NasdaqGS:VIAV

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Proven track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Viavi Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VIAV has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

VIAV

-3.2%

US Communications

-3.1%

US Market


1 Year Return

-18.0%

VIAV

-17.7%

US Communications

12.7%

US Market

Return vs Industry: VIAV matched the US Communications industry which returned -17.7% over the past year.

Return vs Market: VIAV underperformed the US Market which returned 12.7% over the past year.


Shareholder returns

VIAVIndustryMarket
7 Day-1.2%-3.2%-3.1%
30 Day-9.5%-8.7%-2.9%
90 Day-3.6%-10.4%8.2%
1 Year-18.0%-18.0%-15.5%-17.7%15.3%12.7%
3 Year24.0%24.0%14.8%6.9%37.8%28.5%
5 Year122.2%122.2%51.6%34.8%90.9%69.4%

Price Volatility Vs. Market

How volatile is Viavi Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Viavi Solutions undervalued compared to its fair value and its price relative to the market?

41.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VIAV ($11.93) is trading below our estimate of fair value ($20.27)

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


Price To Earnings Ratio

PE vs Industry: VIAV is poor value based on its PE Ratio (95.4x) compared to the US Communications industry average (37.5x).

PE vs Market: VIAV is poor value based on its PE Ratio (95.4x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: VIAV is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: VIAV is overvalued based on its PB Ratio (3.8x) compared to the US Communications industry average (1.7x).


Next Steps

Future Growth

How is Viavi Solutions forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

63.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VIAV's forecast earnings growth (63.4% per year) is above the savings rate (2.2%).

Earnings vs Market: VIAV's earnings (63.4% per year) are forecast to grow faster than the US market (23.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VIAV's revenue (3% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: VIAV's revenue (3% 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 low in 3 years time (16%).


Next Steps

Past Performance

How has Viavi Solutions performed over the past 5 years?

24.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VIAV has a large one-off gain of $26.0M impacting its June 27 2020 financial results.

Growing Profit Margin: VIAV's current net profit margins (2.5%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: VIAV has become profitable over the past 5 years, growing earnings by 24.2% per year.

Accelerating Growth: VIAV's earnings growth over the past year (290.9%) exceeds its 5-year average (24.2% per year).

Earnings vs Industry: VIAV earnings growth over the past year (290.9%) exceeded the Communications industry -28.9%.


Return on Equity

High ROE: VIAV's Return on Equity (4%) is considered low.


Next Steps

Financial Health

How is Viavi Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: VIAV's short term assets ($913.6M) exceed its short term liabilities ($232.8M).

Long Term Liabilities: VIAV's short term assets ($913.6M) exceed its long term liabilities ($832.1M).


Debt to Equity History and Analysis

Debt Level: VIAV's debt to equity ratio (84.9%) is considered high.

Reducing Debt: VIAV's debt to equity ratio has increased from 51.2% to 84.9% over the past 5 years.

Debt Coverage: VIAV's debt is well covered by operating cash flow (22.5%).

Interest Coverage: VIAV's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Next Steps

Dividend

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


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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VIAV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Oleg Khaykin (55 yo)

4.58yrs

Tenure

US$6,942,078

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 ($USD6.94M) is about average for companies of similar size in the US market ($USD5.71M).

Compensation vs Earnings: Oleg's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Oleg Khaykin
President4.58yrsUS$6.94m0.32%
$ 8.8m
Amar Maletira
Executive VP & CFO5yrsUS$3.02m0.099%
$ 2.7m
Paul McNab
Executive VP and Chief Marketing & Strategy Officer6yrsUS$1.48m0.023%
$ 621.6k
Gary Staley
Senior Vice President of Global Salesno dataUS$1.50m0.023%
$ 617.5k
Luke Scrivanich
Senior VP and GM of Optical Security & Performance Products8.08yrsUS$1.56m0.024%
$ 658.6k
Ralph Rondinone
Senior Vice President of Global Operations & Services and Network & Service Enablementno dataUS$989.20k0.012%
$ 326.9k
William Ong
Senior Director of Finance & IRno datano datano data
Kevin Siebert
Senior VP5.5yrsno data0.016%
$ 447.0k
Petra Nagel
Senior Vice President of Human Resources4.67yrsno datano data
Michael Seidl
Senior Vice President of Business Management4.42yrsno datano data

5.0yrs

Average Tenure

55yo

Average Age

Experienced Management: VIAV's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Oleg Khaykin
President4.58yrsUS$6.94m0.32%
$ 8.8m
Richard Belluzzo
Independent Chairman7.83yrsUS$338.32k0.091%
$ 2.5m
Masood Jabbar
Independent Director14.5yrsUS$268.32k0.094%
$ 2.6m
Glenda Dorchak
Independent Director0.83yrno datano data
Donald Colvin
Independent Director4.92yrsUS$275.82k0.046%
$ 1.2m
Keith Barnes
Independent Director8.92yrsUS$280.82k0.051%
$ 1.4m
Tor Braham
Independent Director4.92yrsUS$245.82k0.046%
$ 1.2m
Laura Black
Independent Director2.58yrsUS$245.82k0.015%
$ 409.9k
Timothy Campos
Independent Director6.42yrsUS$255.82k0.047%
$ 1.3m

4.9yrs

Average Tenure

66yo

Average Age

Experienced Board: VIAV's board of directors are considered experienced (4.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Viavi Solutions Inc.
  • Ticker: VIAV
  • Exchange: NasdaqGS
  • Founded: 1923
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$2.724b
  • Shares outstanding: 228.32m
  • Website: https://www.viavisolutions.com

Number of Employees


Location

  • Viavi Solutions Inc.
  • 6001 America Center Drive
  • 6th Floor
  • San Jose
  • California
  • 95002
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VIAVNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1993
UNS1DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1993

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/23 05:57
End of Day Share Price2020/09/22 00:00
Earnings2020/06/27
Annual Earnings2020/06/27


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.