Viavi Solutions Inc. [NASDAQ:VIAV]: Analyst Rating and Earnings
Stock market traders oftentimes pay a lot of attention to what top analysts say regarding a potential investment. Regarding Viavi Solutions Inc. [VIAV], the latest average analyst recommendation we can see is from the quarter closing in June. On average, stock market experts give VIAV an Outperform rating. Its stock price has been found in the range of 9.17 to 14.00. This is compared to its latest closing price of $13.27.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Viavi Solutions Inc. [VIAV] is sitting at 1.82. This is compared to 1 month ago, when its average rating was 1.91.
For the quarter ending in Mar-19 Viavi Solutions Inc. [VIAV] generated $0.27 billion in sales. That’s 2.49% higher than the average estimate of $0.26 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Pay attention for this company’s financial results, of which the next release is scheduled to happen on Tue 13 Aug (In 88 Days).
Fundamental Analysis of Viavi Solutions Inc. [VIAV]
Now let’s turn to look at profitability: with a current Operating Margin for Viavi Solutions Inc. [VIAV] sitting at +2.96 and its Gross Margin at +53.52, this company’s Net Margin is now -4.90%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 1.57, and its Return on Invested Capital has reached -0.70%. Its Return on Equity is -6.10, and its Return on Assets is -2.23. These metrics suggest that this Viavi Solutions Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Viavi Solutions Inc. [VIAV] has generated a Total Debt to Total Equity ratio of 119.48. Similarly, its Total Debt to Total Capital is 54.44, while its Total Debt to Total Assets stands at 42.57. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 81.13, and its Long-Term Debt to Total Capital is 36.96. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 29.15 and its Total Debt to EBITDA Value is 7.86. The Enterprise Value to Sales for this firm is now 2.89, and its Total Debt to Enterprise Value stands at 0.36. Viavi Solutions Inc. [VIAV] has a Price to Book Ratio of 3.23, a Price to Cash Flow Ratio of 35.23.
Shifting the focus to workforce efficiency, Viavi Solutions Inc. [VIAV] earns $251,543 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.21 and its Total Asset Turnover is 0.43. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.89 and its Current Ratio is 2.05. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Viavi Solutions Inc. [VIAV] has 226.99M shares outstanding, amounting to a total market cap of $3.01B. Its stock price has been found in the range of 9.17 to 14.00. At its current price, it has moved by -7.04% from its 52-week high, and it has moved 41.93% from its 52-week low.
This stock’s Beta value is currently 0.96, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 47.10. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Viavi Solutions Inc. [VIAV] a Reliable Buy?
Shares of Viavi Solutions Inc. [VIAV], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.