From one perspective, I suppose you could say AeroVironment
But me? I'm just as pleased as can be.
Continuing the string of positive non-earnings-related press releases it began last month, AV confirmed this week that it has won yet another contract from the military. Previously, we've seen the company book a contract for its Switchblade UAV and announce the availability for sale of its new Shrike "vertical takeoff and landing" Shrike UAV as well. Now, the company is touting the continued health of its Raven UAV franchise -- recipient of a $16 million order from the U.S. Army.
Last quarter, AV grew its revenues 62% in comparison with fiscal Q1 2011 -- a trend that contrasts starkly with the single-digit sales growth Lockheed Martin
Best of all, I like to see how AV is turning down the flames on the cash burn. I admit to having had concerns over the $7.1 million in negative free cash flow AV reported one year ago. But AV's most recent numbers show FCF once again approximating net income.
Valuation
With $29.3 million in free cash to its credit over the past 12 months, AV finally looks buy-able to me again. At 24 times earnings or 24 times FCF (take your pick), the stock is attractively priced relative to 28.5% long-term growth expectations. Back out AV's cash stash, and the picture's even prettier -- AV carries an enterprise value-to-free cash flow ratio of just 14.3.
Long story short, I'm ready to go long AeroVironment again.
Want to learn more about this maker of unmanned aerial vehicles and ... car-battery fast-chargers? Add it to your Fool Watchlist.