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IIVI

II-VI NasdaqGS:IIVI Stock Report

Last Price

US$56.11

Market Cap

US$5.9b

7D

8.4%

1Y

-22.3%

Updated

27 Jun, 2022

Data

Company Financials +
IIVI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance2/6
Financial Health4/6
Dividends0/6

IIVI Stock Overview

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

Rewards

Trading at 40.9% below our estimate of its fair value

Earnings are forecast to grow 28.15% per year

Risk Analysis

No risks detected for IIVI from our risk checks.

II-VI Competitors

Price History & Performance

Summary of all time highs, changes and price drops for II-VI
Historical stock prices
Current Share PriceUS$56.11
52 Week HighUS$75.23
52 Week LowUS$50.71
Beta1.47
1 Month Change-9.62%
3 Month Change-24.66%
1 Year Change-22.32%
3 Year Change49.99%
5 Year Change63.59%
Change since IPO11,870.13%

Recent News & Updates

Shareholder Returns

IIVIUS ElectronicUS Market
7D8.4%4.5%6.6%
1Y-22.3%-19.7%-18.4%

Return vs Industry: IIVI underperformed the US Electronic industry which returned -19.7% over the past year.

Return vs Market: IIVI underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is IIVI's price volatile compared to industry and market?
IIVI volatility
IIVI Average Weekly Movement6.9%
Electronic Industry Average Movement7.4%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: IIVI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: IIVI's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
197122,961Chuck Matterahttps://www.ii-vi.com

II-VI Incorporated develops, manufactures, and markets engineered materials, optoelectronic components, and devices worldwide. It operates through two segments, Compound Semiconductors and Photonic Solutions. The Compound Semiconductors segment provides optical and electro-optical components and materials used in high-power CO2 lasers, fiber-lasers, and direct diode lasers for materials processing applications; infrared optical components and high-precision optical assemblies for aerospace and defense, medical, and commercial laser imaging applications; semiconductor lasers and detectors for optical interconnects and sensing applications; engineered materials for thermoelectric, ceramics, and silicon carbide various applications; and compound semiconductor epitaxial wafers for applications in optical and wireless communication.

II-VI Fundamentals Summary

How do II-VI's earnings and revenue compare to its market cap?
IIVI fundamental statistics
Market CapUS$5.93b
Earnings (TTM)US$205.61m
Revenue (TTM)US$3.24b

29.1x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IIVI income statement (TTM)
RevenueUS$3.24b
Cost of RevenueUS$1.96b
Gross ProfitUS$1.28b
Other ExpensesUS$1.07b
EarningsUS$205.61m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.93
Gross Margin39.41%
Net Profit Margin6.35%
Debt/Equity Ratio52.8%

How did IIVI perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is IIVI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IIVI?

Other financial metrics that can be useful for relative valuation.

IIVI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA11.5x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does IIVI's PE Ratio compare to its peers?

IIVI PE Ratio vs Peers
The above table shows the PE ratio for IIVI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average27.5x
LFUS Littelfuse
18.5x5.8%US$6.4b
ROG Rogers
52.2xn/aUS$4.9b
VSH Vishay Intertechnology
7.8x0.4%US$2.6b
BDC Belden
31.4x19.5%US$2.3b
IIVI II-VI
28.9x28.2%US$5.9b

Price-To-Earnings vs Peers: IIVI is expensive based on its Price-To-Earnings Ratio (29.1x) compared to the peer average (27.5x).


Price to Earnings Ratio vs Industry

How does IIVI's PE Ratio compare vs other companies in the US Electronic Industry?

Price-To-Earnings vs Industry: IIVI is expensive based on its Price-To-Earnings Ratio (29.1x) compared to the US Electronic industry average (17.6x)


Price to Earnings Ratio vs Fair Ratio

What is IIVI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IIVI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.1x
Fair PE Ratio28.9x

Price-To-Earnings vs Fair Ratio: IIVI is expensive based on its Price-To-Earnings Ratio (29.1x) compared to the estimated Fair Price-To-Earnings Ratio (28.9x).


Share Price vs Fair Value

What is the Fair Price of IIVI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IIVI ($56.11) is trading below our estimate of fair value ($94.95)

Significantly Below Fair Value: IIVI is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: IIVI is poor value based on its PEG Ratio (1x)


Discover undervalued companies

Future Growth

How is II-VI forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


28.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IIVI's forecast earnings growth (28.2% per year) is above the savings rate (1.9%).

Earnings vs Market: IIVI's earnings (28.2% per year) are forecast to grow faster than the US market (13.9% per year).

High Growth Earnings: IIVI's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: IIVI's revenue (10.7% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: IIVI's revenue (10.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IIVI's Return on Equity is forecast to be low in 3 years time (13.4%).


Discover growth companies

Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


21.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: IIVI has high quality earnings.

Growing Profit Margin: IIVI's current net profit margins (6.4%) are lower than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: IIVI's earnings have grown significantly by 21.2% per year over the past 5 years.

Accelerating Growth: IIVI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IIVI had negative earnings growth (-16.5%) over the past year, making it difficult to compare to the Electronic industry average (33%).


Return on Equity

High ROE: IIVI's Return on Equity (6.2%) is considered low.


Discover strong past performing companies

Financial Health

How is II-VI's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: IIVI's short term assets ($4.2B) exceed its short term liabilities ($2.1B).

Long Term Liabilities: IIVI's short term assets ($4.2B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: IIVI's net debt to equity ratio (16%) is considered satisfactory.

Reducing Debt: IIVI's debt to equity ratio has increased from 32.6% to 52.8% over the past 5 years.

Debt Coverage: IIVI's debt is not well covered by operating cash flow (17.4%).

Interest Coverage: IIVI's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as IIVI has not reported any payouts.


Discover strong dividend paying companies

Management

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

2.9yrs

Average management tenure


CEO

Chuck Mattera (65 yo)

5.75yrs

Tenure

US$10,459,536

Compensation

Dr. Vincent D. Mattera, Jr., Ph.D. also known as Chuck, serves as Chief Executive Officer of Finisar Corporation. Dr. Mattera serves as Chairman of the Board of II-VI Incorporated since November 2021. Dr....


CEO Compensation Analysis

Compensation vs Market: Chuck's total compensation ($USD10.46M) is about average for companies of similar size in the US market ($USD8.23M).

Compensation vs Earnings: Chuck's compensation has been consistent with company performance over the past year.


Leadership Team

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


Board Members

Experienced Board: IIVI's board of directors are considered experienced (4.1 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: II-VI Incorporated
  • Ticker: IIVI
  • Exchange: NasdaqGS
  • Founded: 1971
  • Industry: Electronic Components
  • Sector: Tech
  • Implied Market Cap: US$5.932b
  • Shares outstanding: 106.46m
  • Website: https://www.ii-vi.com

Number of Employees


Location

  • II-VI Incorporated
  • 375 Saxonburg Boulevard
  • Saxonburg
  • Pennsylvania
  • 16056-9499
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/27 00:00
End of Day Share Price2022/06/27 00:00
Earnings2022/03/31
Annual Earnings2021/06/30


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.