AVIAT NETWORKS INC (AVNW) Stock Fundamental Analysis
USA - NASDAQ:AVNW - US05366Y2019 - Common Stock
22.11 USD
+0.09 (+0.41%)
22.11 USD
0 (0%)
AVNW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. AVNW has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on AVNW.
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.
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
With a Return On Assets value of 2.08%, AVNW perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
AVNW has a Return On Equity of 5.08%. This is in the better half of the industry: AVNW outperforms 66.67% of its industry peers.
With a decent Return On Invested Capital value of 7.17%, AVNW is doing good in the industry, outperforming 72.92% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AVNW is significantly below the industry average of 12.74%.
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
AVNW's Profit Margin of 2.95% is fine compared to the rest of the industry. AVNW outperforms 60.42% of its industry peers.
In the last couple of years the Profit Margin of AVNW has grown nicely.
AVNW has a Operating Margin of 7.71%. This is in the better half of the industry: AVNW outperforms 70.83% of its industry peers.
In the last couple of years the Operating Margin of AVNW has remained more or less at the same level.
The Gross Margin of AVNW (34.25%) is worse than 64.58% of its industry peers.
AVNW's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVNW is destroying value.
AVNW has more shares outstanding than it did 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
Based on the Altman-Z score of 0.48, we must say that AVNW is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AVNW (0.48) is worse than 60.42% of its industry peers.
AVNW has a debt to FCF ratio of 8.97. This is a slightly negative value and a sign of low solvency as AVNW would need 8.97 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.97, AVNW is in line with its industry, outperforming 47.92% of the companies in the same 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 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 8.97 | ||
| Altman-Z | 0.48 |
ROIC/WACC0.74
WACC9.72%
2.3 Liquidity
AVNW has a Current Ratio of 1.84. This is a normal value and indicates that AVNW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.84, AVNW is in line with its industry, outperforming 41.67% of the companies in the same industry.
A Quick Ratio of 1.51 indicates that AVNW should not have too much problems paying its short term obligations.
AVNW has a Quick ratio of 1.51. This is comparable to the rest of the industry: AVNW outperforms 47.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 90.97% over the past year.
The Earnings Per Share has been growing by 17.38% on average over the past years. This is quite good.
Looking at the last year, AVNW shows a quite strong growth in Revenue. The Revenue has grown by 10.89% in the last year.
AVNW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.74% yearly.
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
The Earnings Per Share is expected to grow by 41.34% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.28% on average over the next years.
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
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.
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
A Price/Earnings ratio of 7.47 indicates a rather cheap valuation of AVNW.
95.83% of the companies in the same industry are more expensive than AVNW, based on the Price/Earnings ratio.
AVNW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
Based on the Price/Forward Earnings ratio of 6.67, the valuation of AVNW can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AVNW indicates a rather cheap valuation: AVNW is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. AVNW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.47 | ||
| Fwd PE | 6.67 |
4.2 Price Multiples
87.50% of the companies in the same industry are more expensive than AVNW, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AVNW is valued a bit cheaper than the industry average as 70.83% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.85 | ||
| EV/EBITDA | 7.67 |
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.
The decent profitability rating of AVNW may justify a higher PE ratio.
AVNW's earnings are expected to grow with 41.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)0.43
EPS Next 2Y41.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AVNW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.11
+0.09 (+0.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners76.78%
Inst Owner Change3.88%
Ins Owners4.06%
Ins Owner Change9.41%
Market Cap283.01M
Revenue(TTM)453.50M
Net Income(TTM)13.38M
Analysts81.54
Price Target34.97 (58.16%)
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)53.89%
Min EPS beat(2)33.41%
Max EPS beat(2)74.37%
EPS beat(4)4
Avg EPS beat(4)1560.62%
Min EPS beat(4)33.41%
Max EPS beat(4)5930.92%
EPS beat(8)7
Avg EPS beat(8)422.85%
EPS beat(12)9
Avg EPS beat(12)283.85%
EPS beat(16)12
Avg EPS beat(16)214.96%
Revenue beat(2)1
Avg Revenue beat(2)0.57%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)2.52%
Revenue beat(4)3
Avg Revenue beat(4)4.59%
Min Revenue beat(4)-1.39%
Max Revenue beat(4)11.87%
Revenue beat(8)5
Avg Revenue beat(8)1.25%
Revenue beat(12)7
Avg Revenue beat(12)0.81%
Revenue beat(16)9
Avg Revenue beat(16)0.82%
PT rev (1m)0%
PT rev (3m)-0.42%
EPS NQ rev (1m)-20.84%
EPS NQ rev (3m)-34.34%
EPS NY rev (1m)-3.62%
EPS NY rev (3m)-6.32%
Revenue NQ rev (1m)-1.74%
Revenue NQ rev (3m)-5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.47 | ||
| Fwd PE | 6.67 | ||
| P/S | 0.62 | ||
| P/FCF | 23.85 | ||
| P/OCF | 13.38 | ||
| P/B | 1.07 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 7.67 |
EPS(TTM)2.96
EY13.39%
EPS(NY)3.32
Fwd EY15%
FCF(TTM)0.93
FCFY4.19%
OCF(TTM)1.65
OCFY7.47%
SpS35.43
BVpS20.6
TBVpS17.06
PEG (NY)0.14
PEG (5Y)0.43
Graham Number37.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.08% | ||
| ROE | 5.08% | ||
| ROCE | 9.07% | ||
| ROIC | 7.17% | ||
| ROICexc | 8.62% | ||
| ROICexgc | 10.04% | ||
| OM | 7.71% | ||
| PM (TTM) | 2.95% | ||
| GM | 34.25% | ||
| FCFM | 2.62% |
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-Score8
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 8.97 | ||
| Debt/EBITDA | 2.41 | ||
| Cap/Depr | 125.4% | ||
| Cap/Sales | 2.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 49.94% | ||
| Profit Quality | 88.69% | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 0.48 |
F-Score8
WACC9.72%
ROIC/WACC0.74
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)90.97%
EPS 3Y-15.18%
EPS 5Y17.38%
EPS Q2Q%149.43%
EPS Next Y54.95%
EPS Next 2Y41.34%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)10.89%
Revenue growth 3Y12.78%
Revenue growth 5Y12.74%
Sales Q2Q%21.36%
Revenue Next Year3.8%
Revenue Next 2Y5.3%
Revenue Next 3Y7.18%
Revenue Next 5Y6.28%
EBIT growth 1Y2215.64%
EBIT growth 3Y-21.12%
EBIT growth 5Y13.9%
EBIT Next Year82.26%
EBIT Next 3Y41.04%
EBIT Next 5Y29.05%
FCF growth 1Y-9.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y13.37%
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 5 / 10 to AVNW.
What is the valuation status of AVIAT NETWORKS INC (AVNW) stock?
ChartMill assigns a valuation rating of 9 / 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.
What is the financial health of AVIAT NETWORKS INC (AVNW) stock?
The financial health rating of AVIAT NETWORKS INC (AVNW) is 2 / 10.