AVIAT NETWORKS INC (AVNW) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:AVNW • US05366Y2019

22.95 USD
+1.14 (+5.23%)
Last: Feb 2, 2026, 12:43 PM
Fundamental Rating

5

Overall AVNW gets a fundamental rating of 5 out of 10. We evaluated AVNW against 48 industry peers in the Communications Equipment industry. AVNW has a medium profitability rating, but doesn't score so well on its financial health evaluation. AVNW may be a bit undervalued, certainly considering the very reasonable score on growth


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year AVNW was profitable.
  • AVNW had a positive operating cash flow in the past year.
  • In the past 5 years AVNW has always been profitable.
  • Of the past 5 years AVNW 4 years had a positive operating cash flow.
AVNW Yearly Net Income VS EBIT VS OCF VS FCFAVNW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20M -20M 40M 60M 80M 100M

1.2 Ratios

  • With a decent Return On Assets value of 2.08%, AVNW is doing good in the industry, outperforming 62.50% of the companies in the same industry.
  • AVNW's Return On Equity of 5.08% is fine compared to the rest of the industry. AVNW outperforms 66.67% of its industry peers.
  • With a decent Return On Invested Capital value of 7.17%, AVNW is doing good in the industry, outperforming 75.00% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for AVNW is significantly below the industry average of 12.17%.
  • The last Return On Invested Capital (7.17%) for AVNW is above the 3 year average (6.30%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.08%
ROE 5.08%
ROIC 7.17%
ROA(3y)1.79%
ROA(5y)9.78%
ROE(3y)3.31%
ROE(5y)16.1%
ROIC(3y)6.3%
ROIC(5y)7.79%
AVNW Yearly ROA, ROE, ROICAVNW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 60

1.3 Margins

  • AVNW has a Profit Margin of 2.95%. This is in the better half of the industry: AVNW outperforms 64.58% of its industry peers.
  • In the last couple of years the Profit Margin of AVNW has grown nicely.
  • Looking at the Operating Margin, with a value of 7.71%, AVNW is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
  • AVNW's Operating Margin has been stable in the last couple of years.
  • AVNW's Gross Margin of 34.25% is on the low side compared to the rest of the industry. AVNW is outperformed by 62.50% of its industry peers.
  • AVNW's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 7.71%
PM (TTM) 2.95%
GM 34.25%
OM growth 3Y-30.05%
OM growth 5Y1.03%
PM growth 3Y-64.67%
PM growth 5Y19.67%
GM growth 3Y-3.8%
GM growth 5Y-2%
AVNW Yearly Profit, Operating, Gross MarginsAVNW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30 40

2

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVNW is destroying value.
  • The number of shares outstanding for AVNW has been increased compared to 1 year ago.
  • AVNW has more shares outstanding than it did 5 years ago.
  • AVNW has a worse debt/assets ratio than last year.
AVNW Yearly Shares OutstandingAVNW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2M 4M 6M 8M 10M
AVNW Yearly Total Debt VS Total AssetsAVNW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

2.2 Solvency

  • AVNW has an Altman-Z score of 0.47. This is a bad value and indicates that AVNW is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of AVNW (0.47) is worse than 64.58% of its industry peers.
  • AVNW has a debt to FCF ratio of 8.97. This is a slightly negative value and a sign of low solvency as AVNW would need 8.97 years to pay back of all of its debts.
  • AVNW has a Debt to FCF ratio (8.97) which is in line with its industry peers.
  • A Debt/Equity ratio of 0.39 indicates that AVNW is not too dependend on debt financing.
  • AVNW has a Debt to Equity ratio of 0.39. This is in the lower half of the industry: AVNW underperforms 68.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF 8.97
Altman-Z 0.47
ROIC/WACC0.7
WACC10.29%
AVNW Yearly LT Debt VS Equity VS FCFAVNW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M 100M 150M 200M 250M

2.3 Liquidity

  • AVNW has a Current Ratio of 1.84. This is a normal value and indicates that AVNW is financially healthy and should not expect problems in meeting its short term obligations.
  • AVNW has a Current ratio of 1.84. This is comparable to the rest of the industry: AVNW outperforms 41.67% of its industry peers.
  • A Quick Ratio of 1.51 indicates that AVNW should not have too much problems paying its short term obligations.
  • The Quick ratio of AVNW (1.51) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.84
Quick Ratio 1.51
AVNW Yearly Current Assets VS Current LiabilitesAVNW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 90.97% over the past year.
  • AVNW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.38% yearly.
  • AVNW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.89%.
  • AVNW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.74% yearly.
EPS 1Y (TTM)90.97%
EPS 3Y-15.18%
EPS 5Y17.38%
EPS Q2Q%149.43%
Revenue 1Y (TTM)10.89%
Revenue growth 3Y12.78%
Revenue growth 5Y12.74%
Sales Q2Q%21.36%

3.2 Future

  • The Earnings Per Share is expected to decrease by -41.85% on average over the next years. This is quite bad
  • Based on estimates for the next years, AVNW will show a small growth in Revenue. The Revenue will grow by 6.28% on average per year.
EPS Next Y51.46%
EPS Next 2Y37.85%
EPS Next 3Y-41.85%
EPS Next 5YN/A
Revenue Next Year3.78%
Revenue Next 2Y5.27%
Revenue Next 3Y7.18%
Revenue Next 5Y6.28%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
AVNW Yearly Revenue VS EstimatesAVNW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 200M 400M 600M
AVNW Yearly EPS VS EstimatesAVNW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 1 -1 2 3

8

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 7.75, which indicates a rather cheap valuation of AVNW.
  • Compared to the rest of the industry, the Price/Earnings ratio of AVNW indicates a rather cheap valuation: AVNW is cheaper than 97.92% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.32. AVNW is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 7.28 indicates a rather cheap valuation of AVNW.
  • AVNW's Price/Forward Earnings ratio is rather cheap when compared to the industry. AVNW is cheaper than 100.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, AVNW is valued rather cheaply.
Industry RankSector Rank
PE 7.75
Fwd PE 7.28
AVNW Price Earnings VS Forward Price EarningsAVNW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 85.42% of the companies in the same industry are more expensive than AVNW, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of AVNW indicates a somewhat cheap valuation: AVNW is cheaper than 64.58% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 24.83
EV/EBITDA 7.6
AVNW Per share dataAVNW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of AVNW may justify a higher PE ratio.
  • AVNW's earnings are expected to decrease with -41.85% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.15
PEG (5Y)0.45
EPS Next 2Y37.85%
EPS Next 3Y-41.85%

0

5. Dividend

5.1 Amount

  • No dividends for AVNW!.
Industry RankSector Rank
Dividend Yield 0%

AVIAT NETWORKS INC / AVNW FAQ

What is the ChartMill fundamental rating of AVIAT NETWORKS INC (AVNW) stock?

ChartMill assigns a fundamental rating of 5 / 10 to AVNW.


Can you provide the valuation status for AVIAT NETWORKS INC?

ChartMill assigns a valuation rating of 8 / 10 to AVIAT NETWORKS INC (AVNW). This can be considered as Undervalued.


How profitable is AVIAT NETWORKS INC (AVNW) stock?

AVIAT NETWORKS INC (AVNW) has a profitability rating of 6 / 10.


How financially healthy is AVIAT NETWORKS INC?

The financial health rating of AVIAT NETWORKS INC (AVNW) is 2 / 10.


Can you provide the expected EPS growth for AVNW stock?

The Earnings per Share (EPS) of AVIAT NETWORKS INC (AVNW) is expected to grow by 51.46% in the next year.