AVIAT NETWORKS INC (AVNW)
US05366Y2019 - Common Stock
Overall AVNW gets a fundamental rating of 5 out of 10. We evaluated AVNW against 54 industry peers in the Communications Equipment industry. There are concerns on the financial health of AVNW while its profitability can be described as average. AVNW is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
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
AVNW has a better Return On Assets (3.02%) than 74.07% of its industry peers.
AVNW has a Return On Equity of 5.94%. This is in the better half of the industry: AVNW outperforms 79.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.10%, AVNW is in the better half of the industry, outperforming 74.07% 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 10.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.02% | ||
| ROE | 5.94% | ||
| ROIC | 5.1% |
ROA(3y)15.56%
ROA(5y)10.52%
ROE(3y)25.27%
ROE(5y)17.96%
ROIC(3y)7.53%
ROIC(5y)5.71%
1.3 Margins
AVNW has a better Profit Margin (4.22%) than 74.07% of its industry peers.
In the last couple of years the Profit Margin of AVNW has grown nicely.
AVNW has a Operating Margin of 7.58%. This is in the better half of the industry: AVNW outperforms 74.07% of its industry peers.
AVNW's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 36.72%, AVNW perfoms like the industry average, outperforming 46.30% of the companies in the same industry.
In the last couple of years the Gross Margin of AVNW has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.58% | ||
| PM (TTM) | 4.22% | ||
| GM | 36.72% |
OM growth 3Y39.85%
OM growth 5Y51.23%
PM growth 3Y197.72%
PM growth 5Y34.92%
GM growth 3Y0.31%
GM growth 5Y1.54%
2. Health
2.1 Basic Checks
AVNW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
There is no outstanding debt for AVNW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that AVNW is in the distress zone and has some risk of bankruptcy.
AVNW has a Altman-Z score of 0.71. This is comparable to the rest of the industry: AVNW outperforms 50.00% of its industry peers.
AVNW has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
AVNW has a Debt to Equity ratio (0.19) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.71 |
ROIC/WACC0.54
WACC9.52%
2.3 Liquidity
A Current Ratio of 2.00 indicates that AVNW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 2.00, AVNW is in line with its industry, outperforming 53.70% of the companies in the same industry.
A Quick Ratio of 1.63 indicates that AVNW should not have too much problems paying its short term obligations.
AVNW has a Quick ratio of 1.63. This is in the better half of the industry: AVNW outperforms 64.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
AVNW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.19%, which is quite good.
The Earnings Per Share has been growing by 45.26% on average over the past years. This is a very strong growth
The Revenue has grown by 10.32% in the past year. This is quite good.
AVNW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.40% yearly.
EPS 1Y (TTM)14.19%
EPS 3Y64.4%
EPS 5Y45.26%
EPS growth Q2Q3.19%
Revenue 1Y (TTM)10.32%
Revenue growth 3Y13.25%
Revenue growth 5Y7.4%
Revenue growth Q2Q4.78%
3.2 Future
AVNW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.18% yearly.
The Revenue is expected to grow by 22.87% on average over the next years. This is a very strong growth
EPS Next Y4.88%
EPS Next 2Y13.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year24.2%
Revenue Next 2Y22.87%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.59, which indicates a very decent valuation of AVNW.
Compared to the rest of the industry, the Price/Earnings ratio of AVNW indicates a rather cheap valuation: AVNW is cheaper than 90.74% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.20. AVNW is valued rather cheaply when compared to this.
AVNW is valuated cheaply with a Price/Forward Earnings ratio of 7.83.
90.74% of the companies in the same industry are more expensive than AVNW, based on the Price/Forward Earnings ratio.
AVNW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 7.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVNW is valued a bit cheaper than the industry average as 68.52% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
AVNW has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AVNW's earnings are expected to grow with 13.18% in the coming years.
PEG (NY)1.97
PEG (5Y)0.21
EPS Next 2Y13.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AVNW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AVIAT NETWORKS INC
NASDAQ:AVNW (4/23/2024, 7:00:00 PM)
After market: 33.18 0 (0%)33.18
+0.32 (+0.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap416.41M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 7.83 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.97
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.02% | ||
| ROE | 5.94% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.58% | ||
| PM (TTM) | 4.22% | ||
| GM | 36.72% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)14.19%
EPS 3Y64.4%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.32%
Revenue growth 3Y13.25%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
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