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VIAV

Viavi SolutionsNasdaqGS:VIAV Stock Report

Market Cap

US$3.6b

7D

-1.3%

1Y

35.6%

Updated

25 Sep, 2021

Data

Company Financials +
VIAV fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends0/6

VIAV 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$15.67
52 Week HighUS$11.56
52 Week LowUS$18.14
Beta0.73
1 Month Change-3.51%
3 Month Change-10.92%
1 Year Change35.55%
3 Year Change38.18%
5 Year Change112.04%
Change since IPO659.77%

Recent News & Updates

Sep 15
These 4 Measures Indicate That Viavi Solutions (NASDAQ:VIAV) Is Using Debt Safely

These 4 Measures Indicate That Viavi Solutions (NASDAQ:VIAV) Is Using Debt Safely

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

VIAVUS CommunicationsUS Market
7D-1.3%-0.2%0.1%
1Y35.6%49.1%35.3%

Return vs Industry: VIAV underperformed the US Communications industry which returned 49.1% over the past year.

Return vs Market: VIAV matched the US Market which returned 35.3% over the past year.

Price Volatility

Is VIAV's price volatile compared to industry and market?
VIAV volatility
VIAV Beta0.73
Industry Beta0.95
Market Beta1

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

Volatility Over Time: VIAV's weekly volatility (3%) 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$3.58b
Earnings (TTM)US$46.10m
Revenue (TTM)US$1.20b

77.7x

P/E Ratio

3.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VIAV income statement (TTM)
RevenueUS$1.20b
Cost of RevenueUS$451.50m
Gross ProfitUS$747.40m
ExpensesUS$701.30m
EarningsUS$46.10m

Last Reported Earnings

Jul 03, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.20
Gross Margin62.34%
Net Profit Margin3.85%
Debt/Equity Ratio80.5%

How did VIAV perform over the long term?

See historical performance and comparison

Valuation

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

19.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VIAV ($15.67) is trading below our estimate of fair value ($19.37)

Significantly Below Fair Value: VIAV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VIAV is poor value based on its PE Ratio (77.7x) compared to the US Communications industry average (22.6x).

PE vs Market: VIAV is poor value based on its PE Ratio (77.7x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VIAV is overvalued based on its PB Ratio (4.6x) compared to the US Communications industry average (2.2x).


Future Growth

How is Viavi Solutions forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

4.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if VIAV's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if VIAV's earnings are forecast to grow faster than the US market

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

Revenue vs Market: VIAV's revenue (4.9% per year) is forecast to grow slower than the US market (9.8% 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 low in 3 years time (17.7%).


Past Performance

How has Viavi Solutions performed over the past 5 years?

-4.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VIAV has high quality earnings.

Growing Profit Margin: VIAV's current net profit margins (3.8%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: VIAV has become profitable over the past 5 years, growing earnings by -4.3% per year.

Accelerating Growth: VIAV's earnings growth over the past year (58.1%) exceeds its 5-year average (-4.3% per year).

Earnings vs Industry: VIAV earnings growth over the past year (58.1%) underperformed the Communications industry 63%.


Return on Equity

High ROE: VIAV's Return on Equity (5.9%) is considered low.


Financial Health

How is Viavi Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: VIAV's short term assets ($1.1B) exceed its short term liabilities ($705.0M).

Long Term Liabilities: VIAV's short term assets ($1.1B) exceed its long term liabilities ($481.6M).


Debt to Equity History and Analysis

Debt Level: VIAV's debt to equity ratio (80.5%) is considered high.

Reducing Debt: VIAV's debt to equity ratio has reduced from 84.5% to 80.5% over the past 5 years.

Debt Coverage: VIAV's debt is well covered by operating cash flow (39%).

Interest Coverage: VIAV's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


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?

5.7yrs

Average management tenure


CEO

Oleg Khaykin (56 yo)

5.58yrs

Tenure

US$7,135,590

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 ($USD7.14M) is above average for companies of similar size in the US market ($USD5.28M).

Compensation vs Earnings: Oleg's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: VIAV's management team is seasoned and experienced (5.7 years average tenure).


Board Members

Experienced Board: VIAV's board of directors are considered experienced (5.9 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
  • Market Cap: US$3.580b
  • Shares outstanding: 228.47m
  • 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 Analysis2021/09/25 22:21
End of Day Share Price2021/09/24 00:00
Earnings2021/07/03
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.