VIAVI SOLUTIONS INC (VIAV) Stock Fundamental Analysis
USA - NASDAQ:VIAV - US9255501051 - Common Stock
16.58 USD
-0.12 (-0.72%)
16.6 USD
+0.02 (+0.12%)
Overall VIAV gets a fundamental rating of 4 out of 10. We evaluated VIAV against 48 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 is not valued too expensively and it also shows 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
VIAV has a Return On Assets (0.73%) which is in line with its industry peers.
With a Return On Equity value of 2.10%, VIAV perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
VIAV has a Return On Invested Capital (2.69%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for VIAV is significantly below the industry average of 12.78%.
| 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
VIAV has a Profit Margin (1.33%) which is in line with its industry peers.
VIAV's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.72%, VIAV is in the better half of the industry, outperforming 60.42% 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 57.11%, VIAV is doing good in 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, VIAV has an improved debt to assets ratio.
2.2 Solvency
VIAV has an Altman-Z score of -44.29. 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 -44.29. This is amonst the worse of the industry: VIAV underperforms 87.50% of its industry peers.
VIAV has a debt to FCF ratio of 10.31. This is a negative value and a sign of low solvency as VIAV would need 10.31 years to pay back of all of its debts.
VIAV has a Debt to FCF ratio (10.31) which is in line with its industry peers.
A Debt/Equity ratio of 0.91 indicates that VIAV is somewhat dependend on debt financing.
VIAV's Debt to Equity ratio of 0.91 is on the low side compared to the rest of the industry. VIAV is outperformed by 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 10.31 | ||
| Altman-Z | -44.29 |
ROIC/WACC0.3
WACC8.87%
2.3 Liquidity
A Current Ratio of 1.99 indicates that VIAV should not have too much problems paying its short term obligations.
VIAV has a Current ratio of 1.99. This is comparable to the rest of the industry: VIAV outperforms 47.92% of its industry peers.
VIAV has a Quick Ratio of 1.74. This is a normal value and indicates that VIAV is financially healthy and should not expect problems in meeting its short term obligations.
VIAV has a Quick ratio of 1.74. This is in the better half of the industry: VIAV outperforms 62.50% of 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 80.65% 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 15.60% in the last year.
The Revenue has been decreasing by -0.93% on average over the past years.
EPS 1Y (TTM)80.65%
EPS 3Y-20.63%
EPS 5Y-8.43%
EPS Q2Q%150%
Revenue 1Y (TTM)15.6%
Revenue growth 3Y-5.68%
Revenue growth 5Y-0.93%
Sales Q2Q%25.57%
3.2 Future
The Earnings Per Share is expected to grow by 39.59% on average over the next years. This is a very strong growth
VIAV is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.80% yearly.
EPS Next Y37.73%
EPS Next 2Y31.23%
EPS Next 3Y39.59%
EPS Next 5YN/A
Revenue Next Year28.45%
Revenue Next 2Y18.21%
Revenue Next 3Y15.8%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.61 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 60.42% 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 25.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.48, which indicates a rather expensive current valuation of VIAV.
60.42% of the companies in the same industry are more expensive than VIAV, based on the Price/Forward Earnings ratio.
VIAV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.61 | ||
| Fwd PE | 20.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VIAV is on the same level as its industry peers.
VIAV's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.26 | ||
| EV/EBITDA | 33.01 |
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 39.59% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.78
PEG (5Y)N/A
EPS Next 2Y31.23%
EPS Next 3Y39.59%
5. Dividend
5.1 Amount
No dividends for VIAV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.58
-0.12 (-0.72%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.3%
Inst Owner Change4.23%
Ins Owners0.7%
Ins Owner Change10.29%
Market Cap3.70B
Revenue(TTM)1.15B
Net Income(TTM)15.20M
Analysts82.86
Price Target14.86 (-10.37%)
Short Float %6.41%
Short Ratio3.97
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)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)4.08%
PT rev (3m)18.83%
EPS NQ rev (1m)19.14%
EPS NQ rev (3m)30.08%
EPS NY rev (1m)8.9%
EPS NY rev (3m)17.48%
Revenue NQ rev (1m)21.02%
Revenue NQ rev (3m)21.02%
Revenue NY rev (1m)16.11%
Revenue NY rev (3m)19.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.61 | ||
| Fwd PE | 20.48 | ||
| P/S | 3.23 | ||
| P/FCF | 47.26 | ||
| P/OCF | 34.49 | ||
| P/B | 5.11 | ||
| P/tB | 440.55 | ||
| EV/EBITDA | 33.01 |
EPS(TTM)0.56
EY3.38%
EPS(NY)0.81
Fwd EY4.88%
FCF(TTM)0.35
FCFY2.12%
OCF(TTM)0.48
OCFY2.9%
SpS5.13
BVpS3.24
TBVpS0.04
PEG (NY)0.78
PEG (5Y)N/A
Graham Number6.39
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 | -44.29 |
F-Score6
WACC8.87%
ROIC/WACC0.3
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)80.65%
EPS 3Y-20.63%
EPS 5Y-8.43%
EPS Q2Q%150%
EPS Next Y37.73%
EPS Next 2Y31.23%
EPS Next 3Y39.59%
EPS Next 5YN/A
Revenue 1Y (TTM)15.6%
Revenue growth 3Y-5.68%
Revenue growth 5Y-0.93%
Sales Q2Q%25.57%
Revenue Next Year28.45%
Revenue Next 2Y18.21%
Revenue Next 3Y15.8%
Revenue Next 5YN/A
EBIT growth 1Y75.9%
EBIT growth 3Y-31.98%
EBIT growth 5Y-13.7%
EBIT Next Year52.33%
EBIT Next 3Y39.75%
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 of VIAVI SOLUTIONS INC (VIAV) stock?
ChartMill assigns a valuation rating of 5 / 10 to VIAVI SOLUTIONS INC (VIAV). This can be considered as Fairly Valued.
Can you provide the profitability details for VIAVI SOLUTIONS INC?
VIAVI SOLUTIONS INC (VIAV) has a profitability rating of 4 / 10.
What is the earnings growth outlook for VIAVI SOLUTIONS INC?
The Earnings per Share (EPS) of VIAVI SOLUTIONS INC (VIAV) is expected to grow by 37.73% in the next year.