21.16 USD
-0.55 (-2.53%)
21.16 USD
0 (0%)
Taking everything into account, AVNW scores 5 out of 10 in our fundamental rating. AVNW was compared to 49 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 scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
- 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
- AVNW's Return On Assets of 2.08% is fine compared to the rest of the industry. AVNW outperforms 61.22% of its industry peers.
- AVNW has a better Return On Equity (5.08%) than 67.35% of its industry peers.
- The Return On Invested Capital of AVNW (7.17%) is better than 73.47% 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 12.15%.
- 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 63.27% of the companies in the same industry.
- AVNW's Profit Margin has improved in the last couple of years.
- AVNW has a Operating Margin of 7.71%. This is in the better half of the industry: AVNW outperforms 71.43% of its industry peers.
- AVNW's Operating Margin has been stable in the last couple of years.
- AVNW has a Gross Margin of 34.25%. This is in the lower half of the industry: AVNW underperforms 63.27% of its industry peers.
- AVNW's Gross Margin has declined in the last couple of years.
| 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.
- AVNW has more shares outstanding than it did 1 year ago.
- AVNW has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for AVNW is higher compared to a year ago.
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's Altman-Z score of 0.46 is on the low side compared to the rest of the industry. AVNW is outperformed by 63.27% of its industry peers.
- 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.
- The Debt to FCF ratio of AVNW (8.97) 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.
- With a Debt to Equity ratio value of 0.39, AVNW is not doing good in the industry: 67.35% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 8.97 | ||
| Altman-Z | 0.46 |
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.
- The Current ratio of AVNW (1.84) 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.
- With a Quick ratio value of 1.51, AVNW perfoms like the industry average, outperforming 44.90% 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.
- AVNW shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.38% yearly.
- The Revenue has grown by 10.89% in the past year. This is quite good.
- Measured over the past years, AVNW shows a quite strong growth in Revenue. The Revenue has been growing by 12.74% on average per year.
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
- The Revenue is expected to grow by 6.28% on average over the next years.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- AVNW is valuated cheaply with a Price/Earnings ratio of 7.15.
- Based on the Price/Earnings ratio, AVNW is valued cheaper than 97.96% of the companies in the same industry.
- AVNW is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 6.71, which indicates a rather cheap valuation of AVNW.
- Based on the Price/Forward Earnings ratio, AVNW is valued cheaper than 100.00% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. AVNW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.15 | ||
| Fwd PE | 6.71 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AVNW is valued cheaply inside the industry as 89.80% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, AVNW is valued a bit cheaper than 67.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.89 | ||
| EV/EBITDA | 7.4 |
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)0.41
EPS Next 2Y37.85%
EPS Next 3Y-41.85%
5. Dividend
5.1 Amount
- AVNW does not give a dividend.
| 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.