The mix of a low ROE and high debt is unattractive. High quality firms typically have high ROE and low debt. The market usually increases the price of high quality businesses to reflect their potential.

Spirent's Chairman Bill Thomas sees Viavi as the ideal owner for Spirent's next growth phase, praising its strong management, global scale, and cultural fit. Viavi sees Spirent as a provider of complementary products addressing new generation tech challenges.

Despite past EPS declines and share price fall, the market is optimistic about the business. However, last year's worse performance than the annualised loss of 5% over the last half decade may indicate unresolved challenges. Investors should be aware of 2 warning signs for Viavi Solutions.

Viavi Solutions Inc.'s high P/S ratio is unjustified due to declining revenues and a forecasted decrease. Investors may face disappointment if the P/S aligns with the negative growth outlook.

Viavi Solutions displays promising business efficiency, with rising ROCE and no major additional investment. Despite lackluster total returns in the past five years, its current trajectory could offer an opportunity if valuation is appealing.

Lack of insider buying and substantial insider selling over the past year could raise shareholder concerns. Despite insiders holding $25m worth of shares, the alignment with company interests is barely notable.