NEW YORK (
-- American Vanguard Corporation
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
Highlights from the ratings report include:
- AMERICAN VANGUARD CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, AMERICAN VANGUARD CORP turned its bottom line around by earning $0.40 versus -$0.21 in the prior year.
- 46.80% is the gross profit margin for AMERICAN VANGUARD CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.40% trails the industry average.
- Net operating cash flow has increased to -$10.51 million or 27.18% when compared to the same quarter last year. In addition, AMERICAN VANGUARD CORP has also vastly surpassed the industry average cash flow growth rate of -54.93%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 174.3% when compared to the same quarter one year prior, rising from $1.83 million to $5.01 million.
- The revenue growth came in higher than the industry average of 22.8%. Since the same quarter one year prior, revenues rose by 44.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
American Vanguard Corporation, through its subsidiaries, engages in the manufacture, development, and marketing of specialty chemical products for agricultural and commercial uses in the United States and internationally. The company has a P/E ratio of 19.6, equal to the average chemicals industry P/E ratio and above the S&P 500 P/E ratio of 17.7. American Vanguard has a market cap of $275.4 million and is part of the
industry. Shares are up 17.9% year to date as of the close of trading on Thursday.
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