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VIAV

Viavi Solutions NasdaqGS:VIAV Stock Report

Last Price

US$13.66

Market Cap

US$3.1b

7D

4.2%

1Y

-22.3%

Updated

25 Jun, 2022

Data

Company Financials +
VIAV fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance0/6
Financial Health6/6
Dividends0/6

VIAV Stock Overview

Viavi Solutions Inc. provides network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, government, and avionics customers worldwide.

Viavi Solutions Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Viavi Solutions
Historical stock prices
Current Share PriceUS$13.66
52 Week HighUS$18.14
52 Week LowUS$12.95
Beta0.73
1 Month Change-5.34%
3 Month Change-16.04%
1 Year Change-22.34%
3 Year Change2.78%
5 Year Change29.73%
Change since IPO562.31%

Recent News & Updates

May 18

Viavi: A Profitable 5G And Open-RAN Network Testing Play

Viavi Solutions is a network testing and measurement company that is seeing growth in both its fiber and 5G wireless businesses. Its ability to successfully navigate supply-chain issues has resulted in further differentiation with respect to competitors. However, this comes at a cost, namely in terms of inventory levels to be kept, and its operating costs are also on the high side when compared with a larger peer. Taking into consideration its better production efficiency, high demand for its products, a balanced capital allocation strategy, and lower valuations, the company is a buy. As a tech stock, market conditions are likely to continue to be volatile, but this is a company that has opportunistically positioned its products to take advantage of technologies like 5G Open RAN.

Shareholder Returns

VIAVUS CommunicationsUS Market
7D4.2%3.4%6.6%
1Y-22.3%-15.0%-18.5%

Return vs Industry: VIAV underperformed the US Communications industry which returned -15% over the past year.

Return vs Market: VIAV underperformed the US Market which returned -18.5% over the past year.

Price Volatility

Is VIAV's price volatile compared to industry and market?
VIAV volatility
VIAV Average Weekly Movement4.4%
Communications Industry Average Movement8.1%
Market Average Movement8.0%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.1%

Stable Share Price: VIAV is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: VIAV's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19233,600Oleg Khaykinhttps://www.viavisolutions.com

Viavi Solutions Inc. provides network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, government, and avionics customers worldwide. The company operates through three segments: Network Enablement (NE), Service Enablement (SE), and Optical Security and Performance Products (OSP) segments. The NE segment offers testing solutions that access the network to perform build-out and maintenance tasks.

Viavi Solutions Fundamentals Summary

How do Viavi Solutions's earnings and revenue compare to its market cap?
VIAV fundamental statistics
Market CapUS$3.11b
Earnings (TTM)-US$19.10m
Revenue (TTM)US$1.27b

2.5x

P/S Ratio

-162.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VIAV income statement (TTM)
RevenueUS$1.27b
Cost of RevenueUS$481.30m
Gross ProfitUS$786.70m
Other ExpensesUS$805.80m
Earnings-US$19.10m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.084
Gross Margin62.04%
Net Profit Margin-1.51%
Debt/Equity Ratio99.5%

How did VIAV perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is VIAV undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VIAV?

Other financial metrics that can be useful for relative valuation.

VIAV key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.6x
Enterprise Value/EBITDA12.9x
PEG Ration/a

Price to Sales Ratio vs Peers

How does VIAV's PS Ratio compare to its peers?

VIAV PS Ratio vs Peers
The above table shows the PS ratio for VIAV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2.6x

Price-To-Sales vs Peers: VIAV is good value based on its Price-To-Sales Ratio (2.5x) compared to the peer average (2.6x).


Price to Earnings Ratio vs Industry

How does VIAV's PE Ratio compare vs other companies in the U.S. Communications Industry?

Price-To-Sales vs Industry: VIAV is expensive based on its Price-To-Sales Ratio (2.5x) compared to the US Communications industry average (1.3x)


Price to Sales Ratio vs Fair Ratio

What is VIAV's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VIAV PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.5x
Fair PS Ratio3.1x

Price-To-Sales vs Fair Ratio: VIAV is good value based on its Price-To-Sales Ratio (2.5x) compared to the estimated Fair Price-To-Sales Ratio (3.1x).


Share Price vs Fair Value

What is the Fair Price of VIAV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VIAV ($13.66) is trading below our estimate of fair value ($23.51)

Significantly Below Fair Value: VIAV is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VIAV's PEG Ratio to determine if it is good value.


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Future Growth

How is Viavi Solutions forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


245.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VIAV is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: VIAV is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: VIAV is expected to become profitable in the next 3 years.

Revenue vs Market: VIAV's revenue (4.9% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: VIAV's revenue (4.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VIAV's Return on Equity is forecast to be high in 3 years time (23.1%)


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Past Performance

How has Viavi Solutions performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-19.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VIAV is currently unprofitable.

Growing Profit Margin: VIAV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VIAV is unprofitable, and losses have increased over the past 5 years at a rate of 19.1% per year.

Accelerating Growth: Unable to compare VIAV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VIAV is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (35.7%).


Return on Equity

High ROE: VIAV has a negative Return on Equity (-2.69%), as it is currently unprofitable.


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Financial Health

How is Viavi Solutions's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VIAV's short term assets ($1.0B) exceed its short term liabilities ($259.7M).

Long Term Liabilities: VIAV's short term assets ($1.0B) exceed its long term liabilities ($908.4M).


Debt to Equity History and Analysis

Debt Level: VIAV's net debt to equity ratio (16.2%) is considered satisfactory.

Reducing Debt: VIAV's debt to equity ratio has reduced from 124.1% to 99.5% over the past 5 years.

Debt Coverage: VIAV's debt is well covered by operating cash flow (23.7%).

Interest Coverage: VIAV's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet


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Dividend

What is Viavi Solutions's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate VIAV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VIAV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VIAV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VIAV's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as VIAV has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

6.4yrs

Average management tenure


CEO

Oleg Khaykin (56 yo)

6.33yrs

Tenure

US$16,868,008

Compensation

Mr. Oleg Khaykin has been the Chief Executive Officer and President of Viavi Solutions Inc. since February 3, 2016. He joined Viavi in February 2016. Mr. Khaykin served as Senior Advisor of Silver Lake/Sil...


CEO Compensation Analysis

Compensation vs Market: Oleg's total compensation ($USD16.87M) is above average for companies of similar size in the US market ($USD6.89M).

Compensation vs Earnings: Oleg's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: VIAV's management team is seasoned and experienced (6.4 years average tenure).


Board Members

Experienced Board: VIAV's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: VIAV insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Viavi Solutions Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Viavi Solutions Inc.
  • Ticker: VIAV
  • Exchange: NasdaqGS
  • Founded: 1923
  • Industry: Communications Equipment
  • Sector: Tech
  • Implied Market Cap: US$3.112b
  • Shares outstanding: 227.83m
  • Website: https://www.viavisolutions.com

Number of Employees


Location

  • Viavi Solutions Inc.
  • 7047 E Greenway Pkwy
  • Suite 250
  • Scottsdale
  • Arizona
  • 85254
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/25 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/04/02
Annual Earnings2021/07/03


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.