VIAVI SOLUTIONS INC (VIAV)
US9255501051 - Common Stock
Overall VIAV gets a fundamental rating of 4 out of 10. We evaluated VIAV against 51 industry peers in the Communications Equipment industry. VIAV has an average financial health and profitability rating. VIAV has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year VIAV was profitable.
In the past year VIAV had a positive cash flow from operations.
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 (-2.15%) which is in line with its industry peers.
The Return On Equity of VIAV (-5.33%) is comparable to the rest of the industry.
The Return On Invested Capital of VIAV (1.61%) is better than 62.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VIAV is below the industry average of 10.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.15% | ||
| ROE | -5.33% | ||
| ROIC | 1.61% |
ROA(3y)0.25%
ROA(5y)1.39%
ROE(3y)0.74%
ROE(5y)3.59%
ROIC(3y)5.6%
ROIC(5y)6.43%
1.3 Margins
The Operating Margin of VIAV (3.10%) is better than 62.75% of its industry peers.
VIAV's Operating Margin has declined in the last couple of years.
VIAV's Gross Margin of 57.29% is amongst the best of the industry. VIAV outperforms 80.39% 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 | 3.1% | ||
| PM (TTM) | N/A | ||
| GM | 57.29% |
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%
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 remains at a similar level compared to 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
VIAV has an Altman-Z score of -53.79. This is a bad value and indicates that VIAV is not financially healthy and even has some risk of bankruptcy.
VIAV has a Altman-Z score of -53.79. This is amonst the worse of the industry: VIAV underperforms 86.27% of its industry peers.
VIAV has a debt to FCF ratio of 10.98. This is a negative value and a sign of low solvency as VIAV would need 10.98 years to pay back of all of its debts.
VIAV has a Debt to FCF ratio of 10.98. This is comparable to the rest of the industry: VIAV outperforms 52.94% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that VIAV is somewhat dependend on debt financing.
VIAV's Debt to Equity ratio of 0.93 is on the low side compared to the rest of the industry. VIAV is outperformed by 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 10.98 | ||
| Altman-Z | -53.79 |
ROIC/WACC0.18
WACC8.78%
2.3 Liquidity
VIAV has a Current Ratio of 3.71. This indicates that VIAV is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of VIAV (3.71) is better than 74.51% of its industry peers.
VIAV has a Quick Ratio of 3.31. This indicates that VIAV is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of VIAV (3.31) is better than 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.71 | ||
| Quick Ratio | 3.31 |
3. Growth
3.1 Past
VIAV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.39%.
VIAV shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.69% yearly.
Looking at the last year, VIAV shows a decrease in Revenue. The Revenue has decreased by -5.09% 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)-24.39%
EPS 3Y-26.03%
EPS 5Y-12.69%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-5.09%
Revenue growth 3Y-5.86%
Revenue growth 5Y-2.41%
Sales Q2Q%-3.91%
3.2 Future
Based on estimates for the next years, VIAV will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.58% on average per year.
The Revenue is expected to grow by 5.27% on average over the next years.
EPS Next Y14.56%
EPS Next 2Y25.42%
EPS Next 3Y19.58%
EPS Next 5YN/A
Revenue Next Year2.75%
Revenue Next 2Y4.83%
Revenue Next 3Y5.27%
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.
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 32.58, VIAV can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of VIAV indicates a somewhat cheap valuation: VIAV is cheaper than 68.63% of the companies listed in the same industry.
VIAV's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.20.
Based on the Price/Forward Earnings ratio of 18.88, the valuation of VIAV can be described as rather expensive.
VIAV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VIAV is cheaper than 62.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, VIAV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.58 | ||
| Fwd PE | 18.88 |
4.2 Price Multiples
VIAV's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VIAV is cheaper than 60.78% of the companies in the same industry.
VIAV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VIAV is cheaper than 62.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.65 | ||
| EV/EBITDA | 26.46 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VIAV does not grow enough to justify the current Price/Earnings ratio.
VIAV's earnings are expected to grow with 19.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.24
PEG (5Y)N/A
EPS Next 2Y25.42%
EPS Next 3Y19.58%
5. Dividend
5.1 Amount
No dividends for VIAV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VIAVI SOLUTIONS INC
NASDAQ:VIAV (11/22/2024, 8:11:36 PM)
After market: 10.1 0 (0%)10.1
+0.2 (+2.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.58 | ||
| Fwd PE | 18.88 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.15% | ||
| ROE | -5.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.1% | ||
| PM (TTM) | N/A | ||
| GM | 57.29% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.71 | ||
| Quick Ratio | 3.31 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-24.39%
EPS 3Y-26.03%
EPS 5Y
EPS Q2Q%
EPS Next Y14.56%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-5.09%
Revenue growth 3Y-5.86%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y