Aviat Networks (AVNW) AI Stock Analysis

• Market Cap: $301.06M
• Dividend Yield: N/A
• Average Volume (3M): 95.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: 12.39%
• EPS Growth: -123.62%
• Country: US
• Employees: 909
• Sector: Technology
• Sector Strength: 94
• Industry: Communication Equipment
• EPS (TTM): 0.88
• Shares Outstanding: 12,735,328
• 10 Day Avg. Volume: 90,220
• 30 Day Avg. Volume: 95,608
• PEG Ratio: -24.91
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -38.10
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 2.35
• Enterprise Value/Ebitda: 5.66
• 1Y Price Target: $31.00
• Price Target Upside: 31.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 73 Outperform
• Price Target: $27.00 ▲(14.21%Upside)

Aviat Networks demonstrates strong technical performance with bullish momentum, highlighted by prices above key moving averages. The earnings call underscored robust North American growth, but international challenges and valuation concerns with a negative P/E ratio weigh on the stock. The recent executive promotion adds a positive outlook on leadership and innovation.

Positive Factors

Earnings

The company reported the best quarterly revenue in over a decade and record quarterly adjusted EBITDA.

M&A Synergies

Synergies from the acquisition are fully realized, contributing to future earnings potential.

Market Position

Aviat Networks designs and sells advanced wireless networking products, which positions it well in the market.

Negative Factors

Macro Environment

There is increased noise in the macro environment, and a steep quarter-over-quarter ramp is needed to hit guidance.

Supply Constraints

Global tariffs are cited as a potential risk that could create supply-side constraints, affecting the lower end of the company's guidance range.

Aviat Networks Business Overview & Revenue Model

Company Description

Aviat Networks, Inc. provides wireless transport solutions worldwide. It offers a comprehensive suite of products and localized professional and support services enabling customers to simplify their networks and lives. The company's products and solutions include wireless transmission systems for microwave and millimeter wave networking applications. It serves communications service providers and private network operators, including state/local government, utility, federal government, and defense organizations. The company markets its products through a direct sales, service, and support organization; indirect sales channels comprising dealers, resellers, and sales representatives; and through online. Aviat Networks, Inc. was incorporated in 2006 and is headquartered in Austin, Texas.

How the Company Makes Money

Aviat Networks generates revenue through the sale of its wireless transport products and related services. The company's primary revenue streams include the sale of microwave networking equipment and the provision of support and maintenance services. Aviat Networks also earns revenue from offering network design, installation, and optimization services. Significant partnerships with telecommunications providers and government entities are crucial to its earnings, as these collaborations drive demand for its advanced networking solutions. Additionally, Aviat Networks capitalizes on emerging trends in telecommunications, such as 5G deployment, which further bolsters demand for its high-capacity and reliable transmission solutions.

Aviat Networks Financial Statement Overview

Summary

Aviat Networks presents a mixed financial landscape. Revenue growth is positive, but profitability margins are under pressure with a negative net profit margin of -0.8%. The balance sheet is stable with manageable leverage, but recent losses impact overall performance. Cash flow challenges, including negative free cash flow, need addressing to enhance liquidity and operational efficiency.

Income Statement

Aviat Networks shows a mixed performance with a declining gross profit margin over the years, reaching 32.2% in TTM. The net profit margin is negative at -0.8% in TTM, indicating operational challenges. However, revenue growth is positive, with a 6.1% increase in TTM compared to the previous year. EBIT margin decreased to 1.3%, while EBITDA margin stands at 2.9%, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.30, indicating manageable leverage. Return on Equity is concerning at -1.3% in TTM, reflecting recent net losses. The equity ratio is strong at 40.8%, showing financial stability with a solid equity base compared to total assets.

Cash Flow

Cash flow metrics show challenges, with free cash flow turning negative in TTM. The operating cash flow to net income ratio is unfavorable, and free cash flow to net income ratio indicates inefficiencies. Free cash flow growth is negative, signaling potential liquidity issues.

Breakdown	Jun 2024	Jun 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	408.08M	346.59M	302.96M	274.91M	238.64M
Gross Profit	144.73M	124.17M	109.23M	102.61M	84.70M
EBITDA	28.26M	33.81M	33.45M	27.48M	12.57M
Net Income	10.76M	11.53M	21.16M	110.14M	257.00K
Balance Sheet
Total Assets	535.22M	364.50M	323.90M	297.65M	179.80M
Cash, Cash Equivalents and Short-Term Investments	64.62M	22.24M	47.77M	47.94M	41.62M
Total Debt	52.18M	2.75M	2.92M	3.99M	12.75M
Total Liabilities	279.34M	144.40M	122.15M	114.32M	111.12M
Stockholders Equity	255.88M	220.10M	201.75M	183.34M	68.68M
Cash Flow
Free Cash Flow	27.86M	-6.98M	997.00K	14.45M	12.88M
Operating Cash Flow	30.54M	-1.64M	2.79M	17.30M	17.49M
Investing Cash Flow	-35.22M	-11.95M	-7.79M	-2.85M	-4.61M
Financing Cash Flow	48.70M	-681.00K	-4.87M	-8.05M	-2.54M

Aviat Networks Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVNW, the sentiment is Positive. The current price of 23.64 is below the 20-day moving average (MA) of 23.91, above the 50-day MA of 22.44, and above the 200-day MA of 19.85, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 53.44 is Neutral, neither overbought nor oversold. The STOCH value of 28.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVNW.

Aviat Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVNW	73 Outperform	$301.06M	―	-1.32%	―	12.39%	-123.62%
CRNT	72 Outperform	$202.55M	8.89	15.02%	―	11.94%	377.86%
GILT	69 Neutral	$449.86M	32.39	4.79%	―	13.49%	-39.61%
AUDC	65 Neutral	$305.11M	18.24	9.33%	3.50%	-1.13%	61.49%
CLFD	59 Neutral	$595.28M	―	-0.68%	―	-2.14%	44.13%
Sector *	57 Neutral	HK$14.24B	5.26	-5.75%	5.39%	9.34%	-42.23%
INSG	49 Neutral	$110.31M	21.76	111.75%	―	1.60%	―

Aviat Networks Corporate Events

Aviat Networks Promotes Gary Croke to Senior VP

On July 1, 2025, Aviat Networks, Inc. announced the promotion of Gary Croke to Senior Vice President of Product and Innovation. This move includes a salary increase, bonus opportunities, and a significant grant of Restricted Stock Units, reflecting the company’s commitment to strengthening its leadership in product development and innovation.

The most recent analyst rating on (AVNW) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on Aviat Networks stock, see the AVNW Stock Forecast page.

Aviat Networks Board Member Resignation Announced

On April 17, 2025, Aviat Networks announced that Asako Aoyama, a member of their Board of Directors, would resign effective April 22, 2025. This resignation may impact the company’s governance and strategic direction, affecting stakeholders’ interests.