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Aviat Networks

Nasdaq:AVNW
Snowflake Description

Undervalued with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AVNW
Nasdaq
$75M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Aviat Networks, Inc. designs, manufactures, and sells a range of wireless networking products, solutions, and services worldwide. The last earnings update was 4 days ago. More info.


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AVNW Share Price and Events
7 Day Returns
-0.1%
NasdaqGS:AVNW
4.7%
US Communications
0.9%
US Market
1 Year Returns
-7.9%
NasdaqGS:AVNW
1.1%
US Communications
10.5%
US Market
AVNW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Aviat Networks (AVNW) -0.1% -0.3% 4.7% -7.9% 51.2% -12.2%
US Communications 4.7% 5.9% -3.8% 1.1% 42.8% 65.8%
US Market 0.9% 5.2% 5.4% 10.5% 40.1% 45%
1 Year Return vs Industry and Market
  • AVNW underperformed the Communications industry which returned 1.1% over the past year.
  • AVNW underperformed the Market in United States of America which returned 10.5% over the past year.
Price Volatility
AVNW
Industry
5yr Volatility vs Market

Value

 Is Aviat Networks undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Aviat Networks to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Aviat Networks.

NasdaqGS:AVNW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:AVNW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.131 (1 + (1- 21%) (21.2%))
1.215
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.215 * 5.96%)
9.97%

Discounted Cash Flow Calculation for NasdaqGS:AVNW using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Aviat Networks is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:AVNW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.97%)
2020 12.13 Est @ 19.42% 11.03
2021 13.88 Est @ 14.41% 11.48
2022 15.39 Est @ 10.91% 11.57
2023 16.69 Est @ 8.45% 11.41
2024 17.82 Est @ 6.74% 11.08
2025 18.80 Est @ 5.53% 10.63
2026 19.69 Est @ 4.69% 10.12
2027 20.49 Est @ 4.1% 9.58
2028 21.25 Est @ 3.69% 9.03
2029 21.97 Est @ 3.4% 8.49
Present value of next 10 years cash flows $104.00
NasdaqGS:AVNW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $21.97 × (1 + 2.73%) ÷ (9.97% – 2.73%)
$311.78
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $311.78 ÷ (1 + 9.97%)10
$120.53
NasdaqGS:AVNW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $104.00 + $120.53
$224.53
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $224.53 / 5.43
$41.37
NasdaqGS:AVNW Discount to Share Price
Calculation Result
Value per share (USD) From above. $41.37
Current discount Discount to share price of $13.91
= -1 x ($13.91 - $41.37) / $41.37
66.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Aviat Networks is available for.
Intrinsic value
>50%
Share price is $13.91 vs Future cash flow value of $41.37
Current Discount Checks
For Aviat Networks to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Aviat Networks's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Aviat Networks's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Aviat Networks's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Aviat Networks's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:AVNW PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-27) in USD $1.96
NasdaqGS:AVNW Share Price ** NasdaqGS (2019-11-08) in USD $13.91
United States of America Communications Industry PE Ratio Median Figure of 30 Publicly-Listed Communications Companies 24.34x
United States of America Market PE Ratio Median Figure of 2,915 Publicly-Listed Companies 18.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Aviat Networks.

NasdaqGS:AVNW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:AVNW Share Price ÷ EPS (both in USD)

= 13.91 ÷ 1.96

7.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aviat Networks is good value based on earnings compared to the US Communications industry average.
  • Aviat Networks is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Aviat Networks's expected growth come at a high price?
Raw Data
NasdaqGS:AVNW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
-49.4%per year
United States of America Communications Industry PEG Ratio Median Figure of 19 Publicly-Listed Communications Companies 1.44x
United States of America Market PEG Ratio Median Figure of 2,014 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

NasdaqGS:AVNW PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.09x ÷ -49.4%

-0.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aviat Networks earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Aviat Networks's assets?
Raw Data
NasdaqGS:AVNW PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-27) in USD $12.85
NasdaqGS:AVNW Share Price * NasdaqGS (2019-11-08) in USD $13.91
United States of America Communications Industry PB Ratio Median Figure of 61 Publicly-Listed Communications Companies 1.85x
United States of America Market PB Ratio Median Figure of 5,041 Publicly-Listed Companies 1.74x
NasdaqGS:AVNW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:AVNW Share Price ÷ Book Value per Share (both in USD)

= 13.91 ÷ 12.85

1.08x

* Primary Listing of Aviat Networks.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aviat Networks is good value based on assets compared to the US Communications industry average.
X
Value checks
We assess Aviat Networks's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Aviat Networks has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-49.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Aviat Networks expected to grow at an attractive rate?
  • Aviat Networks's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Aviat Networks's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Aviat Networks's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:AVNW Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:AVNW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts -49.4%
NasdaqGS:AVNW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 0.2%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 12%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:AVNW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:AVNW Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-06-30 242 4 1
2020-06-30 239 6 1
2019-11-11
NasdaqGS:AVNW Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-27 242 15 11
2019-06-28 244 3 10
2019-03-29 242 6 6
2018-12-28 250 -2 -1
2018-09-28 247 -4 2
2018-06-29 243 8 2
2018-03-30 236 3 0
2017-12-29 233 10 3
2017-09-29 240 11 -1
2017-06-30 242 9 -1
2017-03-31 244 7 -15
2016-12-30 245 2 -22
2016-09-30 247 2 -30

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Aviat Networks's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Aviat Networks's revenue is expected to grow by 0.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:AVNW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Aviat Networks Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AVNW Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-06-30 1.10 1.10 1.10 1.00
2020-06-30 1.41 1.41 1.41 1.00
2019-11-11
NasdaqGS:AVNW Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-27 1.96
2019-06-28 1.81
2019-03-29 1.11
2018-12-28 -0.19
2018-09-28 0.33
2018-06-29 0.35
2018-03-30 0.06
2017-12-29 0.48
2017-09-29 -0.16
2017-06-30 -0.16
2017-03-31 -2.76
2016-12-30 -4.21
2016-09-30 -5.62

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Aviat Networks will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Aviat Networks's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Aviat Networks has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Aviat Networks performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Aviat Networks's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Aviat Networks has delivered over 20% year on year earnings growth in the past 5 years.
  • Aviat Networks's 1-year earnings growth exceeds its 5-year average (501.4% vs 64.7%)
  • Aviat Networks's earnings growth has exceeded the US Communications industry average in the past year (501.4% vs 21.7%).
Earnings and Revenue History
Aviat Networks's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Aviat Networks Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:AVNW Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-27 241.97 10.54 56.99 21.39
2019-06-28 243.86 9.74 56.06 21.11
2019-03-29 242.14 5.95 56.99 20.66
2018-12-28 250.19 -1.01 58.33 20.06
2018-09-28 246.83 1.75 58.14 19.89
2018-06-29 242.51 1.85 58.16 19.75
2018-03-30 236.43 0.32 57.23 19.70
2017-12-29 233.04 2.54 55.77 19.21
2017-09-29 239.85 -0.85 55.72 18.54
2017-06-30 241.87 -0.82 57.18 18.68
2017-03-31 243.70 -14.59 59.20 18.74
2016-12-30 245.46 -22.16 61.86 19.54
2016-09-30 247.34 -29.52 63.98 20.27
2016-07-01 268.69 -30.45 65.90 20.81
2016-04-01 298.22 -16.73 61.74 26.82
2016-01-01 312.55 -21.86 68.90 23.05
2015-10-02 333.03 -20.58 73.92 24.24
2015-07-03 335.88 -24.72 76.01 25.37
2015-04-03 333.50 -36.20 84.90 22.30
2014-12-26 340.10 -38.20 84.80 29.40
2014-09-26 335.00 -44.00 85.80 32.40
2014-06-27 346.03 -52.02 88.78 35.48
2014-03-28 369.60 -42.50 91.20 37.90
2013-12-27 406.50 -29.00 92.90 39.40
2013-09-27 449.70 -23.80 94.40 39.80
2013-06-28 471.30 -12.60 95.50 39.40
2013-03-29 478.30 -8.40 95.60 38.30
2012-12-28 471.60 -7.60 96.60 37.30

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Aviat Networks has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Aviat Networks used its assets more efficiently than the US Communications industry average last year based on Return on Assets.
  • Aviat Networks has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Aviat Networks's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Aviat Networks has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Aviat Networks's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Aviat Networks's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Aviat Networks is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Aviat Networks's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Aviat Networks's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 14x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Aviat Networks Company Filings, last reported 1 month ago.

NasdaqGS:AVNW Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-27 69.97 9.00 34.49
2019-06-28 71.52 9.00 31.95
2019-03-29 67.61 9.00 36.05
2018-12-28 63.33 9.00 31.54
2018-09-28 62.32 9.00 28.40
2018-06-29 57.52 9.00 37.43
2018-03-30 59.25 9.00 37.54
2017-12-29 60.91 9.00 40.63
2017-09-29 54.42 9.00 39.37
2017-06-30 54.34 9.00 35.92
2017-03-31 54.85 8.00 40.15
2016-12-30 54.38 8.00 35.21
2016-09-30 52.95 8.00 31.98
2016-07-01 53.46 9.00 30.70
2016-04-01 70.10 9.00 39.70
2016-01-01 77.00 9.00 39.50
2015-10-02 82.40 9.00 35.80
2015-07-03 83.81 9.00 34.74
2015-04-03 76.80 9.00 35.00
2014-12-26 91.50 9.00 38.70
2014-09-26 96.30 6.00 42.40
2014-06-27 111.90 6.00 48.80
2014-03-28 115.30 6.00 47.50
2013-12-27 128.90 6.00 64.70
2013-09-27 137.90 6.00 79.30
2013-06-28 149.90 8.80 90.00
2013-03-29 154.00 9.80 92.90
2012-12-28 154.20 10.80 94.80
  • Aviat Networks's level of debt (12.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (6.3% vs 12.9% today).
  • Debt is well covered by operating cash flow (171.1%, greater than 20% of total debt).
  • Aviat Networks earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Aviat Networks's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Aviat Networks has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Aviat Networks dividends.
If you bought $2,000 of Aviat Networks shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Aviat Networks's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Aviat Networks's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:AVNW Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1944 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:AVNW Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-06-30
2020-06-30
2019-11-11

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Aviat Networks has not reported any payouts.
  • Unable to verify if Aviat Networks's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Aviat Networks's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Aviat Networks has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Aviat Networks's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Aviat Networks afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Aviat Networks has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Stan Gallagher
COMPENSATION $459,439
AGE 56
TENURE AS CEO 0.2 years
CEO Bio

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 Interim Chief Executive Officer since September 18, 2019. Mr. Gallagher joins Aviat with an experience in various aspects of operations leadership and management consulting. For the past three years, as Director of Operational Excellence and Supply Chain Management with a leading management consulting firm, Synergetics Installations Worldwide, Inc. (“Synergetics”), he was heavily engaged in the Synergetics turnaround, developing strategies to drive efficiencies throughout the Synergetics global footprint. Prior to this, he served as a Senior Consultant with LeadFirst Learning Systems, LLC. Since 2010, Mr. Gallagher has served as a management consultant, leveraging his past expertise to support companies across various industries and in several operational and financial capacities. In recent years, he has specialized in the technology sector, working with a $16 billion IT services company, a $3.4 billion security services company and, most recently, with Aviat Networks. Throughout these multi-year engagements, with a clear focus on operational excellence, he helped to enhance financial performance and reporting capabilities, driven organizational redesign and change management programs, overseen Lean Six Sigma programs, and helped redesign operational footprints, including facilities management, IT and automation, sourcing, procurement, and overall supply chain management. Mr. Gallagher began his career with General Electric (“GE”), where he held executive operational and leadership positions for several GE divisions. During his tenure at GE, he developed a broad portfolio of experience including supply chain management, strategic sourcing, supplier and business development, facilities management, import/export logistics, compliance, quality, global tax strategy, and Six Sigma program management. He left GE in 2007 and became Vice President & Corporate Officer - Global Strategic Sourcing for Masonite International, Inc. Mr. Gallagher received his BSME in Mechanical Engineering from North Carolina State University.

CEO Compensation
  • Insufficient data for Stan to compare compensation growth.
  • Stan's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Aviat Networks management team in years:

3.8
Average Tenure
56
Average Age
  • The tenure for the Aviat Networks management team is about average.
Management Team

Stan Gallagher

TITLE
Interim CEO
COMPENSATION
$459K
AGE
56
TENURE
0.2 yrs

Eric Chang

TITLE
Senior VP
COMPENSATION
$399K
AGE
46
TENURE
3.8 yrs

Shaun McFall

TITLE
Senior VP and Chief Marketing & Strategy Officer
COMPENSATION
$498K
AGE
59

Ola Gustafsson

TITLE
Chief Product Officer & Senior VP
TENURE
6.1 yrs
Board of Directors Tenure

Average tenure and age of the Aviat Networks board of directors in years:

4.8
Average Tenure
66
Average Age
  • The tenure for the Aviat Networks board of directors is about average.
Board of Directors

John Mutch

TITLE
Chairman of the Board
COMPENSATION
$152K
AGE
62
TENURE
4.8 yrs

Jim Stoffel

TITLE
Independent Director
COMPENSATION
$125K
AGE
73
TENURE
12.8 yrs

John Quicke

TITLE
Independent Director
COMPENSATION
$122K
AGE
70
TENURE
4.8 yrs

Ken Kong

TITLE
Independent Director
COMPENSATION
$117K
AGE
45
TENURE
3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. Mar 19 Sell Heinz Stumpe Individual 08. Mar 19 08. Mar 19 -5,984 $13.63 $-81,562
X
Management checks
We assess Aviat Networks's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Aviat Networks has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Aviat Networks, Inc. (NASDAQ:AVNW) Insiders Have Been Selling

For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' Check out our latest analysis for Aviat Networks The Last 12 Months Of Insider Transactions At Aviat Networks The insider, Julian Singer, made the biggest insider sale in the last 12 months. … Insiders in Aviat Networks didn't buy any shares in the last year. … NasdaqGS:AVNW Recent Insider Trading, August 27th 2019 Insider Ownership I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders.

Simply Wall St -

Here's Why Aviat Networks (NASDAQ:AVNW) Can Manage Its Debt Responsibly

This short term liquidity is a sign that Aviat Networks could probably pay off its debt with ease, as its balance sheet is far from stretched. … Aviat Networks may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. … Summing up While it is always sensible to investigate a company's debt, in this case Aviat Networks has US$27m in net cash and a decent-looking balance sheet.

Simply Wall St -

How Do Aviat Networks, Inc.’s (NASDAQ:AVNW) Returns On Capital Compare To Peers?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Aviat Networks: 0.027 = US$2.2m ÷ (US$167m - US$85m) (Based on the trailing twelve months to March 2019.) So, Aviat Networks has an ROCE of 2.7%. … How Aviat Networks's Current Liabilities Impact Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. … Current liabilities of this level result in a meaningful boost to Aviat Networks's ROCE.

Simply Wall St -

Is Aviat Networks, Inc.'s (NASDAQ:AVNW) CEO Paid Enough Relative To Peers?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … Check out our latest analysis for Aviat Networks How Does Mike Pangia's Compensation Compare With Similar Sized Companies? … pays Mike Pangia more than the median CEO remuneration at companies of a similar size, in the same market.

Simply Wall St -

Does Aviat Networks, Inc. (NASDAQ:AVNW) Have A Volatile Share Price?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … The fact that this is well below 1 indicates that its share price movements haven't historically been very sensitive to overall market volatility.

Simply Wall St -

What Kind Of Shareholders Own Aviat Networks, Inc. (NASDAQ:AVNW)?

Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. … Check out our latest analysis for Aviat Networks NasdaqGS:AVNW Ownership Summary, May 21st 2019 What Does The Institutional Ownership Tell Us About Aviat Networks? … Insider Ownership Of Aviat Networks The definition of an insider can differ slightly between different countries, but members of the board of directors always count.

Simply Wall St -

Did Aviat Networks, Inc. (NASDAQ:AVNW) Insiders Sell Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Aviat Networks, Inc. … While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. … Over the last year, we note insiders sold 309k shares worth US$5.5m

Simply Wall St -

Does Aviat Networks's (NASDAQ:AVNW) Share Price Gain of 80% Match Its Business Performance?

Given that Aviat Networks didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. … As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth. … In the last 3 years Aviat Networks saw its revenue shrink by 6.9% per year.

Simply Wall St -

Should You Be Pleased About The CEO Pay At Aviat Networks, Inc.'s (NASDAQ:AVNW)

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Mike Pangia's Compensation Compare With Similar Sized Companies. … has a market capitalization of US$74m, and pays its CEO total annual compensation worth US$791k.

Simply Wall St -

Does Market Volatility Impact Aviat Networks, Inc.'s (NASDAQ:AVNW) Share Price?

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Company Info

Description

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 premises equipment for fixed and mobile networks; and point-to-point digital microwave radio systems for access, backhaul, trunking, and license-exempt applications, as well as supporting new network deployments, network expansion, and capacity upgrades. The company also offers software tools and applications to enable deployment, monitoring, network management, and optimization of its systems, as well as to automate network design and procurement; and sources, supplies, and supports third party equipment, such as antennas, routers, optical transmission equipment, and other equipment to build and deploy telecommunications transmission network. In addition, it provides a suite of professional services, including planning, deployment, operation, optimization, and maintenance of customers’ networks. The company serves mobile and fixed telecommunications network operators, and broadband and Internet service providers and network operators; federal, state, and local government agencies; and transportation, energy, and utility companies, as well as public safety agencies and broadcast network operators. It markets its products through a direct sales, service, and support organization, as well as through original equipment manufacturers and system integrators; indirectly through dealers, resellers, and sales representatives; and through online. The company was formerly known as Harris Stratex Networks, Inc. and changed its name to Aviat Networks, Inc. in January 2010. Aviat Networks, Inc. was incorporated in 2006 and is headquartered in Milpitas, California.

Details
Name: Aviat Networks, Inc.
AVNW
Exchange: NasdaqGS
Founded: 2006
$75,487,984
5,426,886
Website: http://www.aviatnetworks.com
Address: Aviat Networks, Inc.
860 North McCarthy Boulevard,
Suite 200,
Milpitas,
California, 95035,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS AVNW Common Stock Nasdaq Global Select US USD 29. Jan 2007
DB HSD1 Common Stock Deutsche Boerse AG DE EUR 29. Jan 2007
MUN A2AL39 COM USD0.01(POST REV SPLIT) Boerse Muenchen DE EUR 11. Nov 2019
Number of employees
Current staff
Staff numbers
708
Aviat Networks employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/11 00:06
End of day share price update: 2019/11/08 00:00
Last estimates confirmation: 2019/10/15
Last earnings filing: 2019/11/07
Last earnings reported: 2019/09/27
Last annual earnings reported: 2019/06/28


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.