17.78 USD
+0.67 (+3.92%)
17.8109 USD
+0.03 (+0.17%)
We assign a fundamental rating of 4 out of 10 to VIAV. VIAV was compared to 48 industry peers in the Communications Equipment industry. VIAV has a medium profitability rating, but doesn't score so well on its financial health evaluation. VIAV is not valued too expensively and it also shows a decent growth rate.
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
VIAV has a Return On Assets (0.73%) which is comparable to the rest of the industry.
The Return On Equity of VIAV (2.10%) is better than 60.42% of its industry peers.
With a Return On Invested Capital value of 2.69%, VIAV perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VIAV is significantly below the industry average of 12.15%.
| 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 better Profit Margin (1.33%) than 60.42% of its industry peers.
VIAV's Profit Margin has declined in the last couple of years.
VIAV has a better Operating Margin (4.72%) than 60.42% of its industry peers.
VIAV's Operating Margin has declined in the last couple of years.
VIAV's Gross Margin of 57.11% is fine compared to the rest of the industry. VIAV outperforms 77.08% of its industry peers.
In the last couple of years the Gross Margin of VIAV has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VIAV is destroying value.
VIAV has more shares outstanding than it did 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 -44.18. This is a bad value and indicates that VIAV is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VIAV (-44.18) is worse than 85.42% 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.
The Debt to FCF ratio of VIAV (10.31) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.91 indicates that VIAV is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.91, VIAV is doing worse than 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 10.31 | ||
| Altman-Z | -44.18 |
ROIC/WACC0.3
WACC9.03%
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.
VIAV has a Quick Ratio of 1.74. 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 Quick ratio (1.74) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
VIAV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.65%, which is quite impressive.
VIAV shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.43% yearly.
Looking at the last year, VIAV shows a quite strong growth in Revenue. The Revenue has grown by 15.60% in the last year.
VIAV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.93% yearly.
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
The Earnings Per Share is expected to grow by 37.58% on average over the next years. This is a very strong growth
Based on estimates for the next years, VIAV will show a quite strong growth in Revenue. The Revenue will grow by 15.80% on average per year.
EPS Next Y46%
EPS Next 2Y34.38%
EPS Next 3Y37.58%
EPS Next 5YN/A
Revenue Next Year28.45%
Revenue Next 2Y18.21%
Revenue Next 3Y15.8%
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
With a Price/Earnings ratio of 31.75, VIAV can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of VIAV indicates a somewhat cheap valuation: VIAV is cheaper than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.19, VIAV is valued at the same level.
With a Price/Forward Earnings ratio of 20.95, VIAV is valued on the expensive side.
Based on the Price/Forward Earnings ratio, VIAV is valued a bit cheaper than the industry average as 64.58% of the companies are valued more expensively.
VIAV is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.75 | ||
| Fwd PE | 20.95 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VIAV.
Based on the Price/Free Cash Flow ratio, VIAV is valued a bit more expensive than 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.68 | ||
| EV/EBITDA | 35 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VIAV's earnings are expected to grow with 37.58% in the coming years.
PEG (NY)0.69
PEG (5Y)N/A
EPS Next 2Y34.38%
EPS Next 3Y37.58%
5. Dividend
5.1 Amount
VIAV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
17.78
+0.67 (+3.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.94%
Inst Owner Change0.25%
Ins Owners1.57%
Ins Owner Change5.32%
Market Cap3.97B
Revenue(TTM)1.15B
Net Income(TTM)15.20M
Analysts82.86
Price Target19.09 (7.37%)
Short Float %6.41%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1.55%
PT rev (3m)33.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)22.88%
EPS NY rev (1m)0%
EPS NY rev (3m)15.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)21.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)16.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.75 | ||
| Fwd PE | 20.95 | ||
| P/S | 3.47 | ||
| P/FCF | 50.68 | ||
| P/OCF | 36.99 | ||
| P/B | 5.48 | ||
| P/tB | 472.44 | ||
| EV/EBITDA | 35 |
EPS(TTM)0.56
EY3.15%
EPS(NY)0.85
Fwd EY4.77%
FCF(TTM)0.35
FCFY1.97%
OCF(TTM)0.48
OCFY2.7%
SpS5.13
BVpS3.24
TBVpS0.04
PEG (NY)0.69
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 | -44.18 |
F-Score6
WACC9.03%
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 Y46%
EPS Next 2Y34.38%
EPS Next 3Y37.58%
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 Year79.27%
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 for VIAV stock?
ChartMill assigns a valuation rating of 4 / 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 5 / 10.
Can you provide the PE and PB ratios for VIAV stock?
The Price/Earnings (PE) ratio for VIAVI SOLUTIONS INC (VIAV) is 31.75 and the Price/Book (PB) ratio is 5.48.
Can you provide the expected EPS growth for VIAV stock?
The Earnings per Share (EPS) of VIAVI SOLUTIONS INC (VIAV) is expected to grow by 46% in the next year.