VIAVI SOLUTIONS INC (VIAV) Stock Fundamental Analysis
USA - NASDAQ:VIAV - US9255501051 - Common Stock
12.78 USD
+0.06 (+0.47%)
12.78 USD
0 (0%)
Overall VIAV gets a fundamental rating of 4 out of 10. We evaluated VIAV 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 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.
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
The Return On Assets of VIAV (1.75%) is comparable to the rest of the industry.
VIAV has a better Return On Equity (4.46%) than 62.50% of its industry peers.
VIAV has a better Return On Invested Capital (3.27%) than 62.50% of its industry peers.
VIAV had an Average Return On Invested Capital over the past 3 years of 3.35%. This is significantly below the industry average of 12.89%.
| 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's Profit Margin of 3.21% is fine compared to the rest of the industry. VIAV outperforms 62.50% of its industry peers.
In the last couple of years the Profit Margin of VIAV has declined.
VIAV's Operating Margin of 5.37% is fine compared to the rest of the industry. VIAV outperforms 62.50% of its industry peers.
In the last couple of years the Operating Margin of VIAV has declined.
Looking at the Gross Margin, with a value of 57.28%, VIAV is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
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 | 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.
VIAV has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, VIAV has less shares outstanding
Compared to 1 year ago, VIAV has an improved debt to assets ratio.
2.2 Solvency
VIAV has an Altman-Z score of -46.67. This is a bad value and indicates that VIAV is not financially healthy and even has some risk of bankruptcy.
VIAV has a Altman-Z score of -46.67. This is amonst the worse of the industry: VIAV underperforms 89.58% of its industry peers.
The Debt to FCF ratio of VIAV is 10.61, which is on the high side as it means it would take VIAV, 10.61 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.61, VIAV is in line with its industry, outperforming 47.92% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that VIAV is somewhat dependend on debt financing.
VIAV has a worse Debt to Equity ratio (0.53) than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 10.61 | ||
| Altman-Z | -46.67 |
ROIC/WACC0.36
WACC9.14%
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 70.83% 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.
Looking at the Quick ratio, with a value of 1.30, VIAV is doing worse than 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.24% over the past year.
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
VIAV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.20% yearly.
Based on estimates for the next years, VIAV will show a small growth in Revenue. The Revenue will grow by 6.02% on average per year.
EPS Next Y26.47%
EPS Next 2Y20.43%
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.
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 27.19 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 64.58% of the companies in the same industry.
VIAV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.90, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.50, VIAV is valued on the expensive side.
VIAV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VIAV is cheaper than 62.50% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VIAV to the average of the S&P500 Index (23.36), we can say VIAV is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 21.5 |
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 | 46.02 | ||
| EV/EBITDA | 25.4 |
4.3 Compensation for Growth
VIAV's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as VIAV's earnings are expected to grow with 25.20% in the coming years.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y20.43%
EPS Next 3Y25.2%
5. Dividend
5.1 Amount
No dividends for VIAV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.78
+0.06 (+0.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.3%
Inst Owner Change0%
Ins Owners0.7%
Ins Owner Change10.05%
Market Cap2.85B
Analysts81.43
Price Target14.28 (11.74%)
Short Float %4.1%
Short Ratio3.04
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)4.38%
PT rev (3m)14.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20.13%
EPS NY rev (1m)4.02%
EPS NY rev (3m)7.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.19 | ||
| Fwd PE | 21.5 | ||
| P/S | 2.63 | ||
| P/FCF | 46.02 | ||
| P/OCF | 31.77 | ||
| P/B | 3.66 | ||
| P/tB | 53.93 | ||
| EV/EBITDA | 25.4 |
EPS(TTM)0.47
EY3.68%
EPS(NY)0.59
Fwd EY4.65%
FCF(TTM)0.28
FCFY2.17%
OCF(TTM)0.4
OCFY3.15%
SpS4.86
BVpS3.49
TBVpS0.24
PEG (NY)1.03
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 | -46.67 |
F-Score6
WACC9.14%
ROIC/WACC0.36
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 Y26.47%
EPS Next 2Y20.43%
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 Year52.33%
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%