Aviat Networks (AVNW) AI Stock Analysis

• Market Cap: $267.92M
• Dividend Yield: N/A
• Average Volume (3M): 112.66K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.78
• Revenue Growth: 10.89%
• EPS Growth: N/A
• Country: US
• Employees: 909
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.43
• Shares Outstanding: 12,837,468
• 10 Day Avg. Volume: 113,646
• 30 Day Avg. Volume: 112,660
• PEG Ratio: -2.59
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.70
• P/FCF Ratio: -41.88
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 2.16
• Enterprise Value/Ebitda: 10.43
• 1Y Price Target: $34.00
• Price Target Upside: 60.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 2.47
• Revenue Forecast (FY): $450.51M

• Rating: 66 Neutral
• Price Target: $23.00 ▲(8.34% Upside)

Aviat Networks' overall stock score reflects solid revenue growth and strategic initiatives, such as new product launches and leadership changes, which are positive. However, challenges in profitability, cash flow, and technical indicators weigh on the score. The company's valuation is fair, but not compelling, and while the earnings call was positive, external risks like the U.S. government shutdown could impact future performance.

Positive Factors

Revenue Growth

Aviat Networks' strong revenue growth indicates robust demand for its products and services, enhancing its market position and potential for future expansion.

New Product Launch

The launch of the Aprisa LTE 5G router solution positions Aviat to capitalize on the growing cellular router market, driving long-term revenue opportunities.

Leadership Change

The new CFO's extensive experience is expected to strengthen Aviat's financial strategy, supporting growth and enhancing stakeholder value.

Negative Factors

Profitability Concerns

Despite revenue growth, low net profit margins indicate potential inefficiencies, which could hinder long-term financial health if not addressed.

Cash Flow Challenges

Inefficient cash generation could limit Aviat's ability to invest in growth opportunities and manage financial obligations effectively.

Federal Government Shutdown Impact

The potential revenue impact from government shutdowns poses a risk to Aviat's financial stability and could delay project timelines.

Aviat Networks Business Overview & Revenue Model

Company Description

Aviat Networks (AVNW) is a leading provider of advanced communication solutions that focus on delivering high-capacity, low-latency wireless networking technologies. The company primarily operates in the telecommunications sector, offering a range of products and services including microwave and millimeter-wave radio systems, IP networking solutions, and software-defined networking (SDN) solutions. Aviat Networks serves a diverse clientele, including mobile operators, private enterprises, and government agencies, enabling them to enhance their network capabilities and connectivity.

How the Company Makes Money

Aviat Networks generates revenue through multiple streams, primarily from the sale of its hardware products, including microwave and millimeter-wave radios, as well as software solutions that facilitate network management and optimization. The company also earns income from professional services, which include installation, maintenance, and support services for its products. Additionally, Aviat Networks benefits from recurring revenue through software licenses and maintenance contracts. Key partnerships with telecommunications operators and technology providers enhance its market reach and contribute significantly to its earnings, enabling the company to leverage joint marketing opportunities and expand its service offerings.

Aviat Networks Financial Statement Overview

Summary

Aviat Networks demonstrates solid revenue growth and stable gross margins, reflecting effective cost management. However, profitability remains a concern with low net profit margins. The balance sheet shows moderate leverage, which could pose risks if not managed carefully. Cash flow challenges are evident, with negative free cash flow growth, highlighting the need for improved cash generation strategies. Overall, the company is on a stable trajectory but needs to address profitability and cash flow issues to enhance financial health.

Income Statement

Aviat Networks shows a consistent revenue growth trend with a TTM revenue growth rate of 4.35%. The gross profit margin is stable at 34.25%, indicating effective cost management. However, the net profit margin is relatively low at 2.95%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, reflecting operational efficiency but also highlighting potential for better cost control.

Balance Sheet

The company's debt-to-equity ratio is 0.41, indicating a moderate level of leverage. The return on equity is low at 0.53%, suggesting limited returns for shareholders. The equity ratio stands at a healthy level, showing a strong equity base relative to total assets. Overall, the balance sheet reflects stability but with potential risks due to increasing debt levels.

Cash Flow

The free cash flow growth rate is negative, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is low, suggesting inefficiencies in converting income into cash. However, the free cash flow to net income ratio is relatively healthy at 56.13%, indicating some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	450.80M	434.61M	408.08M	344.43M	302.96M	302.96M
Gross Profit	155.73M	139.44M	144.73M	122.38M	109.23M	109.23M
EBITDA	32.31M	17.68M	24.24M	28.02M	33.45M	33.45M
Net Income	11.71M	1.34M	10.76M	10.17M	21.16M	21.16M
Balance Sheet
Total Assets	643.32M	633.30M	633.30M	535.22M	363.14M	323.90M
Cash, Cash Equivalents and Short-Term Investments	64.83M	59.69M	59.69M	64.62M	22.24M	47.77M
Total Debt	109.41M	90.92M	90.92M	52.18M	2.75M	2.92M
Total Liabilities	379.68M	370.11M	370.11M	279.34M	144.40M	122.15M
Stockholders Equity	263.64M	263.18M	263.18M	255.88M	218.74M	201.75M
Cash Flow
Free Cash Flow	24.17M	-7.25M	27.86M	-6.98M	997.00K	14.45M
Operating Cash Flow	34.51M	5.72M	30.54M	-1.64M	2.79M	17.30M
Investing Cash Flow	-10.15M	-28.53M	-35.22M	-11.95M	-7.79M	-2.85M
Financing Cash Flow	-16.64M	18.68M	48.70M	-681.00K	-4.87M	-8.05M

Aviat Networks Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 21.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVNW, the sentiment is Neutral. The current price of 21.23 is below the 20-day moving average (MA) of 21.23, below the 50-day MA of 22.42, and below the 200-day MA of 21.65, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 47.04 is Neutral, neither overbought nor oversold. The STOCH value of 29.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AVNW.

Aviat Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKTI	77 Outperform	$291.75M	23.03	38.74%	―	10.12%	153.04%
FEIM	76 Outperform	$470.50M	24.19	44.70%	―	16.06%	166.69%
AVNW	66 Neutral	$267.92M	20.36	5.24%	―	10.89%	―
AUDC	65 Neutral	$249.74M	19.78	7.67%	4.26%	0.15%	17.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CRNT	49 Neutral	$190.12M	134.87	0.84%	―	-3.78%	-92.62%
INSG	47 Neutral	$164.16M	-41.78	―	―	-17.45%	76.52%

Aviat Networks Corporate Events

Aviat Networks Appoints New CFO Andrew C. Schmidt

On December 3, 2025, Aviat Networks appointed Andrew C. Schmidt as Senior Vice President and Chief Financial Officer, succeeding Andrew Fredrickson, who served as interim CFO. Schmidt brings over 25 years of financial leadership experience, aligning with Aviat’s strategic goals to drive growth in public safety and software sales. His appointment is expected to strengthen Aviat’s global strategy and drive value for stakeholders as the company scales for growth.

Aviat Networks Updates Investor Relations Presentation

On November 18, 2025, Aviat Networks updated its investor relations presentation on its website, which will be used for discussions with current and potential investors. The presentation outlines Aviat’s strategic focus on mission-critical, 5G, and rural broadband networks, highlighting its consistent revenue growth and strong financial performance. The company emphasizes its competitive advantages, such as a modular radio platform, innovative software solutions, and a robust supply chain, which position it favorably against competitors in the microwave transmission industry.

Aviat Networks Holds Annual Stockholders Meeting 2025

Aviat Networks held its Fiscal Year 2025 Annual Meeting of Stockholders, where approximately 81.6% of the company’s shares were represented. During the meeting, stockholders elected directors for the upcoming year, ratified the appointment of Grant Thornton LLP as the independent registered public accounting firm for fiscal year 2026, approved the named executive officer compensation, and endorsed the Third Amended and Restated 2018 Incentive Plan.

Aviat Networks CFO Resignation Announced

On August 27, 2025, Aviat Networks announced that Michael Connaway, their Senior Vice President and Chief Financial Officer, voluntarily resigned from his position, effective September 10, 2025. Connaway will assist with the transition of his responsibilities until September 30, 2025, without any new compensatory arrangements being made.