One-glance verdict
Within fair range
$28.43 our estimate vs market $20.30
Wall Street consensus: $32.75 (15.2% higher than our fair-value estimate)
29% below our estimate
Fundamentals snapshot
Aviat Networks, Inc.
AVNW · NMS · Technology · Communication Equipment
Current price
$20.30
52-week range
$13.92 - $27.02
Market cap
$259.87M
Balance sheet
Stretched
2.78x Stretched
Net debt $26.34M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 15.2% last year.
- Reward Returns 1.0% on equity, ahead of 40% of its peers.
- Risk Operating margin compressed from 8.0% to 6.3% over 3 years.
- Risk Stock trades 0.5% above its 5-year average P/E.
What this company does
Aviat Networks, Inc.
Aviat Networks sells the specialized wireless equipment and software used to connect networks in places where running physical cables is difficult, like linking remote cell phone towers or utility stations. The company makes money by selling this hardware and from ongoing support contracts with its customers, which are mainly mobile carriers and large private network operators like government agencies. This matters because as the world's demand for fast, reliable data grows, so does the need to build out the wireless backbones that carry all that information.
How the company got here
Aviat Networks was formed in 2007 through the merger of two existing businesses: the microwave division of Harris Corporation and Stratex Networks. Initially called Harris Stratex Networks, the company changed its name to Aviat Networks in 2010 to reflect its broader focus on wireless networking solutions. Over the years, it has made strategic acquisitions, such as buying Redline Communications in 2022, to add new technologies and products to its portfolio. The company has a long history, with its predecessor companies having been involved in microwave communications for decades.
What it actually does
Think of Aviat Networks as a company that creates high-speed wireless bridges for data. Instead of using underground fiber optic cables, Aviat uses microwave radio signals to connect different points in a communication network, a service often called 'wireless backhaul.' Its main customers are mobile phone operators who need to connect their cell towers to their main network, and private network operators like utility companies, government agencies, and transportation departments that need reliable communication for their own operations. Aviat sells the physical equipment like radios and routers, the software to manage the network, and the expert services to design, build, and maintain it all.
Wireless Transport Products
This is the company's core business, focused on moving large amounts of data over distances wirelessly. Aviat sells specialized microwave and millimeter wave radios that are typically installed on towers or rooftops to create a high-capacity link between two points. Mobile service providers are major customers, using this technology to connect their 5G cell towers to the rest of their network without having to dig trenches for fiber optic cables. This segment represents the foundational hardware that the company was built on.
Wireless Access and Router Products
This part of the business provides the equipment to connect specific locations or devices to a network. This includes rugged routers designed for use in vehicles (like police cars or utility trucks) and radios that provide internet access to remote industrial sites or rural communities. These products are often used by private network operators—like an energy company connecting its facilities or a city providing broadband in a new area—to create reliable and secure connections for their critical operations. This is a growing area for the company, expanded through acquisitions.
Software
Aviat provides a suite of software tools that help customers plan, manage, and monitor their wireless networks. This includes cloud-based applications that allow an engineer to design a wireless link from anywhere, and management platforms that give network operators a single dashboard to see the health of all their equipment. Customers pay for these tools to simplify the complexity of running their network and to ensure everything stays reliable. This is a key piece of making the hardware easy to use and efficient to operate.
Services
Beyond selling hardware and software, Aviat offers its expertise to customers through a wide range of services. This can include everything from the initial planning and design of a network, to physically installing the equipment, to managing the entire network for the customer around the clock. Customers pay for these services to reduce their own operational risk (the risk of something going wrong in the day-to-day running of the business) and to tap into Aviat's specialized knowledge, which can be cheaper than hiring and training their own teams.
What management is betting on now
The company's leadership is focused on expanding its business with private networks, such as utility, transportation, and public safety agencies that need highly reliable communication. They also see a major opportunity in providing the wireless connections for new rural broadband internet projects, which are receiving significant government funding. As mobile companies continue to build out their 5G networks, Aviat aims to provide the critical backhaul (the high-capacity links that connect the local cell sites to the main internet) needed to support them. A key part of their strategy is to create products and software that lower the total cost of ownership (the full cost of a product, including long-term operational expenses like power and maintenance) for their customers.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$-32.59M
FY2025 Q2
$18.26M
FY2025 Q3
$-1.17M
FY2025 Q4
$8.24M
FY2026 Q1
$-13.47M
FY2026 Q2
$22.48M
FY2026 Q3
$-5.39M
FY2026 Q4
$2.47M
Revenue
—
Net income
$-1.28M
Diluted EPS
-0.10
Operating cash flow
$3.09M
Free cash flow
$2.47M
Fetching…
Sources
Revenue
—
Net income
$-2.06M
Diluted EPS
-0.16
Operating cash flow
$-1.70M
Free cash flow
$-5.39M
Fetching…
Sources
Revenue
—
Net income
$5.72M
Diluted EPS
0.44
Operating cash flow
$23.92M
Free cash flow
$22.48M
Fetching…
Sources
Revenue
—
Net income
$162.00K
Diluted EPS
0.01
Operating cash flow
$-11.74M
Free cash flow
$-13.47M
Fetching…
Sources
Revenue
—
Net income
$5.20M
Diluted EPS
0.42
Operating cash flow
$10.51M
Free cash flow
$8.24M
Fetching…
Sources
Revenue
—
Net income
$3.53M
Diluted EPS
0.27
Operating cash flow
$1.62M
Free cash flow
$-1.17M
Fetching…
Sources
Revenue
—
Net income
$4.50M
Diluted EPS
0.35
Operating cash flow
$20.75M
Free cash flow
$18.26M
Fetching…
Sources
Revenue
—
Net income
$-11.88M
Diluted EPS
-0.94
Operating cash flow
$-27.16M
Free cash flow
$-32.59M
Fetching…
Sources
Is it cheap or expensive?
Fair value $28.43 vs current price $20.30
Wall Street consensus is the average analyst price target: $32.75 (15.2% higher than our fair-value estimate).
Our most-likely fair value is $28.43 a share — about 40.1% away from today's price of $20.30, so the stock currently looks fairly priced.
Is it drowning in debt?
Stretched
Net debt $26.3M. Interest coverage 2.8x.
Net debt
$26.34M
Interest coverage
2.78x
Aviat Networks, Inc.'s profit covers its interest bill about 2.8 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
AVNW
BASELINE
Aviat Networks, Inc.
Total debt $99.18M Interest coverage 2.78x This is the baseline the peer rows are being compared against.
Total debt $28.78M Interest coverage 2.20x -21% vs AVNW Carries about 1.3x less debt cushion than AVNW.
Total debt $9.62M Interest coverage 2.89x +4% vs AVNW Has roughly the same debt cushion as AVNW.
Total debt $242.66M Interest coverage -0.81x -100% vs AVNW This peer has almost no interest-payment cushion compared with AVNW.
Total debt $397.01M Interest coverage 0.46x -83% vs AVNW Carries about 6.1x less debt cushion than AVNW.
Total debt $53.70M Interest coverage 1.25x -55% vs AVNW Carries about 2.2x less debt cushion than AVNW.
What you should know
The case for and against AVNW
3 Rewards
2 Risks
Rewards
-
Revenue grew 15.2% last year.
-
Returns 1.0% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
-
Operating margin compressed from 8.0% to 6.3% over 3 years.
-
Stock trades 0.5% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
106.84x
Forward P/E
6.79x
P/B
0.97x
P/S
0.59x
EV/EBITDA
10.41x
PEG ratio
5.33x
Profitability
How much profit each dollar creates
Gross margin
31.5%
Operating margin
6.3%
Net margin
0.6%
ROE
1.0%
ROA
2.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.37x
Current ratio
1.97x
Quick ratio
1.56x
Total debt
$99.18M
Total cash
$72.84M
Growth
How the business has been compounding
Revenue TTM
$274.91M
Revenue 5Y CAGR
45.3%
EPS TTM
0.19
EPS 5Y CAGR
-41.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$13.56M
Free CF TTM
$6.09M
FCF margin
2.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
—