21.57 USD
+0.47 (+2.23%)
21.57 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AVNW. AVNW was compared to 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
In the past year AVNW was profitable.
In the past year AVNW had a positive 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
Looking at the Return On Assets, with a value of 2.08%, AVNW is in line with its industry, outperforming 58.33% of the companies in the same industry.
AVNW has a better Return On Equity (5.08%) than 64.58% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.17%, AVNW is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
AVNW had an Average Return On Invested Capital over the past 3 years of 6.30%. This is significantly below the industry average of 12.82%.
The 3 year average ROIC (6.30%) for AVNW is below the current ROIC(7.17%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 2.95%, AVNW is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
AVNW's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 7.71%, AVNW is doing good in the industry, outperforming 70.83% of the companies in the same industry.
AVNW's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 34.25%, AVNW is not doing good in the industry: 64.58% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AVNW is destroying value.
Compared to 1 year ago, AVNW has more shares outstanding
AVNW has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AVNW has a worse debt to assets ratio.
2.2 Solvency
AVNW has an Altman-Z score of 0.46. This is a bad value and indicates that AVNW is not financially healthy and even has some risk of bankruptcy.
AVNW has a worse Altman-Z score (0.46) than 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 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 | 0.46 |
ROIC/WACC0.73
WACC9.83%
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 of 1.84. This is in the lower half of the industry: AVNW underperforms 60.42% of its industry peers.
A Quick Ratio of 1.51 indicates that AVNW should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.51, AVNW is in line with its industry, outperforming 45.83% of the companies in the same industry.
| 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.
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.
The Revenue has grown by 10.89% in the past year. This is quite good.
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 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
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 7.29, the valuation of AVNW can be described as very cheap.
Based on the Price/Earnings ratio, AVNW is valued cheaper than 95.83% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.65. AVNW is valued rather cheaply when compared to this.
AVNW is valuated cheaply with a Price/Forward Earnings ratio of 6.50.
100.00% of the companies in the same industry are more expensive than AVNW, based on the Price/Forward Earnings ratio.
AVNW is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 6.5 |
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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.26 | ||
| EV/EBITDA | 7.36 |
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.
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)0.13
PEG (5Y)0.42
EPS Next 2Y41.34%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for AVNW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.57
+0.47 (+2.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners76.78%
Inst Owner Change-2.48%
Ins Owners4.06%
Ins Owner Change2.8%
Market Cap276.10M
Revenue(TTM)453.50M
Net Income(TTM)13.38M
Analysts81.54
Price Target35.85 (66.2%)
Short Float %5.81%
Short Ratio6.53
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)2.5%
PT rev (3m)2.07%
EPS NQ rev (1m)-15.13%
EPS NQ rev (3m)-29.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.32%
Revenue NQ rev (1m)-1.37%
Revenue NQ rev (3m)-4.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 6.5 | ||
| P/S | 0.61 | ||
| P/FCF | 23.26 | ||
| P/OCF | 13.06 | ||
| P/B | 1.05 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 7.36 |
EPS(TTM)2.96
EY13.72%
EPS(NY)3.32
Fwd EY15.37%
FCF(TTM)0.93
FCFY4.3%
OCF(TTM)1.65
OCFY7.66%
SpS35.43
BVpS20.6
TBVpS17.06
PEG (NY)0.13
PEG (5Y)0.42
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 | 0.46 |
F-Score8
WACC9.83%
ROIC/WACC0.73
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.