21.39 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. 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.
- In the past year AVNW had a positive cash flow from operations.
- AVNW had positive earnings in each of the past 5 years.
- 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 62.50% of its industry peers.
- With a decent Return On Equity value of 5.08%, AVNW is doing good in the industry, outperforming 66.67% 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 75.00% of its industry peers.
- AVNW had an Average Return On Invested Capital over the past 3 years of 6.30%. This is significantly below the industry average of 12.17%.
- 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 has a Profit Margin of 2.95%. This is in the better half of the industry: AVNW outperforms 64.58% of its industry peers.
- In the last couple of years the Profit Margin of AVNW has grown nicely.
- AVNW has a better Operating Margin (7.71%) than 72.92% 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 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
- 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.
- 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 0.47, 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 0.47, AVNW is doing worse than 64.58% of the companies in the same industry.
- 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.
- AVNW has a Debt to FCF ratio (8.97) which 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.
- AVNW has a worse Debt to Equity ratio (0.39) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 8.97 | ||
| Altman-Z | 0.47 |
ROIC/WACC0.69
WACC10.36%
2.3 Liquidity
- A Current Ratio of 1.84 indicates that AVNW should not have too much problems paying its short term obligations.
- AVNW has a Current ratio (1.84) which is comparable to the rest of the industry.
- 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
- 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.
- AVNW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.38% yearly.
- Looking at the last year, AVNW shows a quite strong growth in Revenue. The Revenue has grown by 10.89% in the last year.
- 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
- 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.
- 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
- With a Price/Earnings ratio of 7.23, the valuation of AVNW can be described as very cheap.
- AVNW's Price/Earnings ratio is rather cheap when compared to the industry. AVNW is cheaper than 97.92% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. AVNW is valued rather cheaply when compared to this.
- AVNW is valuated cheaply with a Price/Forward Earnings ratio of 6.78.
- 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 25.98. AVNW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.23 | ||
| Fwd PE | 6.78 |
4.2 Price Multiples
- AVNW's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AVNW is cheaper than 89.58% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, AVNW is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.14 | ||
| EV/EBITDA | 7.47 |
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)0.42
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.