VIAVI SOLUTIONS INC (VIAV)
US9255501051 - Common Stock
VIAV gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 54 industry peers in the Communications Equipment industry. VIAV scores excellent on profitability, but there are some minor concerns on its financial health. VIAV has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years VIAV has been profitable.
Each year in the past 5 years VIAV had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 0.27%, VIAV is doing good in the industry, outperforming 62.96% of the companies in the same industry.
VIAV's Return On Equity of 0.69% is fine compared to the rest of the industry. VIAV outperforms 64.81% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.03%, VIAV is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VIAV is below the industry average of 10.42%.
The last Return On Invested Capital (3.03%) for VIAV is well below the 3 year average (8.04%), which needs to be investigated, but indicates that VIAV had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 0.69% | ||
| ROIC | 3.03% |
ROA(3y)1.89%
ROA(5y)1.74%
ROE(3y)4.94%
ROE(5y)4.49%
ROIC(3y)8.04%
ROIC(5y)6.92%
1.3 Margins
VIAV has a Profit Margin of 0.49%. This is in the better half of the industry: VIAV outperforms 62.96% of its industry peers.
VIAV's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 5.85%, VIAV is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of VIAV has grown nicely.
Looking at the Gross Margin, with a value of 57.15%, VIAV belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
VIAV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.85% | ||
| PM (TTM) | 0.49% | ||
| GM | 57.15% |
OM growth 3Y-7.23%
OM growth 5Y48.96%
PM growth 3Y-18.84%
PM growth 5YN/A
GM growth 3Y-0.46%
GM growth 5Y0.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VIAV is destroying value.
Compared to 1 year ago, VIAV has less shares outstanding
VIAV has less shares outstanding than it did 5 years ago.
The debt/assets ratio for VIAV is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -50.46, 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 -50.46, VIAV is doing worse than 88.89% of the companies in the same industry.
The Debt to FCF ratio of VIAV is 9.16, which is on the high side as it means it would take VIAV, 9.16 years of fcf income to pay off all of its debts.
VIAV has a Debt to FCF ratio (9.16) which is comparable to the rest of the industry.
VIAV has a Debt/Equity ratio of 0.89. This is a neutral value indicating VIAV is somewhat dependend on debt financing.
VIAV has a worse Debt to Equity ratio (0.89) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | 9.16 | ||
| Altman-Z | -50.46 |
ROIC/WACC0.35
WACC8.65%
2.3 Liquidity
A Current Ratio of 3.09 indicates that VIAV has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.09, VIAV is doing good in the industry, outperforming 72.22% of the companies in the same industry.
A Quick Ratio of 2.72 indicates that VIAV has no problem at all paying its short term obligations.
VIAV's Quick ratio of 2.72 is fine compared to the rest of the industry. VIAV outperforms 79.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.09 | ||
| Quick Ratio | 2.72 |
3. Growth
3.1 Past
VIAV shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.22%.
VIAV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.19% yearly.
The Revenue for VIAV has decreased by -18.60% in the past year. This is quite bad
Measured over the past years, VIAV shows a small growth in Revenue. The Revenue has been growing by 4.78% on average per year.
EPS 1Y (TTM)-54.22%
EPS 3Y-9.01%
EPS 5Y3.19%
EPS growth Q2Q-21.43%
Revenue 1Y (TTM)-18.6%
Revenue growth 3Y-0.89%
Revenue growth 5Y4.78%
Revenue growth Q2Q-10.54%
3.2 Future
The Earnings Per Share is expected to grow by 6.61% on average over the next years.
The Revenue is expected to grow by 1.95% on average over the next years.
EPS Next Y-30.16%
EPS Next 2Y2.81%
EPS Next 3Y6.61%
EPS Next 5YN/A
Revenue Next Year-8.95%
Revenue Next 2Y-1.41%
Revenue Next 3Y1.95%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.08 indicates a rather expensive valuation of VIAV.
VIAV's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of VIAV to the average of the S&P500 Index (24.92), we can say VIAV is valued inline with the index average.
With a Price/Forward Earnings ratio of 13.78, VIAV is valued correctly.
64.81% 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 21.49. VIAV is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.08 | ||
| Fwd PE | 13.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIAV is valued a bit cheaper than 61.11% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VIAV indicates a somewhat cheap valuation: VIAV is cheaper than 68.52% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.93 | ||
| EV/EBITDA | 15.55 |
4.3 Compensation for Growth
The decent profitability rating of VIAV may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.6
EPS Next 2Y2.81%
EPS Next 3Y6.61%
5. Dividend
5.1 Amount
No dividends for VIAV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VIAVI SOLUTIONS INC
NASDAQ:VIAV (4/26/2024, 7:22:36 PM)
After market: 8.01 0 (0%)8.01
+0.04 (+0.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.08 | ||
| Fwd PE | 13.78 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)6.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.27% | ||
| ROE | 0.69% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.85% | ||
| PM (TTM) | 0.49% | ||
| GM | 57.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.09 | ||
| Quick Ratio | 2.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-54.22%
EPS 3Y-9.01%
EPS 5Y
EPS growth Q2Q
EPS Next Y-30.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-18.6%
Revenue growth 3Y-0.89%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y