Cochlear (COH) AI Stock Analysis

• Market Cap: AU$16.85B
• Dividend Yield: 1.67%
• Average Volume (3M): 130.23K
• Price to Earnings (P/E): 43.4
• Beta (1Y): 0.45
• Revenue Growth: 4.32%
• EPS Growth: 9.24%
• Country: AU
• Employees: 4,996
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 2.84
• Shares Outstanding: 65,398,460
• 10 Day Avg. Volume: 116,122
• 30 Day Avg. Volume: 130,233
• PEG Ratio: 5.50
• Price to Book (P/B): 10.08
• Price to Sales (P/S): 8.39
• P/FCF Ratio: 145.62
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$304.55
• Price Target Upside: 18.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: AU$312.00 ▲(21.10% Upside)

Cochlear's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue growth and solid profitability metrics. Technical analysis suggests a neutral trend with mild bullish momentum, while the high P/E ratio indicates potential overvaluation. The earnings call highlights both growth opportunities and challenges, contributing to a balanced outlook.

Positive Factors

R&D Investment

Cochlear's commitment to R&D ensures sustained innovation, enhancing its competitive edge and supporting long-term market leadership in hearing solutions.

Nexa System Launch

The Nexa system launch represents a significant technological advancement, potentially driving future revenue growth and strengthening Cochlear's market position.

Cochlear Implant Growth

Strong growth in cochlear implant sales, especially in emerging markets, indicates robust demand and enhances Cochlear's global market presence.

Negative Factors

Services Revenue Decline

Declining services revenue could impact long-term profitability, as it suggests challenges in sustaining customer engagement and recurring revenue streams.

Margin Pressure

Margin pressure from emerging markets and new facility costs may constrain profitability, requiring strategic cost management to maintain financial health.

Challenges in China

Pricing challenges in China could limit revenue growth and profitability, necessitating strategic adjustments to capture market opportunities effectively.

Cochlear Business Overview & Revenue Model

Company Description

Cochlear Limited provides implantable hearing solutions for children and adults worldwide. It offers cochlear implant systems, sound processor upgrades, bone conduction systems, accessories, and other products. The company was founded in 1981 and is headquartered in Sydney, Australia.

How the Company Makes Money

Cochlear generates revenue primarily through the sale of its hearing implant devices and accessories. The company has a well-defined revenue model that includes the direct sale of cochlear implants to hospitals and clinics, as well as ongoing revenues from replacement parts and upgrades of sound processors. Key revenue streams include initial device sales, which are often accompanied by surgical and rehabilitation services, as well as recurring revenues from consumables and accessories needed for the devices. Cochlear also benefits from partnerships with healthcare providers and audiology professionals, which enhance its market reach and facilitate the adoption of its products. Furthermore, Cochlear invests in research and development to innovate and expand its product offerings, thereby driving future growth and revenue.

Cochlear Financial Statement Overview

Summary

Cochlear exhibits strong financial health with robust revenue growth and profitability metrics. The balance sheet is solid with low leverage, and while cash flow performance has room for improvement, the company remains financially stable. Continued focus on cash flow management will be crucial for sustaining growth and operational efficiency.

Income Statement

Cochlear has demonstrated strong revenue growth with a 14.4% increase in the latest year. The company maintains healthy profitability with a gross profit margin of 73.7% and a net profit margin of 16.6%. EBIT and EBITDA margins are also robust at 22.6% and 26.5%, respectively. These metrics indicate efficient operations and strong market positioning in the medical devices industry.

Balance Sheet

The balance sheet reflects a solid financial structure with a low debt-to-equity ratio of 0.12, indicating conservative leverage. Return on equity is strong at 19.9%, showcasing effective use of shareholder funds. The equity ratio is healthy, suggesting a stable asset base. Overall, the company is well-capitalized with manageable debt levels.

Cash Flow

Cochlear's cash flow performance is mixed, with a significant decline in free cash flow growth by 49.5%. However, the operating cash flow to net income ratio is reasonable at 0.39, and the free cash flow to net income ratio is 0.57, indicating decent cash generation relative to earnings. The company needs to improve free cash flow generation to enhance financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.36B	2.34B	2.24B	1.94B	1.64B	1.49B
Gross Profit	1.74B	1.73B	1.67B	1.47B	1.23B	1.08B
EBITDA	610.20M	619.90M	579.50M	487.10M	475.40M	451.90M
Net Income	388.90M	388.90M	356.80M	300.60M	289.10M	326.50M
Balance Sheet
Total Assets	2.83B	2.83B	2.75B	2.57B	2.47B	2.43B
Cash, Cash Equivalents and Short-Term Investments	275.70M	275.70M	513.60M	555.50M	629.30M	609.60M
Total Debt	235.70M	235.70M	243.70M	201.80M	253.90M	264.30M
Total Liabilities	874.70M	874.70M	904.60M	819.90M	779.40M	736.50M
Stockholders Equity	1.95B	1.95B	1.84B	1.75B	1.69B	1.69B
Cash Flow
Free Cash Flow	175.20M	135.00M	299.00M	266.50M	299.30M	198.70M
Operating Cash Flow	237.60M	237.60M	388.80M	362.40M	376.50M	265.40M
Investing Cash Flow	-115.20M	-115.20M	-105.70M	-125.70M	-138.90M	279.90M
Financing Cash Flow	-366.90M	-366.90M	-323.80M	-310.40M	-220.70M	-495.10M

Cochlear Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 257.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:COH, the sentiment is Negative. The current price of 257.63 is below the 20-day moving average (MA) of 269.19, below the 50-day MA of 277.34, and below the 200-day MA of 281.88, indicating a bearish trend. The MACD of -5.47 indicates Positive momentum. The RSI at 28.65 is Positive, neither overbought nor oversold. The STOCH value of 18.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:COH.

Cochlear Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COH	69 Neutral	AU$16.85B	43.35	20.11%	1.67%	4.32%	9.24%
PNV	54 Neutral	AU$849.74M	64.40	16.49%	―	23.31%	151.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
4DX	51 Neutral	AU$1.84B	-49.51	-44.49%	―	55.91%	22.60%
CYC	50 Neutral	AU$105.58M	-7.86	-31.98%	―	34.20%	-23.90%
ARX	49 Neutral	AU$241.52M	-145.83	-2.01%	―	16.93%	76.47%
EMV	44 Neutral	AU$165.43M	-15.52	-70.55%	―	―	-257.32%

Cochlear Corporate Events

Cochlear Director’s Interest Update: New Acquisitions in Incentive Options

Cochlear Limited announced a change in the director’s interest, specifically for Director Diggory William Howitt, who has acquired additional long-term incentive options and performance rights. This change reflects the company’s ongoing commitment to aligning executive interests with long-term performance goals, potentially impacting stakeholder confidence and market perception positively.

Cochlear Limited Issues Unquoted Equity Securities

Cochlear Limited announced the issuance of unquoted equity securities under its employee incentive scheme, which includes options and performance rights. This move is part of the company’s strategy to incentivize employees and align their interests with the company’s growth objectives, potentially impacting its operational dynamics and market positioning.

Change in Substantial Holding for Cochlear Ltd

Cochlear Ltd has announced that Hyperion Asset Management Limited has ceased to be a substantial holder in the company as of November 10, 2025. This change in substantial holding may impact the company’s shareholder structure and could potentially influence its market positioning and investor relations.

Cochlear Limited Announces New Securities Quotation on ASX

Cochlear Limited has announced the application for the quotation of new securities on the Australian Securities Exchange (ASX). The announcement involves the issuance of 77 ordinary fully paid securities under an employee incentive scheme, which are set to be quoted on October 29, 2025. This move is part of Cochlear’s ongoing efforts to incentivize its workforce and align employee interests with company performance, potentially strengthening its market position and stakeholder relations.

Cochlear Limited Reports Strong Shareholder Support at 2025 AGM

Cochlear Limited announced the results of its 2025 Annual General Meeting, where all resolutions were carried, indicating strong shareholder support. The meeting results reflect Cochlear’s stable governance and strategic direction, potentially reinforcing its position in the medical device industry and assuring stakeholders of its continued commitment to innovation and growth.

Cochlear Limited Reports Strong Progress and Societal Impact at 2025 AGM

Cochlear Limited’s 2025 Annual General Meeting highlighted its continued leadership in the implantable hearing solutions industry, emphasizing its commitment to innovation and long-term growth. The company reported significant achievements, including helping over 53,000 individuals with cochlear or acoustic implants, which have been estimated to provide a net societal benefit of over $9 billion. Additionally, a recent study from South Korea underscored the cognitive benefits of cochlear implants over hearing aids, showing a reduced risk of dementia for users with severe to profound hearing loss.

Cochlear Limited Announces Cessation of Securities

Cochlear Limited announced the cessation of certain securities due to the lapse of conditional rights, which were not met or became incapable of being satisfied by the end of September 2025. This cessation involves options, performance rights, and service rights, impacting the company’s issued capital and potentially influencing investor perceptions and market dynamics.

Cochlear Limited Issues New Equity Securities

Cochlear Limited has announced the issuance of 42,880 unquoted equity securities, which were converted from options or other convertible securities. This move could potentially impact the company’s financial structure and market positioning by increasing the number of shares in circulation, which may influence shareholder value and investment appeal.

Cochlear Limited Announces Cessation of Securities in Buy-Back Move

Cochlear Limited announced the cessation of 500 ordinary fully paid securities as part of an on-market buy-back, effective September 30, 2025. This move is part of the company’s capital management strategy, which may impact its financial structure and shareholder value, reflecting its commitment to optimizing capital allocation.

Cochlear Limited Updates on Ongoing Buy-Back Program

Cochlear Limited has announced a daily update on its ongoing on-market buy-back program, with a total of 98,800 securities bought back before the previous day and an additional 500 securities acquired on the previous day. This buy-back initiative is part of Cochlear’s strategy to optimize its capital structure and potentially enhance shareholder value by reducing the number of outstanding shares.

Cochlear Limited Updates Dividend Distribution Announcement

Cochlear Limited has updated its previous announcement regarding the dividend distribution for its ordinary fully paid securities. The update pertains to currency information related to the dividend for the period ending June 30, 2025. This adjustment may affect stakeholders’ financial planning and reflects the company’s commitment to transparent communication with its investors.

Cochlear Limited Announces Hybrid Format for 2025 AGM

Cochlear Limited has announced the details for its 2025 Annual General Meeting (AGM), scheduled for October 23, 2025. The meeting will be conducted in a hybrid format, allowing shareholders to participate either in person at the company’s global headquarters or online. This approach aims to accommodate diverse shareholder preferences and ensure broader participation. The AGM will cover formal business matters, and shareholders are encouraged to submit questions in advance and vote either directly or through a proxy. The hybrid meeting format reflects Cochlear’s commitment to accessibility and engagement with its stakeholders.

Cochlear Limited Announces Issuance of New Securities

Cochlear Limited has announced the issuance of 791 ordinary fully paid securities, effective September 5, 2025. This move reflects the company’s ongoing efforts to manage its equity structure and potentially enhance its financial flexibility, which could impact its market positioning and stakeholder interests.