VIAVI SOLUTIONS INC (VIAV) Stock Fundamental Analysis
NASDAQ:VIAV • US9255501051
26.58 USD
-0.32 (-1.19%)
Last: Feb 12, 2026, 03:30 PM
VIAV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. There are concerns on the financial health of VIAV while its profitability can be described as average. 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.
- VIAV had a positive operating cash flow in the past year.
- VIAV had positive earnings in 4 of the past 5 years.
- VIAV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.73%, VIAV is in line with its industry, outperforming 54.17% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 2.10%, VIAV is in line with its industry, outperforming 58.33% of the companies in the same industry.
- VIAV's Return On Invested Capital of 2.69% is in line compared to the rest of the industry. VIAV outperforms 58.33% 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 11.29%.
| 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
- The Profit Margin of VIAV (1.33%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of VIAV has declined.
- VIAV has a Operating Margin of 4.72%. This is in the better half 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 57.11%, VIAV is in the better half of the industry, outperforming 77.08% 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 | 4.72% | ||
| 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
- 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.
- VIAV has less shares outstanding than it did 5 years ago.
- VIAV has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of -43.28, we must say that VIAV is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of VIAV (-43.28) is worse than 85.42% of its industry peers.
- The Debt to FCF ratio of VIAV is 10.31, which is on the high side as it means it would take VIAV, 10.31 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 10.31, VIAV is in line with its industry, outperforming 45.83% of the companies in the same industry.
- VIAV has a Debt/Equity ratio of 0.91. This is a neutral value indicating VIAV is somewhat dependend on debt financing.
- VIAV has a Debt to Equity ratio of 0.91. This is amonst the worse of the industry: VIAV underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 10.31 | ||
| Altman-Z | -43.28 |
ROIC/WACC0.29
WACC9.17%
2.3 Liquidity
- VIAV has a Current Ratio of 1.99. 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 Current ratio, with a value of 1.99, VIAV is in line with its industry, outperforming 47.92% of the companies in the same industry.
- 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 (1.74) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 96.97% 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 very strong growth in Revenue. The Revenue has grown by 23.51%.
- 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)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
- VIAV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 38.91% yearly.
- VIAV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.63% yearly.
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
- Based on the Price/Earnings ratio of 40.89, the valuation of VIAV can be described as expensive.
- Based on the Price/Earnings ratio, VIAV is valued a bit cheaper than 60.42% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.18. VIAV is valued slightly more expensive when compared to this.
- Based on the Price/Forward Earnings ratio of 25.86, the valuation of VIAV can be described as expensive.
- VIAV's Price/Forward Earnings ratio is in line with the industry average.
- VIAV's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.89 | ||
| Fwd PE | 25.86 |
4.2 Price Multiples
- VIAV's Enterprise Value to EBITDA is on the same level as the industry average.
- 62.50% of the companies in the same industry are cheaper than VIAV, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 75.77 | ||
| EV/EBITDA | 51.85 |
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.
- VIAV's earnings are expected to grow with 38.91% in the coming years. This may justify a more expensive valuation.
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 (2/12/2026, 3:30:09 PM)
26.58
-0.32 (-1.19%)
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 Change-0.8%
Ins Owners1.57%
Ins Owner Change-1.77%
Market Cap5.93B
Revenue(TTM)1.24B
Net Income(TTM)15.20M
Analysts82.86
Price Target26.59 (0.04%)
Short Float %3.92%
Short Ratio2.07
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)39.31%
PT rev (3m)78.92%
EPS NQ rev (1m)-0.76%
EPS NQ rev (3m)2.35%
EPS NY rev (1m)24.3%
EPS NY rev (3m)31.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)5.73%
Revenue NY rev (3m)5.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.89 | ||
| Fwd PE | 25.86 | ||
| P/S | 5.18 | ||
| P/FCF | 75.77 | ||
| P/OCF | 55.29 | ||
| P/B | 8.2 | ||
| P/tB | 706.27 | ||
| EV/EBITDA | 51.85 |
EPS(TTM)0.65
EY2.45%
EPS(NY)1.03
Fwd EY3.87%
FCF(TTM)0.35
FCFY1.32%
OCF(TTM)0.48
OCFY1.81%
SpS5.13
BVpS3.24
TBVpS0.04
PEG (NY)0.5
PEG (5Y)N/A
Graham Number6.89
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 | -43.28 |
F-Score6
WACC9.17%
ROIC/WACC0.29
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 1Y75.9%
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-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 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 40.89 and the Price/Book (PB) ratio is 8.2.
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.