DB:II6

Stock Analysis Report

Executive Summary

II-VI Incorporated develops, manufactures, and markets engineered materials, and optoelectronic components and devices worldwide.


Snowflake Analysis

Reasonable growth potential and overvalued.


Similar Companies

Share Price & News

How has II-VI's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: II6 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-16.1%

II6

-5.9%

DE Electronic

-6.8%

DE Market


1 Year Return

-23.3%

II6

0.7%

DE Electronic

6.5%

DE Market

Return vs Industry: II6 underperformed the German Electronic industry which returned 0.7% over the past year.

Return vs Market: II6 underperformed the German Market which returned 6.5% over the past year.


Shareholder returns

II6IndustryMarket
7 Day-16.1%-5.9%-6.8%
30 Day-15.1%4.7%-3.7%
90 Day6.0%1.6%-3.6%
1 Year-23.3%-23.3%2.9%0.7%9.8%6.5%
3 Year-18.1%-18.1%36.2%31.7%6.8%-2.6%
5 Year84.7%84.7%104.2%89.4%12.5%-2.9%

Price Volatility Vs. Market

How volatile is II-VI's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is II-VI undervalued compared to its fair value and its price relative to the market?

1.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: II6 (€28.2) is trading above our estimate of fair value (€25.93)

Significantly Below Fair Value: II6 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: II6 is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: II6 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate II6's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: II6 is good value based on its PB Ratio (1.3x) compared to the DE Electronic industry average (1.8x).


Next Steps

Future Growth

How is II-VI forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

144.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: II6 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: II6 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: II6's is expected to become profitable in the next 3 years.

Revenue vs Market: II6's revenue (15.5% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: II6's revenue (15.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: II6's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

How has II-VI performed over the past 5 years?

-0.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: II6 is currently unprofitable.

Growing Profit Margin: II6 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: II6 is unprofitable, and losses have increased over the past 5 years at a rate of -0.8% per year.

Accelerating Growth: Unable to compare II6's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: II6 is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-3.9%).


Return on Equity

High ROE: II6 has a negative Return on Equity (-3.46%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is II-VI's financial position?


Financial Position Analysis

Short Term Liabilities: II6's short term assets ($1.6B) exceed its short term liabilities ($571.6M).

Long Term Liabilities: II6's short term assets ($1.6B) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: II6's debt to equity ratio (111.2%) is considered high.

Reducing Debt: II6's debt to equity ratio has increased from 28.1% to 111.2% over the past 5 years.


Balance Sheet

Inventory Level: II6 has a high level of physical assets or inventory.

Debt Coverage by Assets: II6's debt is not covered by short term assets (assets are 0.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: II6 has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: II6 has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is II-VI's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate II6's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate II6's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if II6's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if II6's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of II6's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Chuck Mattera (63yo)

3.4yrs

Tenure

US$10,694,483

Compensation

Dr. Vincent D. Mattera, Jr., Ph.D. also known as Chuck, serves as Chief Executive Officer of Finisar Corporation. Dr. Mattera has been its Chief Executive Officer since September 1, 2016 and served as the  ...


CEO Compensation Analysis

Compensation vs Market: Chuck's total compensation ($USD10.69M) is above average for companies of similar size in the German market ($USD2.69M).

Compensation vs Earnings: Chuck's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Vincent Mattera
CEO & Director3.4yrsUS$10.69m0.47% $12.1m
Mary Raymond
CFO & Treasurer5.9yrsUS$2.23m0.065% $1.7m
Jo Schwendinger
Chief Legal & Compliance Officer and Corporate Secretary2.9yrsUS$1.51m0.012% $300.4k
Giovanni Barbarossa
President of Compound Semiconductors & Chief Strategy Officer6.1yrsUS$2.32m0.081% $2.1m
Gary Kapusta
Chief Procurement Officer0.6yrsUS$2.51m0.037% $944.2k
Walter Bashaw
President0.6yrsno data0.023% $603.9k
Carl Johnson
Co-Founder49.1yrsUS$279.19k1.76% $45.3m
Christopher Koeppen
Chief Technology Officer0.6yrsno data0.011% $295.5k
Anantha Ganga
Chief Information Officer0.4yrsno datano data
Mark Lourie
Vice President of Corporate Communications0yrsno datano data

2.9yrs

Average Tenure

59yo

Average Age

Experienced Management: II6's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vincent Mattera
CEO & Director3.4yrsUS$10.69m0.47% $12.1m
Jerry Rawls
Director0.4yrsno data0.10% $2.7m
Joseph Corasanti
Independent Director18.1yrsUS$256.75k0.059% $1.5m
Francis Kramer
Chairman of the Board6.1yrsUS$287.25k0.64% $16.5m
Enrico Digirolamo
Independent Director1.8yrsUS$239.00k0.00059% $15.2k
Shaker Sadasivam
Independent Director4yrsUS$250.50k0.023% $586.9k
Marc Y. Pelaez
Lead Independent Director0yrsUS$270.25k0.067% $1.7m
Michael Dreyer
Independent Director0.4yrsno data0.016% $402.6k
Howard Xia
Independent Director8.8yrsUS$264.25k0.028% $724.6k
Patricia Hatter
Independent Director0.5yrsno datano data

4.0yrs

Average Tenure

61yo

Average Age

Experienced Board: II6's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.8%.


Top Shareholders

Company Information

II-VI Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: II-VI Incorporated
  • Ticker: II6
  • Exchange: DB
  • Founded: 1971
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: US$2.800b
  • Listing Market Cap: US$2.574b
  • Shares outstanding: 91.06m
  • Website: https://www.ii-vi.com

Number of Employees


Location

  • II-VI Incorporated
  • 375 Saxonburg Boulevard
  • Saxonburg
  • Pennsylvania
  • 16056
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IIVINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1987
II6DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1987
0LHOLSE (London Stock Exchange)YesCommon StockGBUSDOct 1987

Biography

II-VI Incorporated develops, manufactures, and markets engineered materials, and optoelectronic components and devices worldwide. The company operates through three segments: II-VI Laser Solutions, II-VI Photonics, and II-VI Performance Products. The II-VI Laser Solutions segment offers optical and electro-optical components and materials used in high-power CO2 lasers; fiber-delivered beam delivery systems, and processing tools and direct diode lasers for industrial lasers; and compound semiconductor epitaxial and gallium arsenide wafers. The II-VI Photonics segment provides crystal materials, optics, microchip lasers, and optoelectronic modules for use in optical communication networks and other consumer, life sciences, and commercial applications. It also offers pump lasers, optical isolators, and optical amplifiers and micro-optics for optical amplifiers for terrestrial and submarine applications; and direct-diode laser modules, subsystems, and systems, as well as super-hard materials processing laser systems. The II-VI Performance Products segment provides infrared optical components and optical assemblies for aerospace and defense, medical, and commercial laser imaging applications; and silicon carbide engineered materials for thermoelectric devices and subsystems for silicon carbide applications. The company serves OEMs, laser end-users, system integrators of high-power lasers, manufacturers of equipment and devices for the industrial, optical communications, aerospace and defense, semiconductor, medical and life science markets, consumers, the U.S. government prime contractors, various U.S. government agencies, and thermoelectric integrators. II-VI Incorporated has a strategic partnership agreement with LITE-ON Technology Corporation to partner in the volume manufacturing and commercialization of packaged semiconductor lasers for mass-market light detection and ranging. The company was founded in 1971 and is headquartered in Saxonburg, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 22:28
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.