VIAVI SOLUTIONS INC (VIAV) Stock Fundamental Analysis
USA - NASDAQ:VIAV - US9255501051 - Common Stock
17.7 USD
+0.6 (+3.51%)
17.7061 USD
+0.01 (+0.03%)
We assign a fundamental rating of 4 out of 10 to VIAV. VIAV was compared to 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. While showing a medium growth rate, VIAV is valued expensive at the moment.
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.
Of the past 5 years VIAV 4 years were profitable.
Each year in the past 5 years VIAV had a positive operating cash flow.
1.2 Ratios
VIAV has a better Return On Assets (1.75%) than 60.42% of its industry peers.
VIAV has a Return On Equity of 4.46%. This is in the better half of the industry: VIAV outperforms 62.50% of its industry peers.
VIAV's Return On Invested Capital of 3.27% is in line compared to the rest of the industry. VIAV outperforms 58.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VIAV is significantly below the industry average of 13.03%.
| 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
Looking at the Profit Margin, with a value of 3.21%, VIAV is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
In the last couple of years the Profit Margin of VIAV has declined.
VIAV has a better Operating Margin (5.37%) than 62.50% of its industry peers.
VIAV's Operating Margin has declined in the last couple of years.
The Gross Margin of VIAV (57.28%) is better than 79.17% of its industry peers.
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
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 has been increased compared to 1 year ago.
The number of shares outstanding for VIAV has been reduced compared to 5 years ago.
The debt/assets ratio for VIAV has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -46.12, we must say that VIAV is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -46.12, VIAV is doing worse than 89.58% of the companies in the same industry.
VIAV has a debt to FCF ratio of 10.61. This is a negative value and a sign of low solvency as VIAV would need 10.61 years to pay back of all of its debts.
The Debt to FCF ratio of VIAV (10.61) is comparable to the rest of the 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 | -46.12 |
ROIC/WACC0.37
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.50 indicates that VIAV should not have too much problems paying its short term obligations.
The Current ratio of VIAV (1.50) is worse than 70.83% of its industry peers.
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.
VIAV's Quick ratio of 1.30 is on the low side compared to the rest of the industry. VIAV is outperformed by 60.42% of its industry peers.
| 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 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.
The Revenue has grown by 15.60% in the past year. This is quite good.
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
Based on estimates for the next years, VIAV will show a very strong growth in Earnings Per Share. The EPS will grow by 25.00% on average per year.
VIAV is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.02% yearly.
EPS Next Y26.47%
EPS Next 2Y20.43%
EPS Next 3Y25%
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 31.61 indicates a quite expensive valuation of VIAV.
Compared to the rest of the industry, the Price/Earnings ratio of VIAV indicates a somewhat cheap valuation: VIAV is cheaper than 60.42% of the companies listed in the same industry.
VIAV's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.11.
With a Price/Forward Earnings ratio of 25.96, VIAV can be considered very expensive at the moment.
VIAV's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, VIAV is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.61 | ||
| Fwd PE | 25.96 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.72 | ||
| EV/EBITDA | 34.59 |
4.3 Compensation for Growth
The 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 25.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)N/A
EPS Next 2Y20.43%
EPS Next 3Y25%
5. Dividend
5.1 Amount
No dividends for VIAV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.7
+0.6 (+3.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.3%
Inst Owner Change0.73%
Ins Owners0.7%
Ins Owner Change10.06%
Market Cap3.95B
Revenue(TTM)1.15B
Net Income(TTM)34.80M
Analysts81.43
Price Target14.86 (-16.05%)
Short Float %4.61%
Short Ratio3.51
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)4.08%
PT rev (3m)18.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)20.13%
EPS NY rev (1m)0%
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)3.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.61 | ||
| Fwd PE | 25.96 | ||
| P/S | 3.64 | ||
| P/FCF | 63.72 | ||
| P/OCF | 43.99 | ||
| P/B | 5.06 | ||
| P/tB | 74.68 | ||
| EV/EBITDA | 34.59 |
EPS(TTM)0.56
EY3.16%
EPS(NY)0.68
Fwd EY3.85%
FCF(TTM)0.28
FCFY1.57%
OCF(TTM)0.4
OCFY2.27%
SpS4.86
BVpS3.5
TBVpS0.24
PEG (NY)1.19
PEG (5Y)N/A
Graham Number6.64
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%
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 Turnover0.54
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 | -46.12 |
F-Score6
WACC8.78%
ROIC/WACC0.37
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 Y26.47%
EPS Next 2Y20.43%
EPS Next 3Y25%
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 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%
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 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 5 / 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 26.47% in the next year.