21.03 USD
+0.33 (+1.59%)
22.1101 USD
+1.08 (+5.14%)
VIAV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 is quite expensive at the moment. It does show a decent 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.
- VIAV had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years VIAV had a positive operating cash flow.
1.2 Ratios
- VIAV has a Return On Assets (0.73%) which is in line with its industry peers.
- With a decent Return On Equity value of 2.10%, VIAV is doing good in the industry, outperforming 60.42% of the companies in the same industry.
- The Return On Invested Capital of VIAV (2.69%) is comparable to the rest of the 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 12.17%.
| 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
- Looking at the Profit Margin, with a value of 1.33%, VIAV is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
- 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 has a better Gross Margin (57.11%) than 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.
- The number of shares outstanding for VIAV has been increased compared to 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
- Based on the Altman-Z score of -43.89, we must say that VIAV is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of -43.89, VIAV is not doing good in the industry: 85.42% of the companies in the same industry are doing better.
- The Debt to FCF ratio of VIAV is 10.31, which is on the high side as it means it would take VIAV, 10.31 years of fcf income to pay off all of its debts.
- VIAV has a Debt to FCF ratio (10.31) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.91 indicates that VIAV is somewhat dependend on debt financing.
- VIAV's Debt to Equity ratio of 0.91 is on the low side compared to the rest of the industry. VIAV is outperformed by 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 10.31 | ||
| Altman-Z | -43.89 |
ROIC/WACC0.28
WACC9.59%
2.3 Liquidity
- A Current Ratio of 1.99 indicates that VIAV should not have too much problems paying its short term obligations.
- VIAV's Current ratio of 1.99 is in line compared to the rest of the industry. VIAV outperforms 47.92% of its industry peers.
- A Quick Ratio of 1.74 indicates that VIAV should not have too much problems paying 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.
- 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 37.20% 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 15.75% yearly.
EPS Next Y45.46%
EPS Next 2Y34.27%
EPS Next 3Y37.2%
EPS Next 5YN/A
Revenue Next Year28.45%
Revenue Next 2Y18.17%
Revenue Next 3Y15.75%
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
- VIAV is valuated quite expensively with a Price/Earnings ratio of 37.55.
- Based on the Price/Earnings ratio, VIAV is valued a bit cheaper than 64.58% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. VIAV is valued slightly more expensive when compared to this.
- With a Price/Forward Earnings ratio of 24.82, VIAV is valued on the expensive side.
- VIAV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VIAV is cheaper than 64.58% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of VIAV to the average of the S&P500 Index (25.83), we can say VIAV is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.55 | ||
| Fwd PE | 24.82 |
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 indicates a slightly more expensive valuation: VIAV is more expensive than 62.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.95 | ||
| EV/EBITDA | 40.4 |
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.
- VIAV's earnings are expected to grow with 37.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.83
PEG (5Y)N/A
EPS Next 2Y34.27%
EPS Next 3Y37.2%
5. Dividend
5.1 Amount
- VIAV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 3 / 10 to VIAVI SOLUTIONS INC (VIAV). This can be considered as Overvalued.
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 37.55 and the Price/Book (PB) ratio is 6.48.
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 45.46% in the next year.