18 USD
-1.57 (-8.02%)
17.9018 USD
-0.1 (-0.55%)
Overall VIAV gets a fundamental rating of 4 out of 10. We evaluated VIAV against 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
VIAV had positive earnings in the past year.
In the past year VIAV had a positive cash flow from operations.
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
With a Return On Assets value of 0.73%, VIAV perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
VIAV has a Return On Equity of 2.10%. This is comparable to the rest of the industry: VIAV outperforms 58.33% 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.
VIAV had an Average Return On Invested Capital over the past 3 years of 3.35%. This is significantly below the industry average of 12.31%.
| 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
With a Profit Margin value of 1.33%, VIAV perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
VIAV's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 4.72%, VIAV is doing good in the industry, outperforming 60.42% of the companies in the same industry.
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.
The number of shares outstanding for VIAV has been reduced compared to 5 years ago.
VIAV has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -44.00, we must say that VIAV is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -44.00, VIAV is doing worse than 87.50% of the companies in the same industry.
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.
The Debt to Equity ratio of VIAV (0.91) is worse than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 10.31 | ||
| Altman-Z | -44 |
ROIC/WACC0.3
WACC9.07%
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 (1.99) which is in line with 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's Quick ratio of 1.74 is in line compared to the rest of the industry. VIAV outperforms 58.33% of its industry peers.
| 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.
The Earnings Per Share has been decreasing by -8.43% on average over the past years.
VIAV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.60%.
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 39.47% on average over the next years. This is a very strong growth
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 Y46%
EPS Next 2Y34.38%
EPS Next 3Y39.47%
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 32.14, 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 62.50% of the companies are valued more expensively.
VIAV is valuated rather expensively when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.21 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.
VIAV is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.14 | ||
| Fwd PE | 21.21 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VIAV.
VIAV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.31 | ||
| EV/EBITDA | 38.31 |
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 39.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y34.38%
EPS Next 3Y39.47%
5. Dividend
5.1 Amount
VIAV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
18
-1.57 (-8.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.64%
Inst Owner Change2.43%
Ins Owners0.7%
Ins Owner Change5.78%
Market Cap4.02B
Revenue(TTM)1.15B
Net Income(TTM)15.20M
Analysts82.86
Price Target18.8 (4.44%)
Short Float %6.58%
Short Ratio3.88
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)26.47%
PT rev (3m)31.63%
EPS NQ rev (1m)3.13%
EPS NQ rev (3m)22.88%
EPS NY rev (1m)6.01%
EPS NY rev (3m)20.09%
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 | 32.14 | ||
| Fwd PE | 21.21 | ||
| P/S | 3.51 | ||
| P/FCF | 51.31 | ||
| P/OCF | 37.44 | ||
| P/B | 5.55 | ||
| P/tB | 478.29 | ||
| EV/EBITDA | 38.31 |
EPS(TTM)0.56
EY3.11%
EPS(NY)0.85
Fwd EY4.72%
FCF(TTM)0.35
FCFY1.95%
OCF(TTM)0.48
OCFY2.67%
SpS5.13
BVpS3.24
TBVpS0.04
PEG (NY)0.7
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 |
F-Score6
WACC9.07%
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 3Y39.47%
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 of VIAVI SOLUTIONS INC (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 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 46% in the next year.