II-VI Incorporated Fundamental Analysis
II-VI Incorporated (IIVI) shows weak financial fundamentals with a PE ratio of 75.07, profit margin of 0.03%, and ROE of 7.48%. The company generates $1571.9B in annual revenue with weak year-over-year growth of -8.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -5182.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze IIVI's fundamental strength across five key dimensions:
Efficiency Score
WeakIIVI struggles to generate sufficient returns from assets.
Valuation Score
ModerateIIVI shows balanced valuation metrics.
Growth Score
WeakIIVI faces weak or negative growth trends.
Financial Health Score
ExcellentIIVI maintains a strong and stable balance sheet.
Profitability Score
WeakIIVI struggles to sustain strong margins.
Key Financial Metrics
Is IIVI Expensive or Cheap?
P/E Ratio
IIVI trades at 75.07 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, IIVI's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values II-VI Incorporated at 3.29 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 30.59 times EBITDA. This signals the market has high growth expectations.
How Well Does IIVI Make Money?
Net Profit Margin
For every $100 in sales, II-VI Incorporated keeps $0.03 as profit after all expenses.
Operating Margin
Core operations generate 0.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.48 in profit for every $100 of shareholder equity.
ROA
II-VI Incorporated generates $2.71 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
II-VI Incorporated generates limited operating cash flow of $8.59B, signaling weaker underlying cash strength.
Free Cash Flow
II-VI Incorporated generates weak or negative free cash flow of $-466.57B, restricting financial flexibility.
FCF Per Share
Each share generates $-3472.13 in free cash annually.
FCF Yield
IIVI converts -17.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
75.07
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.32
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How IIVI Stacks Against Its Sector Peers
| Metric | IIVI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 75.07 | 36.36 | Worse (Expensive) |
| ROE | 7.48% | 980.00% | Weak |
| Net Margin | 0.03% | 5969454258.00% | Weak |
| Debt/Equity | 0.32 | 0.36 | Neutral |
| Current Ratio | 3.05 | 5.04 | Strong Liquidity |
| ROA | 2.71% | -298400.00% (disorted) | Weak |
IIVI outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews II-VI Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.88%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-209.01%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
28.21%
Industry Style: Growth, Innovation, High Beta
High Growth