NasdaqGS:IIVI

Stock Analysis Report

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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 slightly overvalued.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.8%

IIVI

0.8%

US Electronic

-0.8%

US Market


1 Year Return

43.2%

IIVI

11.5%

US Electronic

18.0%

US Market

Return vs Industry: IIVI exceeded the US Electronic industry which returned 10% over the past year.

Return vs Market: IIVI exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

IIVIIndustryMarket
7 Day3.8%0.8%-0.8%
30 Day23.6%13.0%6.8%
90 Day6.8%12.7%8.9%
1 Year43.2%43.2%12.7%11.5%20.7%18.0%
3 Year7.2%7.2%21.4%17.9%41.5%32.1%
5 Year163.5%163.5%89.0%80.1%84.6%63.8%

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?

39.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IIVI ($47.74) is trading below our estimate of fair value ($78.35)

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


Price To Earnings Ratio

PE vs Industry: IIVI is unprofitable, so we can't compare its PE Ratio to the US Electronic industry average.

PE vs Market: IIVI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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's PB Ratio (2.1x) is in line with the US Electronic industry average.


Next Steps

Future Growth

How is II-VI forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

92.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IIVI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: IIVI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IIVI's is expected to become profitable in the next 3 years.

Revenue vs Market: IIVI's revenue (13.9% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: IIVI's revenue (13.9% 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 (12.5%).


Next Steps

Past Performance

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

-21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IIVI is currently unprofitable.

Growing Profit Margin: IIVI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IIVI is unprofitable, and losses have increased over the past 5 years at a rate of 21.2% per year.

Accelerating Growth: Unable to compare IIVI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IIVI is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-18%).


Return on Equity

High ROE: IIVI has a negative Return on Equity (-3.23%), as it is currently unprofitable.


Next Steps

Financial Health

How is II-VI's financial position?


Financial Position Analysis

Short Term Liabilities: IIVI's short term assets ($1.8B) exceed its short term liabilities ($672.9M).

Long Term Liabilities: IIVI's short term assets ($1.8B) do not cover its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: IIVI's debt to equity ratio (110.7%) is considered high.

Reducing Debt: IIVI's debt to equity ratio has increased from 21.6% to 110.7% over the past 5 years.

Debt Coverage: IIVI's debt is not well covered by operating cash flow (12.9%).

Interest Coverage: IIVI is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

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?

1.3yrs

Average management tenure


CEO

Chuck Mattera (64 yo)

4.08yrs

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 ($USD10.51M) is above average for companies of similar size in the US market ($USD7.32M).

Compensation vs Earnings: Chuck's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Vincent Mattera
CEO & Director4.08yrsUS$10.51m0.40%
$ 19.8m
Walter Bashaw
President1.25yrsUS$2.76m0.012%
$ 602.9k
Mary Raymond
CFO, Treasurer & Assistant Secretary6.58yrsUS$3.10m0.062%
$ 3.1m
Jo Schwendinger
Chief Legal & Compliance Officer and Corporate Secretary3.58yrsUS$2.14m0.021%
$ 1.1m
Giovanni Barbarossa
President of Compound Semiconductors & Chief Strategy Officer6.75yrsUS$2.86m0.075%
$ 3.7m
Carl Johnson
Co-Founder49.75yrsUS$279.19k1.54%
$ 76.5m
Christopher Koeppen
Chief Technology Officer1.25yrsno data0.012%
$ 607.8k
Anantha Ganga
Chief Information Officer1.08yrsno datano data
Mark Lourie
Vice President of Corporate Communicationsno datano datano data
Sanjai Parthasarathi
Chief Marketing Officer1.25yrsno datano data
Ishrat Hakim
Chief Sales Officer1.25yrsno datano data
Shirley Reha
Chief Human Resources Officer1.08yrsno datano data

1.3yrs

Average Tenure

60yo

Average Age

Experienced Management: IIVI's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Vincent Mattera
CEO & Director4.08yrsUS$10.51m0.40%
$ 19.8m
Joseph Corasanti
Independent Director18.75yrsUS$280.87k0.053%
$ 2.6m
Francis Kramer
Chairman of the Board5.92yrsUS$342.37k0.56%
$ 27.9m
Enrico Digirolamo
Independent Director2.42yrsUS$267.87k0.0018%
$ 88.2k
Chandrasekhar Sadasivam
Independent Director4.67yrsUS$282.37k0.021%
$ 1.1m
Marc Y. Pelaez
Lead Independent Directorno dataUS$329.87k0.060%
$ 3.0m
Michael Dreyer
Independent Director1.08yrsUS$240.74k0.014%
$ 679.7k
Howard Xia
Independent Director9.5yrsUS$300.37k0.026%
$ 1.3m
Patricia Hatter
Independent Director1.17yrsUS$253.37k0.00075%
$ 37.2k

5.3yrs

Average Tenure

60yo

Average Age

Experienced Board: IIVI's board of directors are considered experienced (5.3 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 substantially diluted in the past year, with total shares outstanding growing by 61.4%.


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$4.958b
  • Shares outstanding: 103.85m
  • 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
IIVI.PNasdaqGS (Nasdaq Global Select)6% CONV PFD AUSUSDJul 2020

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 Analysis2020/10/23 00:17
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
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.