AVIAT NETWORKS INC (AVNW) Stock Fundamental Analysis
USA - NASDAQ:AVNW - US05366Y2019 - Common Stock
24.96 USD
-1.09 (-4.18%)
24.96 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AVNW. AVNW was compared to 48 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AVNW had positive earnings in the past year.
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.
1.2 Ratios
AVNW has a Return On Assets of 0.21%. This is comparable to the rest of the industry: AVNW outperforms 54.17% of its industry peers.
Looking at the Return On Equity, with a value of 0.51%, AVNW is in line with its industry, outperforming 58.33% of the companies in the same industry.
AVNW has a Return On Invested Capital (3.19%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AVNW is significantly below the industry average of 13.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 0.51% | ||
| ROIC | 3.19% |
ROA(3y)1.79%
ROA(5y)9.78%
ROE(3y)3.31%
ROE(5y)16.1%
ROIC(3y)6.3%
ROIC(5y)7.79%
1.3 Margins
The Profit Margin of AVNW (0.31%) is comparable to the rest of the industry.
AVNW's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 3.26%, AVNW is in line with its industry, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Operating Margin of AVNW has remained more or less at the same level.
AVNW's Gross Margin of 32.08% is on the low side compared to the rest of the industry. AVNW is outperformed by 68.75% of its industry peers.
AVNW's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.26% | ||
| PM (TTM) | 0.31% | ||
| GM | 32.08% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVNW is destroying value.
The number of shares outstanding for AVNW has been increased compared to 1 year ago.
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 0.35, we must say that AVNW is in the distress zone and has some risk of bankruptcy.
AVNW has a worse Altman-Z score (0.35) than 64.58% of its industry peers.
AVNW has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.26, AVNW is doing worse than 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.35 |
ROIC/WACC0.33
WACC9.57%
2.3 Liquidity
A Current Ratio of 1.64 indicates that AVNW should not have too much problems paying its short term obligations.
With a Current ratio value of 1.64, AVNW is not doing good in the industry: 64.58% of the companies in the same industry are doing better.
A Quick Ratio of 1.35 indicates that AVNW should not have too much problems paying its short term obligations.
AVNW has a Quick ratio (1.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.35 |
3. Growth
3.1 Past
The earnings per share for AVNW have decreased strongly by -49.54% in the last year.
Measured over the past years, AVNW shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.38% on average per year.
Looking at the last year, AVNW shows a small growth in Revenue. The Revenue has grown by 6.49% in the last year.
Measured over the past years, AVNW shows a quite strong growth in Revenue. The Revenue has been growing by 12.74% on average per year.
EPS 1Y (TTM)-49.54%
EPS 3Y-15.18%
EPS 5Y17.38%
EPS Q2Q%15.28%
Revenue 1Y (TTM)6.49%
Revenue growth 3Y12.78%
Revenue growth 5Y12.74%
Sales Q2Q%-1.13%
3.2 Future
AVNW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 41.34% yearly.
AVNW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
EPS Next Y54.95%
EPS Next 2Y41.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.8%
Revenue Next 2Y5.3%
Revenue Next 3Y7.18%
Revenue Next 5Y6.28%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.04, AVNW is valued correctly.
Based on the Price/Earnings ratio, AVNW is valued cheaper than 81.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of AVNW to the average of the S&P500 Index (26.11), we can say AVNW is valued slightly cheaper.
AVNW is valuated reasonably with a Price/Forward Earnings ratio of 9.70.
Based on the Price/Forward Earnings ratio, AVNW is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.55. AVNW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 9.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVNW is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 15.63 |
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.
AVNW's earnings are expected to grow with 41.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)0.87
EPS Next 2Y41.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for AVNW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
24.96
-1.09 (-4.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners76.78%
Inst Owner Change-0.21%
Ins Owners4.06%
Ins Owner Change1.99%
Market Cap319.49M
Revenue(TTM)434.61M
Net Income(TTM)1.34M
Analysts81.54
Price Target34.97 (40.1%)
Short Float %6.29%
Short Ratio7.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)139.08%
Min EPS beat(2)74.37%
Max EPS beat(2)203.78%
EPS beat(4)3
Avg EPS beat(4)824.58%
Min EPS beat(4)-2910.73%
Max EPS beat(4)5930.92%
EPS beat(8)7
Avg EPS beat(8)419.99%
EPS beat(12)9
Avg EPS beat(12)281.34%
EPS beat(16)12
Avg EPS beat(16)214.52%
Revenue beat(2)1
Avg Revenue beat(2)1.98%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)5.34%
Revenue beat(4)2
Avg Revenue beat(4)1.96%
Min Revenue beat(4)-7.98%
Max Revenue beat(4)11.87%
Revenue beat(8)4
Avg Revenue beat(8)0.68%
Revenue beat(12)6
Avg Revenue beat(12)0.46%
Revenue beat(16)9
Avg Revenue beat(16)0.9%
PT rev (1m)0%
PT rev (3m)-0.42%
EPS NQ rev (1m)-6.83%
EPS NQ rev (3m)-44.4%
EPS NY rev (1m)-3.62%
EPS NY rev (3m)-6.32%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.04 | ||
| Fwd PE | 9.7 | ||
| P/S | 0.74 | ||
| P/FCF | N/A | ||
| P/OCF | 55.84 | ||
| P/B | 1.21 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 15.63 |
EPS(TTM)1.66
EY6.65%
EPS(NY)2.57
Fwd EY10.3%
FCF(TTM)-1.98
FCFYN/A
OCF(TTM)0.45
OCFY1.79%
SpS33.95
BVpS20.56
TBVpS16.92
PEG (NY)0.27
PEG (5Y)0.87
Graham Number27.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 0.51% | ||
| ROCE | 4.04% | ||
| ROIC | 3.19% | ||
| ROICexc | 3.85% | ||
| ROICexgc | 4.58% | ||
| OM | 3.26% | ||
| PM (TTM) | 0.31% | ||
| GM | 32.08% | ||
| FCFM | N/A |
ROA(3y)1.79%
ROA(5y)9.78%
ROE(3y)3.31%
ROE(5y)16.1%
ROIC(3y)6.3%
ROIC(5y)7.79%
ROICexc(3y)7.36%
ROICexc(5y)9.6%
ROICexgc(3y)8.1%
ROICexgc(5y)10.04%
ROCE(3y)7.98%
ROCE(5y)9.86%
ROICexgc growth 3Y-29.93%
ROICexgc growth 5Y-16.07%
ROICexc growth 3Y-33.88%
ROICexc growth 5Y-18.94%
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%
F-Score4
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.1 | ||
| Cap/Depr | 386.82% | ||
| Cap/Sales | 7.16% | ||
| Interest Coverage | 2.12 | ||
| Cash Conversion | 25.73% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.35 | ||
| Altman-Z | 0.35 |
F-Score4
WACC9.57%
ROIC/WACC0.33
Cap/Depr(3y)475.32%
Cap/Depr(5y)303.81%
Cap/Sales(3y)7.26%
Cap/Sales(5y)4.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-49.54%
EPS 3Y-15.18%
EPS 5Y17.38%
EPS Q2Q%15.28%
EPS Next Y54.95%
EPS Next 2Y41.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.49%
Revenue growth 3Y12.78%
Revenue growth 5Y12.74%
Sales Q2Q%-1.13%
Revenue Next Year3.8%
Revenue Next 2Y5.3%
Revenue Next 3Y7.18%
Revenue Next 5Y6.28%
EBIT growth 1Y-38.79%
EBIT growth 3Y-21.12%
EBIT growth 5Y13.9%
EBIT Next Year82.26%
EBIT Next 3Y41.04%
EBIT Next 5Y29.05%
FCF growth 1Y-491.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-81.27%
OCF growth 3Y27.04%
OCF growth 5Y-20.03%
AVIAT NETWORKS INC / AVNW FAQ
Can you provide the ChartMill fundamental rating for AVIAT NETWORKS INC?
ChartMill assigns a fundamental rating of 4 / 10 to AVNW.
What is the valuation status of AVIAT NETWORKS INC (AVNW) stock?
ChartMill assigns a valuation rating of 6 / 10 to AVIAT NETWORKS INC (AVNW). This can be considered as Fairly Valued.
How profitable is AVIAT NETWORKS INC (AVNW) stock?
AVIAT NETWORKS INC (AVNW) has a profitability rating of 4 / 10.
What is the financial health of AVIAT NETWORKS INC (AVNW) stock?
The financial health rating of AVIAT NETWORKS INC (AVNW) is 2 / 10.