Is the business good?
How good a business is VIAV?
Viavi Solutions Inc. earns 4.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
4.0%
Return on invested capital · cost of capital 9.0% · 5.1 points below what the capital costs: growth destroys value
- Operating margin
- 4.3%
Operating margin · Communication Equipment median 4.4% · 12 months to Q3 2026
- Share count, year on year
- +10.0%
Share count, year on year · shareholders own a smaller slice than a year ago
- R&D as % of revenue
- 18%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 10% |
| FY2021 | 12% |
| FY2022 | 14% |
| FY2023 | 7.4% |
| FY2024 | 2.1% |
| FY2025 | 5.3% |
Details›
- Gross margin12 months to Q3 2026
- 57%
- Operating margin12 months to Q3 2026
- 4.3%
- Net margin12 months to Q3 2026
- −4.0%
- Free cash flow margin
- 3.3%
- R&D as % of revenue
- 18%
- Revenue, trailing twelve months
- $1.37B
- Free cash flow, trailing twelve months
- $46M
- Net income, trailing twelve months
- −$55M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 4.0%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Communication Equipment
Ranks #1 of 21 by Smart Score