NasdaqGS:IIVI

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet with acceptable track record.


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


Market Performance


7 Day Return

1.9%

IIVI

4.9%

US Electronic

3.4%

US Market


1 Year Return

-19.6%

IIVI

9.1%

US Electronic

5.4%

US Market

Return vs Industry: IIVI underperformed the US Electronic industry which returned 9.1% over the past year.

Return vs Market: IIVI underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

IIVIIndustryMarket
7 Day1.9%4.9%3.4%
30 Day-20.9%-0.8%-1.0%
90 Day-13.0%2.9%-0.4%
1 Year-19.6%-19.6%10.2%9.1%7.7%5.4%
3 Year25.9%25.9%54.3%50.0%46.2%36.8%
5 Year164.3%164.3%87.9%78.9%65.6%47.5%

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?

34.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: IIVI ($32.43) is trading below our estimate of fair value ($49.45)

Significantly Undervalued: IIVI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IIVI is poor value based on its PE Ratio (19.2x) compared to the Electronic industry average (19.2x).

PE vs Market: IIVI is poor value based on its PE Ratio (19.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate IIVI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IIVI is good value based on its PB Ratio (1.8x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is II-VI forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

20.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if IIVI's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if IIVI's earnings are forecast to grow faster than the US market

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

Revenue vs Market: IIVI's revenue (20.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: IIVI's revenue (20.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: IIVI's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

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

16.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: IIVI's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: IIVI's earnings growth over the past year (22.2%) exceeds its 5-year average (16.4% per year).

Earnings vs Industry: IIVI earnings growth over the past year (22.2%) underperformed the Electronic industry 58.6%.


Return on Equity

High ROE: IIVI's Return on Equity (9.5%) is considered low.


Return on Assets

ROA vs Industry: IIVI's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: IIVI has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is II-VI's financial position?


Financial Position Analysis

Short Term Liabilities: IIVI's short term assets ($812.9M) exceeds its short term liabilities ($270.6M)

Long Term Liabilities: IIVI's short term assets (812.9M) exceeds its long term liabilities (550.0M)


Debt to Equity History and Analysis

Debt Level: IIVI's debt to equity ratio (41.2%) is considered high

Reducing Debt: IIVI's debt to equity ratio has increased from 33.9% to 41.2% over the past 5 years.

Debt Coverage: IIVI's debt is well covered by operating cash flow (38.2%).

Interest Coverage: IIVI's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet

Inventory Level: IIVI has a high level of physical assets or inventory.

Debt Coverage by Assets: IIVI's debt is covered by short term assets (assets are 1.740710x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

2.6yrs

Average management tenure


CEO

Chuck Mattera (63yo)

3.1yrs

Tenure

US$10,694,483

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 ($USD10.69M) is about average for companies of similar size in the US market ($USD4.07M).

Compensation vs Earnings: Chuck's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.6yrs

Average Tenure

59yo

Average Age

Experienced Management: IIVI's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

61yo

Average Age

Experienced Board: IIVI's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

Insider Buying: IIVI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$40,72023 Sep 19
Marc Y. Pelaez
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares1,000
Max PriceUS$40.72
BuyUS$103,47930 May 19
Joseph Corasanti
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,200
Max PriceUS$32.34
BuyUS$493,49623 May 19
Shaker Sadasivam
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares14,250
Max PriceUS$34.63
SellUS$83,00020 May 19
II-VI Foundation, Endowment Arm
EntityCompany
Shares2,000
Max PriceUS$41.50
SellUS$4,810,30020 May 19
Carl Johnson
EntityIndividual
Role
Top Key Executive
Co-Founder
Shares120,000
Max PriceUS$41.47

Ownership Breakdown


Management Team

  • Carl Johnson (77yo)

    Co-Founder

    • Tenure: 48.8yrs
    • Compensation: US$279.19k
  • Giovanni Barbarossa (59yo)

    President of Compound Semiconductors & Chief Strategy Officer

    • Tenure: 5.8yrs
    • Compensation: US$2.32m
  • Chuck Mattera (63yo)

    CEO & Director

    • Tenure: 3.1yrs
    • Compensation: US$10.69m
  • Mary Raymond (59yo)

    CFO, Treasurer & Assistant Secretary

    • Tenure: 5.6yrs
    • Compensation: US$2.23m
  • Mark Lourie

    Vice President of Corporate Communications

    • Tenure: 0yrs
  • Chris Koeppen

    Chief Technology Officer

    • Tenure: 0.3yrs
  • Walter Bashaw (54yo)

    President

    • Tenure: 0.3yrs
  • Gary Kapusta (59yo)

    Chief Procurement Officer

    • Tenure: 0.3yrs
    • Compensation: US$2.51m
  • Jo Schwendinger (64yo)

    Chief Legal & Compliance Officer and Corporate Secretary

    • Tenure: 2.6yrs
    • Compensation: US$1.51m
  • Anantha Ganga

    Chief Information Officer

    • Tenure: 0.08yrs

Board Members

  • Jerry Rawls (74yo)

    Director

    • Tenure: 0.08yrs
  • Joe Corasanti (55yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$256.75k
  • Fran Kramer (70yo)

    Chairman of the Board

    • Tenure: 5.8yrs
    • Compensation: US$287.25k
  • Enrico Digirolamo (64yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$239.00k
  • Chuck Mattera (63yo)

    CEO & Director

    • Tenure: 3.1yrs
    • Compensation: US$10.69m
  • Shaker Sadasivam (59yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$250.50k
  • Marc Y. Pelaez (73yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$270.25k
  • Mike Dreyer (55yo)

    Independent Director

    • Tenure: 0.08yrs
  • Howard Xia (58yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$264.25k
  • Patty Hatter (57yo)

    Independent Director

    • Tenure: 0.2yrs

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$2.087b
  • Shares outstanding: 64.36m
  • Website: https://www.ii-vi.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IIVINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1987
II6DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1987
0LHOLSE (London Stock Exchange)YesCommon StockGBUSDOct 1987

Biography

II-VI Incorporated develops, manufactures, and markets engineered materials, and optoelectronic components and devices worldwide. The company operates through three segments: II-VI Laser Solutions, II-VI P ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:47
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.