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American Vanguard Corp (NYSE:AVD) stock has reached a 52-week low, dipping to $4.26, as the company faces a challenging period marked by a significant decrease in its year-over-year performance. According to InvestingPro data, the stock trades at just 0.39 times book value, suggesting potential undervaluation despite current challenges. The agricultural products company, known for its focus on crop protection, soil health, and integrated pest management, has seen its stock price erode by -65.13% over the past year. While this downturn reflects investor concerns, the company maintains a solid financial position with a current ratio of 1.89 and has remarkably maintained dividend payments for 29 consecutive years. This downturn reflects investor concerns over market conditions, competitive pressures, and potential impacts on the company’s revenue and profitability. The 52-week low serves as a critical indicator for shareholders and potential investors, signaling a period of heightened scrutiny and consideration for the company’s future strategies and market position. Notably, analysts tracked by InvestingPro expect the company to return to profitability this year, with several additional insights available in the comprehensive Pro Research Report, part of the platform’s coverage of over 1,400 US stocks.
In other recent news, American Vanguard Corporation reported fourth-quarter revenue of $169 million, which fell short of analyst expectations of $169.55 million. For the entire year of 2024, the company achieved revenue of approximately $550 million, or $563 million when excluding the impact of a product recall. The company has forecasted fiscal 2025 revenue between $565-585 million, which is below analyst projections of $585 million. American Vanguard set an adjusted EBITDA target range of $45-52 million for 2025.
The company took approximately $118 million in non-recurring cash and non-cash charges in 2024 as part of management’s efforts to reposition the business. By the end of the year, total debt was reduced to $156 million from $179 million at the end of Q3. The company expects capital expenditures of about $10 million in 2025 and anticipates improved free cash flow to be used for further debt reduction. CEO Douglas Kaye III expressed optimism about achieving double-digit EBITDA growth over the next 3-4 years.
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