Why Fundamental Investors Might Love II-VI Incorporated (NASDAQ:IIVI)

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I've been keeping an eye on II-VI Incorporated (NASDAQ:IIVI) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe IIVI has a lot to offer. Basically, it is a company with strong financial health as well as an optimistic growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on II-VI here.

Reasonable growth potential with adequate balance sheet

IIVI's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. IIVI seems to have put its debt to good use, generating operating cash levels of 0.32x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

Next Steps:

For II-VI, there are three relevant factors you should further research:

1. Historical Performance: What has IIVI's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
2. 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.
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!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.