VIAVI SOLUTIONS INC (VIAV) Stock Fundamental Analysis
USA - NASDAQ:VIAV - US9255501051 - Common Stock
17.285 USD
+0.18 (+1.08%)
VIAV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
VIAV had positive earnings in the past year.
In the past year VIAV had a positive cash flow from operations.
VIAV had positive earnings in 4 of the past 5 years.
Each year in the past 5 years VIAV had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.75%, VIAV is in line with its industry, outperforming 58.33% of the companies in the same industry.
VIAV's Return On Equity of 4.46% is fine compared to the rest of the industry. VIAV outperforms 62.50% of its industry peers.
The Return On Invested Capital of VIAV (3.27%) is better than 60.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VIAV is significantly below the industry average of 12.95%.
| 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
With a decent Profit Margin value of 3.21%, VIAV is doing good in the industry, outperforming 62.50% of the companies in the same industry.
VIAV's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 5.37%, VIAV is doing good in the industry, outperforming 62.50% of the companies in the same industry.
VIAV's Operating Margin has declined in the last couple of years.
VIAV has a better Gross Margin (57.28%) 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.
Compared to 1 year ago, VIAV has more shares outstanding
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 -46.19, 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 -46.19, VIAV is doing worse than 89.58% of the companies in the same industry.
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.
The Debt to FCF ratio of VIAV (10.61) is comparable to the rest of the industry.
VIAV has a Debt/Equity ratio of 0.53. This is a neutral value indicating VIAV is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.53, VIAV is not doing good in the industry: 70.83% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 10.61 | ||
| Altman-Z | -46.19 |
ROIC/WACC0.37
WACC8.74%
2.3 Liquidity
A Current Ratio of 1.50 indicates that VIAV should not have too much problems paying its short term obligations.
VIAV's Current ratio of 1.50 is on the low side compared to the rest of the industry. VIAV is outperformed by 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 has a worse Quick ratio (1.30) than 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 8.39% 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)8.39%
Revenue growth 3Y-5.68%
Revenue growth 5Y-0.93%
Sales Q2Q%25.57%
3.2 Future
VIAV is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.00% 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%
EPS Next 5YN/A
Revenue Next Year10.64%
Revenue Next 2Y7.24%
Revenue Next 3Y6.02%
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 30.87 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.
Compared to an average S&P500 Price/Earnings ratio of 26.19, VIAV is valued at the same level.
A Price/Forward Earnings ratio of 25.36 indicates a quite expensive valuation of VIAV.
Based on the Price/Forward Earnings ratio, VIAV is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, VIAV is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.87 | ||
| Fwd PE | 25.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VIAV.
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 | 62.23 | ||
| EV/EBITDA | 33.48 |
4.3 Compensation for Growth
The 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 25.00% in the coming years.
PEG (NY)1.17
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 |
NASDAQ:VIAV (10/31/2025, 10:14:09 AM)
17.285
+0.18 (+1.08%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners99.3%
Inst Owner Change0.68%
Ins Owners0.7%
Ins Owner Change10.06%
Market Cap3.86B
Revenue(TTM)1.08B
Net Income(TTM)34.80M
Analysts81.43
Price Target14.86 (-14.03%)
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)0%
PT rev (3m)14.17%
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 | 30.87 | ||
| Fwd PE | 25.36 | ||
| P/S | 3.56 | ||
| P/FCF | 62.23 | ||
| P/OCF | 42.96 | ||
| P/B | 4.94 | ||
| P/tB | 72.93 | ||
| EV/EBITDA | 33.48 |
EPS(TTM)0.56
EY3.24%
EPS(NY)0.68
Fwd EY3.94%
FCF(TTM)0.28
FCFY1.61%
OCF(TTM)0.4
OCFY2.33%
SpS4.86
BVpS3.5
TBVpS0.24
PEG (NY)1.17
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 | -46.19 |
F-Score6
WACC8.74%
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)8.39%
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 4 / 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 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.