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AVIAT NETWORKS INC (AVNW) Stock Fundamental Analysis

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

17.56  -0.57 (-3.14%)

After market: 17.56 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to AVNW. AVNW was compared to 49 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 has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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5

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.
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 better Return On Assets (-0.59%) than 63.27% of its industry peers.
AVNW has a better Return On Equity (-1.41%) than 63.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.90%, AVNW is in line with its industry, outperforming 55.10% of the companies in the same industry.
AVNW had an Average Return On Invested Capital over the past 3 years of 8.71%. This is below the industry average of 11.13%.
The last Return On Invested Capital (0.90%) 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 -0.59%
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

In the last couple of years the Profit Margin of AVNW has declined.
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.
AVNW has a Gross Margin of 31.64%. This is in the lower half of the industry: AVNW underperforms 67.35% of its industry peers.
In the last couple of years the Gross Margin of AVNW has grown nicely.
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

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.
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

Based on the Altman-Z score of 0.11, we must say that AVNW is in the distress zone and has some risk of bankruptcy.
AVNW has a worse Altman-Z score (0.11) than 65.31% of its industry peers.
AVNW has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AVNW (0.29) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF N/A
Altman-Z 0.11
ROIC/WACC0.09
WACC9.68%
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 1.68 indicates that AVNW should not have too much problems paying its short term obligations.
With a Current ratio value of 1.68, AVNW is not doing good in the industry: 61.22% of the companies in the same industry are doing better.
A Quick Ratio of 1.37 indicates that AVNW should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.37, AVNW perfoms like the industry average, outperforming 46.94% 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 -59.54%.
AVNW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.14% yearly.
Looking at the last year, AVNW shows a very strong growth in Revenue. The Revenue has grown by 20.92%.
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)-59.54%
EPS 3Y12.67%
EPS 5Y-0.14%
EPS Q2Q%-15.46%
Revenue 1Y (TTM)20.92%
Revenue growth 3Y14.08%
Revenue growth 5Y10.84%
Sales Q2Q%24.37%

3.2 Future

AVNW is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.21% yearly.
Based on estimates for the next years, AVNW will show a small growth in Revenue. The Revenue will grow by 7.31% on average per year.
EPS Next Y-63.66%
EPS Next 2Y-5.15%
EPS Next 3Y4.21%
EPS Next 5YN/A
Revenue Next Year7.08%
Revenue Next 2Y6.8%
Revenue Next 3Y7.31%
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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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 12.54 indicates a correct valuation of AVNW.
83.67% of the companies in the same industry are more expensive than AVNW, based on the Price/Earnings ratio.
AVNW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.98.
Based on the Price/Forward Earnings ratio of 5.93, the valuation of AVNW can be described as very cheap.
Based on the Price/Forward Earnings ratio, AVNW is valued cheaper than 95.92% of the companies in the same industry.
AVNW is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.54
Fwd PE 5.93
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

AVNW's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 23.98
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-5.15%
EPS Next 3Y4.21%

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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 (4/30/2025, 4:30:01 PM)

After market: 17.56 0 (0%)

17.56

-0.57 (-3.14%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-04 2025-02-04/amc
Earnings (Next)04-30 2025-04-30/amc
Inst Owners82.72%
Inst Owner Change0.57%
Ins Owners4.03%
Ins Owner Change2.39%
Market Cap222.66M
Analysts81.67
Price Target36.04 (105.24%)
Short Float %5.4%
Short Ratio5.11
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)-61.36%
EPS NY rev (1m)0%
EPS NY rev (3m)17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-9.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
Industry RankSector Rank
PE 12.54
Fwd PE 5.93
P/S 0.52
P/FCF N/A
P/OCF 12.93
P/B 0.89
P/tB 1.1
EV/EBITDA 23.98
EPS(TTM)1.4
EY7.97%
EPS(NY)2.96
Fwd EY16.86%
FCF(TTM)-0.8
FCFYN/A
OCF(TTM)1.36
OCFY7.73%
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 0.11
F-Score4
WACC9.68%
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)-59.54%
EPS 3Y12.67%
EPS 5Y-0.14%
EPS Q2Q%-15.46%
EPS Next Y-63.66%
EPS Next 2Y-5.15%
EPS Next 3Y4.21%
EPS Next 5YN/A
Revenue 1Y (TTM)20.92%
Revenue growth 3Y14.08%
Revenue growth 5Y10.84%
Sales Q2Q%24.37%
Revenue Next Year7.08%
Revenue Next 2Y6.8%
Revenue Next 3Y7.31%
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%