II-VI Incorporated (IIVI) shares are trading at lower $42.06 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $55.96.
To add more color to this target, the company’s high over the last year is $52.97 and the low is $19.00. Over the last 52 weeks, IIVI is up 12.70% while the S&P 500 is up 19.49%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, IIVI reported a profit of $245.93 million. II-VI Incorporated also saw revenues increase to $627.04 million. In addition, IIVI has free cash flow of $12.52 million as of 03-2020. The company’s EBITDA came in at $113.34 million which compares well with its peers.
IIVI booked profit margins of -3.60%, its Return on Equity (ROE) is -3.90%, and its Return on Assets is -1.60%. All told, it is clear that, IIVI needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. IIVI has a short ratio of 7.09 and outstanding shares of 91.08M.
IIVI has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at -0.99. II-VI Incorporated IIVI also noted assets of $5.11 billion at the end of the last quarter. Investors should also keep an eye on sector updates as IIVI has historically followed its peers on positive news.
All told, II-VI Incorporated IIVI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, IIVI represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
II-VI Incorporated IIVI is now commanding a market cap of 4.40B and a float of 88.44M. IIVI is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of IIVI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in IIVI, either long or short, and we have not been compensated for this article.