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 51 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 has a decent growth rate and is not valued too expensively.
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.
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 -0.59%, AVNW is doing good in the industry, outperforming 64.00% of the companies in the same industry.
The Return On Equity of AVNW (-1.41%) is better than 66.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.90%, AVNW is in line with its industry, outperforming 58.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AVNW is below the industry average of 11.66%.
The 3 year average ROIC (8.71%) for AVNW is well above the current ROIC(0.90%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.59% | ||
| ROE | -1.41% | ||
| ROIC | 0.9% |
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.
With a Operating Margin value of 0.90%, AVNW perfoms like the industry average, outperforming 58.00% of the companies in the same industry.
AVNW's Operating Margin has improved in the last couple of years.
AVNW's Gross Margin of 31.64% is on the low side compared to the rest of the industry. AVNW is outperformed by 64.00% of its industry peers.
In the last couple of years the Gross Margin of AVNW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.9% | ||
| PM (TTM) | N/A | ||
| GM | 31.64% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AVNW is destroying value.
The number of shares outstanding for AVNW has been increased compared to 1 year ago.
Compared to 5 years ago, AVNW has more shares outstanding
The debt/assets ratio for AVNW is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.23, we must say that AVNW is in the distress zone and has some risk of bankruptcy.
AVNW's Altman-Z score of 0.23 is on the low side compared to the rest of the industry. AVNW is outperformed by 60.00% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that AVNW is not too dependend on debt financing.
AVNW has a Debt to Equity ratio (0.29) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.23 |
ROIC/WACC0.09
WACC9.64%
2.3 Liquidity
A Current Ratio of 1.68 indicates that AVNW should not have too much problems paying its short term obligations.
AVNW has a Current ratio of 1.68. This is comparable to the rest of the industry: AVNW outperforms 46.00% of its industry peers.
A Quick Ratio of 1.37 indicates that AVNW should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.37, AVNW perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The earnings per share for AVNW have decreased strongly by -59.54% in the last year.
The Earnings Per Share has been decreasing by -0.14% on average over the past years.
The Revenue has grown by 20.92% in the past year. This is a very strong growth!
AVNW shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.84% yearly.
EPS 1Y (TTM)-59.54%
EPS 3Y12.67%
EPS 5Y-0.14%
EPS Q2Q%-15.46%
Revenue 1Y (TTM)20.92%
Revenue growth 3Y14.08%
Revenue growth 5Y10.84%
Sales Q2Q%24.37%
3.2 Future
AVNW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.21% yearly.
AVNW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.52% yearly.
EPS Next Y-63.66%
EPS Next 2Y-2.98%
EPS Next 3Y4.21%
EPS Next 5YN/A
Revenue Next Year7.16%
Revenue Next 2Y7.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
AVNW is valuated correctly with a Price/Earnings ratio of 16.09.
84.00% 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 valuation a bit cheaper than the S&P500 average which is at 30.30.
A Price/Forward Earnings ratio of 7.28 indicates a rather cheap 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 100.00% of the companies listed in the same industry.
AVNW is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 7.28 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AVNW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 30.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2.98%
EPS Next 3Y4.21%
5. Dividend
5.1 Amount
AVNW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:AVNW (2/21/2025, 1:17:01 PM)
22.53
-0.76 (-3.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners77.74%
Inst Owner Change8.92%
Ins Owners2.65%
Ins Owner Change5.47%
Market Cap285.68M
Analysts81.67
Price Target35.19 (56.19%)
Short Float %6.69%
Short Ratio3.48
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)1
Avg EPS beat(2)1510.09%
Min EPS beat(2)-2910.73%
Max EPS beat(2)5930.92%
EPS beat(4)3
Avg EPS beat(4)765.64%
Min EPS beat(4)-2910.73%
Max EPS beat(4)5930.92%
EPS beat(8)5
Avg EPS beat(8)384.79%
EPS beat(12)8
Avg EPS beat(12)259.48%
EPS beat(16)12
Avg EPS beat(16)202.12%
Revenue beat(2)1
Avg Revenue beat(2)1.94%
Min Revenue beat(2)-7.98%
Max Revenue beat(2)11.87%
Revenue beat(4)2
Avg Revenue beat(4)0.41%
Min Revenue beat(4)-7.98%
Max Revenue beat(4)11.87%
Revenue beat(8)4
Avg Revenue beat(8)-0.13%
Revenue beat(12)6
Avg Revenue beat(12)0.19%
Revenue beat(16)10
Avg Revenue beat(16)1.36%
PT rev (1m)0%
PT rev (3m)-21.29%
EPS NQ rev (1m)-61.36%
EPS NQ rev (3m)-69.65%
EPS NY rev (1m)17%
EPS NY rev (3m)-52.13%
Revenue NQ rev (1m)-9.24%
Revenue NQ rev (3m)-16.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.09 | ||
| Fwd PE | 7.28 | ||
| P/S | 0.66 | ||
| P/FCF | N/A | ||
| P/OCF | 16.59 | ||
| P/B | 1.14 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 30.21 |
EPS(TTM)1.4
EY6.21%
EPS(NY)3.1
Fwd EY13.74%
FCF(TTM)-0.8
FCFYN/A
OCF(TTM)1.36
OCFY6.03%
SpS34.08
BVpS19.68
TBVpS16.02
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.59% | ||
| ROE | -1.41% | ||
| ROCE | 1.14% | ||
| ROIC | 0.9% | ||
| ROICexc | 1.07% | ||
| ROICexgc | 1.27% | ||
| OM | 0.9% | ||
| PM (TTM) | N/A | ||
| GM | 31.64% | ||
| 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-Score4
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.77 | ||
| Cap/Depr | 413.71% | ||
| Cap/Sales | 6.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 163.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.68 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 0.23 |
F-Score4
WACC9.64%
ROIC/WACC0.09
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)-59.54%
EPS 3Y12.67%
EPS 5Y-0.14%
EPS Q2Q%-15.46%
EPS Next Y-63.66%
EPS Next 2Y-2.98%
EPS Next 3Y4.21%
EPS Next 5YN/A
Revenue 1Y (TTM)20.92%
Revenue growth 3Y14.08%
Revenue growth 5Y10.84%
Sales Q2Q%24.37%
Revenue Next Year7.16%
Revenue Next 2Y7.52%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-85.61%
EBIT growth 3Y-1.71%
EBIT growth 5Y61.77%
EBIT Next Year-39.3%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y51.31%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y604.9%
OCF growth 3Y20.86%
OCF growth 5Y59.7%