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Cooper Co (COO)
NASDAQ:COO
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Cooper Co
(NASDAQ:COO)
73Outperform
Positive Factors
Sales Guidance
Management reiterated its full-year sales guidance and raised the midpoint of its EPS guide, showing confidence in positive trends.
Valuation
Current valuation presents an attractive entry into a high-quality durable growth story with shares now at a 3-year low.
Negative Factors
Revenue Performance
First-quarter total sales of $965 million missed estimates by $15 million (1.5%), leading the stock to trade down 5% in the after-market.
Cooper Co (COO) vs. S&P 500 (SPY)
Market Cap
$15.98B
Dividend YieldN/A
Average Volume (3M)1.79M
Price to Earnings (P/E)38.6
Beta (1Y)0.93
Revenue Growth7.15%
EPS Growth41.96%
CountryUS
Employees16,000
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)2.07
Shares Outstanding199,981,190
10 Day Avg. Volume2,457,254
30 Day Avg. Volume1,790,244
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)N/A
Price to Sales (P/S)4.36
Price to Cash Flow (P/CF)15.80
P/FCF Ratio33.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$112.20Price Target Upside38.47% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
Cooper Co Business Overview & Revenue Model
Company DescriptionCooper Co (COO) is a multinational company specializing in the design, manufacturing, and distribution of advanced healthcare products. It operates primarily in the medical device sector, offering a range of products that include contact lenses and diagnostic equipment used in eye care. The company is known for its commitment to innovation and quality, serving healthcare professionals and patients worldwide with products that enhance vision and improve quality of life.
How the Company Makes MoneyCooper Co generates revenue through the sale of its medical devices and healthcare products, with a significant portion of its income derived from its contact lens segment. The company's revenue model includes direct sales to healthcare providers and retailers, as well as partnerships with optometrists and other healthcare professionals who recommend its products to patients. Additionally, Cooper Co engages in strategic partnerships and collaborations to expand its distribution networks and enhance its product offerings, contributing to its overall earnings.
Cooper Co Financial Statement Overview
Summary
Cooper Co exhibits robust financial performance with strong revenue growth and healthy profitability margins. The income statement is particularly strong, supported by efficient operations and a solid equity base. While debt levels and capital expenditures need monitoring, the overall financial health is solid.Income Statement
Cooper Co has demonstrated strong revenue growth, with a positive trajectory from $2.43 billion in 2020 to $3.93 billion in TTM 2025. The gross profit margin remains robust, averaging above 60%, and the EBIT and EBITDA margins indicate healthy operational efficiency. Net profit margin is stable and shows consistent profitability. Overall, the company reflects strong growth and profit stability in the income statement.85
Very Positive
Balance Sheet
The balance sheet of Cooper Co shows a solid equity position with a debt-to-equity ratio that is healthy for the industry, indicating manageable leverage. The equity ratio demonstrates a strong asset base supported by equity. Return on Equity (ROE) is positive, reflecting efficient use of equity to generate profits. However, total debt has increased slightly, which may require monitoring.80
Positive
Cash Flow
Cooper Co's cash flow statement reveals consistent free cash flow generation, albeit modest growth. Operating cash flow is strong relative to net income, indicating good cash generation from operations. However, free cash flow growth is limited by capital expenditures and fluctuations in investing cash flow. Overall, cash flow is stable but may benefit from enhanced free cash flow growth.78
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 3.93B | 3.90B | 3.59B | 3.31B | 2.92B | 2.43B | Gross Profit |
| 2.53B | 2.60B | 2.36B | 2.14B | 1.96B | 1.53B | EBIT |
| 734.60M | 705.70M | 533.10M | 507.60M | 505.80M | 311.80M | EBITDA |
| 932.40M | 705.70M | 885.90M | 908.60M | 863.70M | 622.90M | Net Income Common Stockholders |
| 415.40M | 392.30M | 294.20M | 385.80M | 2.94B | 238.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 100.90M | 107.60M | 120.90M | 138.20M | 95.90M | 115.90M | Total Assets |
| 12.22B | 12.32B | 11.66B | 11.49B | 9.61B | 6.74B | Total Debt |
| 2.54B | 2.58B | 2.57B | 2.76B | 1.71B | 2.03B | Net Debt |
| 2.44B | 2.48B | 2.45B | 2.63B | 1.61B | 1.91B | Total Liabilities |
| 4.09B | 4.23B | 4.11B | 4.32B | 2.66B | 2.91B | Stockholders Equity |
| 8.13B | 8.08B | 7.55B | 7.17B | 6.94B | 3.82B |
| Cash Flow | Free Cash Flow | ||||
| 283.50M | 288.10M | 215.00M | 450.40M | 524.20M | 176.20M | Operating Cash Flow |
| 586.60M | 709.30M | 607.50M | 692.40M | 738.60M | 486.60M | Investing Cash Flow |
| -537.30M | -764.60M | -449.00M | -1.83B | -450.30M | -364.50M | Financing Cash Flow |
| -269.70M | 39.20M | -173.90M | 1.19B | -311.40M | -95.50M |
Cooper Co Technical Analysis
Negative
81.03
Price Trends
91.99
Negative
96.84
Negative
96.94
Negative
Market Momentum
-2.40
Positive
29.38
Positive
14.19
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COO, the sentiment is Negative. The current price of 81.03 is below the 20-day moving average (MA) of 89.01, below the 50-day MA of 91.99, and below the 200-day MA of 96.94, indicating a bearish trend. The MACD of -2.40 indicates Positive momentum. The RSI at 29.38 is Positive, neither overbought nor oversold. The STOCH value of 14.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COO.
Cooper Co Risk Analysis
Cooper Co disclosed 40 risk factors in its most recent earnings report. Cooper Co reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cooper Co Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $139.39B | 47.68 | 15.26% | 0.88% | 10.23% | -5.74% | |
73 Outperform | $15.98B | 38.63 | 5.25% | ― | 7.15% | 41.96% | |
72 Outperform | $21.37B | 24.96 | 7.24% | 0.87% | 3.84% | -9.29% | |
68 Neutral | $40.21B | 28.70 | 17.17% | ― | -4.67% | 3.34% | |
54 Neutral | C$3.71B | ― | 3.60% | ― | 11.61% | 92.72% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% |
* Healthcare Sector Average
Performance Comparison
COO
Cooper Co
81.03
-20.51
-20.20%
EW
Edwards Lifesciences
68.39
-22.52
-24.77%
SYK
Stryker
365.29
10.18
2.87%
ZBH
Zimmer Biomet Holdings
107.34
-19.78
-15.56%
TSE:BHC
Bausch Health Companies
10.09
-2.31
-18.63%
Cooper Co Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -10.94% | Next Earnings Date: May 29, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong overall performance with record revenues and earnings, driven by excellent execution in CooperVision and significant growth in myopia management. However, challenges in China and a soft start to the quarter were noted as concerns.Highlights
Record Q1 Revenues and Earnings
The Cooper Companies reported record Q1 revenues of $965 million, a 4% increase year-over-year, with earnings and free cash flow exceeding expectations despite currency impacts.
Strong Performance in CooperVision
CooperVision reported revenues of $646 million, up 4% and 6% organically, with significant growth in the Americas (8%), EMEA (6%), and Asia Pac (3%).
Myopia Management Growth
The myopia management portfolio grew 20%, with MySite up 27%. Planning for the launch of MyDay MySite outside the US is underway.
Free Cash Flow and Debt Reduction
Free cash flow was $101 million, and net debt decreased to $2.44 billion, with the bank-defined leverage ratio reducing to 1.91 times.
Efficiency Gains and Margin Improvement
Consolidated gross margin improved to 68.7% from 67.3% due to efficiency gains, and operating income rose by 6.5%.
Lowlights
Challenges in China
The Cooper Companies faced struggles in China, impacting business performance in the region.
Soft Start in Q1
The quarter started with channel inventory contraction, affecting early performance before returning to normal.
Fertility Segment Blip
Cooper Surgical's fertility segment posted quarterly revenues of $120 million, up only 1% due to unique items affecting growth.
Company Guidance
During the Q1 2025 earnings call for The Cooper Companies, Inc., the company provided robust guidance, emphasizing strong operational execution and financial achievements. Consolidated revenues reached $965 million, representing a 4% year-over-year increase and a 5% organic growth. CooperVision contributed $646 million to this total, while Cooper Surgical added $319 million. Notably, non-GAAP earnings per share were reported at $0.92, surpassing expectations. The company highlighted a 68.7% gross margin, up from 67.3% in the previous year, driven by efficiency gains. Albert White, the CEO, underscored the successful product launches and expansions in MyDay and MyDay Energous lines and emphasized the strong performance in the myopia management portfolio, which grew by 20%. The company maintained its fiscal 2025 guidance, projecting consolidated revenues between $4.08 billion and $4.158 billion, with non-GAAP EPS guidance slightly raised to a range of $3.94 to $4.02. Additionally, free cash flow is anticipated to be between $350 million and $400 million. Despite challenges, including currency impacts and inventory adjustments in China, Cooper Companies remains optimistic about continued growth driven by strategic investments, product availability, and market expansion.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.