AVIAT NETWORKS INC (AVNW)
US05366Y2019 - Common Stock
Taking everything into account, AVNW scores 4 out of 10 in our fundamental rating. AVNW was compared to 51 industry peers in the Communications Equipment industry. There are concerns on the financial health of AVNW while its profitability can be described as average. AVNW has a correct valuation and a medium growth rate.
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.
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 -0.87%. This is in the better half of the industry: AVNW outperforms 62.75% of its industry peers.
The Return On Equity of AVNW (-2.07%) is better than 60.78% of its industry peers.
AVNW has a Return On Invested Capital of 0.35%. This is comparable to the rest of the industry: AVNW outperforms 58.82% of its industry peers.
AVNW had an Average Return On Invested Capital over the past 3 years of 8.71%. This is in line with the industry average of 10.16%.
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's Operating Margin of 0.37% is in line compared to the rest of the industry. AVNW outperforms 56.86% of its industry peers.
AVNW's Operating Margin has improved in the last couple of years.
AVNW has a Gross Margin of 32.44%. This is in the lower half of the industry: AVNW underperforms 62.75% of its industry peers.
AVNW's Gross Margin has improved in the last couple of years.
| 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.
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.
2.2 Solvency
AVNW has an Altman-Z score of -0.01. This is a bad value and indicates that AVNW is not financially healthy and even has some risk of bankruptcy.
AVNW's Altman-Z score of -0.01 is on the low side compared to the rest of the industry. AVNW is outperformed by 62.75% 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's Debt to Equity ratio of 0.33 is in line compared to the rest of the industry. AVNW outperforms 47.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -0.01 |
ROIC/WACC0.04
WACC9.71%
2.3 Liquidity
A Current Ratio of 1.72 indicates that AVNW should not have too much problems paying its short term obligations.
AVNW has a worse Current ratio (1.72) than 64.71% of its industry peers.
A Quick Ratio of 1.40 indicates that AVNW should not have too much problems paying its short term obligations.
AVNW's Quick ratio of 1.40 is in line compared to the rest of the industry. AVNW outperforms 47.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
AVNW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.81%.
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 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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.56% yearly.
Based on estimates for the next years, AVNW will show a small growth in Revenue. The Revenue will grow by 7.52% on average per year.
EPS Next Y-24.09%
EPS Next 2Y9.56%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.75%
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 accelerating.
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 9.75, the valuation of AVNW can be described as reasonable.
AVNW's Price/Earnings ratio is rather cheap when compared to the industry. AVNW is cheaper than 98.04% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, AVNW is valued rather cheaply.
A Price/Forward Earnings ratio of 3.83 indicates a rather cheap valuation of AVNW.
100.00% of the companies in the same industry are more expensive than AVNW, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AVNW to the average of the S&P500 Index (23.82), we can say AVNW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 3.83 |
4.2 Price Multiples
AVNW's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 30.9 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.56%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AVNW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AVIAT NETWORKS INC
NASDAQ:AVNW (11/21/2024, 8:13:43 PM)
After market: 15.12 0 (0%)15.12
+0.67 (+4.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap191.87M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 3.83 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.87% | ||
| ROE | -2.07% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.37% | ||
| PM (TTM) | N/A | ||
| GM | 32.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-54.81%
EPS 3Y12.67%
EPS 5Y
EPS Q2Q%
EPS Next Y-24.09%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.85%
Revenue growth 3Y14.08%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y