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 49 industry peers in the Communications Equipment industry. VIAV has an average financial health and profitability rating. VIAV has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year VIAV was profitable.
VIAV had a positive operating cash flow in the past year.
Of the past 5 years VIAV 4 years were profitable.
In the past 5 years VIAV always reported a positive cash flow from operatings.
1.2 Ratios
VIAV has a Return On Assets of -2.26%. This is comparable to the rest of the industry: VIAV outperforms 57.14% of its industry peers.
VIAV has a Return On Equity (-5.71%) which is in line with its industry peers.
With a Return On Invested Capital value of 1.70%, VIAV perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VIAV is significantly below the industry average of 10.99%.
| 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 of 3.16%. This is comparable to the rest of the industry: VIAV outperforms 59.18% of its industry peers.
VIAV's Operating Margin has declined in the last couple of years.
The Gross Margin of VIAV (57.64%) is better than 79.59% of its industry peers.
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.
Compared to 1 year ago, VIAV has about the same amount of shares outstanding.
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
VIAV has an Altman-Z score of -54.18. This is a bad value and indicates that VIAV is not financially healthy and even has some risk of bankruptcy.
VIAV's Altman-Z score of -54.18 is on the low side compared to the rest of the industry. VIAV is outperformed by 87.76% 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.
VIAV has a Debt to FCF ratio of 8.05. This is comparable to the rest of the industry: VIAV outperforms 44.90% of its industry peers.
A Debt/Equity ratio of 0.96 indicates that VIAV is somewhat dependend on debt financing.
VIAV has a worse Debt to Equity ratio (0.96) than 77.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 8.05 | ||
| Altman-Z | -54.18 |
ROIC/WACC0.19
WACC8.94%
2.3 Liquidity
VIAV has a Current Ratio of 3.55. This indicates that VIAV is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.55, VIAV is doing good in the industry, outperforming 79.59% 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.
The Quick ratio of VIAV (3.18) is better than 83.67% of its industry peers.
| 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.
VIAV shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.69% yearly.
The Revenue has decreased by -0.67% in the past year.
Measured over the past years, VIAV shows a decrease in Revenue. The Revenue has been decreasing by -2.41% on average per year.
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
Based on estimates for the next years, VIAV will show a very strong growth in Earnings Per Share. The EPS will grow by 25.15% on average per year.
VIAV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.84% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.88, the valuation of VIAV can be described as expensive.
65.31% of the companies in the same industry are more expensive than VIAV, based on the Price/Earnings ratio.
VIAV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 17.55, the valuation of VIAV can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VIAV is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of VIAV to the average of the S&P500 Index (21.32), we can say VIAV is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.88 | ||
| Fwd PE | 17.55 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VIAV is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.91 | ||
| EV/EBITDA | 26.06 |
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 25.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
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 |
9.86
-0.04 (-0.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.35%
Inst Owner Change0.09%
Ins Owners0.71%
Ins Owner Change5.08%
Market Cap2.19B
Analysts77.33
Price Target12.94 (31.24%)
Short Float %2.73%
Short Ratio2.72
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)2.01%
PT rev (3m)19.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)32.91%
EPS NY rev (1m)0%
EPS NY rev (3m)16.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)5.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.88 | ||
| Fwd PE | 17.55 | ||
| P/S | 2.18 | ||
| P/FCF | 26.91 | ||
| P/OCF | 21.08 | ||
| P/B | 3.21 | ||
| P/tB | 10.82 | ||
| EV/EBITDA | 26.06 |
EPS(TTM)0.33
EY3.35%
EPS(NY)0.56
Fwd EY5.7%
FCF(TTM)0.37
FCFY3.72%
OCF(TTM)0.47
OCFY4.74%
SpS4.53
BVpS3.07
TBVpS0.91
PEG (NY)0.91
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 | -54.18 |
F-Score6
WACC8.94%
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%