II VI is OVERVALUED at 46.40 per share with modest projections ahead. II VI appears to be very steady, given 1 month investment horizon.
II VI Incorporated retains Efficiency (Sharpe Ratio) of 0.14, which attests that the entity had 0.14% of return per unit of price deviation over the last month. Our outlook to determining the volatility of a stock is to use all available market data together with stock specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for II VI, which you can use to evaluate future volatility of the firm. Please utilize II VI Incorporated Semi Deviation of 3.27,
standard deviation of 4.3, and Market Risk Adjusted Performance of 0.6004 to validate if our risk estimates are consistent with your expectations.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include II VI income statement, its balance sheet, and the statement of cash flows. Potential II VI investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although II VI investors may use each financial statement separately, they are all related. The changes in II VI's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on II VI's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of II VI
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of II VI performance into the future periods or doing a reasonable stock valuation. The intrinsic value of II VI shares is the value that is considered the true value of the share. If
the intrinsic value of IIVI is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares II VI. Please read more on our
fundamental analysis page.
How important is II VI's Liquidity
II VI
financial leverage refers to using borrowed capital as a funding source to finance II VI Incorporated ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. II VI financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to II VI's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of II VI's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between II VI's total debt and its cash.
Another angle On II VI
Institutional investor usually refers to an organization that invests money in II VI on behalf of clients or other money managers. Buying and selling of large positions of II VI stock by institutional investors can create supply and demand imbalances that result in sudden price moves of II VI stock. Let's take a look at how the ownership of II VI is distributed among investors.
Ownership Allocation
II VI Incorporated secures a total of one hundred two million nine hundred fifty thousand
outstanding shares. The majority of II VI Incorporated
outstanding shares are owned by
institutions. These other corporate entities are usually referred to as non-private investors looking to purchase positions in II VI Incorporated to benefit from reduced commissions. Hence, outside corporations are subject to a different set of regulations than regular investors in II VI Incorporated. Please pay attention to any change in the institutional holdings of II VI as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company retains, if the real value of the firm is less than the current market value, you may not be able to make money on it.
| Retail Investors | 3.4 |
| Insiders | 4.47 |
| Institutions | 92.13 |
| 2017 | 2018 | 2019 | 2020 (projected) |
Consolidated Income | 88 M | 107.52 M | 123.64 M | 105.35 M | Direct Expenses | 697.51 M | 841.15 M | 757.03 M | 599.4 M |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. II VI has an asset utilization ratio of 1316.65 percent. This implies that the company is making $13.17 for each dollar of assets. An increasing asset utilization means that II VI Incorporated is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets806.6 M | Assets Non Current1.4 B | | |
| Current Assets | 806.63 Million | 30.14 |
| Assets Non Current | 1.42 Billion | 52.89 |
| Goodwill | 437.51 Million | 16.35 |
| Tax Assets | 16.49 Million | 0.62 |
Another 3 percent rise for II VI
Current total risk alpha is at -0.11. As of the 13th of August 2020, II VI owns the Semi Deviation of 3.27,
standard deviation of 4.3, and Market Risk Adjusted Performance of 0.6004. II VI Incorporated
technical analysis makes it possible for you to employ past data patterns with the intention to determine a pattern that calculates the direction of the firm's future prices. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of
historical prices and volume patterns, or the prices will eventually revert. We were able to collect and analyze data for nineteen
technical drivers for II VI, which can be compared to its peers in the sector. Please check out
II VI Incorporated standard deviation, as well as the
relationship between the maximum drawdown and
expected short fall to decide if II VI Incorporated is priced more or less accurately, providing market reflects its prevailing price of 52.03 per share. Given that II VI Incorporated has
jensen alpha of 0.3393, we strongly advise you to confirm II VI's latest market performance to make sure the company can sustain itself sooner or later.
Our Final Take On II VI
While many other companies within the scientific & technical instruments industry are still a little expensive, even after the recent corrections, II VI may offer a potential longer-term growth to stockholders. To sum up, as of the 13th of August 2020, our concluding 30 days advice on the company is
Strong Hold. We believe II VI is
overvalued with
very small probability of distress for the next two years.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of II VI Incorporated. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com