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AVIAT NETWORKS INC (AVNW) Stock Fundamental Analysis

NASDAQ:AVNW - Nasdaq - US05366Y2019 - Common Stock - Currency: USD

20.35  +0.07 (+0.35%)

Fundamental Rating

3

AVNW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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4

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.
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.
AVNW Yearly Net Income VS EBIT VS OCF VS FCFAVNW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M 60M 80M 100M

1.2 Ratios

Looking at the Return On Assets, with a value of -0.59%, AVNW is in line with its industry, outperforming 59.18% of the companies in the same industry.
AVNW has a Return On Equity (-1.41%) which is in line with its industry peers.
AVNW has a Return On Invested Capital (0.90%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for AVNW is significantly below the industry average of 13.73%.
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 RankSector 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%
AVNW Yearly ROA, ROE, ROICAVNW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 -40 60

1.3 Margins

AVNW's Profit Margin has declined in the last couple of years.
AVNW has a Operating Margin (0.90%) which is comparable to the rest of the industry.
AVNW's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 31.64%, AVNW is not doing good in the industry: 67.35% of the companies in the same industry are doing better.
AVNW's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
AVNW Yearly Profit, Operating, Gross MarginsAVNW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30 40

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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.
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.
AVNW Yearly Shares OutstandingAVNW Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
AVNW Yearly Total Debt VS Total AssetsAVNW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M

2.2 Solvency

AVNW has an Altman-Z score of 0.16. 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 0.16 is on the low side compared to the rest of the industry. AVNW is outperformed by 63.27% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that AVNW is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.29, AVNW is in line with its industry, outperforming 44.90% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF N/A
Altman-Z 0.16
ROIC/WACC0.09
WACC10.02%
AVNW Yearly LT Debt VS Equity VS FCFAVNW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M 200M 250M

2.3 Liquidity

AVNW has a Current Ratio of 1.68. 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 (1.68) which is in line with its industry peers.
AVNW has a Quick Ratio of 1.37. This is a normal value and indicates that AVNW is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.37, AVNW is in line with its industry, outperforming 48.98% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.68
Quick Ratio 1.37
AVNW Yearly Current Assets VS Current LiabilitesAVNW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

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4

3. Growth

3.1 Past

AVNW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.94%.
The Earnings Per Share has been decreasing by -0.14% on average over the past years.
Looking at the last year, AVNW shows a quite strong growth in Revenue. The Revenue has grown by 17.74% in the last year.
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)-54.94%
EPS 3Y12.67%
EPS 5Y-0.14%
EPS Q2Q%20.55%
Revenue 1Y (TTM)17.74%
Revenue growth 3Y14.08%
Revenue growth 5Y10.84%
Sales Q2Q%0.92%

3.2 Future

The Earnings Per Share is expected to grow by 3.63% on average over the next years.
AVNW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.45% yearly.
EPS Next Y-59.7%
EPS Next 2Y-8.65%
EPS Next 3Y3.63%
EPS Next 5YN/A
Revenue Next Year6.58%
Revenue Next 2Y5.89%
Revenue Next 3Y6.45%
Revenue Next 5YN/A

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 accelerating.
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.
AVNW Yearly Revenue VS EstimatesAVNW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M 400M 500M
AVNW Yearly EPS VS EstimatesAVNW Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2

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5

4. Valuation

4.1 Price/Earnings Ratio

AVNW is valuated correctly with a Price/Earnings ratio of 13.13.
Based on the Price/Earnings ratio, AVNW is valued cheaper than 83.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, AVNW is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.41, the valuation of AVNW can be described as very cheap.
Based on the Price/Forward Earnings ratio, AVNW is valued cheaply inside the industry as 95.92% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.43. AVNW is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 13.13
Fwd PE 7.41
AVNW Price Earnings VS Forward Price EarningsAVNW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as AVNW.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 26.58
AVNW Per share dataAVNW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.65%
EPS Next 3Y3.63%

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0

5. Dividend

5.1 Amount

No dividends for AVNW!.
Industry RankSector Rank
Dividend Yield N/A

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AVIAT NETWORKS INC

NASDAQ:AVNW (5/21/2025, 10:11:33 AM)

20.35

+0.07 (+0.35%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)05-06 2025-05-06/amc
Earnings (Next)09-09 2025-09-09/amc
Inst Owners82.72%
Inst Owner Change7.51%
Ins Owners4.03%
Ins Owner Change0.55%
Market Cap258.04M
Analysts81.67
Price Target36.04 (77.1%)
Short Float %5.24%
Short Ratio5.75
Dividend
Industry RankSector 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)2.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)10.92%
EPS NY rev (3m)10.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.55%
Valuation
Industry RankSector Rank
PE 13.13
Fwd PE 7.41
P/S 0.6
P/FCF N/A
P/OCF 14.99
P/B 1.03
P/tB 1.27
EV/EBITDA 26.58
EPS(TTM)1.55
EY7.62%
EPS(NY)2.75
Fwd EY13.49%
FCF(TTM)-0.8
FCFYN/A
OCF(TTM)1.36
OCFY6.67%
SpS34.08
BVpS19.68
TBVpS16.02
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 0.16
F-Score4
WACC10.02%
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)-54.94%
EPS 3Y12.67%
EPS 5Y-0.14%
EPS Q2Q%20.55%
EPS Next Y-59.7%
EPS Next 2Y-8.65%
EPS Next 3Y3.63%
EPS Next 5YN/A
Revenue 1Y (TTM)17.74%
Revenue growth 3Y14.08%
Revenue growth 5Y10.84%
Sales Q2Q%0.92%
Revenue Next Year6.58%
Revenue Next 2Y5.89%
Revenue Next 3Y6.45%
Revenue Next 5YN/A
EBIT growth 1Y-85.61%
EBIT growth 3Y-1.71%
EBIT growth 5Y61.77%
EBIT Next Year-32.85%
EBIT Next 3Y14.85%
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%