Aviat Networks (AVNW) AI Stock Analysis

• Market Cap: $292.82M
• Dividend Yield: N/A
• Average Volume (3M): 92.40K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.75
• 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: 115,610
• 30 Day Avg. Volume: 92,403
• 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: 1.15
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 2.16
• Enterprise Value/Ebitda: 9.78
• 1Y Price Target: $33.20
• Price Target Upside: 41.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 2.52
• Revenue Forecast (FY): $450.60M

• Rating: 72 Outperform
• Price Target: $27.00 ▲(15.19% Upside)

Aviat Networks' overall stock score reflects strong earnings call performance and positive technical indicators. However, financial performance is hindered by low profitability and cash flow challenges. The valuation suggests potential overvaluation, and the absence of a dividend yield may deter income-focused investors. Despite these concerns, the company's growth prospects and strategic initiatives in private networks and new product launches provide a positive outlook.

Positive Factors

Revenue Growth

Aviat Networks' substantial revenue growth indicates strong demand for its products and services, enhancing its market position and supporting long-term business expansion.

Product Innovation

The introduction of new products like the Aprisa LTE 5G router positions Aviat Networks to capture growth in emerging markets, driving future revenue streams.

Market Expansion

Expanding presence in North America and international markets diversifies Aviat's revenue base, reducing reliance on any single market and enhancing resilience.

Negative Factors

Profitability Concerns

Low net profit margins indicate challenges in achieving profitability, which may hinder the company's ability to reinvest in growth and innovation.

Cash Flow Challenges

Challenges in cash flow generation could limit Aviat's ability to fund operations and strategic initiatives, impacting long-term financial health.

Leadership Changes

The resignation of the CFO may lead to transitional challenges and uncertainty in financial management, potentially affecting strategic execution.

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.

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	34.47M	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: Positive
• Last Price: 23.44
• 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 23.44 is below the 20-day moving average (MA) of 23.93, above the 50-day MA of 23.29, and above the 200-day MA of 21.64, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 21.95 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
BKTI	79 Outperform	$273.08M	23.86	38.74%	―	10.12%	153.04%
FEIM	76 Outperform	$309.93M	13.71	49.16%	―	18.30%	262.72%
AVNW	72 Outperform	$292.82M	21.87	5.24%	―	10.89%	―
CRNT	70 Outperform	$207.00M	15.21	8.61%	―	5.06%	29.66%
AUDC	65 Neutral	$264.39M	20.28	7.67%	4.09%	0.15%	17.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
INSG	50 Neutral	$216.93M	-53.33	―	―	-17.45%	76.52%

Aviat Networks Corporate Events

Aviat Networks Reports Strong Growth Amid Challenges

Aviat Networks’ recent earnings call conveyed a generally positive sentiment, highlighted by strong revenue growth and improved financial metrics. The company has successfully launched new products and experienced increased demand in private networks. However, there are some concerns regarding the potential impacts of the U.S. federal government shutdown, which could influence the timing of revenue.

Aviat Networks Reports Strong Q1 Fiscal 2026 Results

Aviat Networks, Inc., headquartered in Austin, Texas, is a leading provider of wireless transport and access solutions, serving communications service providers and private network operators globally.

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.

The most recent analyst rating on (AVNW) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Aviat Networks stock, see the AVNW Stock Forecast page.

Aviat Networks Reports Mixed Earnings with Record EBITDA

The recent earnings call for Aviat Networks presented a nuanced picture of the company’s financial health and future prospects. While the company celebrated record achievements in adjusted EBITDA and EPS growth, it also faced challenges such as a slight decline in revenue and identified material weaknesses in its control processes. The sentiment was mixed, with optimism surrounding ongoing demand in private networks and new product launches, tempered by concerns over international revenue challenges and control issues.

Aviat Networks Reports Strong Fiscal 2025 Results

Aviat Networks, Inc., headquartered in Austin, Texas, is a leading provider of wireless transport and access solutions, serving a diverse range of clients including communications service providers and private network operators worldwide.

Aviat Networks Secures $20M Credit Agreement Amendment

On August 28, 2025, Aviat Networks entered into a Third Amendment to its Credit Agreement, enhancing its financial flexibility with an additional $20 million in both Incremental Term Loan Commitments and Revolving Credit Commitment. This amendment, involving new lenders, is expected to strengthen Aviat’s financial position and support its strategic initiatives in the telecommunications sector.

The most recent analyst rating on (AVNW) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Aviat Networks stock, see the AVNW Stock Forecast page.

Aviat Networks Appoints Interim CFO Amid Leadership Change

On August 27, 2025, Aviat Networks announced the appointment of Andrew M. Fredrickson as Interim Chief Financial Officer following the resignation of Michael Connaway, effective after the filing of the company’s Form 10-K for fiscal year 2025. Fredrickson, who joined Aviat in 2022, brings extensive experience in corporate finance and strategy, and will lead the finance organization during the search for a permanent CFO. The company also released preliminary financial results for the fourth quarter of fiscal 2025, estimating a GAAP net income of over $4.5 million and a non-GAAP adjusted EBITDA exceeding $14.0 million, reflecting significant growth compared to the previous year.

The most recent analyst rating on (AVNW) stock is a Hold with a $21.50 price target. To see the full list of analyst forecasts on Aviat Networks stock, see the AVNW Stock Forecast page.