VIAVI SOLUTIONS INC (VIAV) Stock Fundamental Analysis
USA - NASDAQ:VIAV - US9255501051 - Common Stock
16.335 USD
-0.24 (-1.48%)
Taking everything into account, VIAV scores 4 out of 10 in our fundamental rating. VIAV was compared to 48 industry peers in the Communications Equipment industry. There are concerns on the financial health of VIAV while its profitability can be described as average. VIAV is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VIAV was profitable.
VIAV had a positive operating cash flow in the past year.
VIAV had positive earnings in 4 of the past 5 years.
In the past 5 years VIAV always reported a positive cash flow from operatings.
1.2 Ratios
VIAV has a Return On Assets of 0.73%. This is comparable to the rest of the industry: VIAV outperforms 54.17% of its industry peers.
With a Return On Equity value of 2.10%, VIAV perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
VIAV's Return On Invested Capital of 2.69% is in line compared to the rest of the industry. VIAV outperforms 54.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VIAV is significantly below the industry average of 12.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.73% | ||
| ROE | 2.1% | ||
| ROIC | 2.69% |
ROA(3y)0.55%
ROA(5y)1.19%
ROE(3y)1.46%
ROE(5y)3.1%
ROIC(3y)3.35%
ROIC(5y)5.84%
1.3 Margins
VIAV has a Profit Margin (1.33%) which is comparable to the rest of the industry.
VIAV's Profit Margin has declined in the last couple of years.
VIAV's Operating Margin of 4.72% is fine compared to the rest of the industry. VIAV outperforms 60.42% of its industry peers.
In the last couple of years the Operating Margin of VIAV has declined.
The Gross Margin of VIAV (57.11%) is better than 79.17% of its industry peers.
VIAV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.72% | ||
| PM (TTM) | 1.33% | ||
| GM | 57.11% |
OM growth 3Y-27.88%
OM growth 5Y-12.89%
PM growth 3Y38.83%
PM growth 5Y-5.74%
GM growth 3Y-1.45%
GM growth 5Y-0.44%
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 has been increased compared to 1 year ago.
Compared to 5 years ago, VIAV has less shares outstanding
Compared to 1 year ago, VIAV has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -44.30, we must say that VIAV is in the distress zone and has some risk of bankruptcy.
VIAV has a Altman-Z score of -44.30. This is amonst the worse of the industry: VIAV underperforms 87.50% of its industry peers.
VIAV has a debt to FCF ratio of 10.31. This is a negative value and a sign of low solvency as VIAV would need 10.31 years to pay back of all of its debts.
VIAV has a Debt to FCF ratio of 10.31. This is comparable to the rest of the industry: VIAV outperforms 45.83% of its industry peers.
VIAV has a Debt/Equity ratio of 0.91. This is a neutral value indicating VIAV is somewhat dependend on debt financing.
VIAV has a Debt to Equity ratio of 0.91. This is amonst the worse of the industry: VIAV underperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 10.31 | ||
| Altman-Z | -44.3 |
ROIC/WACC0.3
WACC8.86%
2.3 Liquidity
VIAV has a Current Ratio of 1.99. This is a normal value and indicates that VIAV is financially healthy and should not expect problems in meeting its short term obligations.
VIAV has a Current ratio of 1.99. This is comparable to the rest of the industry: VIAV outperforms 47.92% of its industry peers.
A Quick Ratio of 1.74 indicates that VIAV should not have too much problems paying its short term obligations.
VIAV's Quick ratio of 1.74 is fine compared to the rest of the industry. VIAV outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 80.65% over the past year.
The Earnings Per Share has been decreasing by -8.43% on average over the past years.
The Revenue has grown by 15.60% in the past year. This is quite good.
Measured over the past years, VIAV shows a decrease in Revenue. The Revenue has been decreasing by -0.93% on average per year.
EPS 1Y (TTM)80.65%
EPS 3Y-20.63%
EPS 5Y-8.43%
EPS Q2Q%150%
Revenue 1Y (TTM)15.6%
Revenue growth 3Y-5.68%
Revenue growth 5Y-0.93%
Sales Q2Q%25.57%
3.2 Future
VIAV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 39.59% yearly.
VIAV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.80% yearly.
EPS Next Y37.73%
EPS Next 2Y31.23%
EPS Next 3Y39.59%
EPS Next 5YN/A
Revenue Next Year28.45%
Revenue Next 2Y18.21%
Revenue Next 3Y15.8%
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
Based on the Price/Earnings ratio of 29.17, the valuation of VIAV can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of VIAV indicates a somewhat cheap valuation: VIAV is cheaper than 60.42% of the companies listed in the same industry.
VIAV's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.46.
A Price/Forward Earnings ratio of 20.18 indicates a rather expensive valuation of VIAV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VIAV indicates a somewhat cheap valuation: VIAV is cheaper than 60.42% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.39. VIAV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.17 | ||
| Fwd PE | 20.18 |
4.2 Price Multiples
VIAV's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as VIAV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.56 | ||
| EV/EBITDA | 32.78 |
4.3 Compensation for Growth
VIAV's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VIAV's earnings are expected to grow with 39.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y31.23%
EPS Next 3Y39.59%
5. Dividend
5.1 Amount
No dividends for VIAV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:VIAV (11/19/2025, 2:58:14 PM)
16.335
-0.24 (-1.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.3%
Inst Owner Change4.23%
Ins Owners0.7%
Ins Owner Change10.29%
Market Cap3.65B
Revenue(TTM)1.15B
Net Income(TTM)15.20M
Analysts82.86
Price Target14.86 (-9.03%)
Short Float %6.41%
Short Ratio3.97
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)2
Avg EPS beat(2)11%
Min EPS beat(2)10.7%
Max EPS beat(2)11.29%
EPS beat(4)4
Avg EPS beat(4)18.48%
Min EPS beat(4)10.7%
Max EPS beat(4)28.09%
EPS beat(8)6
Avg EPS beat(8)11.58%
EPS beat(12)8
Avg EPS beat(12)9.81%
EPS beat(16)11
Avg EPS beat(16)9.1%
Revenue beat(2)0
Avg Revenue beat(2)-0.26%
Min Revenue beat(2)-0.38%
Max Revenue beat(2)-0.13%
Revenue beat(4)1
Avg Revenue beat(4)0.14%
Min Revenue beat(4)-1.03%
Max Revenue beat(4)2.12%
Revenue beat(8)1
Avg Revenue beat(8)-0.93%
Revenue beat(12)3
Avg Revenue beat(12)-0.65%
Revenue beat(16)6
Avg Revenue beat(16)-0.65%
PT rev (1m)4.08%
PT rev (3m)18.83%
EPS NQ rev (1m)19.14%
EPS NQ rev (3m)30.08%
EPS NY rev (1m)8.9%
EPS NY rev (3m)17.48%
Revenue NQ rev (1m)21.02%
Revenue NQ rev (3m)21.02%
Revenue NY rev (1m)16.11%
Revenue NY rev (3m)19.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.17 | ||
| Fwd PE | 20.18 | ||
| P/S | 3.18 | ||
| P/FCF | 46.56 | ||
| P/OCF | 33.98 | ||
| P/B | 5.04 | ||
| P/tB | 434.04 | ||
| EV/EBITDA | 32.78 |
EPS(TTM)0.56
EY3.43%
EPS(NY)0.81
Fwd EY4.96%
FCF(TTM)0.35
FCFY2.15%
OCF(TTM)0.48
OCFY2.94%
SpS5.13
BVpS3.24
TBVpS0.04
PEG (NY)0.77
PEG (5Y)N/A
Graham Number6.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.73% | ||
| ROE | 2.1% | ||
| ROCE | 3.41% | ||
| ROIC | 2.69% | ||
| ROICexc | 4.11% | ||
| ROICexgc | 13.19% | ||
| OM | 4.72% | ||
| PM (TTM) | 1.33% | ||
| GM | 57.11% | ||
| FCFM | 6.84% |
ROA(3y)0.55%
ROA(5y)1.19%
ROE(3y)1.46%
ROE(5y)3.1%
ROIC(3y)3.35%
ROIC(5y)5.84%
ROICexc(3y)5%
ROICexc(5y)10.58%
ROICexgc(3y)13.16%
ROICexgc(5y)90.91%
ROCE(3y)4.24%
ROCE(5y)7.4%
ROICexgc growth 3Y-17.05%
ROICexgc growth 5Y-2.08%
ROICexc growth 3Y-33.9%
ROICexc growth 5Y-13.3%
OM growth 3Y-27.88%
OM growth 5Y-12.89%
PM growth 3Y38.83%
PM growth 5Y-5.74%
GM growth 3Y-1.45%
GM growth 5Y-0.44%
F-Score6
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 10.31 | ||
| Debt/EBITDA | 5.43 | ||
| Cap/Depr | 43.41% | ||
| Cap/Sales | 2.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.82% | ||
| Profit Quality | 515.13% | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | -44.3 |
F-Score6
WACC8.86%
ROIC/WACC0.3
Cap/Depr(3y)50.36%
Cap/Depr(5y)59.63%
Cap/Sales(3y)3.04%
Cap/Sales(5y)3.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)80.65%
EPS 3Y-20.63%
EPS 5Y-8.43%
EPS Q2Q%150%
EPS Next Y37.73%
EPS Next 2Y31.23%
EPS Next 3Y39.59%
EPS Next 5YN/A
Revenue 1Y (TTM)15.6%
Revenue growth 3Y-5.68%
Revenue growth 5Y-0.93%
Sales Q2Q%25.57%
Revenue Next Year28.45%
Revenue Next 2Y18.21%
Revenue Next 3Y15.8%
Revenue Next 5YN/A
EBIT growth 1Y75.9%
EBIT growth 3Y-31.98%
EBIT growth 5Y-13.7%
EBIT Next Year52.33%
EBIT Next 3Y39.75%
EBIT Next 5YN/A
FCF growth 1Y-17.41%
FCF growth 3Y-16.26%
FCF growth 5Y-9.78%
OCF growth 1Y-22.13%
OCF growth 3Y-20.41%
OCF growth 5Y-7.91%
VIAVI SOLUTIONS INC / VIAV FAQ
What is the ChartMill fundamental rating of VIAVI SOLUTIONS INC (VIAV) stock?
ChartMill assigns a fundamental rating of 4 / 10 to VIAV.
What is the valuation status of VIAVI SOLUTIONS INC (VIAV) stock?
ChartMill assigns a valuation rating of 5 / 10 to VIAVI SOLUTIONS INC (VIAV). This can be considered as Fairly Valued.
Can you provide the profitability details for VIAVI SOLUTIONS INC?
VIAVI SOLUTIONS INC (VIAV) has a profitability rating of 4 / 10.
What is the earnings growth outlook for VIAVI SOLUTIONS INC?
The Earnings per Share (EPS) of VIAVI SOLUTIONS INC (VIAV) is expected to grow by 37.73% in the next year.