Coherent Corp (COHR) AI Stock Analysis

• Market Cap: $7.84B
• Dividend Yield: N/A
• Average Volume (3M): 4.63M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.44
• Revenue Growth: 14.61%
• EPS Growth: 85.44%
• Country: US
• Employees: 26,157
• Sector: Technology
• Sector Strength: 40
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.41
• Shares Outstanding: 154,967,320
• 10 Day Avg. Volume: 5,086,321
• 30 Day Avg. Volume: 4,627,427
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.99
• Price to Cash Flow (P/CF): 14.10
• P/FCF Ratio: 14.10
• 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: $108.79
• Price Target Upside: 105.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

Coherent Corp's stock score reflects a mixed outlook. Strengths include strong cash flow management and positive earnings call insights with record revenue growth and gross margin improvements. However, significant operational challenges persist, including profitability issues, high operating expenses, and negative valuation metrics. Technical analysis indicates bearish momentum, further weighing down the overall score.

Positive Factors

Earnings

FQ2 revenues came in 4% above Street expectations.

Leadership

The new CEO Jim Anderson's streamlining/restructuring plan is expected to generate significant EPS power.

Market Demand

Strong AI demand and company-specific levers drive earnings upside.

Negative Factors

Industrial Performance

While the Industrial segment did grow 7% QoQ in F2Q, much of that was pull-in and overall growth is muted in CY25.

Market Competition

COHR is most dominant in VCSEL-based transceivers, and if the market shifts to EML/SiPho, other vendors may be favored.

Restructuring

The company did not provide any detailed updates on the larger restructuring efforts expected under new CEO Jim Anderson.

Coherent Corp Business Overview & Revenue Model

Company Description

Coherent Corp (COHR) is a leading global provider of lasers and laser-based technology, actively serving the scientific, commercial, and industrial markets. The company specializes in the design and manufacture of advanced photonic solutions, offering a range of products including laser systems, optical components, and precision optics. Coherent's products are employed in various applications such as materials processing, microelectronics, life sciences, and research and development.

How the Company Makes Money

Coherent Corp generates revenue through the sale of its photonic and laser-based products and solutions. The company's primary revenue streams include the sale of laser systems, which are used in various industrial and scientific applications, and optical components, which are critical in precision optics. Additionally, Coherent engages in service contracts and maintenance agreements, providing ongoing support and upgrades to its systems, which contribute to recurring revenue. The company also benefits from strategic partnerships and collaborations with other technology firms, enhancing its market reach and innovation capabilities. Coherent's diverse product offerings and global customer base enable it to maintain a robust revenue model centered around cutting-edge technology and customized solutions for its clients.

Coherent Corp Financial Statement Overview

Summary

Coherent Corp's financial statements depict a company navigating through challenges while maintaining some fundamental strengths. Revenue and profitability fluctuations highlight operational challenges, yet the balance sheet remains relatively stable with manageable leverage. Strong cash flow management is a positive aspect, offering some resilience against financial volatility. Continued focus on improving profitability and managing debt levels will be crucial for future growth.

Income Statement

Coherent Corp's income statement reveals a mixed performance. The gross profit margin is strong, reflecting good cost management, but the company is facing challenges with profitability as indicated by negative net income in several periods. Revenue growth is inconsistent, with fluctuations over the years. The recent TTM period shows improvement in net income, though EBIT remains negative, suggesting ongoing operational challenges.

Balance Sheet

The balance sheet indicates a moderately stable financial position. The debt-to-equity ratio shows some leverage, but it remains within manageable levels. Return on equity has been inconsistent, reflecting fluctuating net income. The equity ratio suggests a balanced approach towards financing, though the recent increase in total liabilities must be monitored.

Cash Flow

Cash flow analysis suggests a reasonably healthy cash generation capability. Operating cash flow has been positive and growing, which is a good sign of operational efficiency. Free cash flow growth has been strong, although capital expenditures have been significant. The company maintains a solid operating cash flow to net income ratio, indicating efficient cash conversion.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
5.31B	4.71B	5.16B	3.32B	3.11B	2.38B
	Gross Profit
1.77B	1.46B	1.62B	1.27B	1.22B	819.55M
	EBIT
-31.56B	123.17M	50.41M	116.28M	142.42M	-195.40M
	EBITDA
952.81M	682.94M	613.00M	689.84M	682.56M	246.36M
	Net Income Common Stockholders
67.76M	-279.51M	-259.46M	234.76M	297.55M	-67.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.20M	926.03M	833.33M	2.58B	1.59B	493.05M
	Total Assets
483.44M	14.49B	13.71B	7.84B	6.51B	5.23B
	Total Debt
3.22M	4.30B	4.49B	2.44B	1.53B	2.37B
	Net Debt
-93.98M	3.38B	3.66B	-144.16M	-65.85M	1.88B
	Total Liabilities
93.98M	6.54B	6.48B	3.46B	3.11B	3.16B
	Stockholders Equity
389.19M	7.57B	4.99B	3.62B	3.41B	2.08B
Cash Flow		Free Cash Flow
142.78B	198.91M	197.97M	99.00M	428.02M	156.66M
	Operating Cash Flow
340.64B	545.73M	634.02M	413.33M	574.35M	297.29M
	Investing Cash Flow
-171.99B	-350.71M	-5.93B	-320.08M	-172.96M	-1.18B
	Financing Cash Flow
-125.90B	758.27M	3.55B	862.95M	675.73M	1.17B

Coherent Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COHR, the sentiment is Negative. The current price of 52.83 is below the 20-day moving average (MA) of 65.53, below the 50-day MA of 75.53, and below the 200-day MA of 84.73, indicating a bearish trend. The MACD of -3.20 indicates Negative momentum. The RSI at 39.10 is Neutral, neither overbought nor oversold. The STOCH value of 18.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COHR.

Coherent Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLEX	78 Outperform	$10.22B	10.80	18.45%	―	-12.94%	47.70%
MKSI	65 Neutral	$4.07B	21.45	7.93%	1.46%	-0.99%	―
JBL	63 Neutral	$12.80B	27.96	24.10%	0.27%	-14.45%	-64.32%
LFUS	61 Neutral	$3.77B	38.13	4.62%	1.80%	-7.28%	-56.46%
Sector *	57 Neutral	$18.52B	9.81	-13.96%	2.71%	5.07%	-23.65%
COHR	53 Neutral	$7.84B	―	0.88%	―	14.61%	85.44%

Coherent Corp Corporate Events

Coherent Corp Reports Strong Q2 Fiscal 2025 Growth

Coherent Corp. reported its second quarter fiscal 2025 results with revenue of $1.43 billion, marking a 27% increase year-over-year. The company achieved a GAAP gross margin of 35.5% and a non-GAAP gross margin of 38.2%, with substantial improvements in operating margins and EPS. The growth was driven by strong AI-related data center demand and telecom sector expansion, along with notable debt reduction, reflecting effective operational execution and financial management.