17.51 USD
-0.05 (-0.28%)
17.63 USD
+0.12 (+0.69%)
Overall VIAV gets a fundamental rating of 4 out of 10. We evaluated VIAV against 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 has a correct valuation and a medium 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.
Of the past 5 years VIAV 4 years were profitable.
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 in line with its industry peers.
VIAV has a Return On Equity (2.10%) which is comparable to the rest of the industry.
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 12.32%.
| 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 of 1.33%. This is comparable to the rest of the industry: VIAV outperforms 56.25% of its industry peers.
In the last couple of years the Profit Margin of VIAV has declined.
Looking at the Operating Margin, with a value of 4.72%, VIAV is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
VIAV's Operating Margin has declined in the last couple of years.
The Gross Margin of VIAV (57.11%) is better than 79.17% 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
VIAV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for VIAV has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -44.20, we must say that VIAV is in the distress zone and has some risk of bankruptcy.
VIAV has a worse Altman-Z score (-44.20) than 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 (10.31) which is comparable to the rest of the industry.
VIAV has a Debt/Equity ratio of 0.91. This is a neutral value indicating 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 | -44.2 |
ROIC/WACC0.3
WACC8.84%
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 comparable to the rest of the industry.
A Quick Ratio of 1.74 indicates that VIAV should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.74, VIAV is in line with its industry, outperforming 58.33% of the companies in the same industry.
| 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.
VIAV shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.43% yearly.
VIAV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.60%.
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
The Earnings Per Share is expected to grow by 39.59% 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 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
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.
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
With a Price/Earnings ratio of 31.27, VIAV can be considered very expensive at the moment.
Based on the Price/Earnings ratio, VIAV is valued a bit cheaper than 62.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.37. VIAV is around the same levels.
The Price/Forward Earnings ratio is 21.63, which indicates a rather expensive current valuation of VIAV.
60.42% of the companies in the same industry are more expensive than VIAV, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.20. VIAV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.27 | ||
| Fwd PE | 21.63 |
4.2 Price Multiples
VIAV's Enterprise Value to EBITDA is on the same level as the industry average.
VIAV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.91 | ||
| EV/EBITDA | 34.6 |
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.
A more expensive valuation may be justified as VIAV's earnings are expected to grow with 39.59% in the coming years.
PEG (NY)0.83
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 |
17.51
-0.05 (-0.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.3%
Inst Owner Change2.42%
Ins Owners0.7%
Ins Owner Change8.8%
Market Cap3.91B
Revenue(TTM)1.15B
Net Income(TTM)15.20M
Analysts82.86
Price Target18.8 (7.37%)
Short Float %6.58%
Short Ratio3.88
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)26.47%
PT rev (3m)37.4%
EPS NQ rev (1m)18.59%
EPS NQ rev (3m)21.42%
EPS NY rev (1m)8.9%
EPS NY rev (3m)13.28%
Revenue NQ rev (1m)21.02%
Revenue NQ rev (3m)21.02%
Revenue NY rev (1m)16.11%
Revenue NY rev (3m)16.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.27 | ||
| Fwd PE | 21.63 | ||
| P/S | 3.41 | ||
| P/FCF | 49.91 | ||
| P/OCF | 36.42 | ||
| P/B | 5.4 | ||
| P/tB | 465.27 | ||
| EV/EBITDA | 34.6 |
EPS(TTM)0.56
EY3.2%
EPS(NY)0.81
Fwd EY4.62%
FCF(TTM)0.35
FCFY2%
OCF(TTM)0.48
OCFY2.75%
SpS5.13
BVpS3.24
TBVpS0.04
PEG (NY)0.83
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 | -44.2 |
F-Score6
WACC8.84%
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 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 37.73% in the next year.