21.16 USD
-0.55 (-2.53%)
21.16 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. There are concerns on the financial health of AVNW while its profitability can be described as average. AVNW is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- In the past year AVNW was profitable.
- 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
- With a decent Return On Assets value of 2.08%, AVNW is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- AVNW has a better Return On Equity (5.08%) than 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 75.00% of the companies in the same industry.
- 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 64.58% of the companies in the same industry.
- In the last couple of years the Profit Margin of AVNW has grown nicely.
- With a decent Operating Margin value of 7.71%, AVNW is doing good in the industry, outperforming 72.92% 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.
- The Gross Margin of AVNW (34.25%) is worse than 62.50% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVNW is destroying value.
- Compared to 1 year ago, AVNW has more shares outstanding
- Compared to 5 years ago, AVNW has more shares outstanding
- AVNW has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.47, we must say that AVNW is in the distress zone and has some risk of bankruptcy.
- AVNW's Altman-Z score of 0.47 is on the low side compared to the rest of the industry. AVNW is outperformed by 62.50% of its industry peers.
- 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.
- With a Debt to FCF ratio value of 8.97, AVNW perfoms like the industry average, outperforming 45.83% 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.
- AVNW's Debt to Equity ratio of 0.39 is on the low side compared to the rest of the industry. AVNW is outperformed by 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 8.97 | ||
| Altman-Z | 0.47 |
ROIC/WACC0.71
WACC10.04%
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.
- AVNW has a Current ratio (1.84) which is in line with its industry peers.
- 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's Quick ratio of 1.51 is in line compared to the rest of the industry. AVNW outperforms 45.83% 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%.
- The Revenue has been growing by 12.74% on average over the past years. This is quite good.
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 decrease by -41.85% on average over the next years. This is quite bad
- AVNW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
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.
- Based on the Price/Earnings ratio, AVNW is valued cheaply inside the industry as 97.92% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, AVNW is valued rather cheaply.
- With a Price/Forward Earnings ratio of 6.71, the valuation of AVNW can be described as very cheap.
- 100.00% of the companies in the same industry are more expensive than AVNW, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, AVNW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.15 | ||
| Fwd PE | 6.71 |
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.
- 66.67% of the companies in the same industry are more expensive than AVNW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.89 | ||
| EV/EBITDA | 7.57 |
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 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.