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AVNW Stock Analysis - AVIAT NETWORKS, INC. AI Rating

AVNW Nasdaq Radio & Tv Broadcasting & Communications Equipment DE CIK: 0001377789
Recently Updated • Analysis: Mar 20, 2026 • SEC Data: 2025-12-26
AI Rating
HOLD
62% Confidence

📊 AVNW Key Takeaways

Revenue: $218.8M
Net Margin: 2.7%
Free Cash Flow: $9.0M
Current Ratio: 1.85x
Debt/Equity: 0.39x
EPS: $0.45
AI Rating: HOLD with 62% confidence

Investment Thesis

Aviat Networks demonstrates modest revenue growth of 6.5% YoY with stable net income, supported by adequate liquidity and a conservative debt position. However, profitability margins remain thin across the board, and the dramatic 88.4% decline in diluted EPS raises concerns about earnings quality and potential one-time charges that warrant further investigation.

AVNW Strengths

  • + Strong liquidity position with 1.85x current ratio and $86.5M cash
  • + Conservative leverage with 0.39x debt-to-equity ratio
  • + Positive free cash flow generation of $9.0M despite capex spending
  • + Consistent revenue growth of 6.5% YoY in competitive communications equipment sector

AVNW Risks

  • ! Severe EPS dilution of 88.4% YoY despite flat net income suggests share count increase or one-time charges
  • ! Extremely thin net margin of 2.7% leaves minimal room for operational errors or market downturns
  • ! Weak return metrics (ROE 2.2%, ROA 0.9%) indicate inefficient capital utilization
  • ! Low operating margin of 5.7% relative to gross margin of 32.8% suggests high operating expenses

Key Metrics to Watch

AVNW Financial Metrics

Revenue
$218.8M
Net Income
$5.9M
EPS (Diluted)
$0.45
Free Cash Flow
$9.0M
Total Assets
$659.4M
Cash Position
$86.5M

💡 AI Analyst Insight

The relatively thin 4.1% FCF margin may limit capital allocation flexibility.

AVNW Profitability Ratios

Gross Margin 32.8%
Operating Margin 5.7%
Net Margin 2.7%
ROE 2.2%
ROA 0.9%
FCF Margin 4.1%

AVNW vs Default Sector

How AVIAT NETWORKS, INC. compares to Default sector averages

Net Margin
AVNW 2.7%
vs
Sector Avg 12.0%
AVNW Sector
ROE
AVNW 2.2%
vs
Sector Avg 15.0%
AVNW Sector
Current Ratio
AVNW 1.8x
vs
Sector Avg 1.8x
AVNW Sector
Debt/Equity
AVNW 0.4x
vs
Sector Avg 0.7x
AVNW Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

AVNW Balance Sheet & Liquidity

Current Ratio
1.85x
Quick Ratio
1.81x
Debt/Equity
0.39x
Debt/Assets
58.8%
Interest Coverage
N/A
Long-term Debt
$105.4M

AVNW 5-Year Financial Trend

AVNW 5-year financial data: Year 2019: Revenue $243.9M, Net Income N/A, EPS N/A. Year 2020: Revenue $243.9M, Net Income N/A, EPS N/A. Year 2021: Revenue $274.9M, Net Income $9.7M, EPS $0.87.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: AVIAT NETWORKS, INC.'s revenue has grown significantly by 13% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.86 reflects profitable operations.

AVNW Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
4.1%
Free cash flow / Revenue

AVNW Quarterly Performance

Quarterly financial performance data for AVIAT NETWORKS, INC. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q2 2026 $111.5M $4.5M $0.35
Q1 2026 $88.4M $162.0K $0.01
Q3 2025 $110.8M $3.5M $0.27
Q2 2025 $93.7M $1.8M $0.15
Q1 2025 $86.9M $3.6M $0.30
Q3 2024 $83.5M $3.4M $0.27
Q2 2024 $90.7M $2.9M $0.24
Q1 2024 $81.3M -$2.7M $-0.25

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

AVNW Capital Allocation

Operating Cash Flow
$12.2M
Cash generated from operations
Capital Expenditures
$3.2M
Investment in assets
Dividends
None
No dividend program

AVNW SEC Filings

Access official SEC EDGAR filings for AVIAT NETWORKS, INC. (CIK: 0001377789)

📋 Recent SEC Filings

Date Form Document Action
Mar 10, 2026 8-K avnw-20260310.htm View →
Feb 27, 2026 8-K avnw-20260227.htm View →
Feb 10, 2026 4 xslF345X05/wk-form4_1770764098.xml View →
Feb 9, 2026 4 xslF345X05/wk-form4_1770676133.xml View →
Feb 3, 2026 10-Q avnw-20251226.htm View →

Frequently Asked Questions about AVNW

What is the AI rating for AVNW?

AVIAT NETWORKS, INC. (AVNW) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are AVNW's key strengths?

Strong liquidity position with 1.85x current ratio and $86.5M cash. Conservative leverage with 0.39x debt-to-equity ratio.

What are the risks of investing in AVNW?

Severe EPS dilution of 88.4% YoY despite flat net income suggests share count increase or one-time charges. Extremely thin net margin of 2.7% leaves minimal room for operational errors or market downturns.

What is AVNW's revenue and growth?

AVIAT NETWORKS, INC. reported revenue of $218.8M.

Does AVNW pay dividends?

AVIAT NETWORKS, INC. does not currently pay dividends.

Where can I find AVNW SEC filings?

Official SEC filings for AVIAT NETWORKS, INC. (CIK: 0001377789) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is AVNW's EPS?

AVIAT NETWORKS, INC. has a diluted EPS of $0.45.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 20, 2026 | Data as of: 2025-12-26 | Powered by Claude AI