Aviat Networks Return On Asset vs. Price To Book

AVNW Stock  USD 17.54  0.40  2.23%   
Based on Aviat Networks' profitability indicators, Aviat Networks may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Aviat Networks' ability to earn profits and add value for shareholders. At this time, Aviat Networks' Price To Sales Ratio is fairly stable compared to the past year. EV To Sales is likely to climb to 2.50 in 2024, whereas Operating Cash Flow Sales Ratio is likely to drop (0.01) in 2024. At this time, Aviat Networks' Operating Income is fairly stable compared to the past year. Income Before Tax is likely to climb to about 17.8 M in 2024, whereas Total Other Income Expense Net is likely to drop (2.6 M) in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.280.3547
Significantly Down
Slightly volatile
For Aviat Networks profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Aviat Networks to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Aviat Networks utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Aviat Networks's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Aviat Networks over time as well as its relative position and ranking within its peers.
  

Aviat Networks' Revenue Breakdown by Earning Segment

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Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Aviat Networks. If investors know Aviat will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Aviat Networks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.84)
Earnings Share
(0.38)
Revenue Per Share
32.9
Quarterly Revenue Growth
0.017
Return On Assets
0.0135
The market value of Aviat Networks is measured differently than its book value, which is the value of Aviat that is recorded on the company's balance sheet. Investors also form their own opinion of Aviat Networks' value that differs from its market value or its book value, called intrinsic value, which is Aviat Networks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Aviat Networks' market value can be influenced by many factors that don't directly affect Aviat Networks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Aviat Networks' value and its price as these two are different measures arrived at by different means. Investors typically determine if Aviat Networks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aviat Networks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Aviat Networks Price To Book vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Aviat Networks's current stock value. Our valuation model uses many indicators to compare Aviat Networks value to that of its competitors to determine the firm's financial worth.
Aviat Networks is rated below average in return on asset category among its peers. It is rated below average in price to book category among its peers fabricating about  64.21  of Price To Book per Return On Asset. Price To Book Ratio is likely to climb to 9.43 in 2024. Comparative valuation analysis is a catch-all technique that is used if you cannot value Aviat Networks by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Aviat Price To Book vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Aviat Networks

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0135
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Aviat Networks

P/B

 = 

MV Per Share

BV Per Share

 = 
0.87 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

Aviat Price To Book Comparison

Aviat Networks is currently under evaluation in price to book category among its peers.

Aviat Networks Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Aviat Networks, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Aviat Networks will eventually generate negative long term returns. The profitability progress is the general direction of Aviat Networks' change in net profit over the period of time. It can combine multiple indicators of Aviat Networks, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-19.3 M-20.3 M
Operating Income19.4 M20.4 M
Income Before Tax16.9 M17.8 M
Total Other Income Expense Net-2.5 M-2.6 M
Net Income10.8 M11.3 M
Income Tax Expense6.1 M6.5 M
Net Income From Continuing Ops10.8 M11.3 M
Net Income Applicable To Common Shares13.3 M13.9 M
Non Operating Income Net Other-3 M-2.8 M
Net Interest Income-2.3 M-2.2 M
Interest Income264.5 K292.1 K
Change To Netincome18.5 M19.4 M
Net Loss 0.88 (0.14)
Income Quality 2.84  1.36 
Net Income Per E B T 0.64  3.19 

Aviat Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Aviat Networks. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Aviat Networks position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Aviat Networks' important profitability drivers and their relationship over time.

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Funds or Etfs that invest most of their assets into speculative (junk) bonds or to other fixed income instruments with interest rates 3 to 4 percentage points above government issues. The Junk Bonds Funds theme has 38 constituents at this time.
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Additional Tools for Aviat Stock Analysis

When running Aviat Networks' price analysis, check to measure Aviat Networks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Aviat Networks is operating at the current time. Most of Aviat Networks' value examination focuses on studying past and present price action to predict the probability of Aviat Networks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Aviat Networks' price. Additionally, you may evaluate how the addition of Aviat Networks to your portfolios can decrease your overall portfolio volatility.