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II-VI

Nasdaq:IIVI
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IIVI
Nasdaq
$2B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

II-VI Incorporated develops, manufactures, and markets engineered materials, and optoelectronic components and devices worldwide. The last earnings update was 44 days ago. More info.


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IIVI Share Price and Events
7 Day Returns
-8%
NasdaqGS:IIVI
-2.7%
US Electronic
-1.1%
US Market
1 Year Returns
-15.2%
NasdaqGS:IIVI
3.5%
US Electronic
6.4%
US Market
IIVI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
II-VI (IIVI) -8% -12.2% 23.3% -15.2% 74.9% 141.8%
US Electronic -2.7% -2.6% 23.1% 3.5% 56.7% 56.4%
US Market -1.1% 0.3% 17.2% 6.4% 37.9% 42.1%
1 Year Return vs Industry and Market
  • IIVI underperformed the Electronic industry which returned 3.5% over the past year.
  • IIVI underperformed the Market in United States of America which returned 6.4% over the past year.
Price Volatility
IIVI
Industry
5yr Volatility vs Market

Value

 Is II-VI undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of II-VI to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for II-VI.

NasdaqGS:IIVI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:IIVI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.065 (1 + (1- 21%) (21.86%))
1.167
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.167 * 5.96%)
9.69%

Discounted Cash Flow Calculation for NasdaqGS:IIVI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for II-VI is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:IIVI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.69%)
2019 93.20 Analyst x1 84.97
2020 125.60 Analyst x1 104.40
2021 189.42 Est @ 50.81% 143.54
2022 258.34 Est @ 36.39% 178.49
2023 326.26 Est @ 26.29% 205.51
2024 388.98 Est @ 19.22% 223.38
2025 444.50 Est @ 14.27% 232.72
2026 492.56 Est @ 10.81% 235.11
2027 533.87 Est @ 8.39% 232.33
2028 569.58 Est @ 6.69% 225.98
Present value of next 10 years cash flows $1,866.43
NasdaqGS:IIVI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $569.58 × (1 + 2.73%) ÷ (9.69% – 2.73%)
$8,412.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,412.89 ÷ (1 + 9.69%)10
$3,337.83
NasdaqGS:IIVI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,866.43 + $3,337.83
$5,204.27
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,204.27 / 63.39
$82.09
NasdaqGS:IIVI Discount to Share Price
Calculation Result
Value per share (USD) From above. $82.09
Current discount Discount to share price of $36.47
= -1 x ($36.47 - $82.09) / $82.09
55.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price II-VI is available for.
Intrinsic value
>50%
Share price is $36.47 vs Future cash flow value of $82.09
Current Discount Checks
For II-VI to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • II-VI's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • II-VI's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for II-VI's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are II-VI's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:IIVI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.78
NasdaqGS:IIVI Share Price ** NasdaqGS (2019-03-22) in USD $36.47
United States of America Electronic Industry PE Ratio Median Figure of 92 Publicly-Listed Electronic Companies 19.06x
United States of America Market PE Ratio Median Figure of 3,062 Publicly-Listed Companies 17.16x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of II-VI.

NasdaqGS:IIVI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:IIVI Share Price ÷ EPS (both in USD)

= 36.47 ÷ 1.78

20.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • II-VI is overvalued based on earnings compared to the US Electronic industry average.
  • II-VI is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does II-VI's expected growth come at a high price?
Raw Data
NasdaqGS:IIVI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.49x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
28.4%per year
United States of America Electronic Industry PEG Ratio Median Figure of 60 Publicly-Listed Electronic Companies 1.5x
United States of America Market PEG Ratio Median Figure of 2,105 Publicly-Listed Companies 1.44x

*Line of best fit is calculated by linear regression .

NasdaqGS:IIVI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.49x ÷ 28.4%

0.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • II-VI is good value based on expected growth next year.
Price based on value of assets
What value do investors place on II-VI's assets?
Raw Data
NasdaqGS:IIVI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $16.88
NasdaqGS:IIVI Share Price * NasdaqGS (2019-03-22) in USD $36.47
United States of America Electronic Industry PB Ratio Median Figure of 151 Publicly-Listed Electronic Companies 2.01x
United States of America Market PB Ratio Median Figure of 5,165 Publicly-Listed Companies 1.85x
NasdaqGS:IIVI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:IIVI Share Price ÷ Book Value per Share (both in USD)

= 36.47 ÷ 16.88

2.16x

* Primary Listing of II-VI.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • II-VI is overvalued based on assets compared to the US Electronic industry average.
X
Value checks
We assess II-VI's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. II-VI has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is II-VI expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
28.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is II-VI expected to grow at an attractive rate?
  • II-VI's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • II-VI's earnings growth is expected to exceed the United States of America market average.
  • II-VI's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:IIVI Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:IIVI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 28.4%
NasdaqGS:IIVI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 11.5%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 17%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:IIVI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:IIVI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 2,200 1
2022-06-30 1,947 1
2021-06-30 1,685 207 4
2020-06-30 1,511 157 10
2019-06-30 1,354 115 10
NasdaqGS:IIVI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,273 190 112
2018-09-30 1,212 168 93
2018-06-30 1,159 161 88
2018-03-31 1,111 154 93
2017-12-31 1,062 120 86
2017-09-30 1,012 111 100
2017-06-30 972 119 95
2017-03-31 940 120 77
2016-12-31 900 119 69
2016-09-30 860 120 65
2016-06-30 827 123 65
2016-03-31 782 125 68

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • II-VI's earnings are expected to grow significantly at over 20% yearly.
  • II-VI's revenue is expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:IIVI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from II-VI Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:IIVI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30 2.90 2.90 2.90 1.00
2020-06-30 2.32 2.54 2.25 5.00
2019-06-30 1.73 1.77 1.70 5.00
NasdaqGS:IIVI Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.78
2018-09-30 1.48
2018-06-30 1.41
2018-03-31 1.49
2017-12-31 1.37
2017-09-30 1.60
2017-06-30 1.52
2017-03-31 1.24
2016-12-31 1.12
2016-09-30 1.05
2016-06-30 1.07
2016-03-31 1.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • II-VI is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess II-VI's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
II-VI has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare II-VI's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • II-VI's year on year earnings growth rate has been positive over the past 5 years.
  • II-VI's 1-year earnings growth exceeds its 5-year average (30.7% vs 17.4%)
  • II-VI's earnings growth has not exceeded the US Electronic industry average in the past year (30.7% vs 64.8%).
Earnings and Revenue History
II-VI's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from II-VI Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:IIVI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,273.09 112.12 207.96 130.83
2018-09-30 1,211.72 93.01 206.06 124.84
2018-06-30 1,158.79 88.00 205.06 117.24
2018-03-31 1,111.44 93.48 195.98 109.88
2017-12-31 1,061.68 85.81 187.68 104.70
2017-09-30 1,012.03 100.12 182.05 100.55
2017-06-30 972.05 95.27 173.50 96.81
2017-03-31 939.80 76.97 167.96 90.95
2016-12-31 899.92 69.48 161.20 80.51
2016-09-30 859.53 64.57 155.12 69.04
2016-06-30 827.22 65.49 160.65 60.35
2016-03-31 782.43 68.21 143.84 52.85
2015-12-31 760.03 67.78 142.50 50.78
2015-09-30 745.34 70.89 138.73 51.47
2015-06-30 741.96 65.98 143.54 51.26
2015-03-31 733.20 61.56 144.55 49.98
2014-12-31 724.05 55.58 143.21 49.21
2014-09-30 719.07 40.93 141.63 47.72
2014-06-30 683.26 38.32 137.71 42.52
2014-03-31 649.37 39.91 127.32 36.90
2013-12-31 619.76 47.42 120.47 30.58
2013-09-30 573.10 52.79 114.57 24.85
2013-06-30 551.08 57.60 109.34 22.69
2013-03-31 533.96 57.80 104.57 22.53
2012-12-31 522.61 55.76 100.90 22.44
2012-09-30 524.26 56.23 98.94 21.83
2012-06-30 516.40 69.75 98.42 21.41
2012-03-31 529.50 67.90 98.39 20.86

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • II-VI has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • II-VI used its assets less efficiently than the US Electronic industry average last year based on Return on Assets.
  • II-VI has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess II-VI's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
II-VI has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is II-VI's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up II-VI's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • II-VI is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • II-VI's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of II-VI's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from II-VI Company Filings, last reported 2 months ago.

NasdaqGS:IIVI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,073.17 505.29 230.26
2018-09-30 1,043.59 562.08 271.34
2018-06-30 1,024.31 463.95 247.04
2018-03-31 1,015.17 474.69 263.24
2017-12-31 963.90 486.73 254.46
2017-09-30 943.76 428.97 241.29
2017-06-30 900.56 342.02 271.89
2017-03-31 852.90 302.85 247.58
2016-12-31 819.05 287.89 246.20
2016-09-30 800.56 248.21 220.10
2016-06-30 782.34 235.31 218.45
2016-03-31 778.19 262.87 187.37
2015-12-31 752.03 146.49 177.08
2015-09-30 734.76 162.49 163.78
2015-06-30 729.08 175.96 173.63
2015-03-31 710.86 188.00 154.70
2014-12-31 700.30 212.51 154.95
2014-09-30 681.84 236.73 145.42
2014-06-30 675.04 241.96 174.66
2014-03-31 665.24 274.76 185.69
2013-12-31 667.46 294.86 212.68
2013-09-30 654.21 211.07 195.21
2013-06-30 636.11 114.04 185.43
2013-03-31 627.93 121.18 155.59
2012-12-31 617.46 124.48 162.81
2012-09-30 604.27 17.87 152.61
2012-06-30 591.39 12.77 134.94
2012-03-31 581.78 13.65 119.87
  • II-VI's level of debt (47.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (44.1% vs 47.1% today).
  • Debt is well covered by operating cash flow (37.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 7.7x coverage).
X
Financial health checks
We assess II-VI's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. II-VI has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from II-VI dividends.
If you bought $2,000 of II-VI shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate II-VI's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate II-VI's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:IIVI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2003 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:IIVI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-06-30
2022-06-30
2021-06-30
2020-06-30
2019-06-30

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as II-VI has not reported any payouts.
  • Unable to verify if II-VI's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of II-VI's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as II-VI has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess II-VI's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can II-VI afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. II-VI has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of II-VI's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chuck Mattera
COMPENSATION $5,352,897
AGE 62
TENURE AS CEO 2.5 years
CEO Bio

Dr. Vincent D. Mattera, Jr., also known as Chuck, has been the President of II-VI Incorporated since November 2014 and has been its Chief Executive Officer since September 1, 2016. Dr. Mattera served as the Chief Operating Officer of II-VI Incorporated from September 2013 to November 6, 2015. Dr. Mattera served as Executive Vice President of II-VI Incorporated from January 2010 to November 2013. He served as Vice President of Compound Semiconductor Group at II-VI Inc. since November 4, 2005. During his career at II-VI he has assumed successively broader management roles, including as a lead architect of the II-VI Incorporated's diversification strategy. He has provided vision, energy and dispatch to the II-VI Incorporated's growth initiatives including overseeing the acquisition-related integration activities in the US, Europe and Asia-especially in China-thereby establishing additional platforms. These have contributed to a new positioning of the II-VI Incorporated into large and transformative global growth markets while increasing considerably the global reach of the II-VI Incorporated, deepening the technology and IP portfolio, broadening the product roadmap and customer base and increasing potential of II-VI. Prior to joining II-VI as an executive, Dr. Mattera had a continuous 20 year career in the Optoelectronic Device Division of AT&T Bell Laboratories, Lucent Technologies and Agere Systems during which he led the development and manufacturing of semiconductor laser based materials and devices for optical and data communications networks. He served as Optoelectronic Device Manufacturing and Process Development Vice President with Lucent Technologies, Microelectronics and Communications Technologies Group from 2000 to 2001. He served as General Manager of Compound Semiconductor Group of II-VI Inc. He has been Director of II-VI Incorporated since November 2014. He served as Vice President of Undersea Optical Transport, Agere Systems (formerly Lucent Technologies, Microelectronics and Communications Technologies Group) since 2001. He served as Director of Optoelectronic Device Manufacturing and Development at Lucent Technologies, Microelectronics Group from 1997 to 2000. From 1995 to 1997, he served as Director, Indium Phosphide Semiconductor Laser Chip Design and Process Development with Lucent Technologies, Microelectronics Group. From 1990 to 1995, he served as Department Head, Indium Phosphide Semiconductor Laser Chip Process Development at&T Bell Laboratories. Dr. Mattera managed Advanced Gallium Arsenide Optoelectronic Materials Technology with AT&T Bell Laboratories from 1988 to 1990 and served as Member of Technical Staff as Project Leader of the Indium Phosphide Photodetector Materials Development at&T Bell Laboratories since 1984. He served as Director of II-VI Incorporated from 2000 to 2002. Dr. Mattera has 34 years of leadership experience in the compound semiconductor materials and device technology, operations and markets that are core to II-VI’s business and strategy. Dr. Mattera holds a B.S. in chemistry from the University of Rhode Island (1979), and a Ph.D. degree in chemistry from Brown University (1984) and also earned Certificates of Completion with AEA Executive Institute from Stanford University and with the Manufacturing Leadership Program from Lucent Technologies. He completed the Stanford University Executive Program (1996).

CEO Compensation
  • Chuck's compensation has been consistent with company performance over the past year.
  • Chuck's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the II-VI management team in years:

4
Average Tenure
58
Average Age
  • The tenure for the II-VI management team is about average.
Management Team

Chuck Mattera

TITLE
President
COMPENSATION
$5M
AGE
62
TENURE
2.5 yrs

Mary Raymond

TITLE
CFO, Treasurer & Assistant Secretary
COMPENSATION
$2M
AGE
58
TENURE
5 yrs

Gary Kapusta

TITLE
Chief Operating Officer
COMPENSATION
$2M
AGE
58
TENURE
3.1 yrs

Giovanni Barbarossa

TITLE
CTO & President of Laser Solutions Segment
COMPENSATION
$2M
AGE
58
TENURE
6.4 yrs

Jo Schwendinger

TITLE
Chief Legal & Compliance Officer and Secretary
COMPENSATION
$2M
AGE
63
TENURE
2 yrs

Carl Johnson

TITLE
Co-Founder
COMPENSATION
$279K
AGE
76
TENURE
48.2 yrs

Bob Bashaw

TITLE
Senior Vice President of Corporate Strategy
TENURE
0.2 yrs

Mark Lourie

TITLE
Director of Corporate Communications

David Wagner

TITLE
Vice President of Human Resources
COMPENSATION
$904K
AGE
55
TENURE
8.2 yrs

Cheryl Arnold

TITLE
Executive Assistant to CEO & Consultant
Board of Directors Tenure

Average tenure and age of the II-VI board of directors in years:

4.3
Average Tenure
61
Average Age
  • The tenure for the II-VI board of directors is about average.
Board of Directors

Fran Kramer

TITLE
Chairman of the Board
COMPENSATION
$295K
AGE
69
TENURE
5.2 yrs

Chuck Mattera

TITLE
President
COMPENSATION
$5M
AGE
62
TENURE
4.3 yrs

Marc Y. Pelaez

TITLE
Lead Independent Director
COMPENSATION
$274K
AGE
72

Joe Corasanti

TITLE
Director
COMPENSATION
$254K
AGE
54
TENURE
17.2 yrs

Howard Xia

TITLE
Director
COMPENSATION
$252K
AGE
57
TENURE
7.9 yrs

William Schromm

TITLE
Director
COMPENSATION
$231K
AGE
60
TENURE
3.9 yrs

Shaker Sadasivam

TITLE
Director
COMPENSATION
$241K
AGE
58
TENURE
3.1 yrs

Enrico Digirolamo

TITLE
Independent Director
COMPENSATION
$25K
AGE
63
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. Aug 18 Sell Marc Y. Pelaez Individual 16. Aug 18 16. Aug 18 -4,485 $45.40 $-203,633
10. Aug 18 Sell Mary Raymond Individual 09. Aug 18 10. Aug 18 -4,000 $45.00 $-179,515
01. Jun 18 Sell II-VI Foundation, Endowment Arm Company 18. Apr 18 09. May 18 -18,000 $44.03 $-792,490
01. Jun 18 Sell Carl Johnson Individual 23. Mar 18 24. May 18 -107,000 $44.53 $-4,253,688
X
Management checks
We assess II-VI's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. II-VI has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is II-VI Incorporated's (NASDAQ:IIVI) CEO Pay Justified?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Chuck Mattera's Compensation Compare With Similar Sized Companies. … Our data indicates that II-VI Incorporated is worth US$2.3b, and total annual CEO compensation is US$5.4m.

Simply Wall St -

Introducing II-VI (NASDAQ:IIVI), The Stock That Zoomed 166% In The Last Five Years

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, II-VI achieved compound earnings per share (EPS) growth of 19% per year.

Simply Wall St -

Where II-VI Incorporated (NASDAQ:IIVI) Stands In Terms Of Earnings Growth Against Its Industry

Were IIVI's earnings stronger than its past performances and the industry. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 17%, indicating the rate at which IIVI is growing has accelerated … What's the driver of this growth?

Simply Wall St -

There's An Opportunity With II-VI Incorporated (NASDAQ:IIVI)

Today I want to bring to light the market's darling - II-VI Incorporated. … Looking at its size, financial health and track record, I believe there's an opportunity with II-VI during these volatile times. … II-VI Incorporated develops, manufactures, and markets engineered materials, and optoelectronic components and devices worldwide

Simply Wall St -

II-VI Incorporated (NASDAQ:IIVI) Might Not Be A Great Investment

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Why II-VI Incorporated's (NASDAQ:IIVI) High P/E Ratio Isn't Necessarily A Bad Thing

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … To keep it practical, we'll show how II-VI Incorporated's (NASDAQ:IIVI) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Who Has Been Selling II-VI Incorporated (NASDAQ:IIVI) Shares?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … In the last twelve months, the biggest single sale by an insider was when Co-Founder Carl Johnson sold US$4.3m worth of shares at a price of US$44.53 per share. … All up, insiders sold more shares in II-VI than they bought, over the last year

Simply Wall St -

What You Must Know About II-VI Incorporated's (NASDAQ:IIVI) Financial Strength

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as II-VI Incorporated (NASDAQ:IIVI), with a market cap of US$2.2b, often get neglected by retail investors. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories. … IIVI’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns.

Simply Wall St -

Where II-VI Incorporated's (NASDAQ:IIVI) Earnings Growth Stands Against Its Industry

In this article, I will take a look at II-VI Incorporated's (NASDAQ:IIVI) most recent earnings update (30 September 2018) and compare these latest figures against its performance over the past few years, along with how the rest of IIVI's industry performed. … How Did IIVI's Recent Performance Stack Up Against Its Past. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 16%, indicating the rate at which IIVI is growing has slowed down

Simply Wall St -

How Good Is II-VI Incorporated (NASDAQ:IIVI), When It Comes To ROE?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows II-VI has a return on equity of 8.9% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

II-VI Incorporated develops, manufactures, and markets engineered materials, and optoelectronic components and devices worldwide. The company operates in 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 primarily used in high-power CO2 lasers; fiber-delivered beam delivery systems, and processing tools and direct diode lasers for industrial lasers; direct diode laser modules, sub-systems, and systems; super-hard materials processing laser systems; 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 within the optical communications market. The II-VI Performance Products segment provides infrared optical components and high-precision optical assemblies for military, 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, military, semiconductor, medical and life science markets, consumers, the U.S. government prime contractors, various U.S. government agencies, and thermoelectric integrators. It has strategic collaboration with Sumitomo Electric Device Innovations, Inc. to establish vertically integrated wafer fabrication platform. II-VI Incorporated was founded in 1971 and is headquartered in Saxonburg, Pennsylvania.

Details
Name: II-VI Incorporated
IIVI
Exchange: NasdaqGS
Founded: 1971
$2,311,988,516
63,394,256
Website: http://www.ii-vi.com
Address: II-VI Incorporated
375 Saxonburg Boulevard,
Saxonburg,
Pennsylvania, 16056,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS IIVI Common Stock Nasdaq Global Select US USD 02. Oct 1987
DB II6 Common Stock Deutsche Boerse AG DE EUR 02. Oct 1987
LSE 0LHO Common Stock London Stock Exchange GB USD 02. Oct 1987
Number of employees
Current staff
Staff numbers
11,443
II-VI employees.
Industry
Electronic Components
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/24 23:44
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/03/11
Last earnings filing: 2019/02/08
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.