AVIAT NETWORKS INC (AVNW) Stock Fundamental Analysis
NASDAQ:AVNW - Nasdaq - US05366Y2019 - Common Stock - Currency: USD
AVNW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 50 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AVNW was profitable.
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
AVNW has a Return On Assets of -0.54%. This is comparable to the rest of the industry: AVNW outperforms 60.00% of its industry peers.
AVNW's Return On Equity of -1.33% is in line compared to the rest of the industry. AVNW outperforms 60.00% of its industry peers.
AVNW's Return On Invested Capital of 2.00% is in line compared to the rest of the industry. AVNW outperforms 56.00% 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 13.82%.
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 (2.02%) which is in line with its industry peers.
AVNW's Operating Margin has improved in the last couple of years.
AVNW has a Gross Margin of 32.20%. This is in the lower half of the industry: AVNW underperforms 66.00% of its industry peers.
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
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.
AVNW has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.26, we must say that AVNW is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AVNW (0.26) is worse than 62.00% of its industry peers.
AVNW has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
AVNW has a Debt to Equity ratio (0.27) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.26 |
ROIC/WACC0.2
WACC10.14%
2.3 Liquidity
A Current Ratio of 1.62 indicates that AVNW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.62, AVNW is in line with its industry, outperforming 46.00% of the companies in the same industry.
A Quick Ratio of 1.29 indicates that AVNW should not have too much problems paying its short term obligations.
AVNW has a Quick ratio (1.29) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
AVNW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.94%.
AVNW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.14% yearly.
Looking at the last year, AVNW shows a quite strong growth in Revenue. The Revenue has grown by 12.37% 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)-54.94%
EPS 3Y12.67%
EPS 5Y-0.14%
EPS Q2Q%20.55%
Revenue 1Y (TTM)12.37%
Revenue growth 3Y14.08%
Revenue growth 5Y10.84%
Sales Q2Q%0.92%
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 6.13% 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 2Y5.9%
Revenue Next 3Y6.13%
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.
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
With a Price/Earnings ratio of 15.45, AVNW is valued correctly.
Based on the Price/Earnings ratio, AVNW is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
AVNW's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 8.72, which indicates a very decent 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 96.00% of the companies listed in the same industry.
AVNW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVNW indicates a somewhat cheap valuation: AVNW is cheaper than 62.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.58 |
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 |
23.95
-0.25 (-1.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners76%
Inst Owner Change0%
Ins Owners4.01%
Ins Owner Change0.01%
Market Cap303.93M
Analysts81.67
Price Target35.19 (46.93%)
Short Float %5.63%
Short Ratio6.71
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%
PT rev (3m)-2.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-49.93%
EPS NY rev (1m)0%
EPS NY rev (3m)10.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.86%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.45 | ||
| Fwd PE | 8.72 | ||
| P/S | 0.7 | ||
| P/FCF | N/A | ||
| P/OCF | 86.32 | ||
| P/B | 1.19 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 20.58 |
EPS(TTM)1.55
EY6.47%
EPS(NY)2.75
Fwd EY11.46%
FCF(TTM)-2.06
FCFYN/A
OCF(TTM)0.28
OCFY1.16%
SpS34.13
BVpS20.18
TBVpS16.56
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 | 0.26 |
F-Score3
WACC10.14%
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)-54.94%
EPS 3Y12.67%
EPS 5Y-0.14%
EPS Q2Q%20.55%
EPS Next Y-59.7%
EPS Next 2Y-8.65%
EPS Next 3Y3.63%
EPS Next 5YN/A
Revenue 1Y (TTM)12.37%
Revenue growth 3Y14.08%
Revenue growth 5Y10.84%
Sales Q2Q%0.92%
Revenue Next Year6.62%
Revenue Next 2Y5.9%
Revenue Next 3Y6.13%
Revenue Next 5YN/A
EBIT growth 1Y-63.81%
EBIT growth 3Y-1.71%
EBIT growth 5Y61.77%
EBIT Next Year-28.18%
EBIT Next 3Y14.01%
EBIT Next 5YN/A
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%