NasdaqGS:AVNW

Stock Analysis Report

Executive Summary

Aviat Networks, Inc. designs, manufactures, and sells a range of wireless networking products, solutions, and services worldwide.

Snowflake

Fundamentals

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has Aviat Networks's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.1%

AVNW

2.6%

US Communications

0.07%

US Market


1 Year Return

-5.9%

AVNW

3.2%

US Communications

8.9%

US Market

Return vs Industry: AVNW underperformed the US Communications industry which returned 3.2% over the past year.

Return vs Market: AVNW underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

AVNWIndustryMarket
7 Day2.1%2.6%0.07%
30 Day0.6%-2.8%-0.3%
90 Day10.7%-14.1%-1.6%
1 Year-5.9%-5.9%5.6%3.2%11.3%8.9%
3 Year61.9%61.9%53.8%44.0%46.3%36.8%
5 Year-38.6%-38.6%94.0%72.9%62.1%44.3%

Price Volatility Vs. Market

How volatile is Aviat Networks's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Aviat Networks undervalued compared to its fair value and its price relative to the market?

7.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AVNW's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AVNW's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AVNW is good value based on its PE Ratio (7.7x) compared to the Communications industry average (29.6x).

PE vs Market: AVNW is good value based on its PE Ratio (7.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: AVNW's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AVNW is good value based on its PB Ratio (1x) compared to the US Communications industry average (1.8x).


Next Steps

Future Growth

How is Aviat Networks forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-40.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AVNW's earnings are forecast to decline over the next 3 years (-40.4% per year).

Earnings vs Market: AVNW's earnings are forecast to decline over the next 3 years (-40.4% per year).

High Growth Earnings: AVNW's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AVNW's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: AVNW's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AVNW's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Aviat Networks performed over the past 5 years?

61.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AVNW has become profitable over the past 5 years, growing earnings by 61.4% per year.

Accelerating Growth: AVNW's earnings growth over the past year (432.6%) exceeds its 5-year average (61.4% per year).

Earnings vs Industry: AVNW earnings growth over the past year (432.6%) exceeded the Communications industry 23.8%.


Return on Equity

High ROE: AVNW's Return on Equity (13.6%) is considered low.


Return on Assets

ROA vs Industry: AVNW has a higher Return on Assets than the Communications industry average last year.


Return on Capital Employed

ROCE Improving: AVNW's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Aviat Networks's financial position?


Financial Position Analysis

Short Term Liabilities: AVNW's short term assets ($126.0M) exceeds its short term liabilities ($82.2M)

Long Term Liabilities: AVNW's short term assets (126.0M) exceeds its long term liabilities (15.5M)


Debt to Equity History and Analysis

Debt Level: AVNW's debt to equity ratio (12.6%) is considered satisfactory

Reducing Debt: AVNW's debt to equity ratio has increased from 5.4% to 12.6% over the past 5 years.

Debt Coverage: AVNW's debt is well covered by operating cash flow (32.7%).

Interest Coverage: AVNW earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: AVNW has a low level of unsold assets or inventory.

Debt Coverage by Assets: AVNW's debt is covered by short term assets (assets are 13.999660x debt).


Next Steps

Dividend

What is Aviat Networks's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate AVNW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AVNW's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if AVNW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AVNW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AVNW's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Aviat Networks's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Stan Gallagher (56yo)

0.08yrs

Tenure

US$459,439

Compensation

Mr. Walter Stanley Gallagher, Jr., also known as Stan, has been Senior Vice President, Chief Operating Officer and Principal Financial Officer of Aviat Networks, Inc. since June 2018 and has been its Inter ...


CEO Compensation Analysis

Compensation vs. Market: Stan has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Stan's compensation with company performance.


Management Age and Tenure

3.7yrs

Average Tenure

56yo

Average Age

Experienced Management: AVNW's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

66yo

Average Age

Experienced Board: AVNW's board of directors are considered experienced (4.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$81,56208 Mar 19
Heinz Stumpe
EntityIndividual
Shares5,984
Max PriceUS$13.63

Ownership Breakdown


Management Team

  • Shaun McFall (59yo)

    Senior VP and Chief Marketing & Strategy Officer

    • Tenure: 0yrs
    • Compensation: US$498.48k
  • Ola Gustafsson

    Chief Product Officer & Senior VP

    • Tenure: 6yrs
  • Eric Chang (46yo)

    Senior VP

    • Tenure: 3.7yrs
    • Compensation: US$399.08k
  • Stan Gallagher (56yo)

    Interim CEO

    • Tenure: 0.08yrs
    • Compensation: US$459.44k

Board Members

  • Jim Stoffel (73yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$125.31k
  • John Mutch (62yo)

    Chairman of the Board

    • Tenure: 4.7yrs
    • Compensation: US$152.31k
  • Ken Kong (45yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$117.31k
  • John Quicke (70yo)

    Director

    • Tenure: 4.8yrs
    • Compensation: US$122.31k

Company Information

Aviat Networks, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aviat Networks, Inc.
  • Ticker: AVNW
  • Exchange: NasdaqGS
  • Founded: 2006
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$74.609m
  • Shares outstanding: 5.33m
  • Website: https://www.aviatnetworks.com

Number of Employees


Location

  • Aviat Networks, Inc.
  • 860 North McCarthy Boulevard
  • Suite 200
  • Milpitas
  • California
  • 95035
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
A2AL39MUN (Boerse Muenchen)COM USD0.01(POST REV SPLIT)DEEURNo data
HSD1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 2007
AVNWNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 2007

Biography

Aviat Networks, Inc. designs, manufactures, and sells a range of wireless networking products, solutions, and services worldwide. Its products include broadband wireless access base stations and customer p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:12
End of Day Share Price2019/10/22 00:00
Earnings2019/06/28
Annual Earnings2019/06/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.