Viavi Solutions Inc.
Viavi Solutions Inc. Fundamental Analysis
Viavi Solutions Inc. (VIAV) shows moderate financial fundamentals with a PE ratio of -146.09, profit margin of -3.35%, and ROE of -5.44%. The company generates $1.3B in annual revenue with moderate year-over-year growth of 8.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 15.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VIAV's fundamental strength across five key dimensions:
Efficiency Score
WeakVIAV struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVIAV trades at attractive valuation levels.
Growth Score
ModerateVIAV shows steady but slowing expansion.
Financial Health Score
ModerateVIAV shows balanced financial health with some risks.
Profitability Score
WeakVIAV struggles to sustain strong margins.
Key Financial Metrics
Is VIAV Expensive or Cheap?
P/E Ratio
VIAV trades at -146.09 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VIAV's PEG of 0.40 indicates potential undervaluation.
Price to Book
The market values Viavi Solutions Inc. at 7.30 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 63.21 times EBITDA. This signals the market has high growth expectations.
How Well Does VIAV Make Money?
Net Profit Margin
For every $100 in sales, Viavi Solutions Inc. keeps $-3.35 as profit after all expenses.
Operating Margin
Core operations generate 7.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-5.44 in profit for every $100 of shareholder equity.
ROA
Viavi Solutions Inc. generates $-1.50 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Viavi Solutions Inc. generates limited operating cash flow of $108.86M, signaling weaker underlying cash strength.
Free Cash Flow
Viavi Solutions Inc. produces free cash flow of $81.51M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.35 in free cash annually.
FCF Yield
VIAV converts 1.24% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-146.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.07
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.05
vs 25 benchmark
ROA
Return on assets percentage
-0.02
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How VIAV Stacks Against Its Sector Peers
| Metric | VIAV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -146.09 | 35.19 | Better (Cheaper) |
| ROE | -5.44% | 1155.00% | Weak |
| Net Margin | -3.35% | -127067.00% (disorted) | Weak |
| Debt/Equity | 1.59 | 0.41 | Weak (High Leverage) |
| Current Ratio | 2.61 | 4.71 | Strong Liquidity |
| ROA | -1.50% | -314918.00% (disorted) | Weak |
VIAV outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Viavi Solutions Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-1.62%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
25.01%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-31.72%
Industry Style: Growth, Innovation, High Beta
Declining