Aerovironment Incorporated Stock Downgraded (AVAV)
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- AVAV has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.87, which clearly demonstrates the ability to cover short-term cash needs.
- 46.90% is the gross profit margin for AEROVIRONMENT INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.21% is above that of the industry average.
- The revenue fell significantly faster than the industry average of 6.6%. Since the same quarter one year prior, revenues fell by 34.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 27.79%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 34.61% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, AVAV is still more expensive than most of the other companies in its industry.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Aerospace & Defense industry and the overall market, AEROVIRONMENT INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
-- Written by a member of TheStreet Ratings Staff
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