
D/E Ratio
0.2
Debt/EBITDA
24.6
With $5.72B in assets and $728.97M in long-term debt, the D/E of 0.2and book value of $4.40B — shows a conservative capital structure — the company has a strong financial cushion to weather downturns.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow
$95.51M
Free Cash Flow
$79.10M
1000.1%
FCF Margin
4.0%
FCF / Net Income
-3.3
FCF of $79.10M on $95.51M in operating cash flow. The FCF / Net Income ratio of -0.3x shows cash consumption — the business is not yet self-funding.

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Cash Generation

Weak Moat

Only 2 of the last 8 quarters had positive FCF — the business may require external capital to sustain operations.

Demand Durability

Moderate Moat

Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.