VIAVI SOLUTIONS INC (VIAV) Stock Fundamental Analysis
NASDAQ:VIAV - Nasdaq - US9255501051 - Common Stock - Currency: USD
Taking everything into account, VIAV scores 4 out of 10 in our fundamental rating. VIAV was compared to 51 industry peers in the Communications Equipment industry. VIAV has only an average score on both its financial health and profitability. VIAV does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
VIAV had positive earnings in the past year.
VIAV had a positive operating cash flow in the past year.
VIAV had positive earnings in 4 of the past 5 years.
VIAV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -2.26%, VIAV perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
The Return On Equity of VIAV (-5.71%) is comparable to the rest of the industry.
The Return On Invested Capital of VIAV (1.70%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for VIAV is significantly below the industry average of 11.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.26% | ||
| ROE | -5.71% | ||
| ROIC | 1.7% |
ROA(3y)0.25%
ROA(5y)1.39%
ROE(3y)0.74%
ROE(5y)3.59%
ROIC(3y)5.6%
ROIC(5y)6.43%
1.3 Margins
VIAV has a Operating Margin (3.16%) which is in line with its industry peers.
VIAV's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 57.64%, VIAV is doing good in the industry, outperforming 80.00% of the companies in the same industry.
VIAV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.16% | ||
| PM (TTM) | N/A | ||
| GM | 57.64% |
OM growth 3Y-33.57%
OM growth 5Y-14.04%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.14%
GM growth 5Y-0.02%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VIAV is destroying value.
The number of shares outstanding for VIAV remains at a similar level compared to 1 year ago.
The number of shares outstanding for VIAV has been reduced compared to 5 years ago.
The debt/assets ratio for VIAV has been reduced compared to a year ago.
2.2 Solvency
VIAV has an Altman-Z score of -53.93. This is a bad value and indicates that VIAV is not financially healthy and even has some risk of bankruptcy.
VIAV has a Altman-Z score of -53.93. This is amonst the worse of the industry: VIAV underperforms 84.00% of its industry peers.
The Debt to FCF ratio of VIAV is 8.05, which is on the high side as it means it would take VIAV, 8.05 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.05, VIAV is in line with its industry, outperforming 48.00% of the companies in the same industry.
VIAV has a Debt/Equity ratio of 0.96. This is a neutral value indicating VIAV is somewhat dependend on debt financing.
VIAV's Debt to Equity ratio of 0.96 is on the low side compared to the rest of the industry. VIAV is outperformed by 78.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 8.05 | ||
| Altman-Z | -53.93 |
ROIC/WACC0.19
WACC8.81%
2.3 Liquidity
A Current Ratio of 3.55 indicates that VIAV has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.55, VIAV belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
A Quick Ratio of 3.18 indicates that VIAV has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.18, VIAV belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.55 | ||
| Quick Ratio | 3.18 |
3. Growth
3.1 Past
The earnings per share for VIAV have decreased strongly by -13.16% in the last year.
Measured over the past years, VIAV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.69% on average per year.
Looking at the last year, VIAV shows a decrease in Revenue. The Revenue has decreased by -0.67% in the last year.
VIAV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.41% yearly.
EPS 1Y (TTM)-13.16%
EPS 3Y-26.03%
EPS 5Y-12.69%
EPS Q2Q%18.18%
Revenue 1Y (TTM)-0.67%
Revenue growth 3Y-5.86%
Revenue growth 5Y-2.41%
Sales Q2Q%6.4%
3.2 Future
The Earnings Per Share is expected to grow by 25.15% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.84% on average over the next years.
EPS Next Y32.87%
EPS Next 2Y28.54%
EPS Next 3Y25.15%
EPS Next 5YN/A
Revenue Next Year8.43%
Revenue Next 2Y8.1%
Revenue Next 3Y6.84%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 35.15, VIAV can be considered very expensive at the moment.
Based on the Price/Earnings ratio, VIAV is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
VIAV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.65, which indicates a rather expensive current valuation of VIAV.
VIAV's Price/Forward Earnings ratio is in line with the industry average.
VIAV is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.15 | ||
| Fwd PE | 20.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VIAV is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as VIAV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.66 | ||
| EV/EBITDA | 31.07 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as VIAV's earnings are expected to grow with 25.15% in the coming years.
PEG (NY)1.07
PEG (5Y)N/A
EPS Next 2Y28.54%
EPS Next 3Y25.15%
5. Dividend
5.1 Amount
No dividends for VIAV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.6
-0.26 (-2.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners95.42%
Inst Owner Change3.22%
Ins Owners0.7%
Ins Owner Change7.34%
Market Cap2.58B
Analysts76
Price Target11.02 (-5%)
Short Float %1.9%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.54%
Min EPS beat(2)-1.02%
Max EPS beat(2)28.09%
EPS beat(4)2
Avg EPS beat(4)5.24%
Min EPS beat(4)-18.14%
Max EPS beat(4)28.09%
EPS beat(8)4
Avg EPS beat(8)5.88%
EPS beat(12)7
Avg EPS beat(12)6.33%
EPS beat(16)11
Avg EPS beat(16)8.27%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-2.74%
Max Revenue beat(2)2.12%
Revenue beat(4)1
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-3.17%
Max Revenue beat(4)2.12%
Revenue beat(8)2
Avg Revenue beat(8)-1.12%
Revenue beat(12)5
Avg Revenue beat(12)-0.87%
Revenue beat(16)9
Avg Revenue beat(16)-0.13%
PT rev (1m)2.02%
PT rev (3m)17.29%
EPS NQ rev (1m)32.91%
EPS NQ rev (3m)5.88%
EPS NY rev (1m)16.38%
EPS NY rev (3m)15.98%
Revenue NQ rev (1m)10.41%
Revenue NQ rev (3m)8.51%
Revenue NY rev (1m)5.64%
Revenue NY rev (3m)5.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.15 | ||
| Fwd PE | 20.65 | ||
| P/S | 2.56 | ||
| P/FCF | 31.66 | ||
| P/OCF | 24.8 | ||
| P/B | 3.77 | ||
| P/tB | 12.73 | ||
| EV/EBITDA | 31.07 |
EPS(TTM)0.33
EY2.84%
EPS(NY)0.56
Fwd EY4.84%
FCF(TTM)0.37
FCFY3.16%
OCF(TTM)0.47
OCFY4.03%
SpS4.53
BVpS3.07
TBVpS0.91
PEG (NY)1.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.26% | ||
| ROE | -5.71% | ||
| ROCE | 2.15% | ||
| ROIC | 1.7% | ||
| ROICexc | 2.6% | ||
| ROICexgc | 5.15% | ||
| OM | 3.16% | ||
| PM (TTM) | N/A | ||
| GM | 57.64% | ||
| FCFM | 8.08% |
ROA(3y)0.25%
ROA(5y)1.39%
ROE(3y)0.74%
ROE(5y)3.59%
ROIC(3y)5.6%
ROIC(5y)6.43%
ROICexc(3y)8.86%
ROICexc(5y)11.55%
ROICexgc(3y)17.75%
ROICexgc(5y)91.31%
ROCE(3y)7.08%
ROCE(5y)8.14%
ROICexcg growth 3Y-75.9%
ROICexcg growth 5Y-19.44%
ROICexc growth 3Y-49.87%
ROICexc growth 5Y-15.96%
OM growth 3Y-33.57%
OM growth 5Y-14.04%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.14%
GM growth 5Y-0.02%
F-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 8.05 | ||
| Debt/EBITDA | 7.38 | ||
| Cap/Depr | 39.47% | ||
| Cap/Sales | 2.23% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 117.01% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.55 | ||
| Quick Ratio | 3.18 | ||
| Altman-Z | -53.93 |
F-Score6
WACC8.81%
ROIC/WACC0.19
Cap/Depr(3y)67.63%
Cap/Depr(5y)56.68%
Cap/Sales(3y)4.06%
Cap/Sales(5y)3.87%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.16%
EPS 3Y-26.03%
EPS 5Y-12.69%
EPS Q2Q%18.18%
EPS Next Y32.87%
EPS Next 2Y28.54%
EPS Next 3Y25.15%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.67%
Revenue growth 3Y-5.86%
Revenue growth 5Y-2.41%
Sales Q2Q%6.4%
Revenue Next Year8.43%
Revenue Next 2Y8.1%
Revenue Next 3Y6.84%
Revenue Next 5YN/A
EBIT growth 1Y-46.37%
EBIT growth 3Y-37.46%
EBIT growth 5Y-16.11%
EBIT Next Year65.69%
EBIT Next 3Y30.14%
EBIT Next 5YN/A
FCF growth 1Y-21.73%
FCF growth 3Y-20.27%
FCF growth 5Y0.65%
OCF growth 1Y-40.73%
OCF growth 3Y-21.79%
OCF growth 5Y-3.46%