Viavi Solutions Inc.

Technology
Semiconductors
www.viavisolutions.com

Earnings Score
Moat Score
Safety Score

Market Cap $2.32B
PE -62
Debt $637.60M
Cash $478.10M
EV $2.48B
FCF $59.50M

Earnings

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Sales & Net Margins

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Earnings	-$37.40M
EBIT	$13.90M
ROE	-5%
ROA	1%
FCF	$59.50M
Equity	$702.10M
Growth Stability	-89%
PE	-62.15
PEG	7.48
PB	3.31
P/FCF	39.06
P/S	2.35
Price/Cash	0.21
Debt/Equity	0.91
Debt/FCF	10.72
Net Margins	-1%
Gross Margins	57%
Op. Margins	1%
Earnings CAGR	-4%
Sales Growth YoY	-4%
Sales Growth QoQ	-5%
Sales CAGR	3%
FCF CAGR	17%
Equity CAGR	-3%
Earnings Stability	0.05
Earnings Growth YoY	-118%
Earnings Growth QoQ	-92%

Earnings CAGR 5Y	-8%
Sales CAGR 5Y	-3%
FCF CAGR 5Y	-12%
Equity CAGR 5Y	-2%
Earnings CAGR 3Y	-11%
Sales CAGR 3Y	-11%
FCF CAGR 3Y	-11%
Equity CAGR 3Y	-1%
Market Cap	$2.32B
Revenue	$990.70M
Assets	$1.74B
Total Debt	$637.60M
Cash	$478.10M
Shares Outstanding	222M
EV	2.48B
Earnings Score	6%
Moat Score	18%
Safety Score	45%
Final Score	23%
Working Capital	631.2M
Current Ratio	3.71
Gross Profit	$567.60M
Shares Growth 3y	-1%
Equity Growth QoQ	3%
Equity Growth YoY	4%

Assets & ROA

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Stockholders Equity & ROE

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Viavi Solutions Inc. is a global provider of network test, monitoring and assurance solutions to communications service providers, enterprises, network equipment manufacturers, civil government, military and avionics customers. The company also offers high-performance thin-film optical coatings, providing light management solutions to anti-counterfeiting, 3D sensing, electronics, automotive, defense and instrumentation markets. Its operating segments include Network Enablement, Service Enablement, and Optical Security and Performance Products. Geographically, it derives a majority of revenue from the United States.

SEC Filings

Direct access to Viavi Solutions Inc. (VIAV) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 28
- 10-K Jun 29
- 10-Q Mar 30
2023
- 10-Q Dec 30
- 10-Q Sep 30
- 10-K Jul 01
- 10-Q Apr 01
2022
- 10-Q Dec 31
- 10-Q Oct 01
- 10-K Jul 02
- 10-Q Apr 02
- 10-Q Jan 01

Sector Comparison

How does Viavi Solutions Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Viavi Solutions Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -4%

Stability 5%

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Viavi Solutions Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Viavi Solutions Inc..

Years

Calculation mode

= $2B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$60M	$70M	$82M	$96M	$113M	$133M	$156M	$183M	$215M	$252M	$296M	$3B
DCF		$64M	$68M	$72M	$77M	$82M	$88M	$94M	$100M	$107M	$114M	$1.1B
Value	$2B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	06/2015	07/2016	06/2017	06/2018	06/2019	06/2020	07/2021	07/2022	06/2023	06/2024	TTM
Net Margins	-5%	-11%	21%	-5%	0%	3%	4%	1%	2%	-3%	-1%
ROA	-	-3%	9%	0%	4%	7%	7%	10%	4%	1%	1%
ROE	-	-14%	21%	-6%	1%	4%	6%	2%	4%	-4%	-5%

Bad Net Margins (-0.76%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	06/2015	07/2016	06/2017	06/2018	06/2019	06/2020	07/2021	07/2022	06/2023	06/2024	TTM
Debt over FCF	-	33.81	22.5	35.46	6.17	6.58	3.56	6.49	11.52	6.56	10.72
Debt over Equity	0.51	0.85	1.18	1.16	0.8	0.96	0.88	1.02	1.05	0.93	0.91
Growth Stability	-	-	-	-	75%	68%	-	58%	85%	-89%	-89%

Bad Debt/FCF ratio (10.72)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.91)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-89%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	06/2015	07/2016	06/2017	06/2018	06/2019	06/2020	07/2021	07/2022	06/2023	06/2024	CAGR 5Y
Revenue YoY growth	-	-47%	-10%	9%	28%	1%	6%	8%	-14%	-10%	-3%
Earnings YoY growth	-	13%	-268%	-128%	-112%	431%	61%	-66%	65%	-201%	-8%
Equity YoY growth	-	-37%	14%	-8%	1%	-2%	9%	-13%	3%	-1%	-2%
FCF YoY growth	-	-191%	138%	-43%	299%	11%	84%	-45%	-40%	54%	-12%