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AVIAT NETWORKS INC (AVNW) Stock Fundamental Analysis

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

22.58  -0.35 (-1.53%)

Fundamental Rating

3

Overall AVNW gets a fundamental rating of 3 out of 10. We evaluated AVNW against 49 industry peers in the Communications Equipment industry. AVNW has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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

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.
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

AVNW has a Return On Assets (-0.54%) which is comparable to the rest of the industry.
AVNW's Return On Equity of -1.33% is in line compared to the rest of the industry. AVNW outperforms 59.18% of its industry peers.
AVNW has a Return On Invested Capital of 2.00%. This is comparable to the rest of the industry: AVNW outperforms 55.10% 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 13.73%.
The last Return On Invested Capital (2.00%) for AVNW is well below the 3 year average (8.71%), which needs to be investigated, but indicates that AVNW had better years and this may not be a problem.
Industry RankSector Rank
ROA -0.54%
ROE -1.33%
ROIC 2%
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

In the last couple of years the Profit Margin of AVNW has declined.
AVNW has a Operating Margin of 2.02%. This is comparable to the rest of the industry: AVNW outperforms 55.10% of its industry peers.
In the last couple of years the Operating Margin of AVNW has grown nicely.
Looking at the Gross Margin, with a value of 32.20%, AVNW is doing worse than 67.35% of the companies in the same industry.
In the last couple of years the Gross Margin of AVNW has grown nicely.
Industry RankSector Rank
OM 2.02%
PM (TTM) N/A
GM 32.2%
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.
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
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 0.24. This is a bad value and indicates that AVNW is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.24, AVNW is doing worse than 61.22% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that AVNW is not too dependend on debt financing.
AVNW has a Debt to Equity ratio (0.27) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF N/A
Altman-Z 0.24
ROIC/WACC0.2
WACC9.89%
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

A Current Ratio of 1.62 indicates that AVNW should not have too much problems paying its short term obligations.
AVNW's Current ratio of 1.62 is in line compared to the rest of the industry. AVNW outperforms 44.90% of its industry peers.
AVNW has a Quick Ratio of 1.29. This is a normal value and indicates that AVNW is financially healthy and should not expect problems in meeting its short term obligations.
AVNW's Quick ratio of 1.29 is in line compared to the rest of the industry. AVNW outperforms 46.94% of its industry peers.
Industry RankSector Rank
Current Ratio 1.62
Quick Ratio 1.29
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

The earnings per share for AVNW have decreased strongly by -54.94% 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 12.37% in the past year. This is quite good.
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)12.37%
Revenue growth 3Y14.08%
Revenue growth 5Y10.84%
Sales Q2Q%0.92%

3.2 Future

Based on estimates for the next years, AVNW will show a small growth in Earnings Per Share. The EPS will grow by 3.63% on average per year.
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

The EPS growth rate is accelerating: in the next years the growth will be better 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.
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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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 14.57, which indicates a correct valuation of AVNW.
AVNW's Price/Earnings ratio is a bit cheaper when compared to the industry. AVNW is cheaper than 79.59% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, AVNW is valued a bit cheaper.
The Price/Forward Earnings ratio is 8.22, which indicates a very decent 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 93.88% of the companies listed in the same industry.
AVNW is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.39, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 14.57
Fwd PE 8.22
AVNW Price Earnings VS Forward Price EarningsAVNW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

AVNW's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 19.77
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

AVNW does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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AVIAT NETWORKS INC

NASDAQ:AVNW (6/13/2025, 2:06:44 PM)

22.58

-0.35 (-1.53%)

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 Change0.02%
Market Cap286.54M
Analysts81.67
Price Target35.19 (55.85%)
Short Float %4.72%
Short Ratio5.49
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)2
Avg EPS beat(2)3067.35%
Min EPS beat(2)203.78%
Max EPS beat(2)5930.92%
EPS beat(4)3
Avg EPS beat(4)806.39%
Min EPS beat(4)-2910.73%
Max EPS beat(4)5930.92%
EPS beat(8)6
Avg EPS beat(8)410.54%
EPS beat(12)8
Avg EPS beat(12)274.92%
EPS beat(16)12
Avg EPS beat(16)210.19%
Revenue beat(2)2
Avg Revenue beat(2)8.6%
Min Revenue beat(2)5.34%
Max Revenue beat(2)11.87%
Revenue beat(4)3
Avg Revenue beat(4)2.63%
Min Revenue beat(4)-7.98%
Max Revenue beat(4)11.87%
Revenue beat(8)5
Avg Revenue beat(8)0.91%
Revenue beat(12)6
Avg Revenue beat(12)0.55%
Revenue beat(16)10
Avg Revenue beat(16)1.49%
PT rev (1m)-2.36%
PT rev (3m)-2.36%
EPS NQ rev (1m)-49.93%
EPS NQ rev (3m)-50.04%
EPS NY rev (1m)10.92%
EPS NY rev (3m)10.92%
Revenue NQ rev (1m)-7.86%
Revenue NQ rev (3m)-7.86%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.47%
Valuation
Industry RankSector Rank
PE 14.57
Fwd PE 8.22
P/S 0.66
P/FCF N/A
P/OCF 81.38
P/B 1.12
P/tB 1.36
EV/EBITDA 19.77
EPS(TTM)1.55
EY6.86%
EPS(NY)2.75
Fwd EY12.16%
FCF(TTM)-2.06
FCFYN/A
OCF(TTM)0.28
OCFY1.23%
SpS34.13
BVpS20.18
TBVpS16.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.54%
ROE -1.33%
ROCE 2.53%
ROIC 2%
ROICexc 2.33%
ROICexgc 2.76%
OM 2.02%
PM (TTM) N/A
GM 32.2%
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-Score3
Asset Turnover0.69
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF N/A
Debt/EBITDA 4.4
Cap/Depr 411.96%
Cap/Sales 6.85%
Interest Coverage 250
Cash Conversion 22.06%
Profit Quality N/A
Current Ratio 1.62
Quick Ratio 1.29
Altman-Z 0.24
F-Score3
WACC9.89%
ROIC/WACC0.2
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)12.37%
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-63.81%
EBIT growth 3Y-1.71%
EBIT growth 5Y61.77%
EBIT Next Year-28.18%
EBIT Next 3Y14.01%
EBIT Next 5YN/A
FCF growth 1Y-53.67%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-22.95%
OCF growth 3Y20.86%
OCF growth 5Y59.7%