VIAVI SOLUTIONS INC (VIAV) Stock Fundamental Analysis
NASDAQ:VIAV • US9255501051
26.585 USD
+0.3 (+1.12%)
Last: Feb 17, 2026, 01:22 PM
Taking everything into account, VIAV scores 4 out of 10 in our fundamental rating. VIAV was compared to 48 industry peers in the Communications Equipment industry. Both the profitability and the financial health of VIAV get a neutral evaluation. Nothing too spectacular is happening here. VIAV is quite expensive at the moment. It does show 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.
- 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
- VIAV has a Return On Assets (-1.51%) which is comparable to the rest of the industry.
- With a Return On Equity value of -5.03%, VIAV perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
- VIAV has a Return On Invested Capital (1.45%) which is comparable to the rest of the industry.
- VIAV had an Average Return On Invested Capital over the past 3 years of 3.35%. This is significantly below the industry average of 11.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.51% | ||
| ROE | -5.03% | ||
| ROIC | 1.45% |
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
- In the last couple of years the Profit Margin of VIAV has declined.
- The Operating Margin of VIAV (3.37%) is comparable to the rest of the industry.
- VIAV's Operating Margin has declined in the last couple of years.
- VIAV has a Gross Margin of 56.59%. This is in the better half of the industry: VIAV outperforms 75.00% 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 | 3.37% | ||
| PM (TTM) | N/A | ||
| GM | 56.59% |
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.
- VIAV has less shares outstanding than it did 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 -32.43, we must say that VIAV is in the distress zone and has some risk of bankruptcy.
- VIAV's Altman-Z score of -32.43 is on the low side compared to the rest of the industry. VIAV is outperformed by 85.42% of its industry peers.
- The Debt to FCF ratio of VIAV is 16.40, which is on the high side as it means it would take VIAV, 16.40 years of fcf income to pay off all of its debts.
- VIAV has a Debt to FCF ratio of 16.40. This is comparable to the rest of the industry: VIAV outperforms 43.75% of its industry peers.
- A Debt/Equity ratio of 1.48 is on the high side and indicates that VIAV has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 1.48, VIAV is doing worse than 85.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 16.4 | ||
| Altman-Z | -32.43 |
ROIC/WACC0.16
WACC9.19%
2.3 Liquidity
- VIAV has a Current Ratio of 2.61. This indicates that VIAV is financially healthy and has no problem in meeting its short term obligations.
- VIAV has a better Current ratio (2.61) than 70.83% of its industry peers.
- VIAV has a Quick Ratio of 2.32. This indicates that VIAV is financially healthy and has no problem in meeting its short term obligations.
- With a decent Quick ratio value of 2.32, VIAV is doing good in the industry, outperforming 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.32 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 96.97% over the past year.
- The Earnings Per Share has been decreasing by -8.43% on average over the past years.
- Looking at the last year, VIAV shows a very strong growth in Revenue. The Revenue has grown by 23.51%.
- VIAV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.93% yearly.
EPS 1Y (TTM)96.97%
EPS 3Y-20.63%
EPS 5Y-8.43%
EPS Q2Q%69.23%
Revenue 1Y (TTM)23.51%
Revenue growth 3Y-5.68%
Revenue growth 5Y-0.93%
Sales Q2Q%36.37%
3.2 Future
- The Earnings Per Share is expected to grow by 38.91% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 16.63% on average over the next years. This is quite good.
EPS Next Y81.48%
EPS Next 2Y47.87%
EPS Next 3Y38.91%
EPS Next 5YN/A
Revenue Next Year35.82%
Revenue Next 2Y22.59%
Revenue Next 3Y16.63%
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
- With a Price/Earnings ratio of 40.90, VIAV can be considered very expensive at the moment.
- VIAV's Price/Earnings ratio is a bit cheaper when compared to the industry. VIAV is cheaper than 60.42% of the companies in the same industry.
- VIAV's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.19.
- Based on the Price/Forward Earnings ratio of 25.87, the valuation of VIAV can be described as expensive.
- VIAV's Price/Forward Earnings is on the same level as the industry average.
- VIAV's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.9 | ||
| Fwd PE | 25.87 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as VIAV.
- Based on the Price/Free Cash Flow ratio, VIAV is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 78.16 | ||
| EV/EBITDA | 53.52 |
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 38.91% in the coming years.
PEG (NY)0.5
PEG (5Y)N/A
EPS Next 2Y47.87%
EPS Next 3Y38.91%
5. Dividend
5.1 Amount
- No dividends for VIAV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:VIAV (2/17/2026, 1:22:51 PM)
26.585
+0.3 (+1.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)01-28 2026-01-28/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners101.94%
Inst Owner Change1.27%
Ins Owners1.57%
Ins Owner Change-5.01%
Market Cap6.15B
Revenue(TTM)1.24B
Net Income(TTM)-42.00M
Analysts82.86
Price Target26.59 (0.02%)
Short Float %4.51%
Short Ratio2.38
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)13.45%
Min EPS beat(2)11.29%
Max EPS beat(2)15.61%
EPS beat(4)4
Avg EPS beat(4)15.36%
Min EPS beat(4)10.7%
Max EPS beat(4)23.84%
EPS beat(8)6
Avg EPS beat(8)10.3%
EPS beat(12)8
Avg EPS beat(12)9.04%
EPS beat(16)11
Avg EPS beat(16)8.59%
Revenue beat(2)0
Avg Revenue beat(2)-0.63%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)-0.38%
Revenue beat(4)0
Avg Revenue beat(4)-0.61%
Min Revenue beat(4)-1.03%
Max Revenue beat(4)-0.13%
Revenue beat(8)1
Avg Revenue beat(8)-0.96%
Revenue beat(12)2
Avg Revenue beat(12)-0.95%
Revenue beat(16)5
Avg Revenue beat(16)-0.8%
PT rev (1m)39.31%
PT rev (3m)78.92%
EPS NQ rev (1m)50.84%
EPS NQ rev (3m)59.45%
EPS NY rev (1m)24.3%
EPS NY rev (3m)31.77%
Revenue NQ rev (1m)11.21%
Revenue NQ rev (3m)11.21%
Revenue NY rev (1m)5.73%
Revenue NY rev (3m)5.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.9 | ||
| Fwd PE | 25.87 | ||
| P/S | 4.95 | ||
| P/FCF | 78.16 | ||
| P/OCF | 58.53 | ||
| P/B | 7.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 53.52 |
EPS(TTM)0.65
EY2.44%
EPS(NY)1.03
Fwd EY3.87%
FCF(TTM)0.34
FCFY1.28%
OCF(TTM)0.45
OCFY1.71%
SpS5.37
BVpS3.61
TBVpS-1.25
PEG (NY)0.5
PEG (5Y)N/A
Graham Number7.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.51% | ||
| ROE | -5.03% | ||
| ROCE | 1.83% | ||
| ROIC | 1.45% | ||
| ROICexc | 2.18% | ||
| ROICexgc | 8.32% | ||
| OM | 3.37% | ||
| PM (TTM) | N/A | ||
| GM | 56.59% | ||
| FCFM | 6.33% |
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-Score4
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.48 | ||
| Debt/FCF | 16.4 | ||
| Debt/EBITDA | 10.03 | ||
| Cap/Depr | 32.39% | ||
| Cap/Sales | 2.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.17% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.61 | ||
| Quick Ratio | 2.32 | ||
| Altman-Z | -32.43 |
F-Score4
WACC9.19%
ROIC/WACC0.16
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)96.97%
EPS 3Y-20.63%
EPS 5Y-8.43%
EPS Q2Q%69.23%
EPS Next Y81.48%
EPS Next 2Y47.87%
EPS Next 3Y38.91%
EPS Next 5YN/A
Revenue 1Y (TTM)23.51%
Revenue growth 3Y-5.68%
Revenue growth 5Y-0.93%
Sales Q2Q%36.37%
Revenue Next Year35.82%
Revenue Next 2Y22.59%
Revenue Next 3Y16.63%
Revenue Next 5YN/A
EBIT growth 1Y31.76%
EBIT growth 3Y-31.98%
EBIT growth 5Y-13.7%
EBIT Next Year79.24%
EBIT Next 3Y39.47%
EBIT Next 5YN/A
FCF growth 1Y-3.2%
FCF growth 3Y-16.26%
FCF growth 5Y-9.78%
OCF growth 1Y-6.16%
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 3 / 10 to VIAVI SOLUTIONS INC (VIAV). This can be considered as Overvalued.
Can you provide the profitability details for VIAVI SOLUTIONS INC?
VIAVI SOLUTIONS INC (VIAV) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for VIAV stock?
The Price/Earnings (PE) ratio for VIAVI SOLUTIONS INC (VIAV) is 40.9 and the Price/Book (PB) ratio is 7.37.
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 81.48% in the next year.