Is AVNW a high-quality business?

AlphaMadera's AlphaQuality grade scores Aviat Networks, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how AVNW compares to a Buffett-style quality bar.

What is Aviat Networks, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to AVNW based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes AVNW a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

AVNW - Aviat Networks, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $31.33 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

D 33.9 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

F 19.9

5yr Avg ROIC 3.7% 28/100
Operating Margin Trend -3.81 pp/yr 0/100

Capital Efficiency

Weight: 15%

D 33.6

5yr Avg ROE 4.9% 35/100
5yr Share-Count CAGR 2.1% 32/100

Growth Quality

Weight: 15%

C 51.4

5yr Revenue CAGR 9.4% 79/100
5yr EPS CAGR -67.9% 0/100
Revenue-Growth Years (5) 4/5 80/100

Cash Generation

Weight: 15%

F 18.3

5yr FCF Margin 1.6% 33/100
5yr FCF/NI Conversion -0.55x 0/100

Balance Sheet

Weight: 20%

D+ 41.1

Net Debt / EBITDA 1.77x 74/100
Interest Coverage (EBIT/Int) 1.59x 22/100
Altman Z-Score 0.43 6/100

Stability

Weight: 15%

D+ 41.7

EPS Volatility (σ/μ) 1.79 0/100
Piotroski F-Score 5 56/100
Negative-Revenue Years (5) 0/5 100/100

1 of 1 gurus held; 1 trimmed.

Holders: 1
Avg Δ position: -2.1%
New buys: 0
Full exits: 0

Cooperman decreased -2%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.