VIAVI SOLUTIONS INC (VIAV) Stock Fundamental Analysis
USA - NASDAQ:VIAV - US9255501051 - Common Stock
12.24 USD
-0.1 (-0.81%)
12.241 USD
+0 (+0.01%)
VIAV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years VIAV had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.75%, VIAV perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
With a decent Return On Equity value of 4.46%, VIAV is doing good in the industry, outperforming 62.50% of the companies in the same industry.
VIAV has a Return On Invested Capital of 3.27%. This is in the better half of the industry: VIAV outperforms 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VIAV is significantly below the industry average of 13.71%.
| 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
VIAV has a better Profit Margin (3.21%) than 62.50% of its industry peers.
VIAV's Profit Margin has declined in the last couple of years.
VIAV's Operating Margin of 5.37% is fine compared to the rest of the industry. VIAV outperforms 62.50% of its industry peers.
VIAV's Operating Margin has declined in the last couple of years.
VIAV's Gross Margin of 57.28% is fine compared to the rest of the industry. VIAV outperforms 79.17% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VIAV is destroying value.
Compared to 1 year ago, VIAV has more shares outstanding
Compared to 5 years ago, VIAV has less shares outstanding
VIAV has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -46.71, we must say that VIAV is in the distress zone and has some risk of bankruptcy.
VIAV's Altman-Z score of -46.71 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 10.61. This is a negative value and a sign of low solvency as VIAV would need 10.61 years to pay back of all of its debts.
With a Debt to FCF ratio value of 10.61, VIAV perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that VIAV is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, VIAV is doing worse than 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 10.61 | ||
| Altman-Z | -46.71 |
ROIC/WACC0.35
WACC9.47%
2.3 Liquidity
A Current Ratio of 1.50 indicates that VIAV should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.50, VIAV is doing worse than 68.75% of the companies in the same industry.
VIAV has a Quick Ratio of 1.30. 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 Quick ratio of 1.30. This is comparable to the rest of the industry: VIAV outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
VIAV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.24%, which is quite impressive.
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.
Looking at the last year, VIAV shows a quite strong growth in Revenue. The Revenue has grown by 8.39% in the last year.
VIAV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.93% yearly.
EPS 1Y (TTM)38.24%
EPS 3Y-20.63%
EPS 5Y-8.43%
EPS Q2Q%62.5%
Revenue 1Y (TTM)8.39%
Revenue growth 3Y-5.68%
Revenue growth 5Y-0.93%
Sales Q2Q%15.28%
3.2 Future
The Earnings Per Share is expected to grow by 25.20% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.02% on average over the next years.
EPS Next Y21.58%
EPS Next 2Y19.55%
EPS Next 3Y25.2%
EPS Next 5YN/A
Revenue Next Year10.64%
Revenue Next 2Y7.24%
Revenue Next 3Y6.02%
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
With a Price/Earnings ratio of 26.04, 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 68.75% of the companies listed in the same industry.
VIAV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.42, which indicates a rather expensive current valuation of VIAV.
62.50% of the companies in the same industry are more expensive than VIAV, based on the Price/Forward Earnings ratio.
VIAV is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.04 | ||
| Fwd PE | 21.42 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.07 | ||
| EV/EBITDA | 24.7 |
4.3 Compensation for Growth
VIAV's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
VIAV's earnings are expected to grow with 25.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.21
PEG (5Y)N/A
EPS Next 2Y19.55%
EPS Next 3Y25.2%
5. Dividend
5.1 Amount
VIAV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.24
-0.1 (-0.81%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners97.82%
Inst Owner Change2.57%
Ins Owners0.66%
Ins Owner Change3.45%
Market Cap2.73B
Analysts81.43
Price Target14.28 (16.67%)
Short Float %4.34%
Short Ratio3.4
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)14.17%
PT rev (3m)14.17%
EPS NQ rev (1m)2.2%
EPS NQ rev (3m)20.13%
EPS NY rev (1m)3.7%
EPS NY rev (3m)3.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.79%
Revenue NY rev (1m)3.14%
Revenue NY rev (3m)3.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.04 | ||
| Fwd PE | 21.42 | ||
| P/S | 2.52 | ||
| P/FCF | 44.07 | ||
| P/OCF | 30.43 | ||
| P/B | 3.5 | ||
| P/tB | 51.66 | ||
| EV/EBITDA | 24.7 |
EPS(TTM)0.47
EY3.84%
EPS(NY)0.57
Fwd EY4.67%
FCF(TTM)0.28
FCFY2.27%
OCF(TTM)0.4
OCFY3.29%
SpS4.86
BVpS3.49
TBVpS0.24
PEG (NY)1.21
PEG (5Y)N/A
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%
ROICexcg growth 3Y-17.05%
ROICexcg 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 | -46.71 |
F-Score6
WACC9.47%
ROIC/WACC0.35
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)38.24%
EPS 3Y-20.63%
EPS 5Y-8.43%
EPS Q2Q%62.5%
EPS Next Y21.58%
EPS Next 2Y19.55%
EPS Next 3Y25.2%
EPS Next 5YN/A
Revenue 1Y (TTM)8.39%
Revenue growth 3Y-5.68%
Revenue growth 5Y-0.93%
Sales Q2Q%15.28%
Revenue Next Year10.64%
Revenue Next 2Y7.24%
Revenue Next 3Y6.02%
Revenue Next 5YN/A
EBIT growth 1Y69.19%
EBIT growth 3Y-31.98%
EBIT growth 5Y-13.7%
EBIT Next Year46.03%
EBIT Next 3Y24.1%
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%