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VIAVI SOLUTIONS INC (VIAV) Stock Fundamental Analysis

NASDAQ:VIAV - Nasdaq - US9255501051 - Common Stock - Currency: USD

10.93  +0.77 (+7.58%)

After market: 10.93 0 (0%)

Fundamental Rating

3

Overall VIAV gets a fundamental rating of 3 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 valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year VIAV was profitable.
In the past year VIAV had a positive cash flow from operations.
In multiple years VIAV reported negative net income over the last 5 years.
VIAV had a positive operating cash flow in 4 of the past 5 years.
VIAV Yearly Net Income VS EBIT VS OCF VS FCFVIAV Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M

1.2 Ratios

The Return On Assets of VIAV (0.26%) is better than 62.50% of its industry peers.
Looking at the Return On Equity, with a value of 0.70%, VIAV is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.95%, VIAV is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VIAV is significantly below the industry average of 14.31%.
Industry RankSector 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%
VIAV Yearly ROA, ROE, ROICVIAV Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

1.3 Margins

VIAV has a better Profit Margin (0.49%) than 62.50% of its industry peers.
VIAV has a Operating Margin of 4.95%. This is in the better half of the industry: VIAV outperforms 64.58% of its industry peers.
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 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 RankSector 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%
VIAV Yearly Profit, Operating, Gross MarginsVIAV Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

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2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VIAV is destroying value.
There is no outstanding debt for VIAV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
VIAV Yearly Shares OutstandingVIAV Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
VIAV Yearly Total Debt VS Total AssetsVIAV Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

VIAV has an Altman-Z score of -48.40. 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 -48.40, VIAV is doing worse than 87.50% of the companies in the same industry.
The Debt to FCF ratio of VIAV is 9.93, which is on the high side as it means it would take VIAV, 9.93 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 9.93, VIAV perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
VIAV has a Debt/Equity ratio of 0.56. This is a neutral value indicating VIAV is somewhat dependend on debt financing.
VIAV has a Debt to Equity ratio of 0.56. This is in the lower half of the industry: VIAV underperforms 68.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 9.93
Altman-Z -48.4
ROIC/WACC0.34
WACC8.61%
VIAV Yearly LT Debt VS Equity VS FCFVIAV Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 1.53 indicates that VIAV should not have too much problems paying its short term obligations.
VIAV has a Current ratio of 1.53. This is in the lower half of the industry: VIAV underperforms 64.58% of its industry peers.
A Quick Ratio of 1.32 indicates that VIAV should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.32, VIAV is in line with its industry, outperforming 47.92% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.53
Quick Ratio 1.32
VIAV Yearly Current Assets VS Current LiabilitesVIAV Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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3

3. Growth

3.1 Past

VIAV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.24%, which is quite impressive.
The Earnings Per Share has been decreasing by -8.43% on average over the past years.
EPS 1Y (TTM)38.24%
EPS 3Y-20.63%
EPS 5Y-8.43%
EPS Q2Q%62.5%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%15.28%

3.2 Future

The Earnings Per Share is expected to grow by 16.70% on average over the next years. This is quite good.
VIAV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y17.24%
EPS Next 2Y16.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.27%
Revenue Next 2Y6%
Revenue Next 3YN/A
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.
VIAV Yearly Revenue VS EstimatesVIAV Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
VIAV Yearly EPS VS EstimatesVIAV Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.2 0.4 0.6 0.8

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 23.26, which indicates a rather expensive current valuation of VIAV.
Based on the Price/Earnings ratio, VIAV is valued a bit cheaper than the industry average as 64.58% of the companies are valued more expensively.
VIAV is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.84, which indicates a rather expensive current valuation of VIAV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VIAV is on the same level as its industry peers.
VIAV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.04.
Industry RankSector Rank
PE 23.26
Fwd PE 19.84
VIAV Price Earnings VS Forward Price EarningsVIAV Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100

4.2 Price Multiples

VIAV's Enterprise Value to EBITDA is on the same level as the industry average.
VIAV's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 36.91
EV/EBITDA 24.16
VIAV Per share dataVIAV EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 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.
VIAV's earnings are expected to grow with 16.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)N/A
EPS Next 2Y16.7%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

No dividends for VIAV!.
Industry RankSector Rank
Dividend Yield N/A

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VIAVI SOLUTIONS INC

NASDAQ:VIAV (8/8/2025, 8:11:07 PM)

After market: 10.93 0 (0%)

10.93

+0.77 (+7.58%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)08-07 2025-08-07/amc
Earnings (Next)10-29 2025-10-29/amc
Inst Owners97.82%
Inst Owner Change0.16%
Ins Owners0.66%
Ins Owner Change-0.51%
Market Cap2.44B
Analysts77.33
Price Target12.51 (14.46%)
Short Float %3.48%
Short Ratio3.98
Dividend
Industry RankSector 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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.15%
EPS NY rev (1m)0%
EPS NY rev (3m)2.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
Industry RankSector Rank
PE 23.26
Fwd PE 19.84
P/S 2.33
P/FCF 36.91
P/OCF 26.46
P/B 3.35
P/tB 659.46
EV/EBITDA 24.16
EPS(TTM)0.47
EY4.3%
EPS(NY)0.55
Fwd EY5.04%
FCF(TTM)0.3
FCFY2.71%
OCF(TTM)0.41
OCFY3.78%
SpS4.68
BVpS3.26
TBVpS0.02
PEG (NY)1.35
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 -48.4
F-Score7
WACC8.61%
ROIC/WACC0.34
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)38.24%
EPS 3Y-20.63%
EPS 5Y-8.43%
EPS Q2Q%62.5%
EPS Next Y17.24%
EPS Next 2Y16.7%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%15.28%
Revenue Next Year7.27%
Revenue Next 2Y6%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y31.47%
EBIT growth 3Y-37.46%
EBIT growth 5Y-16.11%
EBIT Next Year65.89%
EBIT Next 3Y28.98%
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%