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COHERENT CORP - COHR 6 07/01/23 (IIVI) Stock Fundamental Analysis

NYSE:IIVI - New York Stock Exchange, Inc. - US19247G2066 - Currency: USD

227.08  +11.82 (+5.49%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to IIVI. IIVI was compared to 124 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 is valued quite expensively, but it does show have an excellent growth rating.


Dividend Valuation Growth Profitability Health

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4

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.
Of the past 5 years IIVI 4 years were profitable.
Each year in the past 5 years IIVI had a positive operating cash flow.
IIVI Yearly Net Income VS EBIT VS OCF VS FCFIIVI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 200M 400M

1.2 Ratios

The profitability ratios for IIVI are negative, so there is not much use analyzing them.
With a Return On Invested Capital value of 1.87%, IIVI perfoms like the industry average, outperforming 51.16% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for IIVI is below the industry average of 8.93%.
Industry RankSector 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%
IIVI Yearly ROA, ROE, ROICIIVI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 2 -2 4 6 8 10

1.3 Margins

In the last couple of years the Profit Margin of IIVI has declined.
IIVI's Operating Margin of 6.00% is fine compared to the rest of the industry. IIVI outperforms 71.32% of its industry peers.
IIVI's Operating Margin has improved in the last couple of years.
IIVI has a Gross Margin of 33.06%. This is in the better half of the industry: IIVI outperforms 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 RankSector 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%
IIVI Yearly Profit, Operating, Gross MarginsIIVI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 10 20 30

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4

2. Health

2.1 Basic Checks

IIVI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, IIVI has more shares outstanding
IIVI has a worse debt/assets ratio than last year.
IIVI Yearly Shares OutstandingIIVI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
IIVI Yearly Total Debt VS Total AssetsIIVI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B

2.2 Solvency

An Altman-Z score of 3.57 indicates that IIVI is not in any danger for bankruptcy at the moment.
IIVI has a better Altman-Z score (3.57) than 60.47% of its industry peers.
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.
IIVI has a Debt to FCF ratio (34.44) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.58 indicates that IIVI is somewhat dependend on debt financing.
The Debt to Equity ratio of IIVI (0.58) is worse than 83.72% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 34.44
Altman-Z 3.57
ROIC/WACC0.2
WACC9.56%
IIVI Yearly LT Debt VS Equity VS FCFIIVI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 1B 2B 3B 4B

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 has a better Current ratio (3.08) than 62.02% of its industry peers.
A Quick Ratio of 1.82 indicates that IIVI should not have too much problems paying 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 RankSector Rank
Current Ratio 3.08
Quick Ratio 1.82
IIVI Yearly Current Assets VS Current LiabilitesIIVI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B

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7

3. Growth

3.1 Past

The earnings per share for IIVI have decreased by -1.93% in the last year.
Measured over the past years, IIVI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 18.68% on average per year.
Looking at the last year, IIVI shows a very strong growth in Revenue. The Revenue has grown by 49.56%.
The Revenue has been growing by 27.82% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-1.93%
EPS 3Y13.27%
EPS 5Y18.68%
EPS Q2Q%-38.95%
Revenue 1Y (TTM)49.56%
Revenue growth 3Y34.52%
Revenue growth 5Y27.82%
Sales Q2Q%49.84%

3.2 Future

The Earnings Per Share is expected to grow by 11.68% on average over the next years. This is quite good.
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.
IIVI Yearly Revenue VS EstimatesIIVI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B
IIVI Yearly EPS VS EstimatesIIVI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 63.97, IIVI can be considered very expensive at the moment.
IIVI's Price/Earnings ratio is in line with the industry average.
IIVI's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.62.
The Price/Forward Earnings ratio is 49.50, which means the current valuation is very expensive for IIVI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of IIVI is on the same level as its industry peers.
IIVI is valuated expensively when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 63.97
Fwd PE 49.5
IIVI Price Earnings VS Forward Price EarningsIIVI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as IIVI.
60.47% of the companies in the same industry are more expensive than IIVI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 246.31
EV/EBITDA 41.79
IIVI Per share dataIIVI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40

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%

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0

5. Dividend

5.1 Amount

IIVI does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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COHERENT CORP - COHR 6 07/01/23

NYSE:IIVI (6/30/2023, 8:21:10 PM)

227.08

+11.82 (+5.49%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)05-10 2023-05-10/bmo
Earnings (Next)08-22 2023-08-22/bmo
Inst Owners0.01%
Inst Owner Change-8.12%
Ins Owners0.76%
Ins Owner Change0%
Market Cap31.65B
Analysts74.55
Price Target203.06 (-10.58%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP-16.99%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-15.25%
Min EPS beat(2)-30.58%
Max EPS beat(2)0.07%
EPS beat(4)3
Avg EPS beat(4)-1.48%
Min EPS beat(4)-30.58%
Max EPS beat(4)22.58%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-5.63%
Min Revenue beat(2)-9.14%
Max Revenue beat(2)-2.12%
Revenue beat(4)1
Avg Revenue beat(4)-3.03%
Min Revenue beat(4)-9.14%
Max Revenue beat(4)1.27%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-29.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-58.41%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 63.97
Fwd PE 49.5
P/S 6.54
P/FCF 246.31
P/OCF 53.66
P/B 4.25
P/tB N/A
EV/EBITDA 41.79
EPS(TTM)3.55
EY1.56%
EPS(NY)4.59
Fwd EY2.02%
FCF(TTM)0.92
FCFY0.41%
OCF(TTM)4.23
OCFY1.86%
SpS34.74
BVpS53.46
TBVpS-7.23
PEG (NY)23.79
PEG (5Y)3.42
Profitability
Industry RankSector Rank
ROA N/A
ROE N/A
ROCE N/A
ROIC 1.87%
ROICexc 2.01%
ROICexgc 6.67%
OM 6%
PM (TTM) N/A
GM 33.06%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.47%
ROIC(5y)6.09%
ROICexc(3y)6.56%
ROICexc(5y)7.9%
ROICexgc(3y)12.66%
ROICexgc(5y)13.34%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y7.05%
ROICexcg growth 5Y2.62%
ROICexc growth 3Y-2.61%
ROICexc growth 5Y-1.07%
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%
F-Score3
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 0.58
Debt/FCF 34.44
Debt/EBITDA 5.26
Cap/Depr 83.67%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.08
Quick Ratio 1.82
Altman-Z 3.57
F-Score3
WACC9.56%
ROIC/WACC0.2
Cap/Depr(3y)75.81%
Cap/Depr(5y)113.17%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.93%
EPS 3Y13.27%
EPS 5Y18.68%
EPS Q2Q%-38.95%
EPS Next Y2.69%
EPS Next 2Y11.05%
EPS Next 3Y15.16%
EPS Next 5Y11.68%
Revenue 1Y (TTM)49.56%
Revenue growth 3Y34.52%
Revenue growth 5Y27.82%
Sales Q2Q%49.84%
Revenue Next Year65.72%
Revenue Next 2Y33.82%
Revenue Next 3Y25.01%
Revenue Next 5Y17.99%
EBIT growth 1Y-35.57%
EBIT growth 3Y35.66%
EBIT growth 5Y29.99%
EBIT Next Year120.78%
EBIT Next 3Y40.91%
EBIT Next 5Y25.33%
FCF growth 1Y-73.55%
FCF growth 3Y33.72%
FCF growth 5YN/A
OCF growth 1Y-5.44%
OCF growth 3Y32.29%
OCF growth 5Y28.36%