Is the business good?
How good a business is AVAV?
AeroVironment earns −5.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
−5.5%
Return on invested capital · cost of capital 9.0% · 14 points below what the capital costs: growth destroys value
- Operating margin
- −16%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q4 2026
- R&D as % of revenue
- 6.5%
R&D as % of revenue
- Gross margin
- 25%
Gross margin
| Year | Operating margin |
|---|---|
| FY2021 | 11% |
| FY2022 | −2.2% |
| FY2023 | −33% |
| FY2024 | 10% |
| FY2025 | 5.0% |
| FY2026 | −16% |
Details›
- Gross margin12 months to Q4 2026
- 25%
- Operating margin12 months to Q4 2026
- −16%
- Net margin12 months to Q4 2026
- −13%
- Free cash flow margin
- −7.1%
- R&D as % of revenue
- 6.5%
- Revenue, trailing twelve months
- $1.98B
- Free cash flow, trailing twelve months
- −$141M
- Net income, trailing twelve months
- −$265M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- −5.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Aerospace & Defense
Ranks #42 of 48 by Smart Score