VIAVI SOLUTIONS INC (VIAV)
US9255501051 - Common Stock
Taking everything into account, VIAV scores 4 out of 10 in our fundamental rating. VIAV was compared to 54 industry peers in the Communications Equipment industry. While VIAV has a great profitability rating, there are some minor concerns on its financial health. VIAV has a valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years VIAV has always been profitable.
Each year in the past 5 years VIAV had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VIAV (0.27%) is better than 66.67% of its industry peers.
The Return On Equity of VIAV (0.69%) is better than 66.67% of its industry peers.
VIAV has a Return On Invested Capital of 3.03%. This is in the better half of the industry: VIAV outperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VIAV is in line with the industry average of 9.55%.
The last Return On Invested Capital (3.03%) for VIAV is well below the 3 year average (8.04%), which needs to be investigated, but indicates that VIAV had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 0.69% | ||
| ROIC | 3.03% |
ROA(3y)1.89%
ROA(5y)1.74%
ROE(3y)4.94%
ROE(5y)4.49%
ROIC(3y)8.04%
ROIC(5y)6.92%
1.3 Margins
The Profit Margin of VIAV (0.49%) is better than 66.67% of its industry peers.
In the last couple of years the Profit Margin of VIAV has declined.
The Operating Margin of VIAV (5.85%) is better than 68.52% of its industry peers.
VIAV's Operating Margin has improved in the last couple of years.
VIAV has a better Gross Margin (57.15%) than 79.63% of its industry peers.
VIAV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.85% | ||
| PM (TTM) | 0.49% | ||
| GM | 57.15% |
OM growth 3Y-7.23%
OM growth 5Y48.96%
PM growth 3Y-18.84%
PM growth 5YN/A
GM growth 3Y-0.46%
GM growth 5Y0.7%
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 reduced compared to 1 year ago.
The number of shares outstanding for VIAV has been reduced compared to 5 years ago.
The debt/assets ratio for VIAV is higher compared to a year ago.
2.2 Solvency
VIAV has an Altman-Z score of -50.54. This is a bad value and indicates that VIAV is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -50.54, VIAV is doing worse than 90.74% of the companies in the same industry.
The Debt to FCF ratio of VIAV is 9.16, which is on the high side as it means it would take VIAV, 9.16 years of fcf income to pay off all of its debts.
VIAV's Debt to FCF ratio of 9.16 is in line compared to the rest of the industry. VIAV outperforms 53.70% of its industry peers.
A Debt/Equity ratio of 0.89 indicates that VIAV is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.89, VIAV is doing worse than 75.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 9.16 | ||
| Altman-Z | -50.54 |
ROIC/WACC0.35
WACC8.65%
2.3 Liquidity
VIAV has a Current Ratio of 3.09. This indicates that VIAV is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of VIAV (3.09) is better than 74.07% of its industry peers.
A Quick Ratio of 2.72 indicates that VIAV has no problem at all paying its short term obligations.
The Quick ratio of VIAV (2.72) is better than 79.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.09 | ||
| Quick Ratio | 2.72 |
3. Growth
3.1 Past
The earnings per share for VIAV have decreased strongly by -47.83% in the last year.
The Earnings Per Share has been growing slightly by 3.19% on average over the past years.
Looking at the last year, VIAV shows a very negative growth in Revenue. The Revenue has decreased by -14.08% in the last year.
Measured over the past years, VIAV shows a small growth in Revenue. The Revenue has been growing by 4.78% on average per year.
EPS 1Y (TTM)-47.83%
EPS 3Y-9.01%
EPS 5Y3.19%
EPS Q2Q%-25%
Revenue 1Y (TTM)-14.08%
Revenue growth 3Y-0.89%
Revenue growth 5Y4.78%
Sales Q2Q%-0.73%
3.2 Future
Based on estimates for the next years, VIAV will show a small growth in Earnings Per Share. The EPS will grow by 5.46% on average per year.
The Revenue is expected to grow by 1.24% on average over the next years.
EPS Next Y-40.42%
EPS Next 2Y-7.01%
EPS Next 3Y5.46%
EPS Next 5YN/A
Revenue Next Year-10.53%
Revenue Next 2Y-2.94%
Revenue Next 3Y1.24%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.89, the valuation of VIAV can be described as rather expensive.
VIAV's Price/Earnings ratio is a bit cheaper when compared to the industry. VIAV is cheaper than 66.67% of the companies in the same industry.
VIAV is valuated rather cheaply when we compare the Price/Earnings ratio to 28.05, which is the current average of the S&P500 Index.
VIAV is valuated correctly with a Price/Forward Earnings ratio of 15.81.
VIAV's Price/Forward Earnings is on the same level as the industry average.
VIAV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.07, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.89 | ||
| Fwd PE | 15.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIAV is valued a bit cheaper than the industry average as 68.52% of the companies are valued more expensively.
VIAV's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VIAV is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.65 | ||
| EV/EBITDA | 14.48 |
4.3 Compensation for Growth
VIAV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.54
EPS Next 2Y-7.01%
EPS Next 3Y5.46%
5. Dividend
5.1 Amount
No dividends for VIAV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VIAVI SOLUTIONS INC
NASDAQ:VIAV (5/31/2024, 7:12:13 PM)
After market: 7.52 0 (0%)7.52
+0.13 (+1.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.89 | ||
| Fwd PE | 15.81 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)6.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 0.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.85% | ||
| PM (TTM) | 0.49% | ||
| GM | 57.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.09 | ||
| Quick Ratio | 2.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-47.83%
EPS 3Y-9.01%
EPS 5Y
EPS Q2Q%
EPS Next Y-40.42%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.08%
Revenue growth 3Y-0.89%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y