Yahoo Finance Reasons Why I Like II-VI Incorporated (NASDAQ:IIVI)
II-VI Incorporated (NASDAQ:IIVI) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of IIVI, it is a financially-healthy company with a strong history and a excellent growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on II-VI here.
Solid track record with reasonable growth potential
In the previous year, IIVI has ramped up its bottom line by 21.45%, with its latest earnings level surpassing its average level over the last five years. Not only did IIVI outperformed its past performance, its growth also surpassed the Electronic industry expansion, which generated a 16.59% earnings growth. This is what investors like to see!
IIVI’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. IIVI appears to have made good use of debt, producing operating cash levels of 0.32x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For II-VI, I’ve compiled three relevant factors you should look at:
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.
Dividend Income vs Capital Gains: Does IIVI return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from IIVI as an investment.
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!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
