21.16 USD
-0.55 (-2.53%)
21.16 USD
0 (0%)
Overall AVNW gets a fundamental rating of 5 out of 10. We evaluated AVNW against 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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.
- In the past 5 years AVNW has always been profitable.
- AVNW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of AVNW (2.08%) is better than 61.22% of its industry peers.
- With a decent Return On Equity value of 5.08%, AVNW is doing good in the industry, outperforming 67.35% of the companies in the same industry.
- AVNW has a Return On Invested Capital of 7.17%. This is in the better half of the industry: AVNW outperforms 73.47% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AVNW is significantly below the industry average of 12.15%.
- 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 Rank | Sector 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%
1.3 Margins
- With a decent Profit Margin value of 2.95%, AVNW is doing good in the industry, outperforming 63.27% of the companies in the same industry.
- In the last couple of years the Profit Margin of AVNW has grown nicely.
- The Operating Margin of AVNW (7.71%) is better than 71.43% of its industry peers.
- In the last couple of years the Operating Margin of AVNW has remained more or less at the same level.
- AVNW has a worse Gross Margin (34.25%) than 63.27% of its industry peers.
- In the last couple of years the Gross Margin of AVNW has declined.
| Industry Rank | Sector 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%
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.
- The number of shares outstanding for AVNW has been increased compared to 5 years ago.
- Compared to 1 year ago, AVNW has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.46, we must say that AVNW is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.46, AVNW is doing worse than 63.27% of the companies in the same industry.
- The Debt to FCF ratio of AVNW is 8.97, which is on the high side as it means it would take AVNW, 8.97 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of AVNW (8.97) is comparable to the rest of the industry.
- AVNW has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of AVNW (0.39) is worse than 67.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 8.97 | ||
| Altman-Z | 0.46 |
ROIC/WACC0.71
WACC10.04%
2.3 Liquidity
- A Current Ratio of 1.84 indicates that AVNW should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.84, AVNW is in line with its industry, outperforming 40.82% of the companies in the same industry.
- AVNW has a Quick Ratio of 1.51. 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 Quick ratio of 1.51. This is comparable to the rest of the industry: AVNW outperforms 44.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
- AVNW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 90.97%, which is quite impressive.
- 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.
- AVNW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.89%.
- 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)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
- AVNW is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -41.85% yearly.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less 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
- A Price/Earnings ratio of 7.15 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 97.96% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, AVNW is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 6.71, the valuation of AVNW can be described as very cheap.
- Based on the Price/Forward Earnings ratio, AVNW is valued cheaper than 100.00% of the companies in the same industry.
- AVNW is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.15 | ||
| Fwd PE | 6.71 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVNW indicates a rather cheap valuation: AVNW is cheaper than 89.80% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, AVNW is valued a bit cheaper than 67.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.89 | ||
| EV/EBITDA | 7.4 |
4.3 Compensation for Growth
- AVNW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- AVNW has a very decent profitability rating, which may justify a higher PE ratio.
- A cheap valuation may be justified as AVNW's earnings are expected to decrease with -41.85% in the coming years.
PEG (NY)0.14
PEG (5Y)0.41
EPS Next 2Y37.85%
EPS Next 3Y-41.85%
5. Dividend
5.1 Amount
- No dividends for AVNW!.
| Industry Rank | Sector 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.