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AeroVironment

AVAV
27
Aerospace & Defense · Industrials
Also trades as: 0HAL.L GBP 1.22 (+6.22%)
Price
$123.25
+5.55 (+4.72%)
Market Cap
$6.26B
Exchange
NASDAQ
Winston Score
27
Winston is worried
Below-average fundamentals — multiple weak pillars.
Data as of Oct 24, 2026 · filings through Aug 1, 2026

§How the score breaks down

Quality
Weak
4/30
Growth
Mixed
7/20
Cash Flow
Weak
0/10
Stability
Good
5/10
Valuation
Data not available
0/10
Ownership
Good
10/15
Dividends
Not counted
n/a

26 of 95 counted points = Winston Score 27. Pillars marked n/a do not apply to this company and are left out of the total.

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Share count rising — dilution

+98.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 24.7M (2022) → 49.1M (2026)

§Winston Score History

The full picture

AeroVironment makes small drones and missile systems used mainly by the U.S. military and allied governments. Its best-known products include the Raven and Puma unmanned aircraft, which soldiers use for battlefield surveillance, and the Switchblade "loitering munition," a small drone that can fly toward a target and detonate. The company sits in the defense technology sector and became widely recognized after Switchblade systems were sent to Ukraine following Russia's 2022 invasion.

AeroVironment earns money through government contracts, selling hardware and related services like training and spare parts to military customers in the U.S. and dozens of allied nations. It is a mid-sized defense contractor with a strong niche in small unmanned systems, where it holds a leading market position in the U.S. Army's inventory. However, its operating margin is currently negative, reflecting heavy investment in research and expansion, and the company depends heavily on U.S. defense budget decisions, making government spending levels its biggest ongoing risk.

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+5.7% YoY

YoY Growth Rate

Slow revenue growth

Reported EPS Growth

+93.1% YoY

Quarterly reporting periods ended:

2 Aug 2025: $-1.44

1 Aug 2026: $-0.10

Reported/statutory EPS, not adjusted or underlying earnings. One-off items can affect this figure. Provider rounding can affect the growth rate.

YoY Growth Rate

Reported EPS increased year over year

R&D Spend

$128M/ year

↓ Declining (-20% vs prior year)

6.5% of revenue

1.6x the sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

25.1%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

~6 years

$675M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

$675M cash & investments at current burn rate

Growth context

AeroVironment is growing revenue at 6% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale
Gross Margin
25.9%
Modest — 25.9% gross margin
Profit after running costs
Operating Margin
-2.3%
Losing money on operations — -2.3%
Return on the money invested
ROCE
-0.2%
Weak — -0.2% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
+84.4%
Fast-growing sales (+84.4% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
-2.2%
Burning cash (-2.2%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
0.19
Conservative — low debt load (0.19)
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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