18.02 USD
+0.62 (+3.56%)
18.09 USD
+0.07 (+0.39%)
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 is not valued too expensively and it also shows a decent 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.
VIAV had positive earnings in 4 of the past 5 years.
Each year in the past 5 years VIAV had a positive operating cash flow.
1.2 Ratios
VIAV has a Return On Assets of 0.73%. This is comparable 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.
VIAV has a Return On Invested Capital (2.69%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for VIAV is significantly below the industry average of 12.35%.
| 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
VIAV has a Profit Margin (1.33%) which is comparable to the rest of the industry.
VIAV's Profit Margin has declined in the last couple of years.
VIAV has a better Operating Margin (4.72%) than 60.42% of its industry peers.
In the last couple of years the Operating Margin of VIAV has declined.
VIAV has a better Gross Margin (57.11%) than 77.08% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VIAV is destroying value.
The number of shares outstanding for VIAV has been increased 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
Based on the Altman-Z score of -44.16, we must say that VIAV is in the distress zone and has some risk of bankruptcy.
VIAV has a worse Altman-Z score (-44.16) than 87.50% 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 (10.31) which is in line with its industry peers.
A Debt/Equity ratio of 0.91 indicates that VIAV is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.91, VIAV is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 10.31 | ||
| Altman-Z | -44.16 |
ROIC/WACC0.3
WACC9.05%
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.
VIAV has a Quick ratio of 1.74. This is comparable to the rest of the industry: VIAV outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
VIAV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.65%, which is quite impressive.
VIAV shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -8.43% yearly.
The Revenue has grown by 15.60% in the past year. This is quite good.
Measured over the past years, VIAV shows a decrease in Revenue. The Revenue has been decreasing by -0.93% on average per year.
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
Based on estimates for the next years, VIAV will show a very strong growth in Earnings Per Share. The EPS will grow by 39.47% on average per year.
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.
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
A Price/Earnings ratio of 32.18 indicates a quite expensive valuation of VIAV.
VIAV's Price/Earnings ratio is a bit cheaper when compared to the industry. VIAV is cheaper than 62.50% of the companies in the same industry.
VIAV is valuated rather expensively when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
VIAV is valuated rather expensively with a Price/Forward Earnings ratio of 21.23.
Based on the Price/Forward Earnings ratio, VIAV is valued a bit cheaper than 60.42% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, VIAV is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.18 | ||
| Fwd PE | 21.23 |
4.2 Price Multiples
VIAV's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VIAV is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.37 | ||
| EV/EBITDA | 35.45 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VIAV's earnings are expected to grow with 39.47% in the coming years.
PEG (NY)0.7
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 | 0% |
18.02
+0.62 (+3.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.64%
Inst Owner Change2.48%
Ins Owners0.7%
Ins Owner Change5.13%
Market Cap4.02B
Revenue(TTM)1.15B
Net Income(TTM)15.20M
Analysts82.86
Price Target18.8 (4.33%)
Short Float %5.67%
Short Ratio2.98
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)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 | 32.18 | ||
| Fwd PE | 21.23 | ||
| P/S | 3.51 | ||
| P/FCF | 51.37 | ||
| P/OCF | 37.48 | ||
| P/B | 5.56 | ||
| P/tB | 478.82 | ||
| EV/EBITDA | 35.45 |
EPS(TTM)0.56
EY3.11%
EPS(NY)0.85
Fwd EY4.71%
FCF(TTM)0.35
FCFY1.95%
OCF(TTM)0.48
OCFY2.67%
SpS5.13
BVpS3.24
TBVpS0.04
PEG (NY)0.7
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 | -44.16 |
F-Score6
WACC9.05%
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.