VIAVI SOLUTIONS INC (VIAV) Stock Fundamental Analysis
NASDAQ:VIAV - Nasdaq - US9255501051 - Common Stock - Currency: USD
VIAV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 49 industry peers in the Communications Equipment industry. VIAV has a medium profitability rating, but doesn't score so well on its financial health evaluation. VIAV has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year VIAV was profitable.
VIAV had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 0.26%, VIAV is doing good in the industry, outperforming 61.22% of the companies in the same industry.
The Return On Equity of VIAV (0.70%) is better than 63.27% of its industry peers.
VIAV's Return On Invested Capital of 2.95% is in line compared to the rest of the industry. VIAV outperforms 59.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VIAV is significantly below the industry average of 13.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.26% | ||
| ROE | 0.7% | ||
| ROIC | 2.95% |
ROA(3y)0.25%
ROA(5y)1.39%
ROE(3y)0.74%
ROE(5y)3.59%
ROIC(3y)5.6%
ROIC(5y)6.43%
1.3 Margins
Looking at the Profit Margin, with a value of 0.49%, VIAV is in the better half of the industry, outperforming 61.22% of the companies in the same industry.
With a decent Operating Margin value of 4.95%, VIAV is doing good in the industry, outperforming 63.27% of the companies in the same industry.
VIAV's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 57.68%, VIAV is doing good in the industry, outperforming 77.55% of the companies in the same industry.
VIAV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.95% | ||
| PM (TTM) | 0.49% | ||
| GM | 57.68% |
OM growth 3Y-33.57%
OM growth 5Y-14.04%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.14%
GM growth 5Y-0.02%
2. Health
2.1 Basic Checks
VIAV has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for VIAV remains at a similar level compared to 1 year ago.
The number of shares outstanding for VIAV has been reduced compared to 5 years ago.
VIAV has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -48.61, we must say that VIAV is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of VIAV (-48.61) is worse than 87.76% of its industry peers.
VIAV has a debt to FCF ratio of 9.93. This is a negative value and a sign of low solvency as VIAV would need 9.93 years to pay back of all of its debts.
VIAV's Debt to FCF ratio of 9.93 is in line compared to the rest of the industry. VIAV outperforms 42.86% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that VIAV is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, VIAV is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 9.93 | ||
| Altman-Z | -48.61 |
ROIC/WACC0.31
WACC9.4%
2.3 Liquidity
A Current Ratio of 1.53 indicates that VIAV should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.53, VIAV is doing worse than 61.22% of the companies in the same industry.
A Quick Ratio of 1.32 indicates that VIAV should not have too much problems paying its short term obligations.
VIAV has a Quick ratio of 1.32. This is comparable to the rest of the industry: VIAV outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.32 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.67% over the past year.
Measured over the past years, VIAV shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.69% on average per year.
The Revenue has been growing slightly by 3.34% in the past year.
VIAV shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -2.41% yearly.
EPS 1Y (TTM)16.67%
EPS 3Y-26.03%
EPS 5Y-12.69%
EPS Q2Q%150%
Revenue 1Y (TTM)3.34%
Revenue growth 3Y-5.86%
Revenue growth 5Y-2.41%
Sales Q2Q%15.77%
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 23.47% on average per year.
The Revenue is expected to grow by 6.61% on average over the next years.
EPS Next Y35.9%
EPS Next 2Y27.31%
EPS Next 3Y23.47%
EPS Next 5YN/A
Revenue Next Year7.94%
Revenue Next 2Y7.51%
Revenue Next 3Y6.61%
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.
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
With a Price/Earnings ratio of 21.64, VIAV is valued on the expensive side.
Based on the Price/Earnings ratio, VIAV is valued a bit cheaper than the industry average as 65.31% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.91. VIAV is around the same levels.
The Price/Forward Earnings ratio is 16.50, which indicates a correct valuation of VIAV.
61.22% of the companies in the same industry are more expensive than VIAV, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VIAV to the average of the S&P500 Index (21.85), we can say VIAV is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.64 | ||
| Fwd PE | 16.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIAV is valued a bit cheaper than 61.22% of the companies in the same industry.
VIAV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.55 | ||
| EV/EBITDA | 20.4 |
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 23.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y27.31%
EPS Next 3Y23.47%
5. Dividend
5.1 Amount
VIAV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.09
-0.02 (-0.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners98.35%
Inst Owner Change-1.09%
Ins Owners0.71%
Ins Owner Change2.77%
Market Cap2.02B
Analysts77.33
Price Target12.51 (37.62%)
Short Float %2.74%
Short Ratio2.63
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)25.97%
Min EPS beat(2)23.84%
Max EPS beat(2)28.09%
EPS beat(4)3
Avg EPS beat(4)15.74%
Min EPS beat(4)-1.02%
Max EPS beat(4)28.09%
EPS beat(8)5
Avg EPS beat(8)10.74%
EPS beat(12)7
Avg EPS beat(12)8.02%
EPS beat(16)11
Avg EPS beat(16)9.48%
Revenue beat(2)1
Avg Revenue beat(2)0.54%
Min Revenue beat(2)-1.03%
Max Revenue beat(2)2.12%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-2.74%
Max Revenue beat(4)2.12%
Revenue beat(8)2
Avg Revenue beat(8)-0.88%
Revenue beat(12)4
Avg Revenue beat(12)-0.95%
Revenue beat(16)8
Avg Revenue beat(16)-0.34%
PT rev (1m)-3.35%
PT rev (3m)13.54%
EPS NQ rev (1m)-15.58%
EPS NQ rev (3m)-15.58%
EPS NY rev (1m)2.28%
EPS NY rev (3m)2.28%
Revenue NQ rev (1m)-2.89%
Revenue NQ rev (3m)-2.89%
Revenue NY rev (1m)-0.45%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.64 | ||
| Fwd PE | 16.5 | ||
| P/S | 1.93 | ||
| P/FCF | 30.55 | ||
| P/OCF | 21.9 | ||
| P/B | 2.77 | ||
| P/tB | 545.74 | ||
| EV/EBITDA | 20.4 |
EPS(TTM)0.42
EY4.62%
EPS(NY)0.55
Fwd EY6.06%
FCF(TTM)0.3
FCFY3.27%
OCF(TTM)0.42
OCFY4.57%
SpS4.71
BVpS3.28
TBVpS0.02
PEG (NY)0.6
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.26% | ||
| ROE | 0.7% | ||
| ROCE | 3.73% | ||
| ROIC | 2.95% | ||
| ROICexc | 4.13% | ||
| ROICexgc | 15.35% | ||
| OM | 4.95% | ||
| PM (TTM) | 0.49% | ||
| GM | 57.68% | ||
| FCFM | 6.32% |
ROA(3y)0.25%
ROA(5y)1.39%
ROE(3y)0.74%
ROE(5y)3.59%
ROIC(3y)5.6%
ROIC(5y)6.43%
ROICexc(3y)8.86%
ROICexc(5y)11.55%
ROICexgc(3y)17.75%
ROICexgc(5y)91.31%
ROCE(3y)7.08%
ROCE(5y)8.14%
ROICexcg growth 3Y-75.9%
ROICexcg growth 5Y-19.44%
ROICexc growth 3Y-49.87%
ROICexc growth 5Y-15.96%
OM growth 3Y-33.57%
OM growth 5Y-14.04%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.14%
GM growth 5Y-0.02%
F-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 9.93 | ||
| Debt/EBITDA | 3.72 | ||
| Cap/Depr | 44.24% | ||
| Cap/Sales | 2.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.21% | ||
| Profit Quality | 1296.08% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.32 | ||
| Altman-Z | -48.61 |
F-Score7
WACC9.4%
ROIC/WACC0.31
Cap/Depr(3y)67.63%
Cap/Depr(5y)56.68%
Cap/Sales(3y)4.06%
Cap/Sales(5y)3.87%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.67%
EPS 3Y-26.03%
EPS 5Y-12.69%
EPS Q2Q%150%
EPS Next Y35.9%
EPS Next 2Y27.31%
EPS Next 3Y23.47%
EPS Next 5YN/A
Revenue 1Y (TTM)3.34%
Revenue growth 3Y-5.86%
Revenue growth 5Y-2.41%
Sales Q2Q%15.77%
Revenue Next Year7.94%
Revenue Next 2Y7.51%
Revenue Next 3Y6.61%
Revenue Next 5YN/A
EBIT growth 1Y31.47%
EBIT growth 3Y-37.46%
EBIT growth 5Y-16.11%
EBIT Next Year65.69%
EBIT Next 3Y30.14%
EBIT Next 5YN/A
FCF growth 1Y-34.81%
FCF growth 3Y-20.27%
FCF growth 5Y0.65%
OCF growth 1Y-43.85%
OCF growth 3Y-21.79%
OCF growth 5Y-3.46%