Cochlear (COH) AI Stock Analysis

• Market Cap: $19.46B
• Dividend Yield: 1.83%
• Average Volume (3M): 150.03K
• Price to Earnings (P/E): 50.1
• Beta (1Y): 0.49
• Revenue Growth: 4.32%
• EPS Growth: 9.24%
• Country: AU
• Employees: 4,996
• Sector: Healthcare
• Sector Strength: 49
• Industry: Medical - Devices
• EPS (TTM): 2.84
• Shares Outstanding: 65,398,890
• 10 Day Avg. Volume: 133,987
• 30 Day Avg. Volume: 150,025
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 8.34
• Enterprise Value/Gross Profit: 11.29
• Enterprise Value/Ebitda: 32.23
• 1Y Price Target: $316.67
• Price Target Upside: 5.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 67 Neutral
• Price Target: AU$327.00 ▲(9.45% Upside)

Cochlear's overall stock score reflects strong financial performance and strategic product advancements, tempered by technical analysis indicating potential short-term weakness and a high valuation. The earnings call provides a cautiously optimistic outlook, but challenges such as margin pressures and declining services revenue remain.

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 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 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: Neutral
• Last Price: 298.78
• 50DMA: Negative
• 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 Neutral. The current price of 298.78 is below the 20-day moving average (MA) of 303.12, below the 50-day MA of 305.85, and above the 200-day MA of 287.35, indicating a neutral trend. The MACD of -2.29 indicates Positive momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 23.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:COH.

Cochlear Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COH	67 Neutral	$19.46B	50.06	20.11%	1.83%	4.32%	9.24%
Sector *	51 Neutral	$7.91B	-0.36	-41.71%	2.23%	23.45%	-1.86%
CALZF	―	$654.91M	73.98	16.49%	―	―	―
ARX	63 Neutral	AU$226.00M	―	-4.06%	―	20.36%	64.81%
4DX	52 Neutral	AU$358.51M	―	-44.49%	―	55.91%	-52.84%
EMV	46 Neutral	AU$171.03M	―	-70.55%	―	―	-257.32%
CYC	42 Neutral	AU$106.14M	―	-31.98%	―	34.20%	-23.90%

Cochlear Corporate Events

Cochlear Limited Announces New Securities Issuance for Employee Incentive

Cochlear Limited has announced the issuance of new ordinary fully paid securities to be quoted on the Australian Securities Exchange (ASX). This issuance is part of an employee incentive scheme, reflecting the company’s ongoing commitment to employee engagement and retention. The move is expected to enhance the company’s operational capabilities and strengthen its market position by aligning employee interests with corporate growth objectives.

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 Limited to Announce FY25 Financial Results

Cochlear Limited has announced that it will release its financial results for the fiscal year 2025 on August 15, 2025. The company will host a presentation accessible to analysts and media via webcast or conference call. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting its market position and investor relations.

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 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.