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VIAVI SOLUTIONS INC (VIAV) Stock Fundamental Analysis

NASDAQ:VIAV - Nasdaq - US9255501051 - Common Stock - Currency: USD

10.29  +0.06 (+0.59%)

After market: 10.29 0 (0%)

Fundamental Rating

4

VIAV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 50 industry peers in the Communications Equipment industry. While VIAV is still in line with the averages on profitability rating, there are concerns on its financial health. VIAV is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

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.
Each year in the past 5 years VIAV had a positive operating cash flow.
VIAV Yearly Net Income VS EBIT VS OCF VS FCFVIAV Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M

1.2 Ratios

The Return On Assets of VIAV (0.26%) is better than 62.00% of its industry peers.
The Return On Equity of VIAV (0.70%) is better than 64.00% of its industry peers.
With a Return On Invested Capital value of 2.95%, VIAV perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VIAV is significantly below the industry average of 13.82%.
Industry RankSector Rank
ROA 0.26%
ROE 0.7%
ROIC 2.95%
ROA(3y)0.25%
ROA(5y)1.39%
ROE(3y)0.74%
ROE(5y)3.59%
ROIC(3y)5.6%
ROIC(5y)6.43%
VIAV Yearly ROA, ROE, ROICVIAV Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

1.3 Margins

Looking at the Profit Margin, with a value of 0.49%, VIAV is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
VIAV has a Operating Margin of 4.95%. This is in the better half of the industry: VIAV outperforms 64.00% of its industry peers.
In the last couple of years the Operating Margin of VIAV has declined.
With a decent Gross Margin value of 57.68%, VIAV is doing good in the industry, outperforming 78.00% of the companies in the same industry.
In the last couple of years the Gross Margin of VIAV has remained more or less at the same level.
Industry RankSector Rank
OM 4.95%
PM (TTM) 0.49%
GM 57.68%
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%
VIAV Yearly Profit, Operating, Gross MarginsVIAV Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VIAV is destroying value.
Compared to 1 year ago, VIAV has about the same amount of shares outstanding.
Compared to 5 years ago, VIAV has less shares outstanding
Compared to 1 year ago, VIAV has an improved debt to assets ratio.
VIAV Yearly Shares OutstandingVIAV Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
VIAV Yearly Total Debt VS Total AssetsVIAV Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

Based on the Altman-Z score of -48.48, we must say that VIAV is in the distress zone and has some risk of bankruptcy.
VIAV's Altman-Z score of -48.48 is on the low side compared to the rest of the industry. VIAV is outperformed by 88.00% of its industry peers.
VIAV has a debt to FCF ratio of 9.93. This is a negative value and a sign of low solvency as VIAV would need 9.93 years to pay back of all of its debts.
VIAV has a Debt to FCF ratio (9.93) which is in line with its industry peers.
VIAV has a Debt/Equity ratio of 0.56. This is a neutral value indicating VIAV is somewhat dependend on debt financing.
VIAV's Debt to Equity ratio of 0.56 is on the low side compared to the rest of the industry. VIAV is outperformed by 68.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 9.93
Altman-Z -48.48
ROIC/WACC0.32
WACC9.22%
VIAV Yearly LT Debt VS Equity VS FCFVIAV Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B

2.3 Liquidity

VIAV has a Current Ratio of 1.53. 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 worse Current ratio (1.53) than 60.00% of its industry peers.
A Quick Ratio of 1.32 indicates that VIAV should not have too much problems paying its short term obligations.
VIAV has a Quick ratio (1.32) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.53
Quick Ratio 1.32
VIAV Yearly Current Assets VS Current LiabilitesVIAV Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 16.67% over the past year.
Measured over the past years, VIAV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.69% on average per year.
Looking at the last year, VIAV shows a small growth in Revenue. The Revenue has grown by 3.34% in the last year.
Measured over the past years, VIAV shows a decrease in Revenue. The Revenue has been decreasing by -2.41% on average per year.
EPS 1Y (TTM)16.67%
EPS 3Y-26.03%
EPS 5Y-12.69%
EPS Q2Q%150%
Revenue 1Y (TTM)3.34%
Revenue growth 3Y-5.86%
Revenue growth 5Y-2.41%
Sales Q2Q%15.77%

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 23.47% on average per year.
VIAV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.61% yearly.
EPS Next Y35.9%
EPS Next 2Y27.31%
EPS Next 3Y23.47%
EPS Next 5YN/A
Revenue Next Year7.94%
Revenue Next 2Y7.51%
Revenue Next 3Y6.61%
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.
VIAV Yearly Revenue VS EstimatesVIAV Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
VIAV Yearly EPS VS EstimatesVIAV Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8

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4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 24.50 indicates a rather expensive valuation of VIAV.
Based on the Price/Earnings ratio, VIAV is valued a bit cheaper than the industry average as 66.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of VIAV to the average of the S&P500 Index (27.30), we can say VIAV is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 18.67, the valuation of VIAV can be described as rather expensive.
VIAV's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, VIAV is valued at the same level.
Industry RankSector Rank
PE 24.5
Fwd PE 18.67
VIAV Price Earnings VS Forward Price EarningsVIAV Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 is on the same level as the industry average.
Industry RankSector Rank
P/FCF 34.75
EV/EBITDA 22.87
VIAV Per share dataVIAV EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

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 23.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y27.31%
EPS Next 3Y23.47%

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0

5. Dividend

5.1 Amount

VIAV does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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VIAVI SOLUTIONS INC

NASDAQ:VIAV (7/8/2025, 8:00:01 PM)

After market: 10.29 0 (0%)

10.29

+0.06 (+0.59%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)05-01 2025-05-01/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners97.19%
Inst Owner Change-0.04%
Ins Owners0.67%
Ins Owner Change-1.02%
Market Cap2.30B
Analysts77.33
Price Target12.51 (21.57%)
Short Float %3.04%
Short Ratio2.78
Dividend
Industry RankSector 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)25.97%
Min EPS beat(2)23.84%
Max EPS beat(2)28.09%
EPS beat(4)3
Avg EPS beat(4)15.74%
Min EPS beat(4)-1.02%
Max EPS beat(4)28.09%
EPS beat(8)5
Avg EPS beat(8)10.74%
EPS beat(12)7
Avg EPS beat(12)8.02%
EPS beat(16)11
Avg EPS beat(16)9.48%
Revenue beat(2)1
Avg Revenue beat(2)0.54%
Min Revenue beat(2)-1.03%
Max Revenue beat(2)2.12%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)2.12%
Revenue beat(8)2
Avg Revenue beat(8)-0.88%
Revenue beat(12)4
Avg Revenue beat(12)-0.95%
Revenue beat(16)8
Avg Revenue beat(16)-0.34%
PT rev (1m)0%
PT rev (3m)-3.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-15.58%
EPS NY rev (1m)0%
EPS NY rev (3m)2.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.45%
Valuation
Industry RankSector Rank
PE 24.5
Fwd PE 18.67
P/S 2.2
P/FCF 34.75
P/OCF 24.91
P/B 3.15
P/tB 620.85
EV/EBITDA 22.87
EPS(TTM)0.42
EY4.08%
EPS(NY)0.55
Fwd EY5.35%
FCF(TTM)0.3
FCFY2.88%
OCF(TTM)0.41
OCFY4.01%
SpS4.68
BVpS3.26
TBVpS0.02
PEG (NY)0.68
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.26%
ROE 0.7%
ROCE 3.73%
ROIC 2.95%
ROICexc 4.13%
ROICexgc 15.35%
OM 4.95%
PM (TTM) 0.49%
GM 57.68%
FCFM 6.32%
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-Score7
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 9.93
Debt/EBITDA 3.72
Cap/Depr 44.24%
Cap/Sales 2.5%
Interest Coverage 250
Cash Conversion 83.21%
Profit Quality 1296.08%
Current Ratio 1.53
Quick Ratio 1.32
Altman-Z -48.48
F-Score7
WACC9.22%
ROIC/WACC0.32
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)16.67%
EPS 3Y-26.03%
EPS 5Y-12.69%
EPS Q2Q%150%
EPS Next Y35.9%
EPS Next 2Y27.31%
EPS Next 3Y23.47%
EPS Next 5YN/A
Revenue 1Y (TTM)3.34%
Revenue growth 3Y-5.86%
Revenue growth 5Y-2.41%
Sales Q2Q%15.77%
Revenue Next Year7.94%
Revenue Next 2Y7.51%
Revenue Next 3Y6.61%
Revenue Next 5YN/A
EBIT growth 1Y31.47%
EBIT growth 3Y-37.46%
EBIT growth 5Y-16.11%
EBIT Next Year65.4%
EBIT Next 3Y28.98%
EBIT Next 5YN/A
FCF growth 1Y-34.81%
FCF growth 3Y-20.27%
FCF growth 5Y0.65%
OCF growth 1Y-43.85%
OCF growth 3Y-21.79%
OCF growth 5Y-3.46%