One-Hour Analysis of Aerovironment

From Value Line

  • AVAV has only been public since 2007
  • Founder a “beloved aeronautical pioneer”
  • Went public at $20, shot to $40, now back near $20
  • Not that cheap at over 15x earnings
  • In two growth-oriented areas, drones and electric cars
  • Clean book value
  • Plenty of cash
  • Has not done any buybacks
  • Insiders own 17%, unusual for this industry, but have been sellers recently
  • Is electric car business subsidized, or does it have real economics?
  • No pension issues
  • ROE still only 10%

[Read more…]