21.44 USD
+0.26 (+1.23%)
21.44 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. 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
AVNW had positive earnings in the past year.
In the past year AVNW had a positive cash flow from operations.
Each year in the past 5 years AVNW has 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 2.08%. This is in the better half of the industry: AVNW outperforms 62.50% of its industry peers.
AVNW has a better Return On Equity (5.08%) than 66.67% of its industry peers.
The Return On Invested Capital of AVNW (7.17%) is better than 75.00% 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 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
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.
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: 62.50% 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.
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.
AVNW has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.46, 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 0.46, AVNW is doing worse than 62.50% 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 of 8.97. This is comparable to the rest of the industry: AVNW outperforms 47.92% of its industry peers.
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: 68.75% 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/WACC0.72
WACC9.89%
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 (1.84) which is in line with 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
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.
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.
Looking at the last year, AVNW shows a quite strong growth in Revenue. The Revenue has grown by 10.89% in the last year.
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
Based on estimates for the next years, AVNW will show a very negative growth in Earnings Per Share. The EPS will decrease by -41.85% on average per year.
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
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
A Price/Earnings ratio of 7.24 indicates a rather cheap valuation of AVNW.
Based on the Price/Earnings ratio, AVNW is valued cheaply inside the industry as 97.92% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AVNW to the average of the S&P500 Index (27.19), we can say AVNW is valued rather cheaply.
A Price/Forward Earnings ratio of 6.80 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 23.88. AVNW is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.24 | ||
| Fwd PE | 6.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AVNW indicates a rather cheap valuation: AVNW is cheaper than 89.58% of the companies listed in the same industry.
68.75% of the companies in the same industry are more expensive than AVNW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.2 | ||
| EV/EBITDA | 7.41 |
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.
AVNW's earnings are expected to decrease with -41.85% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.14
PEG (5Y)0.42
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% |
21.44
+0.26 (+1.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.12%
Inst Owner Change0%
Ins Owners3.55%
Ins Owner Change3.95%
Market Cap275.29M
Revenue(TTM)453.50M
Net Income(TTM)13.38M
Analysts81.54
Price Target35.85 (67.21%)
Short Float %4.76%
Short Ratio5.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0%
PT rev (3m)2.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.17%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.24 | ||
| Fwd PE | 6.8 | ||
| P/S | 0.61 | ||
| P/FCF | 23.2 | ||
| P/OCF | 13.02 | ||
| P/B | 1.04 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 7.41 |
EPS(TTM)2.96
EY13.81%
EPS(NY)3.15
Fwd EY14.71%
FCF(TTM)0.92
FCFY4.31%
OCF(TTM)1.65
OCFY7.68%
SpS35.32
BVpS20.53
TBVpS17
PEG (NY)0.14
PEG (5Y)0.42
Graham Number36.98
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
WACC9.89%
ROIC/WACC0.72
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 Y51.46%
EPS Next 2Y37.85%
EPS Next 3Y-41.85%
EPS Next 5YN/A
Revenue 1Y (TTM)10.89%
Revenue growth 3Y12.78%
Revenue growth 5Y12.74%
Sales Q2Q%21.36%
Revenue Next Year3.78%
Revenue Next 2Y5.27%
Revenue Next 3Y7.18%
Revenue Next 5Y6.28%
EBIT growth 1Y2215.64%
EBIT growth 3Y-21.12%
EBIT growth 5Y13.9%
EBIT Next Year80.18%
EBIT Next 3Y40.79%
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
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.