COHERENT CORP - COHR 6 07/01/23 (IIVI)
US19247G2066
IIVI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 127 industry peers in the Electronic Equipment, Instruments & Components industry. Both the profitability and the financial health of IIVI get a neutral evaluation. Nothing too spectacular is happening here. IIVI shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
IIVI had positive earnings in the past year.
In the past year IIVI had a positive cash flow from operations.
IIVI had positive earnings in 4 of the past 5 years.
Each year in the past 5 years IIVI had a positive operating cash flow.
1.2 Ratios
IIVI has negative profitability rations, so we won't be analyzing them here.
The Return On Invested Capital of IIVI (1.87%) is comparable to the rest of the industry.
IIVI had an Average Return On Invested Capital over the past 3 years of 4.47%. This is below the industry average of 9.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | 1.87% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.47%
ROIC(5y)6.09%
1.3 Margins
In the last couple of years the Profit Margin of IIVI has declined.
IIVI has a better Operating Margin (6.00%) than 71.32% of its industry peers.
In the last couple of years the Operating Margin of IIVI has grown nicely.
The Gross Margin of IIVI (33.06%) is better than 60.47% of its industry peers.
In the last couple of years the Gross Margin of IIVI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6% | ||
| PM (TTM) | N/A | ||
| GM | 33.06% |
OM growth 3Y0.85%
OM growth 5Y1.69%
PM growth 3Y-13.99%
PM growth 5Y-12.53%
GM growth 3Y-0.09%
GM growth 5Y-0.92%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), IIVI is destroying value.
Compared to 1 year ago, IIVI has more shares outstanding
Compared to 5 years ago, IIVI has more shares outstanding
IIVI has a worse debt/assets ratio than last year.
2.2 Solvency
IIVI has an Altman-Z score of 3.57. This indicates that IIVI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.57, IIVI is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
The Debt to FCF ratio of IIVI is 34.44, which is on the high side as it means it would take IIVI, 34.44 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 34.44, IIVI is in line with its industry, outperforming 59.69% of the companies in the same industry.
IIVI has a Debt/Equity ratio of 0.58. This is a neutral value indicating IIVI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.58, IIVI is not doing good in the industry: 83.72% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 34.44 | ||
| Altman-Z | 3.57 |
ROIC/WACC0.2
WACC9.56%
2.3 Liquidity
IIVI has a Current Ratio of 3.08. This indicates that IIVI is financially healthy and has no problem in meeting its short term obligations.
IIVI's Current ratio of 3.08 is fine compared to the rest of the industry. IIVI outperforms 62.02% of its industry peers.
IIVI has a Quick Ratio of 1.82. This is a normal value and indicates that IIVI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.82, IIVI is in line with its industry, outperforming 51.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.08 | ||
| Quick Ratio | 1.82 |
3. Growth
3.1 Past
The earnings per share for IIVI have decreased by -1.93% in the last year.
IIVI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 18.68% yearly.
IIVI shows a strong growth in Revenue. In the last year, the Revenue has grown by 49.56%.
IIVI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.82% yearly.
EPS 1Y (TTM)-1.93%
EPS 3Y13.27%
EPS 5Y18.68%
EPS growth Q2Q-38.95%
Revenue 1Y (TTM)49.56%
Revenue growth 3Y34.52%
Revenue growth 5Y27.82%
Revenue growth Q2Q49.84%
3.2 Future
IIVI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.68% yearly.
The Revenue is expected to grow by 17.99% on average over the next years. This is quite good.
EPS Next Y2.69%
EPS Next 2Y11.05%
EPS Next 3Y15.16%
EPS Next 5Y11.68%
Revenue Next Year65.72%
Revenue Next 2Y33.82%
Revenue Next 3Y25.01%
Revenue Next 5Y17.99%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 63.97 indicates a quite expensive valuation of IIVI.
IIVI's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.06. IIVI is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 49.50 indicates a quite expensive valuation of IIVI.
The rest of the industry has a similar Price/Forward Earnings ratio as IIVI.
IIVI is valuated expensively when we compare the Price/Forward Earnings ratio to 20.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.97 | ||
| Fwd PE | 49.5 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as IIVI.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of IIVI indicates a somewhat cheap valuation: IIVI is cheaper than 60.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 246.31 | ||
| EV/EBITDA | 41.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates IIVI does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as IIVI's earnings are expected to grow with 15.16% in the coming years.
PEG (NY)23.79
PEG (5Y)3.42
EPS Next 2Y11.05%
EPS Next 3Y15.16%
5. Dividend
5.1 Amount
IIVI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
COHERENT CORP - COHR 6 07/01/23
NYSE:IIVI (6/30/2023, 7:21:10 PM)
227.08
+11.82 (+5.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap31.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
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EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 63.97 | ||
| Fwd PE | 49.5 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)23.79
PEG (5Y)3.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6% | ||
| PM (TTM) | N/A | ||
| GM | 33.06% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.08 | ||
| Quick Ratio | 1.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-1.93%
EPS 3Y13.27%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.69%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)49.56%
Revenue growth 3Y34.52%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y