AeroVironment Inc (AVAV, Financial), a prominent player in the Aerospace & Defense industry, has seen a significant surge in its stock price over the past three months. The company's stock price has risen by 23.31% over the past quarter, reaching a current price of $121.43. This impressive performance has boosted the company's market cap to $3.19 billion. Over the past week alone, the stock has gained 26.17%. According to the GF Value, defined by GuruFocus.com, which calculates a stock's intrinsic value using historical multiples, past performance adjustments, and future business estimates, the stock is fairly valued both currently and three months ago, with a GF Value of $116.81 and a past GF Value of $106.11 respectively.
Unpacking AeroVironment Inc's Business Model
AeroVironment Inc operates under a single business segment, supplying unmanned aircraft systems, tactical missile systems, high-altitude pseudo-satellites, and other related services to government agencies within the United States Department of Defense as well as the United States allied international governments. The systems can help with security, surveillance, or sensing, and provide "eyes in the sky" without needing an actual person, or driver, in the sky. 
Profitability Analysis
AeroVironment Inc's Profitability Rank stands at 7/10, indicating a relatively high level of profitability. The company's operating margin is -4.19%, which is better than 25.53% of the 282 companies in the same industry. The company's ROE and ROA, which stand at -29.49% and -19.81% respectively, are better than 15.52% and 13.45% of the companies in the industry. The company's ROIC of -2.85% is better than 26.9% of the companies in the industry. Over the past 10 years, the company has been profitable for 8 years, which is better than 64.2% of other companies. 
Growth Prospects
The company's Growth Rank is 6/10, indicating a relatively high level of growth. The company's 3-year revenue growth rate per share is 12.30%, which is better than 76.92% of the 260 companies in the industry. The 5-year revenue growth rate per share is 13.00%, which is better than 83.91% of the 230 companies in the industry. The company's total revenue growth rate (future 3Y to 5Y est) is 16.55%, which is better than 86.67% of the 60 companies in the industry. 
Top Holders of AeroVironment Inc's Stock
The top three holders of AeroVironment Inc's stock are Baillie Gifford (Trades, Portfolio), Catherine Wood (Trades, Portfolio), and Ken Fisher (Trades, Portfolio), holding 3.02%, 2.29%, and 0.61% of the company's shares respectively.
Competitive Landscape
AeroVironment Inc faces competition from several companies in the Aerospace & Defense industry. The company's main competitors include Mercury Systems Inc (MRCY, Financial) with a market cap of $2.15 billion, Spirit AeroSystems Holdings Inc (SPR, Financial) with a market cap of $2.22 billion, and Rocket Lab USA Inc (RKLB, Financial) with a market cap of $3.1 billion.
Conclusion
In conclusion, AeroVironment Inc's stock has seen a significant surge over the past three months, driven by the company's strong profitability and growth prospects. The company's business model, which involves supplying unmanned aircraft systems and other related services to government agencies, has proven to be successful. Despite facing competition from several companies in the industry, AeroVironment Inc has managed to maintain a strong position in the market. The company's stock is currently fairly valued, making it an attractive investment option for value investors.
