AVIAT NETWORKS INC (AVNW) Stock Fundamental Analysis
USA - NASDAQ:AVNW - US05366Y2019 - Common Stock
23.76 USD
-0.45 (-1.86%)
23.76 USD
0 (0%)
Taking everything into account, AVNW scores 3 out of 10 in our fundamental rating. 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AVNW had positive earnings in the past year.
In the past year AVNW had a positive cash flow from operations.
Each year in the past 5 years AVNW has 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 -0.54%. This is comparable to the rest of the industry: AVNW outperforms 52.08% of its industry peers.
AVNW has a Return On Equity of -1.33%. This is comparable to the rest of the industry: AVNW outperforms 56.25% of its industry peers.
The Return On Invested Capital of AVNW (2.00%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for AVNW is below the industry average of 13.71%.
The 3 year average ROIC (8.71%) for AVNW is well above the current ROIC(2.00%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.54% | ||
| ROE | -1.33% | ||
| ROIC | 2% |
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 of 2.02%. This is comparable to the rest of the industry: AVNW outperforms 54.17% of its industry peers.
AVNW's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 32.20%, AVNW is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AVNW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.02% | ||
| PM (TTM) | N/A | ||
| GM | 32.2% |
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
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.
Compared to 5 years ago, AVNW has more shares outstanding
Compared to 1 year ago, AVNW has a worse debt to assets ratio.
2.2 Solvency
AVNW has an Altman-Z score of 0.27. This is a bad value and indicates that AVNW is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.27, AVNW is not doing good in the industry: 60.42% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.27 indicates that AVNW is not too dependend on debt financing.
AVNW has a Debt to Equity ratio of 0.27. This is comparable to the rest of the industry: AVNW outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.27 |
ROIC/WACC0.2
WACC10.18%
2.3 Liquidity
AVNW has a Current Ratio of 1.62. This is a normal value and indicates that AVNW is financially healthy and should not expect problems in meeting its short term obligations.
AVNW's Current ratio of 1.62 is on the low side compared to the rest of the industry. AVNW is outperformed by 62.50% of its industry peers.
A Quick Ratio of 1.29 indicates that AVNW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.29, AVNW is doing worse than 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
AVNW shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.60%.
The Earnings Per Share has been decreasing by -0.14% on average over the past years.
Looking at the last year, AVNW shows a quite strong growth in Revenue. The Revenue has grown by 17.74% in the last year.
Measured over the past years, AVNW shows a quite strong growth in Revenue. The Revenue has been growing by 10.84% on average per year.
EPS 1Y (TTM)-0.6%
EPS 3Y12.67%
EPS 5Y-0.14%
EPS Q2Q%N/A
Revenue 1Y (TTM)17.74%
Revenue growth 3Y14.08%
Revenue growth 5Y10.84%
Sales Q2Q%-1.13%
3.2 Future
AVNW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.63% yearly.
Based on estimates for the next years, AVNW will show a small growth in Revenue. The Revenue will grow by 6.10% on average per year.
EPS Next Y-59.7%
EPS Next 2Y-8.65%
EPS Next 3Y3.63%
EPS Next 5YN/A
Revenue Next Year6.62%
Revenue Next 2Y5.54%
Revenue Next 3Y6.13%
Revenue Next 5Y6.1%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 7.22, the valuation of AVNW can be described as very cheap.
Based on the Price/Earnings ratio, AVNW is valued cheaply inside the industry as 97.92% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AVNW to the average of the S&P500 Index (27.38), we can say AVNW is valued rather cheaply.
A Price/Forward Earnings ratio of 8.65 indicates a reasonable valuation of AVNW.
Compared to the rest of the industry, the Price/Forward 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/Forward Earnings ratio is at 22.86. AVNW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 8.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVNW is valued a bit cheaper than 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.65%
EPS Next 3Y3.63%
5. Dividend
5.1 Amount
No dividends for AVNW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
23.76
-0.45 (-1.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners75.52%
Inst Owner Change3.08%
Ins Owners4.09%
Ins Owner Change-0.41%
Market Cap304.13M
Analysts81.54
Price Target34.97 (47.18%)
Short Float %5.19%
Short Ratio6.18
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)3067.35%
Min EPS beat(2)203.78%
Max EPS beat(2)5930.92%
EPS beat(4)3
Avg EPS beat(4)806.39%
Min EPS beat(4)-2910.73%
Max EPS beat(4)5930.92%
EPS beat(8)6
Avg EPS beat(8)410.54%
EPS beat(12)8
Avg EPS beat(12)274.92%
EPS beat(16)12
Avg EPS beat(16)210.19%
Revenue beat(2)2
Avg Revenue beat(2)8.6%
Min Revenue beat(2)5.34%
Max Revenue beat(2)11.87%
Revenue beat(4)3
Avg Revenue beat(4)2.63%
Min Revenue beat(4)-7.98%
Max Revenue beat(4)11.87%
Revenue beat(8)5
Avg Revenue beat(8)0.91%
Revenue beat(12)6
Avg Revenue beat(12)0.55%
Revenue beat(16)10
Avg Revenue beat(16)1.49%
PT rev (1m)-0.42%
PT rev (3m)-0.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.22 | ||
| Fwd PE | 8.65 | ||
| P/S | 0.7 | ||
| P/FCF | N/A | ||
| P/OCF | 86.38 | ||
| P/B | 1.19 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 20.95 |
EPS(TTM)3.29
EY13.85%
EPS(NY)2.75
Fwd EY11.56%
FCF(TTM)-2.04
FCFYN/A
OCF(TTM)0.28
OCFY1.16%
SpS33.84
BVpS20.01
TBVpS16.41
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.54% | ||
| ROE | -1.33% | ||
| ROCE | 2.53% | ||
| ROIC | 2% | ||
| ROICexc | 2.33% | ||
| ROICexgc | 2.76% | ||
| OM | 2.02% | ||
| PM (TTM) | N/A | ||
| GM | 32.2% | ||
| 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-Score3
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.4 | ||
| Cap/Depr | 411.96% | ||
| Cap/Sales | 6.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 22.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 0.27 |
F-Score3
WACC10.18%
ROIC/WACC0.2
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)-0.6%
EPS 3Y12.67%
EPS 5Y-0.14%
EPS Q2Q%N/A
EPS Next Y-59.7%
EPS Next 2Y-8.65%
EPS Next 3Y3.63%
EPS Next 5YN/A
Revenue 1Y (TTM)17.74%
Revenue growth 3Y14.08%
Revenue growth 5Y10.84%
Sales Q2Q%-1.13%
Revenue Next Year6.62%
Revenue Next 2Y5.54%
Revenue Next 3Y6.13%
Revenue Next 5Y6.1%
EBIT growth 1Y-63.81%
EBIT growth 3Y-1.71%
EBIT growth 5Y61.77%
EBIT Next Year-28.01%
EBIT Next 3Y15.91%
EBIT Next 5Y14.02%
FCF growth 1Y-53.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-22.95%
OCF growth 3Y20.86%
OCF growth 5Y59.7%