18.94 USD
+0.35 (+1.88%)
18.95 USD
+0.01 (+0.05%)
We assign a fundamental rating of 4 out of 10 to VIAV. VIAV was compared to 48 industry peers in the Communications Equipment industry. There are concerns on the financial health of VIAV while its profitability can be described as average. VIAV is not valued too expensively and it also shows a decent growth rate.
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.
VIAV had positive earnings in 4 of the past 5 years.
In the past 5 years VIAV always reported a positive cash flow from operatings.
1.2 Ratios
VIAV's Return On Assets of 0.73% is in line compared to the rest of the industry. VIAV outperforms 56.25% of its industry peers.
VIAV has a Return On Equity (2.10%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.69%, VIAV perfoms like the industry average, 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 12.31%.
| 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 line with its industry, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Profit Margin of VIAV has declined.
VIAV has a Operating Margin of 4.72%. This is in the better half of the industry: VIAV outperforms 60.42% of its industry peers.
VIAV's Operating Margin has declined in the last couple of years.
VIAV's Gross Margin of 57.11% is fine compared to the rest of the industry. VIAV outperforms 79.17% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VIAV is destroying value.
Compared to 1 year ago, VIAV has more shares outstanding
The number of shares outstanding for VIAV has been reduced compared to 5 years ago.
The debt/assets ratio for VIAV has been reduced compared to a year ago.
2.2 Solvency
VIAV has an Altman-Z score of -44.10. This is a bad value and indicates that VIAV is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -44.10, VIAV is not doing good in the industry: 87.50% of the companies in the same industry are doing better.
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 47.92% of its industry peers.
VIAV has a Debt/Equity ratio of 0.91. This is a neutral value indicating 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 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 10.31 | ||
| Altman-Z | -44.1 |
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's Current ratio of 1.99 is in line compared to the rest of the industry. VIAV outperforms 47.92% of its industry peers.
VIAV has a Quick Ratio of 1.74. This is a normal value and indicates that VIAV is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of VIAV (1.74) is comparable to the rest of the 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.
The Earnings Per Share has been decreasing by -8.43% on average over the past years.
VIAV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.60%.
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 39.47% on average over the next years. This is a very strong growth
Based on estimates for the next years, VIAV will show a quite strong growth in Revenue. The Revenue will grow by 15.80% on average per year.
EPS Next Y46%
EPS Next 2Y34.38%
EPS Next 3Y39.47%
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.
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
The Price/Earnings ratio is 33.82, which means the current valuation is very expensive for VIAV.
62.50% of the companies in the same industry are more expensive than VIAV, based on the Price/Earnings ratio.
VIAV's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.28.
Based on the Price/Forward Earnings ratio of 22.31, the valuation of VIAV can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VIAV indicates a somewhat cheap valuation: VIAV is cheaper than 62.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.52, VIAV is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.82 | ||
| Fwd PE | 22.31 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as VIAV.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.99 | ||
| EV/EBITDA | 36.5 |
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 39.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y34.38%
EPS Next 3Y39.47%
5. Dividend
5.1 Amount
No dividends for VIAV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.94
+0.35 (+1.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.64%
Inst Owner Change2.43%
Ins Owners0.7%
Ins Owner Change5.78%
Market Cap4.23B
Revenue(TTM)1.15B
Net Income(TTM)15.20M
Analysts82.86
Price Target18.8 (-0.74%)
Short Float %6.58%
Short Ratio3.88
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)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)26.47%
PT rev (3m)31.63%
EPS NQ rev (1m)3.13%
EPS NQ rev (3m)22.88%
EPS NY rev (1m)6.01%
EPS NY rev (3m)20.09%
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 | 33.82 | ||
| Fwd PE | 22.31 | ||
| P/S | 3.69 | ||
| P/FCF | 53.99 | ||
| P/OCF | 39.4 | ||
| P/B | 5.84 | ||
| P/tB | 503.26 | ||
| EV/EBITDA | 36.5 |
EPS(TTM)0.56
EY2.96%
EPS(NY)0.85
Fwd EY4.48%
FCF(TTM)0.35
FCFY1.85%
OCF(TTM)0.48
OCFY2.54%
SpS5.13
BVpS3.24
TBVpS0.04
PEG (NY)0.74
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 | -44.1 |
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 3Y39.47%
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 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 4 / 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 46% in the next year.