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Update: Aviat Networks (NASDAQ:AVNW) Stock Gained 50% In The Last Five Years

Simply Wall St
·3 min read

It's been a soft week for Aviat Networks, Inc. (NASDAQ:AVNW) shares, which are down 16%. But the silver lining is the stock is up over five years. However we are not very impressed because the share price is only up 50%, less than the market return of 73%.

Check out our latest analysis for Aviat Networks

Given that Aviat Networks only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In the last 5 years Aviat Networks saw its revenue shrink by 6.0% per year. The stock is only up 8% for each year during the period. That's pretty decent given the top line decline, and lack of profits. We'd keep an eye on changes in the trend - there may be an opportunity if the company returns to growth.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
earnings-and-revenue-growth

It is of course excellent to see how Aviat Networks has grown profits over the years, but the future is more important for shareholders. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's nice to see that Aviat Networks shareholders have received a total shareholder return of 35% over the last year. That's better than the annualised return of 8% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Aviat Networks better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Aviat Networks you should know about.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.