Cochlear (COH) AI Stock Analysis

• Market Cap: $19.67B
• Dividend Yield: 1.43%
• Average Volume (3M): 203.18K
• Price to Earnings (P/E): 53.1
• Beta (1Y): 0.39
• Revenue Growth: 6.35%
• EPS Growth: 5.97%
• Country: AU
• Employees: 4,996
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Devices
• EPS (TTM): 3.14
• Shares Outstanding: 65,397,000
• 10 Day Avg. Volume: 137,007
• 30 Day Avg. Volume: 203,175
• PEG Ratio: 14.52
• Price to Book (P/B): 10.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 73.37
• 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: $291.57
• Price Target Upside: -2.86% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 70 Outperform
• Price Target: AU$330.00 ▲(9.94%Upside)

Cochlear Limited's score is primarily driven by its strong financial performance, showcasing robust revenue growth, profit margins, and a solid balance sheet. However, technical indicators suggest potential overvaluation with overbought conditions, influencing the score negatively. Valuation metrics indicate a high P/E ratio, further suggesting limited upside. The mixed outlook from the earnings call, marked by strong growth areas but offset by increased expenses and cloud investment, adds complexity to the investment thesis.

Cochlear Business Overview & Revenue Model

Company Description

Cochlear Limited (COH) is a global leader in implantable hearing solutions. Founded in 1981 and headquartered in Sydney, Australia, the company specializes in the design, manufacture, and distribution of innovative hearing implants, including cochlear implants, bone conduction implants, and acoustic implants. Cochlear's products are used by individuals with moderate to profound hearing loss, and the company operates across more than 100 countries, providing hearing solutions that improve the quality of life for its users.

How the Company Makes Money

Cochlear Limited generates revenue primarily through the sale of its implantable hearing devices and related accessories. The company's key revenue streams include the initial sale of implant systems to healthcare providers and hospitals, ongoing sales of sound processors and upgrades to existing customers, and the provision of support and maintenance services. Cochlear also benefits from strategic partnerships with healthcare professionals, research institutions, and government bodies to enhance its product offerings and expand market reach. Additionally, Cochlear invests in research and development to maintain its competitive edge in the hearing solutions market, which contributes to its sustained revenue growth.

Cochlear Financial Statement Overview

Summary

Cochlear Limited exhibits strong financial health with consistent revenue and profit growth. The company maintains a robust balance sheet with low leverage and effective equity utilization. Cash flow is solid, underpinned by positive free cash flow growth and good cash conversion ratios. These factors indicate a well-managed financial position, supporting future growth and stability.

Income Statement

Cochlear Limited demonstrates strong revenue growth with a 15.49% increase from 2023 to 2024. The gross profit margin is robust at 75.14% in 2024, indicating effective cost management. Net profit margin improved to 15.80%, showcasing enhanced profitability. EBIT and EBITDA margins are healthy at 23.09% and 25.67%, respectively, highlighting operational efficiency.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.13, suggesting conservative leverage. ROE is strong at 19.39%, reflecting efficient use of equity. The equity ratio of 67.06% in 2024 indicates a strong equity base, contributing to financial stability.

Cash Flow

Cochlear's free cash flow grew by 12.20% from 2023 to 2024, a positive indicator of cash generation. The operating cash flow to net income ratio is 1.09, suggesting healthy cash conversion. The free cash flow to net income ratio stands at 0.84, showing effective cash utilization.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.24B	1.94B	1.64B	1.49B	1.35B
Gross Profit	1.67B	1.47B	1.23B	1.08B	1.01B
EBITDA	579.50M	487.10M	475.40M	451.90M	-181.90M
Net Income	356.80M	300.60M	289.10M	326.50M	-238.30M
Balance Sheet
Total Assets	2.75B	2.57B	2.47B	2.43B	2.58B
Cash, Cash Equivalents and Short-Term Investments	513.60M	555.50M	629.30M	609.60M	930.00M
Total Debt	243.70M	201.80M	253.90M	264.30M	704.50M
Total Liabilities	904.60M	819.90M	779.40M	736.50M	1.18B
Stockholders Equity	1.84B	1.75B	1.69B	1.69B	1.40B
Cash Flow
Free Cash Flow	299.00M	266.50M	299.30M	198.70M	-288.30M
Operating Cash Flow	388.80M	362.40M	376.50M	265.40M	-157.80M
Investing Cash Flow	-105.70M	-125.70M	-138.90M	279.90M	-509.70M
Financing Cash Flow	-323.80M	-310.40M	-220.70M	-495.10M	1.15B

Cochlear Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 300.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:COH, the sentiment is Positive. The current price of 300.17 is above the 20-day moving average (MA) of 299.18, above the 50-day MA of 282.31, and above the 200-day MA of 283.69, indicating a bullish trend. The MACD of 5.74 indicates Positive momentum. The RSI at 62.91 is Neutral, neither overbought nor oversold. The STOCH value of 37.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:COH.

Cochlear Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COH	70 Outperform	$19.67B	53.15	20.61%	1.43%	6.35%	5.97%
ARX	61 Neutral	AU$203.57M	―	-4.06%	―	20.36%	64.81%
PNV	56 Neutral	$804.83M	138.95	8.30%	―	39.19%	273.91%
Sector *	52 Neutral	$7.39B	>-0.01	-63.86%	2.36%	16.15%	0.36%
EMV	46 Neutral	AU$147.94M	―	-58.61%	―	―	-74.88%
4DX	44 Neutral	AU$116.39M	―	-52.37%	―	471.29%	-4.58%
CYC	41 Neutral	AU$110.03M	―	-35.20%	―	4.68%	-155.42%

Cochlear Corporate Events

Cochlear Limited Announces Cessation of Securities

Cochlear Limited announced the cessation of certain securities, specifically 264 deferred performance rights and 513 service rights, due to unmet conditions as of June 30, 2025. This cessation reflects a lapse in conditional rights, which may impact the company’s capital structure and could have implications for stakeholders regarding the company’s performance metrics and strategic goals.

The most recent analyst rating on (AU:COH) stock is a Sell with a A$272.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Cochlear Gains FDA Approval for New Hearing Solutions

Cochlear Limited has received FDA approval for its Cochlear™ Nucleus® Nexa™ System and Nucleus Kanso® 3 and Kanso® 3 Nexa Sound Processors, with plans to launch these products in the US by the end of the first quarter of FY26. This approval marks a significant milestone for Cochlear, potentially enhancing its market position in the US and offering advanced hearing solutions to its stakeholders.

The most recent analyst rating on (AU:COH) stock is a Sell with a A$272.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Cochlear Unveils World’s First Smart Cochlear Implant System

Cochlear Limited has launched the Nucleus Nexa System, the world’s first smart cochlear implant system with upgradeable firmware. This system allows users to access future innovations and features through both the implant and sound processor, enhancing the hearing experience. The Nucleus 8 Nexa Sound Processor, part of this system, is the smallest and lightest on the market, offering all-day battery life and advanced power management. The launch marks a significant advancement in cochlear implant technology, potentially improving patient outcomes and reducing clinic visits.

The most recent analyst rating on (AU:COH) stock is a Buy with a A$311.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Cochlear Updates FY25 Earnings Guidance Amid Slower Sales Growth

Cochlear Limited has updated its FY25 earnings guidance due to slower-than-expected sales growth, projecting an underlying net profit of $390-400 million. The company anticipates a decline in Services revenue by low double-digits, despite efforts to boost sales with new products like the Nucleus® Kanso® 3 Sound Processor. While cochlear implant units are expected to grow by 10%, growth in developed markets has been hindered by slower market expansion and minor market share losses. The launch of a new cochlear implant system in Europe and Asia Pacific is set for mid-June 2025, with further expansion pending regulatory approvals.

The most recent analyst rating on (AU:COH) stock is a Buy with a A$311.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Cochlear Limited Updates Share Registry Address

Cochlear Limited announced a change in the address of its share registry provider, Computershare Investor Services Pty Limited, effective from June 10, 2025. The new location is at Level 4, 44 Martin Place, Sydney, NSW 2000. This change requires all documentation lodgements by member organizations, securityholders, and other parties to be made at the new address. The announcement reflects an operational update that stakeholders need to be aware of to ensure proper correspondence and documentation handling.

The most recent analyst rating on (AU:COH) stock is a Buy with a A$311.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Pinnacle Increases Stake in Cochlear Ltd

Pinnacle Investment Management Group Limited has increased its voting power in Cochlear Ltd from 5.01% to 6.09% as of May 14, 2025. This change in substantial holding reflects Pinnacle’s growing influence within the company, potentially impacting Cochlear’s strategic decisions and shareholder dynamics.

The most recent analyst rating on (AU:COH) stock is a Buy with a A$311.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Cochlear Limited Announces New Securities Quotation on ASX

Cochlear Limited has announced a new application for the quotation of securities on the Australian Securities Exchange (ASX). The announcement involves the issuance of 74 ordinary fully paid securities under an employee incentive scheme. This move is part of Cochlear’s ongoing efforts to enhance its financial strategies and incentivize its workforce, potentially impacting its market positioning by aligning employee interests with company performance.