Aviat Networks, Inc. (AVNW) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Calix, Inc.

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Aviat Networks, Inc.

CommScope Holding Co., Inc.

Digi International, Inc.

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Clearfield, Inc.

InterDigital, Inc.

Harmonic, Inc.

Infinera Corp.

Why is Aviat Networks, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

Positive results in Dec 25

OPERATING CASH FLOW(Y) Highest at USD 24.31 MM
CASH AND EQV(HY) Highest at USD 151.3 MM
NET PROFIT(Q) At USD 5.73 MM has Grown at 44.29%

With ROE of 5.92%, it has a attractive valuation with a 1.19 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 26.67%, its profits have risen by 960.4% ; the PEG ratio of the company is 0

High Institutional Holdings at 98.27%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 4.1% over the previous quarter.

Market Beating Performance

The stock has generated a return of 26.67% in the last 1 year, much higher than market (S&P 500) returns of 13.68%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Aviat Networks, Inc. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Aviat Networks, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Aviat Networks, Inc.

23.16%

-0.36

43.82%

S&P 500

13.68%

0.71

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.36%

EBIT Growth (5y)

12.18%

EBIT to Interest (avg)

21.62

Debt to EBITDA (avg)

0.29

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

1.28

Tax Ratio

5.75%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

98.27%

ROCE (avg)

12.46%

ROE (avg)

17.14%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.19

EV to EBIT

10.25

EV to EBITDA

8.52

EV to Capital Employed

1.18

EV to Sales

0.77

PEG Ratio

0.02

Dividend Yield

ROCE (Latest)

11.49%

ROE (Latest)

5.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 24.31 MM

CASH AND EQV(HY)

Highest at USD 151.3 MM

NET PROFIT(Q)

At USD 5.73 MM has Grown at 44.29%

EPS(Q)

Highest at USD 0.44

-10What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 6.56% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.89 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.5 times

INTEREST(Q)

Highest at USD 1.91 MM

Here's what is working for Aviat Networks, Inc.

Operating Cash Flow

Highest at USD 24.31 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Profit

At USD 5.73 MM has Grown at 44.29%

over average net sales of the previous four periods of USD 3.97 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 0.44

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 151.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

At USD 1.64 MM has Grown at 38.75%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Aviat Networks, Inc.

Interest

At USD 1.91 MM has Grown at 11.45%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Interest

Highest at USD 1.91 MM

in the last five periods and Increased by 11.45% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Inventory Turnover Ratio

Lowest at 3.89 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 1.5 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 6.56% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales