VIAVI SOLUTIONS INC (VIAV) Stock Fundamental Analysis
NASDAQ:VIAV - Nasdaq - US9255501051 - Common Stock
We assign a fundamental rating of 4 out of 10 to VIAV. VIAV was compared to 51 industry peers in the Communications Equipment industry. Both the profitability and the financial health of VIAV get a neutral evaluation. Nothing too spectacular is happening here. 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.
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
The Return On Assets of VIAV (-2.15%) is comparable to the rest of the industry.
VIAV has a Return On Equity (-5.33%) which is in line with its industry peers.
VIAV has a Return On Invested Capital of 1.61%. This is in the better half of the industry: VIAV outperforms 62.75% of its industry peers.
VIAV had an Average Return On Invested Capital over the past 3 years of 5.60%. This is significantly below the industry average of 11.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.15% | ||
| ROE | -5.33% | ||
| ROIC | 1.61% |
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 better Operating Margin (3.10%) than 62.75% of its industry peers.
VIAV's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 57.29%, VIAV belongs to the top of the industry, outperforming 80.39% 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 | 3.1% | ||
| PM (TTM) | N/A | ||
| GM | 57.29% |
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
VIAV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VIAV has about the same amout of shares outstanding than it did 1 year ago.
VIAV has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, VIAV has an improved debt to assets ratio.
2.2 Solvency
VIAV has an Altman-Z score of -53.75. This is a bad value and indicates that VIAV is not financially healthy and even has some risk of bankruptcy.
VIAV has a worse Altman-Z score (-53.75) than 88.24% of its industry peers.
The Debt to FCF ratio of VIAV is 10.98, which is on the high side as it means it would take VIAV, 10.98 years of fcf income to pay off all of its debts.
VIAV's Debt to FCF ratio of 10.98 is in line compared to the rest of the industry. VIAV outperforms 50.98% of its industry peers.
VIAV has a Debt/Equity ratio of 0.93. This is a neutral value indicating VIAV is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.93, VIAV is not doing good in the industry: 78.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 10.98 | ||
| Altman-Z | -53.75 |
ROIC/WACC0.18
WACC9.07%
2.3 Liquidity
VIAV has a Current Ratio of 3.71. This indicates that VIAV is financially healthy and has no problem in meeting its short term obligations.
VIAV has a Current ratio of 3.71. This is amongst the best in the industry. VIAV outperforms 80.39% of its industry peers.
VIAV has a Quick Ratio of 3.31. This indicates that VIAV is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.31, VIAV belongs to the top of the industry, outperforming 84.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.71 | ||
| Quick Ratio | 3.31 |
3. Growth
3.1 Past
The earnings per share for VIAV have decreased strongly by -24.39% 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.
Looking at the last year, VIAV shows a decrease in Revenue. The Revenue has decreased by -5.09% 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)-24.39%
EPS 3Y-26.03%
EPS 5Y-12.69%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-5.09%
Revenue growth 3Y-5.86%
Revenue growth 5Y-2.41%
Sales Q2Q%-3.91%
3.2 Future
VIAV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.65% yearly.
The Revenue is expected to grow by 4.62% on average over the next years.
EPS Next Y14.17%
EPS Next 2Y25.52%
EPS Next 3Y22.65%
EPS Next 5YN/A
Revenue Next Year2.65%
Revenue Next 2Y4.65%
Revenue Next 3Y4.62%
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.
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
A Price/Earnings ratio of 33.58 indicates a quite expensive valuation of VIAV.
Based on the Price/Earnings ratio, VIAV is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VIAV to the average of the S&P500 Index (28.29), we can say VIAV is valued inline with the index average.
The Price/Forward Earnings ratio is 19.43, which indicates a rather expensive current 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 64.71% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. VIAV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.58 | ||
| Fwd PE | 19.43 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VIAV.
60.78% of the companies in the same industry are more expensive than VIAV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.81 | ||
| EV/EBITDA | 27.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VIAV's earnings are expected to grow with 22.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.37
PEG (5Y)N/A
EPS Next 2Y25.52%
EPS Next 3Y22.65%
5. Dividend
5.1 Amount
No dividends for VIAV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VIAVI SOLUTIONS INC
NASDAQ:VIAV (1/21/2025, 8:00:02 PM)
After market: 10.41 0 (0%)10.41
+0.19 (+1.86%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners95.42%
Inst Owner Change-0.04%
Ins Owners0.7%
Ins Owner Change7.61%
Market Cap2.31B
Analysts76
Price Target10.8 (3.75%)
Short Float %2.78%
Short Ratio3.58
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)5.51%
Min EPS beat(2)-1.02%
Max EPS beat(2)12.04%
EPS beat(4)2
Avg EPS beat(4)4.68%
Min EPS beat(4)-18.14%
Max EPS beat(4)25.82%
EPS beat(8)4
Avg EPS beat(8)5.47%
EPS beat(12)7
Avg EPS beat(12)5.98%
EPS beat(16)11
Avg EPS beat(16)7.68%
Revenue beat(2)0
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-2.74%
Max Revenue beat(2)-1.5%
Revenue beat(4)0
Avg Revenue beat(4)-2%
Min Revenue beat(4)-3.17%
Max Revenue beat(4)-0.59%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)5
Avg Revenue beat(12)-0.92%
Revenue beat(16)9
Avg Revenue beat(16)-0.18%
PT rev (1m)2.07%
PT rev (3m)14.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.48%
EPS NY rev (1m)0%
EPS NY rev (3m)2.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.58 | ||
| Fwd PE | 19.43 | ||
| P/S | 2.33 | ||
| P/FCF | 38.81 | ||
| P/OCF | 29.01 | ||
| P/B | 3.29 | ||
| P/tB | 11.16 | ||
| EV/EBITDA | 27.26 |
EPS(TTM)0.31
EY2.98%
EPS(NY)0.54
Fwd EY5.15%
FCF(TTM)0.27
FCFY2.58%
OCF(TTM)0.36
OCFY3.45%
SpS4.47
BVpS3.17
TBVpS0.93
PEG (NY)2.37
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.15% | ||
| ROE | -5.33% | ||
| ROCE | 2.04% | ||
| ROIC | 1.61% | ||
| ROICexc | 2.4% | ||
| ROICexgc | 4.7% | ||
| OM | 3.1% | ||
| PM (TTM) | N/A | ||
| GM | 57.29% | ||
| FCFM | 6.01% |
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-Score4
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 10.98 | ||
| Debt/EBITDA | 7.42 | ||
| Cap/Depr | 35.02% | ||
| Cap/Sales | 2.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.35% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.71 | ||
| Quick Ratio | 3.31 | ||
| Altman-Z | -53.75 |
F-Score4
WACC9.07%
ROIC/WACC0.18
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)-24.39%
EPS 3Y-26.03%
EPS 5Y-12.69%
EPS Q2Q%-33.33%
EPS Next Y14.17%
EPS Next 2Y25.52%
EPS Next 3Y22.65%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.09%
Revenue growth 3Y-5.86%
Revenue growth 5Y-2.41%
Sales Q2Q%-3.91%
Revenue Next Year2.65%
Revenue Next 2Y4.65%
Revenue Next 3Y4.62%
Revenue Next 5YN/A
EBIT growth 1Y-48.75%
EBIT growth 3Y-37.46%
EBIT growth 5Y-16.11%
EBIT Next Year48.79%
EBIT Next 3Y26.61%
EBIT Next 5YN/A
FCF growth 1Y-25.34%
FCF growth 3Y-20.27%
FCF growth 5Y0.65%
OCF growth 1Y-47.39%
OCF growth 3Y-21.79%
OCF growth 5Y-3.46%