Viavi Solutions Inc. (VIAV) stock analysis
Close on Nov 12, 2026Market cap $8.03BP/E 130.2Yield –
StockData Score
Prices as of Nov 12, 2026How the score works
Mixed11 of 30 checks passed
Viavi Solutions passes 11 of the 30 checks behind our score; 9 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 3/6
- Past performance
- 4/6
- Financial health
- 4/6
- Dividend
- 0/6
What stands out
Return on capital over 10%
Return on invested capital was 16.2%, above the 10% that usually covers the cost of capital.
Low debt
Debt is 18.5% of shareholders' equity, under the 40% we consider low.
Revenue growing 10%+ a year
Revenue grew 11.1% a year over the last three fiscal years.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 76.5% of total debt.
What to watch
Margin of safety under 20%
The price is 99.8% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $32.54 is above our fair value estimate of $16.29.
Return on equity under 15%
Return on equity was 6.5% over the last twelve months and averaged 0.8% over five years; we look for 15% on both.
Interest not well covered
Operating income covers interest expense 3.9 times; we look for at least 5.
Valuation0/6
P/E above its 5-year median
Viavi Solutions's P/E of 130.2 is above its own 5-year median of 84.8.
P/E above the industry
Viavi Solutions's P/E of 130.2 is above the Electronic Components and Accessories median of 35.0.
EV/EBITDA above its 5-year median
Viavi Solutions's EV/EBITDA of 43.2 is above its 5-year median of 34.4.
P/B above the industry
Viavi Solutions's price-to-book of 6.06 is above the Electronic Components and Accessories median of 3.36.
Trading above fair value
The share price of $32.54 is above our fair value estimate of $16.29.
Margin of safety under 20%
The price is 99.8% above fair value, so there is no margin of safety.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 11.1% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 47.4% over the last twelve months; the Electronic Components and Accessories median is 17.6%.
Guidance issued
The latest outlook (second quarter of fiscal 2027 net revenue, Nov 4, 2026) was issued for the first time, so it neither adds nor takes away points.
Gross margin improving
Gross margin was 58.9% over the last twelve months, against 57.1% a year earlier.
Past performance4/6
Return on equity under 15%
Return on equity was 6.5% over the last twelve months and averaged 0.8% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 16.2%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Viavi Solutions's return on equity of 6.5% is above the Electronic Components and Accessories median of 5.0%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 4.0% over the last twelve months, against a 5-year average of 0.4%.
Net margin above the industry
Viavi Solutions's net margin of 4.0% is above the Electronic Components and Accessories median of 3.0%.
Financial health4/6
Low debt
Debt is 18.5% of shareholders' equity, under the 40% we consider low.
Debt falling against equity
Debt to equity fell from 59.8% five years ago to 18.5%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 76.5% of total debt.
Interest not well covered
Operating income covers interest expense 3.9 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 1.65 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is -32.83; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Viavi Solutions has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$16.29
The share price is 100% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 45.0× | 84.8× | 35.0× | $11.25 | 47% |
| EV/EBITDA | 27.8× | 34.4× | 21.1× | $21.33 | 41% |
| P/B | 3.5× | 3.6× | 3.4× | $18.77 | 12% |
| Earnings powerleft out, too far from the others | 10.9% cost of equity | – | – | $2.99 | – |
| Fair value | $16.29 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 84.8
- Electronic Components and Accessories median 35.0
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $216.05M
- Value traded per 1% price move
- $45.81M
Downside
High risk
- Typical loss in a bad month
- 33.3%
- Volatility (annualized)
- 80%
- Sharpe ratio, 1 year
- 0.96
- Beta to the S&P 500 (5Y)
- 1.19
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2012 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +40.0% | +11.1% | +4.8% | +5.3% | |
| Gross profit | +40.9% | +11.1% | +4.1% | +4.8% | |
| Operating income | +82.8% | +8.4% | -5.9% | – | |
| Free cash flow | +33.5% | +9.5% | -15.4% | +11.1% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | 21.5% | 9.7% | -2.7% | |
| Return on assets | 8.5% | 3.6% | -1.3% | |
| Current ratio | 7.29 | 1.49 | 1.85 | |
| Interest coverage | 0.2× | 9.7× | 2.2× | |
| Inventory turnover | 6.6× | 5.4× | 4.7× | |
| Capex to revenue | 4.8% | 4.3% | 2.0% | |
| Diluted shares | 235M | 236M | 230M |
Where the cash went
Fiscal 2022 to 2026, five years combined
Viavi Solutions generated $612.30M from operations and spent $588.20M on capital expenditure, dividends and share buybacks. 34% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | -2.0% | 0.65× | 2.11× | -2.7% |
| FY2025 | 3.2% | 0.58× | 2.55× | 4.8% |
| FY2024 | -2.6% | 0.56× | 2.61× | -3.8% |
| FY2023 | 2.3% | 0.60× | 2.70× | 3.7% |
| FY2022 | 1.2% | 0.68× | 2.64× | 2.2% |
| FY2021 | 5.6% | 0.64× | 2.68× | 9.7% |
| FY2020 | 4.3% | 0.63× | 2.85× | 7.8% |
| FY2019 | 0.5% | 0.59× | 2.82× | 0.8% |
| FY2018 | -5.5% | 0.42× | 2.69× | -6.3% |
| FY2017 | 19.9% | 0.42× | 2.54× | 21.5% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero-$30.40M
- Cash generatingOperating cash flow above zero$113.90M
- Return on assets improvedROA up on the prior year2.0% → -1.5%
- Earnings backed by cashOperating cash flow above net income$113.90M vs -$30.40M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose1.50 → 1.85
- No dilutionShare count did not rise226M → 230M
- Gross margin improvedGross margin up on the prior year57.28% → 57.66%
- More efficientAsset turnover rose0.62 → 0.76
See a number that looks wrong?