17.78 USD
+0.67 (+3.92%)
17.8109 USD
+0.03 (+0.17%)
We assign a fundamental rating of 4 out of 10 to VIAV. VIAV was compared to 48 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
VIAV had positive earnings in the past year.
VIAV had a positive operating cash flow in the past year.
Of the past 5 years VIAV 4 years were profitable.
In the past 5 years VIAV always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.73%, VIAV perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
VIAV has a Return On Equity of 2.10%. This is in the better half of the industry: VIAV outperforms 60.42% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.69%, VIAV is in line with its industry, outperforming 54.17% 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 12.15%.
| 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.
The Operating Margin of VIAV (4.72%) is better than 60.42% of its industry peers.
In the last couple of years the Operating Margin of VIAV has declined.
With a decent Gross Margin value of 57.11%, VIAV is doing good in the industry, outperforming 77.08% 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 | 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.
Compared to 1 year ago, VIAV has more shares outstanding
VIAV has less shares outstanding than it did 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 -44.18, we must say that VIAV is in the distress zone and has some risk of bankruptcy.
VIAV's Altman-Z score of -44.18 is on the low side compared to the rest of the industry. VIAV is outperformed by 85.42% 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 of 10.31. This is comparable to the rest of the industry: VIAV outperforms 43.75% of its industry peers.
A Debt/Equity ratio of 0.91 indicates that VIAV is somewhat dependend on debt financing.
VIAV has a worse Debt to Equity ratio (0.91) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 10.31 | ||
| Altman-Z | -44.18 |
ROIC/WACC0.3
WACC9.03%
2.3 Liquidity
A Current Ratio of 1.99 indicates that VIAV should not have too much problems paying its short term obligations.
VIAV has a Current ratio of 1.99. This is comparable 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.
With a Quick ratio value of 1.74, VIAV perfoms like the industry average, 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.
Measured over the past years, VIAV shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.43% on average per year.
VIAV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.60%.
The Revenue has been decreasing by -0.93% on average over the past years.
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 37.58% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 15.80% on average over the next years. This is quite good.
EPS Next Y46%
EPS Next 2Y34.38%
EPS Next 3Y37.58%
EPS Next 5YN/A
Revenue Next Year28.45%
Revenue Next 2Y18.21%
Revenue Next 3Y15.8%
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
A Price/Earnings ratio of 31.75 indicates a quite expensive valuation of VIAV.
62.50% of the companies in the same industry are more expensive than VIAV, based on the Price/Earnings ratio.
VIAV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.95 indicates a rather expensive valuation of VIAV.
Based on the Price/Forward Earnings ratio, VIAV is valued a bit cheaper than 64.58% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.92. VIAV is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.75 | ||
| Fwd PE | 20.95 |
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 a bit more expensive when compared to the industry. VIAV is more expensive than 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.68 | ||
| EV/EBITDA | 35 |
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 37.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.69
PEG (5Y)N/A
EPS Next 2Y34.38%
EPS Next 3Y37.58%
5. Dividend
5.1 Amount
VIAV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
17.78
+0.67 (+3.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.94%
Inst Owner Change0%
Ins Owners1.57%
Ins Owner Change5.32%
Market Cap3.97B
Revenue(TTM)1.15B
Net Income(TTM)15.20M
Analysts82.86
Price Target19.09 (7.37%)
Short Float %6.41%
Short Ratio3.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1.55%
PT rev (3m)33.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)22.88%
EPS NY rev (1m)0%
EPS NY rev (3m)15.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)21.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)16.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.75 | ||
| Fwd PE | 20.95 | ||
| P/S | 3.47 | ||
| P/FCF | 50.68 | ||
| P/OCF | 36.99 | ||
| P/B | 5.48 | ||
| P/tB | 472.44 | ||
| EV/EBITDA | 35 |
EPS(TTM)0.56
EY3.15%
EPS(NY)0.85
Fwd EY4.77%
FCF(TTM)0.35
FCFY1.97%
OCF(TTM)0.48
OCFY2.7%
SpS5.13
BVpS3.24
TBVpS0.04
PEG (NY)0.69
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 | -44.18 |
F-Score6
WACC9.03%
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 Y46%
EPS Next 2Y34.38%
EPS Next 3Y37.58%
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 Year79.27%
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 for 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.
Can you provide the PE and PB ratios for VIAV stock?
The Price/Earnings (PE) ratio for VIAVI SOLUTIONS INC (VIAV) is 31.75 and the Price/Book (PB) ratio is 5.48.
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 46% in the next year.