II-VI Incorporated (NASDAQ:IIVI): The Best Of Both Worlds
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Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on II-VI Incorporated (NASDAQ:IIVI) due to its excellent fundamentals in more than one area. IIVI is a financially-healthy company with an impressive history and a excellent future outlook. Below, I’ve touched on some key aspects you should know on a high level. 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.
Proven track record with reasonable growth potential
IIVI is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that IIVI manages its cash and cost levels well, which is a key determinant of the company’s health. IIVI seems to have put its debt to good use, generating operating cash levels of 0.38x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Next Steps:
For II-VI, there are three relevant aspects you should further examine:
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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
