Viavi Solutions (VIAV) AI Stock Analysis

• Market Cap: $2.42B
• Dividend Yield: N/A
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 70.7
• Beta (1Y): 1.18
• Revenue Growth: 8.39%
• EPS Growth: N/A
• Country: US
• Employees: 3,600
• Sector: Technology
• Sector Strength: 98
• Industry: Communication Equipment
• EPS (TTM): 0.13
• Shares Outstanding: 223,236,650
• 10 Day Avg. Volume: 2,629,913
• 30 Day Avg. Volume: 1,901,209
• PEG Ratio: 0.28
• Price to Book (P/B): 2.24
• Price to Sales (P/S): 1.53
• P/FCF Ratio: 15.78
• Enterprise Value/Market Cap: 1.02
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 4.13
• Enterprise Value/Ebitda: 27.69
• 1Y Price Target: $13.33
• Price Target Upside: 22.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 58 Neutral
• Price Target: $10.00 ▼(-7.92% Downside)

Viavi Solutions' overall score is impacted by financial performance challenges, particularly in net profitability and cash flow. The technical analysis suggests potential bearish momentum, while the valuation indicates possible overvaluation. However, the company shows strong earnings growth and strategic moves in corporate events, which provide some positive outlook.

Positive Factors

Acquisitions

Encouraged by the acquisition, as it represents a growth area for Viavi.

Earnings

Viavi Solutions Inc surpassed consensus revenue and earnings estimates and provided guidance significantly above expectations.

Financial performance

The Inertial Labs acquisition and data center business are contributing to stronger than expected financial performance.

Negative Factors

Guidance

There is a new concern that re-pricing with tariff premiums could lead to order delays, impacting future quarter guidance.

Market exposure

The business remains volatile with high exposure to service providers, keeping the analyst's recommendation underweight on a relative basis.

Revenue trajectory

There is a need for more clarity on revenue trajectory before assessing the full impact on Viavi's bottom line.

Viavi Solutions Business Overview & Revenue Model

Company Description

Viavi Solutions Inc. provides network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, original 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. This segment provides solutions that include instruments, software, and services to design, build, activate, certify, troubleshoot, and optimize networks; and instrumentation for communication and safety. It also offers support and professional services, such as repair, calibration, software support, and technical assistance for the products; and system integration projects, including project management, installation, and implementation, as well as product and technology training, and consulting services. The SE segment provides embedded systems and enterprise performance management solutions for communication service providers, enterprises, and cloud operators with visibility into network, service, and application data. Its solutions include instruments, microprobes, and software, which monitor, collect, and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization. The OSP segment offers optical products for anti-counterfeiting, consumer and industrial, government, automotive, and industrial markets. The company was formerly known as JDS Uniphase Corporation and changed its name to Viavi Solutions Inc. in August 2015. Viavi Solutions Inc. was founded in 1923 and is headquartered in Scottsdale, Arizona.

How the Company Makes Money

Viavi Solutions generates revenue through the sale of its network test and measurement solutions and optical security products. In the Network Enablement segment, the company earns money by providing testing equipment and software solutions for network performance and service assurance. This includes fiber optic test instruments, wireless network test systems, and related software and services. In the Optical Security and Performance Products segment, Viavi earns revenue by supplying optical security technologies used in currency authentication and brand protection. Key factors contributing to its earnings include its extensive product portfolio, strong relationships with major telecom operators, and ongoing innovation in network testing and security technologies.

Viavi Solutions Financial Statement Overview

Summary

Viavi Solutions shows strong gross margins but faces challenges in net profitability and cash flow consistency. The balance sheet is stable, with a balanced capital structure, but improvements in revenue growth and cost management are necessary.

Income Statement

Viavi Solutions has shown a mixed performance in its income statement. The gross profit margin for TTM (Trailing-Twelve-Months) is strong at 57.57%, indicating efficient production processes. However, the net profit margin is only 0.49%, which suggests high operating costs or other expenses. Revenue has decreased over the last few years, with a notable decline from 2022 to 2023. The EBIT margin for TTM is 4.87%, and the EBITDA margin is 8.58%, both lower than previous years, reflecting pressure on operational efficiency.

Balance Sheet

The balance sheet shows moderate strength with a debt-to-equity ratio of 0.88, indicating a balanced capital structure. The return on equity (ROE) for TTM is 0.70%, which is low, suggesting limited profitability from shareholders' equity. However, the equity ratio is solid at 37.70%, highlighting a stable financial base with a fair proportion of assets funded by equity.

Cash Flow

Cash flow analysis reveals some concerns. The operating cash flow to net income ratio is healthy, suggesting good cash conversion from operations. However, free cash flow growth has been inconsistent, and the free cash flow to net income ratio shows variability, indicating potential challenges in free cash generation relative to net income. These factors suggest a need for stronger cash management strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.05B	1.00B	1.11B	1.29B	1.20B	1.14B
Gross Profit	601.90M	575.90M	638.80M	773.50M	714.40M	665.30M
EBITDA	89.70M	101.20M	154.10M	163.80M	247.80M	199.80M
Net Income	5.10M	-25.80M	25.50M	15.50M	67.50M	28.70M
Balance Sheet
Total Assets	1.93B	1.74B	1.85B	1.83B	1.96B	1.78B
Cash, Cash Equivalents and Short-Term Investments	396.80M	491.20M	521.10M	561.30M	699.40M	540.50M
Total Debt	640.90M	687.20M	781.00M	744.50M	739.20M	603.70M
Total Liabilities	1.20B	1.05B	1.16B	1.16B	1.19B	1.06B
Stockholders Equity	728.80M	681.60M	690.80M	671.70M	763.90M	711.40M
Cash Flow
Free Cash Flow	66.10M	96.90M	63.00M	105.60M	191.20M	103.70M
Operating Cash Flow	92.20M	116.40M	114.10M	178.10M	243.30M	135.60M
Investing Cash Flow	-135.10M	-21.60M	-127.10M	-71.00M	-48.70M	-29.80M
Financing Cash Flow	-33.90M	-125.70M	-50.00M	-210.40M	-58.80M	-71.70M

Viavi Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VIAV, the sentiment is Positive. The current price of 10.86 is above the 20-day moving average (MA) of 10.21, above the 50-day MA of 9.92, and above the 200-day MA of 10.29, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 68.28 is Neutral, neither overbought nor oversold. The STOCH value of 53.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VIAV.

Viavi Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PI	69 Neutral	$4.47B	21,351.39	0.42%	―	13.96%	-96.21%
EXTR	69 Neutral	$2.66B	―	-16.44%	―	2.05%	91.37%
LITE	65 Neutral	$8.07B	―	-42.79%	―	3.58%	-22.74%
Sector *	61 Neutral	$35.87B	6.13	-9.30%	2.06%	7.63%	-6.38%
VSAT	61 Neutral	$3.44B	―	-12.48%	―	-1.43%	43.14%
COMM	59 Neutral	$3.45B	―	17.08%	―	-11.03%	91.98%
VIAV	58 Neutral	$2.42B	70.70	4.76%	―	8.39%	―

Viavi Solutions Corporate Events

Viavi Solutions Expands Board with New Appointments

Viavi Solutions Inc. has appointed Richard Burns and Eugenia Corrales as independent directors, expanding its Board of Directors to ten members. This strategic move, effective immediately as of July 24, 2025, brings extensive experience in engineering, telecommunications, and technology to the company, potentially enhancing its industry positioning and operational capabilities.

The most recent analyst rating on (VIAV) stock is a Sell with a $9.50 price target. To see the full list of analyst forecasts on Viavi Solutions stock, see the VIAV Stock Forecast page.

Viavi Solutions Plans Term Loan for Acquisition

On May 20, 2025, Viavi Solutions Inc. plans to present to prospective lenders regarding a proposed term loan financing to support its acquisition of Spirent Communications plc’s high-speed ethernet and network security business lines. This move is part of Viavi’s strategy to expand its capabilities and market presence, with the financing also expected to support general corporate purposes.

The most recent analyst rating on (VIAV) stock is a Sell with a $9.50 price target. To see the full list of analyst forecasts on Viavi Solutions stock, see the VIAV Stock Forecast page.