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Market Cap

US$6.7b

Last Updated

2021/05/10 22:13 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Reasonable growth potential and fair value.


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: IIVI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: IIVI's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-7.5%

IIVI

-1.0%

US Electronic

-1.2%

US Market


1 Year Return

71.1%

IIVI

64.9%

US Electronic

48.3%

US Market

Return vs Industry: IIVI exceeded the US Electronic industry which returned 65.5% over the past year.

Return vs Market: IIVI exceeded the US Market which returned 49.9% over the past year.


Shareholder returns

IIVIIndustryMarket
7 Day-7.5%-1.0%-1.2%
30 Day-18.6%-2.9%0.2%
90 Day-34.1%1.8%1.6%
1 Year71.1%71.1%68.4%64.9%50.8%48.3%
3 Year38.1%38.1%63.5%56.6%62.0%51.9%
5 Year217.3%217.3%175.5%157.9%126.9%101.7%

Long-Term 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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IIVI ($62.01) is trading below our estimate of fair value ($124.8)

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


Price To Earnings Ratio

PE vs Industry: IIVI is poor value based on its PE Ratio (25.4x) compared to the US Electronic industry average (24.7x).

PE vs Market: IIVI is poor value based on its PE Ratio (25.4x) compared to the US market (20.3x).


Price to Earnings Growth Ratio

PEG Ratio: IIVI is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: IIVI is good value based on its PB Ratio (2.3x) compared to the US Electronic industry average (2.8x).


Future Growth

How is II-VI forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

22.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IIVI's forecast earnings growth (22.2% per year) is above the savings rate (2%).

Earnings vs Market: IIVI's earnings (22.2% per year) are forecast to grow faster than the US market (15% per year).

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

Revenue vs Market: IIVI's revenue (10.2% per year) is forecast to grow faster than the US market (9.1% per year).

High Growth Revenue: IIVI's revenue (10.2% 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 (14%).


Past Performance

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

-3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IIVI has high quality earnings.

Growing Profit Margin: IIVI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: IIVI's earnings have declined by 3.3% per year over the past 5 years.

Accelerating Growth: IIVI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: IIVI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (13.1%).


Return on Equity

High ROE: IIVI's Return on Equity (8.2%) is considered low.


Financial Health

How is II-VI's financial position?


Financial Position Analysis

Short Term Liabilities: IIVI's short term assets ($2.9B) exceed its short term liabilities ($678.8M).

Long Term Liabilities: IIVI's short term assets ($2.9B) do not cover its long term liabilities ($5.7B).


Debt to Equity History and Analysis

Debt Level: IIVI's debt to equity ratio (46.7%) is considered high.

Reducing Debt: IIVI's debt to equity ratio has increased from 19.8% to 46.7% over the past 5 years.

Debt Coverage: IIVI's debt is well covered by operating cash flow (41.2%).

Interest Coverage: IIVI's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


Dividend

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


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.


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 IIVI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Chuck Mattera (64 yo)

4.67yrs

Tenure

US$10,512,436

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 ($USD10.51M) is above average for companies of similar size in the US market ($USD6.52M).

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 not considered experienced ( 1.8 years average tenure), which suggests a new team.


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 been diluted in the past year, with total shares outstanding growing by 15.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: II-VI Incorporated
  • Ticker: IIVI
  • Exchange: NasdaqGS
  • Founded: 1971
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: US$6.675b
  • Shares outstanding: 104.88m
  • Website: https://www.ii-vi.com

Number of Employees


Location

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

Listings


Biography

II-VI Incorporated develops, manufactures, and markets engineered materials, and optoelectronic components and devices worldwide. The company operates through two segments, Compound Semiconductors and Phot...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/10 22:13
End of Day Share Price2021/05/10 00:00
Earnings2021/03/31
Annual Earnings2020/06/30


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.