Yahoo Finance Does II-VI Incorporated's (NASDAQ:IIVI) 22% Earnings Growth Make It An Outperformer?
When II-VI Incorporated (NASDAQ:IIVI) released its most recent earnings update (30 June 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well II-VI has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I've summarized the key takeaways on how I see IIVI has performed.
See our latest analysis for II-VI
How Did IIVI's Recent Performance Stack Up Against Its Past?
IIVI's trailing twelve-month earnings (from 30 June 2019) of US$108m has jumped 22% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 16%, indicating the rate at which IIVI is growing has accelerated. What's enabled this growth? Let's see if it is merely due to an industry uplift, or if II-VI has experienced some company-specific growth.
In terms of returns from investment, II-VI has fallen short of achieving a 20% return on equity (ROE), recording 9.5% instead. Furthermore, its return on assets (ROA) of 6.7% is below the US Electronic industry of 6.8%, indicating II-VI's are utilized less efficiently. However, its return on capital (ROC), which also accounts for II-VI’s debt level, has increased over the past 3 years from 8.8% to 9.9%.
What does this mean?
II-VI's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as II-VI gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research II-VI to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for IIVI’s future growth? Take a look at our free research report of analyst consensus for IIVI’s outlook.
Financial Health: Are IIVI’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
