We assign a fundamental rating of 4 out of 10 to KVHI. KVHI was compared to 48 industry peers in the Communications Equipment industry. KVHI has a great financial health rating, but its profitability evaluates not so good. KVHI is valued expensive and it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

KVHI had negative earnings in the past year.
KVHI had a positive operating cash flow in the past year.
In the past 5 years KVHI reported 4 times negative net income.
In multiple years KVHI reported negative operating cash flow during the last 5 years.

1.2 Ratios

KVHI has a Return On Assets of -8.00%. This is in the lower half of the industry: KVHI underperforms 70.83% of its industry peers.
KVHI's Return On Equity of -9.18% is in line compared to the rest of the industry. KVHI outperforms 41.67% of its industry peers.

		Industry Rank	Sector Rank
ROA	-8%
ROE	-9.18%
ROIC	N/A

ROA(3y)-1.35%

ROA(5y)-4.35%

ROE(3y)-1.02%

ROE(5y)-5.45%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

Looking at the Gross Margin, with a value of 23.85%, KVHI is doing worse than 89.58% of the companies in the same industry.
In the last couple of years the Gross Margin of KVHI has declined.
The Profit Margin and Operating Margin are not available for KVHI so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	23.85%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-2.47%

GM growth 5Y-2.92%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

KVHI does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, KVHI has more shares outstanding
KVHI has more shares outstanding than it did 5 years ago.
There is no outstanding debt for KVHI. 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

An Altman-Z score of 5.46 indicates that KVHI is not in any danger for bankruptcy at the moment.
KVHI's Altman-Z score of 5.46 is amongst the best of the industry. KVHI outperforms 81.25% of its industry peers.
KVHI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	5.46

ROIC/WACCN/A

WACC9.57%

2.3 Liquidity

A Current Ratio of 7.87 indicates that KVHI has no problem at all paying its short term obligations.
KVHI has a better Current ratio (7.87) than 95.83% of its industry peers.
A Quick Ratio of 6.99 indicates that KVHI has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 6.99, KVHI belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	7.87
Quick Ratio	6.99

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

KVHI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.13%, which is quite impressive.
Looking at the last year, KVHI shows a decrease in Revenue. The Revenue has decreased by -8.89% in the last year.
KVHI shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -6.34% yearly.

EPS 1Y (TTM)61.13%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-16.67%

Revenue 1Y (TTM)-8.89%

Revenue growth 3Y-5.27%

Revenue growth 5Y-6.34%

Sales Q2Q%-1.79%

3.2 Future

Based on estimates for the next years, KVHI will show a very strong growth in Earnings Per Share. The EPS will grow by 54.35% on average per year.
Based on estimates for the next years, KVHI will show a small growth in Revenue. The Revenue will grow by 4.48% on average per year.

EPS Next Y98.18%

EPS Next 2Y54.35%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year-4.37%

Revenue Next 2Y4.48%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

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.

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4. Valuation

4.1 Price/Earnings Ratio

KVHI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 32.68, the valuation of KVHI can be described as expensive.
KVHI's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of KVHI to the average of the S&P500 Index (24.26), we can say KVHI is valued slightly more expensively.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	32.68

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, KVHI is valued a bit cheaper than the industry average as 77.08% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	16.73
EV/EBITDA	N/A

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
KVHI's earnings are expected to grow with 54.35% in the coming years. This may justify a more expensive valuation.