Viavi Solutions (VIAV) AI Stock Analysis

• Market Cap: $2.06B
• Dividend Yield: N/A
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): 440.5
• Beta (1Y): 1.11
• Revenue Growth: 3.34%
• EPS Growth: N/A
• Country: US
• Employees: 3,600
• Sector: Technology
• Sector Strength: 81
• Industry: Communication Equipment
• EPS (TTM): 0.15
• Shares Outstanding: 223,236,650
• 10 Day Avg. Volume: 2,044,713
• 30 Day Avg. Volume: 2,127,798
• PEG Ratio: 1.56
• Price to Book (P/B): 3.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.39
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 4.59
• Enterprise Value/Ebitda: 8.29
• 1Y Price Target: $12.50
• Price Target Upside: 33.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 60 Neutral
• Price Target: ―

Viavi Solutions' stock score reflects a balanced view of strengths and weaknesses. The company benefits from strong gross margins and strategic acquisitions, yet faces challenges with high valuation, inconsistent cash flow, and cautious future guidance due to tariffs. Technical indicators suggest limited positive momentum, requiring careful consideration for potential investors.

Positive Factors

Acquisition Impact

The acquisition of Inertial Labs is viewed positively as it provides stronger exposure to a growing positioning, navigation, and timing market and is expected to improve operating margins.

Revenue Strength

Viavi Solutions Inc showed revenue strength in a typically slow quarter, driven by its core network equipment segment and increasing traction with cloud providers.

Negative Factors

Tariff Concerns

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

Valuation Concerns

The valuation is considered full at 23x next twelve months price-to-earnings ratio, which impacts the analyst's recommendation to remain underweight on the stock.

Viavi Solutions Business Overview & Revenue Model

Company Description

Viavi Solutions Inc. is a global provider of network test, monitoring, and assurance solutions to communications service providers, enterprises, and network equipment manufacturers. The company operates primarily in two segments: Network Enablement (NE) and Optical Security and Performance Products (OSP). Viavi's core offerings include solutions for fiber optic testing, wireless network testing, and optical security features for banknotes.

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 presents a mixed financial picture. Strong gross margins (57.57%) and a balanced capital structure (debt-to-equity ratio of 0.88) are offset by low net profit margin (0.49%) and inconsistent free cash flow growth. 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	Jun 2024	Sep 2023	Sep 2022	Sep 2021	Jun 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
	EBIT
50.90M	20.80M	82.40M	185.00M	142.20M	118.10M
	EBITDA
89.70M	101.20M	154.10M	260.60M	237.40M	199.80M
	Net Income Common Stockholders
5.10M	-25.80M	25.50M	15.50M	46.10M	28.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
396.80M	491.20M	521.10M	561.30M	699.40M	540.50M
	Total Assets
1.93B	1.74B	1.85B	1.83B	1.96B	1.78B
	Total Debt
640.90M	687.20M	725.70M	684.90M	669.80M	603.70M
	Net Debt
266.70M	215.90M	219.20M	125.00M	-28.00M	64.70M
	Total Liabilities
1.20B	1.05B	1.16B	1.16B	1.19B	1.06B
	Stockholders Equity
728.80M	681.60M	690.80M	671.70M	774.80M	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: Neutral
• Last Price: 9.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 9.34 is above the 20-day moving average (MA) of 9.27, below the 50-day MA of 9.55, and below the 200-day MA of 10.03, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 36.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VIAV.

Viavi Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTMI	74 Outperform	$3.77B	48.61	5.02%	―	11.65%	―
VICR	73 Outperform	$2.03B	86.58	4.16%	―	-5.61%	-18.63%
Sector *	62 Neutral	$11.92B	10.03	-7.37%	3.70%	7.32%	-8.25%
VIAV	60 Neutral	$2.06B	440.48	0.71%	―	3.34%	―
PI	59 Neutral	$3.01B	58.72	-0.78%	―	21.80%	89.21%
POWI	55 Neutral	$3.07B	83.81	5.03%	1.54%	-5.75%	-41.75%
VSH	51 Neutral	$2.13B	26.74	-3.14%	2.61%	-11.31%	-127.88%

Viavi Solutions Corporate Events

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.