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Fundamental analysis: Aviat Networks, Inc. (AVNW)

Awarener score: 7.6

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Excellent) and growth (Modest), and the company's inclination to return cash to the stockholders (Good).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.0

  • Business growth has been almost stagnant. It's been similar to peer companies.
  • Aviat Networks, Inc. business trend stability is excellent. The higher the stability, the lower the risk. It looks top-notch against rivals.

Margins score: 6.0

  • AVNW profit margins -on goods and services sold- are usually sufficient. They stand slightly worse than rival companies.
  • Business profit on sales tends to be sufficient. It's encouraging in relation to competitors.
  • Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain close to average when compared to peers.
  • Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still slightly better than similar companies.
  • Profits -before income taxes- are usually sufficient considering total sales, and remain encouraging in relation to rivals.
  • Total net profit tends to be very good when confronted to sales. Company stands great when measured against comparable firms.

Growth score: 9.1

  • Aviat Networks, Inc. profit -on goods and services sold- has been growing at a low pace. It's been rather normal in relation to competitors.
  • In recent years, earnings -on operations- have been growing at an extremely fast step, which has been bottom tier against comparable firms.
  • Profits -available to repay debt and purchase properties- have been growing at an excellent pace, which compares last-in-rank when measured against peer enterprises.
  • Earnings -before income taxes and interests on loans taken- have been growing at an extremely fast tempo. It turns to be a disappointment compared to similar stocks.
  • In past years, profits -before income taxes- grew at an extremely fast speed. It was bottom tier against rivals.
  • In the previous years, growth trend on total net profit has been extremely high, and top tier when measured against peer companies.
  • Earnings per share have grown at an extremely fast rhythm in past years. It's been impressive in relation to industry peers.

Miscellaneous score: 8.0

  • AVNW managed to get a credit on income taxes in the past years, even though it earned money. It's been top-notch against peers.
  • Research and development expenses consume a sparse portion of revenues. It's more than average in relation to competitors.
  • The company grows modestly in relation to research and development efforts. It stands a slight improvement compared to rival companies.

Profitability score: 7.5

  • Aviat Networks, Inc. usually gets good returns on the resources it controls. It proves below average when measured against peer firms.
  • The company normally gets good proceeds -on the resources directly invested in the business-. They remain in a weak position compared to similar companies.
  • There's usually excellent profitability -in relation to owned resources-. It ranks top tier when measured against competitors.
  • In the past, got good returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's almost average when measured against comparable enterprises.

Usage of Funds score: 5.2

  • AVNW usually uses a significant portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is abundant. It stands almost average when measured against rival firms.
  • The company is usually replacing most of the property, plant, and equipment that gets old, and saving a little funds for something else, which is encouraging in relation to industry peers.
  • In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
  • The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
  • As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
  • The company somewhat enlarges a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains close to average when compared to peer enterprises.
  • Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
  • The company uses a slight portion of genuine fund generation to reward investors. The company is usually improving its financial position, and could most likely increase stockholder rewards if it wished to do so. It still looks great when measured against competitors.

Balance Sheet score: 6.1

  • Aviat Networks, Inc. intangible assets (like brands and goodwill) represent a very small portion of resources controlled, according to accounting books, which is mostly safe. It happens to be top tier when measured against peer companies.
  • The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be lacking compared to similar firms.
  • Very few resources controlled were provided for with financial debt. Financial strength is very solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains top-notch against rival firms.
  • Most controlled resources can be made into cash reasonably quick, which is good for liquidity and risk. It looks encouraging in relation to rivals.
  • For every dollar of short-term obligations, the company has almost another of cash and short-term receivables. It's a slight improvement compared to peer firms.
  • For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is mediocre against similar enterprises.
  • Usually, sales are on somewhat less than three months credit. It still ranks last-in-rank when measured against peers.
  • Normally has approximately somewhat more than two months of sales worth in inventory. It comes up as in good shape compared to competitors.
  • On average, it takes higher than five months from the purchase to charging customers. It happens to be mediocre against peers.
  • On average pays suppliers approximately three months after the purchase. It ranks encouraging in relation to industry peers.
  • The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's lacking compared to similar companies.
  • To what extent normalized EBITDA covers interest expenses is not known. It stands impossible to compare against rival firms.
  • Business earnings have usually been great when measured against loans taken. Debt might be repaid almost as soon as desired. It ranks great when measured against comparable enterprises.
  • Revenues are excellent in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements, allows the company to keep more money to reward stockholders in the long run. It looks excellent in relation to similar firms.
  • Resource exploitation is very good when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still somewhat better than peer companies.

Valuation score: 6.6

  • Aviat Networks, Inc. looks expensive in relation to profits and financial position. It happens to be more than average in relation to competitors.
  • Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a slight improvement compared to peers.
  • In the past twelve months, the company generated some good free funds in relation to the stock price, which stands better than most similar companies.
  • The company usually generates more than enough genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be interesting. It's still more than average in relation to industry firms.
  • In the past twelve months, the company has barely rewarded investors, considering both dividends and share on the pie of earnings. It came up lacking compared to peer ventures.
  • The company has more cash than debt. It might be poised to increase stockholder payments, or to fund new business projects. It looks well ranked against similar enterprises.
  • Considering the past twelve months, traditional Price-to-Earnings relation is high. Substantial improvement expectations are already in the stock price, which is somewhat risky. It ranks more than average in relation to peer companies.
  • Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks a slight improvement compared to rival firms.
  • The relation between the stock price and accounting book value is somewhat high. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly better than peer firms.
  • In the past twelve months, the operating business earned little money when compared to the current stock price and financial position. It happens to be great when measured against industry peers.
  • In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still impressive in relation to peer companies.

Total score: 6.9


AVNW logos

Company at a glance: Aviat Networks, Inc. (AVNW)

Sector, industry: Technology, Communication Equipment

Market Cap: 0.37 billions

Revenues TTM: 0.31 billions

Aviat Networks, Inc. provides microwave networking solutions in North America, Africa, the Middle East, Europe, Latin America, and the Asia Pacific. The company offers outdoor, indoor, and split-mount radios; microwave routers and switches; microwave trunking; element management products; and software products, such as aviat design, frequency assurance software, and health assurance software. It also provides network planning and design, site surveys and builds, systems integration, installation, maintenance, network monitoring, training, customer service, project, managed, education, support, and other professional services. The company serves communications service providers and private network operators, including federal, state and local government agencies, transportation agencies, energy and utility companies, public safety agencies, and broadcast network operators. It markets its products through a direct sales, service, and support organization; indirect sales channels comprising dealers, resellers, and sales representatives; and through online. The company was incorporated in 2006 and is headquartered in Austin, Texas.

Awarener score: 7.6

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Very good), the business stability (Excellent) and growth (Modest), and the company's inclination to return cash to the stockholders (Good).