Aviat Networks, Inc.
Aviat Networks, Inc. Fundamental Analysis
Aviat Networks, Inc. (AVNW) shows weak financial fundamentals with a PE ratio of 21.42, profit margin of 3.27%, and ROE of 5.54%. The company generates $0.4B in annual revenue with moderate year-over-year growth of 6.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AVNW's fundamental strength across five key dimensions:
Efficiency Score
WeakAVNW struggles to generate sufficient returns from assets.
Valuation Score
ModerateAVNW shows balanced valuation metrics.
Growth Score
ModerateAVNW shows steady but slowing expansion.
Financial Health Score
ExcellentAVNW maintains a strong and stable balance sheet.
Profitability Score
WeakAVNW struggles to sustain strong margins.
Key Financial Metrics
Is AVNW Expensive or Cheap?
P/E Ratio
AVNW trades at 21.42 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AVNW's PEG of 2.19 indicates potential overvaluation.
Price to Book
The market values Aviat Networks, Inc. at 1.15 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.38 times EBITDA. This is generally considered low.
How Well Does AVNW Make Money?
Net Profit Margin
For every $100 in sales, Aviat Networks, Inc. keeps $3.27 as profit after all expenses.
Operating Margin
Core operations generate 2.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.54 in profit for every $100 of shareholder equity.
ROA
Aviat Networks, Inc. generates $2.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aviat Networks, Inc. generates limited operating cash flow of $24.40M, signaling weaker underlying cash strength.
Free Cash Flow
Aviat Networks, Inc. produces free cash flow of $16.14M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.25 in free cash annually.
FCF Yield
AVNW converts 5.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.85
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How AVNW Stacks Against Its Sector Peers
| Metric | AVNW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.42 | 34.79 | Better (Cheaper) |
| ROE | 5.54% | 1185.00% | Weak |
| Net Margin | 3.27% | -133093.00% (disorted) | Weak |
| Debt/Equity | 0.40 | 0.43 | Neutral |
| Current Ratio | 1.85 | 4.90 | Neutral |
| ROA | 2.22% | -324805.00% (disorted) | Weak |
AVNW outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aviat Networks, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
54.84%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
343.65%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-72.19%
Industry Style: Growth, Innovation, High Beta
Declining