What Makes II-VI Incorporated (NASDAQ:IIVI) An Attractive Investment?

II-VI Incorporated (NASDAQ:IIVI) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of IIVI, it is a financially-sound company with an impressive history and an optimistic future outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on II-VI here.

Solid track record with reasonable growth potential

Over the past year, IIVI has grown its earnings by 21.45%, with its most recent figure exceeding its annual average over the past five years. Not only did IIVI outperformed its past performance, its growth also surpassed the Electronic industry expansion, which generated a 15.40% earnings growth. This is an notable feat for the company.

IIVI's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that IIVI manages its cash and cost levels well, which is an important determinant of the company’s health. IIVI appears to have made good use of debt, producing operating cash levels of 0.32x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

Next Steps:

For II-VI, there are three key factors you should further examine:

1. Valuation: What is IIVI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether IIVI is currently mispriced by the market.
2. Dividend Income vs Capital Gains: Does IIVI return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from IIVI as an investment.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of IIVI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.