VIAVI SOLUTIONS INC (VIAV) Stock Fundamental Analysis
USA - NASDAQ:VIAV - US9255501051 - Common Stock
17.44 USD
+0.68 (+4.06%)
17.22 USD
-0.22 (-1.26%)
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
VIAV had positive earnings in the past year.
In the past year VIAV had a positive cash flow from operations.
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 better Return On Assets (1.75%) than 60.42% of its industry peers.
VIAV's Return On Equity of 4.46% is fine compared to the rest of the industry. VIAV outperforms 62.50% of its industry peers.
VIAV has a Return On Invested Capital of 3.27%. This is comparable to the rest of the industry: VIAV outperforms 58.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VIAV is significantly below the industry average of 13.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.75% | ||
| ROE | 4.46% | ||
| ROIC | 3.27% |
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 decent Profit Margin value of 3.21%, VIAV is doing good in the industry, outperforming 64.58% of the companies in the same industry.
VIAV's Profit Margin has declined in the last couple of years.
The Operating Margin of VIAV (5.37%) is better than 62.50% 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 57.28%, VIAV is in the better half of the industry, outperforming 79.17% 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 | 5.37% | ||
| PM (TTM) | 3.21% | ||
| GM | 57.28% |
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.
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.
Compared to 1 year ago, VIAV has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -46.22, we must say that VIAV is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VIAV (-46.22) is worse than 89.58% of its industry peers.
The Debt to FCF ratio of VIAV is 10.61, which is on the high side as it means it would take VIAV, 10.61 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.61, VIAV is in line with its industry, outperforming 47.92% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that VIAV is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, VIAV is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 10.61 | ||
| Altman-Z | -46.22 |
ROIC/WACC0.37
WACC8.74%
2.3 Liquidity
VIAV has a Current Ratio of 1.50. This is a normal value and indicates that VIAV is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.50, VIAV is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
A Quick Ratio of 1.30 indicates that VIAV should not have too much problems paying its short term obligations.
The Quick ratio of VIAV (1.30) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.3 |
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.
Looking at the last year, VIAV shows a quite strong growth in Revenue. The Revenue has grown by 15.60% in the last year.
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
Based on estimates for the next years, VIAV will show a very strong growth in Earnings Per Share. The EPS will grow by 39.59% on average per year.
The Revenue is expected to grow by 15.80% on average over the next years. This is quite good.
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
Based on the Price/Earnings ratio of 31.14, the valuation of VIAV can be described as expensive.
Based on the Price/Earnings ratio, VIAV is valued a bit cheaper than 60.42% of the companies in the same industry.
VIAV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
VIAV is valuated rather expensively with a Price/Forward Earnings ratio of 21.55.
Based on the Price/Forward Earnings ratio, VIAV is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VIAV to the average of the S&P500 Index (22.35), we can say VIAV is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.14 | ||
| Fwd PE | 21.55 |
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.
VIAV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.78 | ||
| EV/EBITDA | 32.85 |
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 39.59% in the coming years. This may justify a more expensive valuation.
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 |
17.44
+0.68 (+4.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.3%
Inst Owner Change0.73%
Ins Owners0.7%
Ins Owner Change10.06%
Market Cap3.89B
Revenue(TTM)1.15B
Net Income(TTM)34.80M
Analysts82.86
Price Target14.86 (-14.79%)
Short Float %4.61%
Short Ratio3.51
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)17.27%
Min EPS beat(2)10.7%
Max EPS beat(2)23.84%
EPS beat(4)3
Avg EPS beat(4)15.4%
Min EPS beat(4)-1.02%
Max EPS beat(4)28.09%
EPS beat(8)5
Avg EPS beat(8)9.04%
EPS beat(12)7
Avg EPS beat(12)8.6%
EPS beat(16)11
Avg EPS beat(16)9.19%
Revenue beat(2)0
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-1.03%
Max Revenue beat(2)-0.13%
Revenue beat(4)1
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)2.12%
Revenue beat(8)1
Avg Revenue beat(8)-1.21%
Revenue beat(12)3
Avg Revenue beat(12)-1.17%
Revenue beat(16)7
Avg Revenue beat(16)-0.43%
PT rev (1m)4.08%
PT rev (3m)18.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20.13%
EPS NY rev (1m)0%
EPS NY rev (3m)7.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.14 | ||
| Fwd PE | 21.55 | ||
| P/S | 3.59 | ||
| P/FCF | 62.78 | ||
| P/OCF | 43.35 | ||
| P/B | 4.99 | ||
| P/tB | 73.58 | ||
| EV/EBITDA | 32.85 |
EPS(TTM)0.56
EY3.21%
EPS(NY)0.81
Fwd EY4.64%
FCF(TTM)0.28
FCFY1.59%
OCF(TTM)0.4
OCFY2.31%
SpS4.86
BVpS3.5
TBVpS0.24
PEG (NY)0.83
PEG (5Y)N/A
Graham Number6.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.75% | ||
| ROE | 4.46% | ||
| ROCE | 4.14% | ||
| ROIC | 3.27% | ||
| ROICexc | 4.7% | ||
| ROICexgc | 18.28% | ||
| OM | 5.37% | ||
| PM (TTM) | 3.21% | ||
| GM | 57.28% | ||
| FCFM | 5.72% |
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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 10.61 | ||
| Debt/EBITDA | 3.41 | ||
| Cap/Depr | 44.34% | ||
| Cap/Sales | 2.56% | ||
| Interest Coverage | 2.54 | ||
| Cash Conversion | 74.28% | ||
| Profit Quality | 178.16% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | -46.22 |
F-Score6
WACC8.74%
ROIC/WACC0.37
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 1Y69.19%
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-36.02%
FCF growth 3Y-16.26%
FCF growth 5Y-9.78%
OCF growth 1Y-22.85%
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 5 / 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.