VIAVI SOLUTIONS INC (VIAV) Stock Fundamental Analysis
USA - NASDAQ:VIAV - US9255501051 - Common Stock
12.1005 USD
+0.07 (+0.59%)
VIAV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 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.
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 Return On Assets (1.75%) which is comparable to the rest of the industry.
VIAV has a better Return On Equity (4.46%) than 62.50% of its industry peers.
VIAV has a Return On Invested Capital of 3.27%. This is in the better half of the industry: VIAV outperforms 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VIAV is significantly below the industry average of 13.71%.
| 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's Gross Margin of 57.28% is fine compared to the rest of the industry. VIAV outperforms 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
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.
The number of shares outstanding for VIAV has been reduced compared to 5 years ago.
VIAV has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -46.75, we must say that VIAV is in the distress zone and has some risk of bankruptcy.
VIAV has a worse Altman-Z score (-46.75) than 85.42% of its industry peers.
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.
VIAV has a Debt to FCF ratio (10.61) which 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.
VIAV has a Debt to Equity ratio of 0.53. This is in the lower half of the industry: VIAV underperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 10.61 | ||
| Altman-Z | -46.75 |
ROIC/WACC0.35
WACC9.4%
2.3 Liquidity
VIAV has a Current Ratio of 1.50. This is a normal value and indicates that VIAV is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.50, VIAV is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
A Quick Ratio of 1.30 indicates that VIAV should not have too much problems paying its short term obligations.
The Quick ratio of VIAV (1.30) is comparable to the rest of the industry.
| 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 38.24% over the past year.
The Earnings Per Share has been decreasing by -8.43% on average over the past years.
VIAV shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.39%.
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)38.24%
EPS 3Y-20.63%
EPS 5Y-8.43%
EPS Q2Q%62.5%
Revenue 1Y (TTM)8.39%
Revenue growth 3Y-5.68%
Revenue growth 5Y-0.93%
Sales Q2Q%15.28%
3.2 Future
The Earnings Per Share is expected to grow by 25.20% on average over the next years. This is a very strong growth
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 Y21.58%
EPS Next 2Y19.55%
EPS Next 3Y25.2%
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.
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 25.75, the valuation of VIAV can be described as expensive.
Based on the Price/Earnings ratio, VIAV is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of VIAV to the average of the S&P500 Index (27.30), we can say VIAV is valued inline with the index average.
A Price/Forward Earnings ratio of 21.18 indicates a rather expensive valuation of VIAV.
66.67% of the companies in the same industry are more expensive than VIAV, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.73. VIAV is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.75 | ||
| Fwd PE | 21.18 |
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 | 43.57 | ||
| EV/EBITDA | 24.12 |
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 25.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.19
PEG (5Y)N/A
EPS Next 2Y19.55%
EPS Next 3Y25.2%
5. Dividend
5.1 Amount
No dividends for VIAV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:VIAV (9/15/2025, 10:23:04 AM)
12.1005
+0.07 (+0.59%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners97.82%
Inst Owner Change2.57%
Ins Owners0.66%
Ins Owner Change3.45%
Market Cap2.70B
Analysts81.43
Price Target14.28 (18.01%)
Short Float %4.82%
Short Ratio3.94
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)14.17%
PT rev (3m)14.17%
EPS NQ rev (1m)2.2%
EPS NQ rev (3m)20.13%
EPS NY rev (1m)3.7%
EPS NY rev (3m)3.7%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.79%
Revenue NY rev (1m)3.14%
Revenue NY rev (3m)3.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.75 | ||
| Fwd PE | 21.18 | ||
| P/S | 2.49 | ||
| P/FCF | 43.57 | ||
| P/OCF | 30.08 | ||
| P/B | 3.46 | ||
| P/tB | 51.07 | ||
| EV/EBITDA | 24.12 |
EPS(TTM)0.47
EY3.88%
EPS(NY)0.57
Fwd EY4.72%
FCF(TTM)0.28
FCFY2.3%
OCF(TTM)0.4
OCFY3.32%
SpS4.86
BVpS3.49
TBVpS0.24
PEG (NY)1.19
PEG (5Y)N/A
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%
ROICexcg growth 3Y-17.05%
ROICexcg 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 | -46.75 |
F-Score6
WACC9.4%
ROIC/WACC0.35
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)38.24%
EPS 3Y-20.63%
EPS 5Y-8.43%
EPS Q2Q%62.5%
EPS Next Y21.58%
EPS Next 2Y19.55%
EPS Next 3Y25.2%
EPS Next 5YN/A
Revenue 1Y (TTM)8.39%
Revenue growth 3Y-5.68%
Revenue growth 5Y-0.93%
Sales Q2Q%15.28%
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 Year46.03%
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%