AVIAT NETWORKS INC (AVNW)
US05366Y2019 - Common Stock
Taking everything into account, AVNW scores 3 out of 10 in our fundamental rating. AVNW was compared to 51 industry peers in the Communications Equipment industry. While AVNW is still in line with the averages on profitability rating, there are concerns on its financial health. AVNW has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AVNW was profitable.
In the past year AVNW has reported a negative cash flow from operations.
AVNW had positive earnings in each of the past 5 years.
Of the past 5 years AVNW 4 years had a positive operating cash flow.
1.2 Ratios
AVNW's Return On Assets of -0.87% is fine compared to the rest of the industry. AVNW outperforms 64.71% of its industry peers.
Looking at the Return On Equity, with a value of -2.07%, AVNW is in the better half of the industry, outperforming 62.75% of the companies in the same industry.
AVNW has a Return On Invested Capital (0.35%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AVNW is below the industry average of 11.02%.
The last Return On Invested Capital (0.35%) for AVNW is well below the 3 year average (8.71%), which needs to be investigated, but indicates that AVNW had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.87% | ||
| ROE | -2.07% | ||
| ROIC | 0.35% |
ROA(3y)3.9%
ROA(5y)9.77%
ROE(3y)6.65%
ROE(5y)16.09%
ROIC(3y)8.71%
ROIC(5y)8.38%
1.3 Margins
In the last couple of years the Profit Margin of AVNW has declined.
AVNW has a Operating Margin (0.37%) which is comparable to the rest of the industry.
AVNW's Operating Margin has improved in the last couple of years.
AVNW has a worse Gross Margin (32.44%) than 62.75% of its industry peers.
In the last couple of years the Gross Margin of AVNW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.37% | ||
| PM (TTM) | N/A | ||
| GM | 32.44% |
OM growth 3Y-13.83%
OM growth 5Y45.95%
PM growth 3Y-59.62%
PM growth 5Y-7.89%
GM growth 3Y-1.69%
GM growth 5Y1.75%
2. Health
2.1 Basic Checks
AVNW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AVNW has more shares outstanding
The number of shares outstanding for AVNW has been increased compared to 5 years ago.
AVNW has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.08, we must say that AVNW is in the distress zone and has some risk of bankruptcy.
AVNW has a Altman-Z score of 0.08. This is in the lower half of the industry: AVNW underperforms 64.71% of its industry peers.
AVNW has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
AVNW has a Debt to Equity ratio (0.33) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.08 |
ROIC/WACC0.03
WACC9.97%
2.3 Liquidity
AVNW has a Current Ratio of 1.72. 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 worse Current ratio (1.72) than 60.78% of its industry peers.
AVNW has a Quick Ratio of 1.40. This is a normal value and indicates that AVNW is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.40, AVNW perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The earnings per share for AVNW have decreased strongly by -54.81% in the last year.
AVNW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.14% yearly.
Looking at the last year, AVNW shows a quite strong growth in Revenue. The Revenue has grown by 15.85% in the last year.
The Revenue has been growing by 10.84% on average over the past years. This is quite good.
EPS 1Y (TTM)-54.81%
EPS 3Y12.67%
EPS 5Y-0.14%
EPS Q2Q%-200%
Revenue 1Y (TTM)15.85%
Revenue growth 3Y14.08%
Revenue growth 5Y10.84%
Sales Q2Q%0.99%
3.2 Future
AVNW is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.76% yearly.
The Revenue is expected to grow by 7.52% on average over the next years.
EPS Next Y-68.95%
EPS Next 2Y-0.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.16%
Revenue Next 2Y7.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.47, AVNW is valued correctly.
Based on the Price/Earnings ratio, AVNW is valued cheaper than 94.12% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.28. AVNW is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 5.97, the valuation of AVNW can be described as very cheap.
Based on the Price/Forward Earnings ratio, AVNW is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
AVNW is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 5.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVNW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 38.42 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-0.76%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for AVNW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AVIAT NETWORKS INC
NASDAQ:AVNW (1/15/2025, 9:50:14 AM)
19.33
+0.74 (+3.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners77.74%
Inst Owner Change0.02%
Ins Owners2.65%
Ins Owner Change5.33%
Market Cap245.30M
Analysts81.67
Price Target35.19 (82.05%)
Short Float %5.13%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1454.57%
Min EPS beat(2)-2910.73%
Max EPS beat(2)1.59%
EPS beat(4)3
Avg EPS beat(4)-714.92%
Min EPS beat(4)-2910.73%
Max EPS beat(4)40.79%
EPS beat(8)5
Avg EPS beat(8)-354.53%
EPS beat(12)8
Avg EPS beat(12)-233.59%
EPS beat(16)12
Avg EPS beat(16)-162.3%
Revenue beat(2)1
Avg Revenue beat(2)-3.35%
Min Revenue beat(2)-7.98%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)-2.09%
Min Revenue beat(4)-7.98%
Max Revenue beat(4)1.86%
Revenue beat(8)4
Avg Revenue beat(8)-1.08%
Revenue beat(12)6
Avg Revenue beat(12)-0.44%
Revenue beat(16)10
Avg Revenue beat(16)1.17%
PT rev (1m)0%
PT rev (3m)-28.87%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-98.58%
EPS NY rev (1m)0%
EPS NY rev (3m)-72.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-9.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.47 | ||
| Fwd PE | 5.97 | ||
| P/S | 0.6 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.99 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 38.42 |
EPS(TTM)1.55
EY8.02%
EPS(NY)3.24
Fwd EY16.76%
FCF(TTM)-5.38
FCFYN/A
OCF(TTM)-0.84
OCFYN/A
SpS32.23
BVpS19.47
TBVpS16.01
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.87% | ||
| ROE | -2.07% | ||
| ROCE | 0.44% | ||
| ROIC | 0.35% | ||
| ROICexc | 0.41% | ||
| ROICexgc | 0.48% | ||
| OM | 0.37% | ||
| PM (TTM) | N/A | ||
| GM | 32.44% | ||
| FCFM | N/A |
ROA(3y)3.9%
ROA(5y)9.77%
ROE(3y)6.65%
ROE(5y)16.09%
ROIC(3y)8.71%
ROIC(5y)8.38%
ROICexc(3y)10.52%
ROICexc(5y)11.03%
ROICexgc(3y)11.01%
ROICexgc(5y)11.33%
ROCE(3y)11.02%
ROCE(5y)10.77%
ROICexcg growth 3Y-14.1%
ROICexcg growth 5Y25.31%
ROICexc growth 3Y-16.67%
ROICexc growth 5Y23.05%
OM growth 3Y-13.83%
OM growth 5Y45.95%
PM growth 3Y-59.62%
PM growth 5Y-7.89%
GM growth 3Y-1.69%
GM growth 5Y1.75%
F-Score0
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 11.6 | ||
| Cap/Depr | 1054.03% | ||
| Cap/Sales | 14.11% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z | 0.08 |
F-Score0
WACC9.97%
ROIC/WACC0.03
Cap/Depr(3y)359.75%
Cap/Depr(5y)247.45%
Cap/Sales(3y)5.07%
Cap/Sales(5y)3.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-54.81%
EPS 3Y12.67%
EPS 5Y-0.14%
EPS Q2Q%-200%
EPS Next Y-68.95%
EPS Next 2Y-0.76%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)15.85%
Revenue growth 3Y14.08%
Revenue growth 5Y10.84%
Sales Q2Q%0.99%
Revenue Next Year7.16%
Revenue Next 2Y7.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-94.92%
EBIT growth 3Y-1.71%
EBIT growth 5Y61.77%
EBIT Next Year-39.3%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-212.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-152.5%
OCF growth 3Y20.86%
OCF growth 5Y59.7%