Coherent Corp (COHR) AI Stock Analysis

• Market Cap: $13.73B
• Dividend Yield: N/A
• Average Volume (3M): 2.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.90
• Revenue Growth: 21.68%
• EPS Growth: 92.07%
• Country: US
• Employees: 26,157
• Sector: Technology
• Sector Strength: 86
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.91
• Shares Outstanding: 155,440,610
• 10 Day Avg. Volume: 3,506,602
• 30 Day Avg. Volume: 2,905,549
• PEG Ratio: 2.58
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 49.26
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 8.13
• Enterprise Value/Ebitda: 4.78
• 1Y Price Target: $94.50
• Price Target Upside: 6.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 73 Outperform
• Price Target: $100.00 ▲(13.17%Upside)

Coherent Corp receives a strong overall stock score, driven primarily by robust financial performance and positive technical indicators. While valuation metrics suggest potential overvaluation, strategic growth initiatives and positive earnings call sentiment contribute to a favorable outlook.

Positive Factors

Investor Sentiment

Management meetings highlight positive investor sentiment following Analyst & Investor Day.

Revenue Growth

Coherent projects a 10% to 15% revenue growth target, driven by the Data Center/Communications segment and the Industrial segment.

Negative Factors

Information Clarity

Investors left the event wanting more details on the 'self-help story' for more tangible benefits of the portfolio realignment actions.

Portfolio Realignment

Investors left the event wanting more details on the 'self-help story' for more tangible benefits of the portfolio realignment actions.

Coherent Corp Business Overview & Revenue Model

Company Description

Coherent, Inc. provides lasers, laser-based technologies, and laser-based system solutions for a range of commercial, industrial, and scientific research applications. It operates in two segments, Original Equipment Manufacturers (OEM) Laser Sources and Industrial Lasers & Systems. The company designs, manufactures, markets, and services lasers, laser tools, precision optics, and related accessories; and laser measurement and control products. Its products are used for applications in microelectronics, materials processing, OEM components and instrumentation, and scientific research and government programs. The company markets its products through a direct sales force in the United States, as well as through direct sales personnel and independent representatives internationally. Coherent, Inc. was founded in 1966 and is headquartered in Santa Clara, California. As of July 1, 2022, Coherent, Inc. operates as a subsidiary of II-VI Incorporated.

How the Company Makes Money

Coherent Corp generates revenue primarily through the sale of its photonics and laser systems. These products are utilized across numerous industries, including semiconductor manufacturing where their precision lasers and optics are critical for processes like photolithography. The company also earns income from sales of optical components and modules used in communication networks, as well as in various industrial applications. Additionally, Coherent engages in service contracts and maintenance agreements for its equipment, providing a steady stream of recurring revenue. Strategic partnerships and collaborations with key industry players further enhance its market reach and technological capabilities, contributing to its overall earnings.

Coherent Corp Financial Statement Overview

Summary

Coherent Corp shows solid financial performance with strong revenue growth and improving profitability. The balance sheet indicates a healthy leverage position and a strong equity base, though liabilities remain a point of attention. Cash flow management is commendable, with significant growth in free cash flow. Overall, the company demonstrates financial strength with prudent management of resources, setting a positive outlook for future growth.

Income Statement

Coherent Corp exhibits robust revenue growth, with a significant increase from $4.71 billion to $5.60 billion in the TTM period, representing an 18.8% growth rate. The gross profit margin is healthy at 34.5%, and there's a notable improvement in net income from a loss to a profit of $65.24 million. However, the net profit margin remains modest at 1.2%, indicating room for further efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio stands at 0.50, suggesting a balanced leverage position. Return on equity improved to 0.8% in the TTM, indicating positive profitability. The equity ratio of 54.1% reflects a strong equity base relative to total assets, providing financial stability. However, the relatively high total liabilities could pose a risk if not managed properly.

Cash Flow

Operating cash flow increased to $665.64 million, with a strong operating cash flow to net income ratio of 10.20, highlighting efficient cash generation relative to profits. Free cash flow grew by 28.8%, reflecting improved capital management. However, attention should be paid to capital expenditures to ensure sustainable cash flow growth.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	5.60B	4.71B	5.16B	3.32B	3.11B	2.38B
Gross Profit	1.93B	1.46B	1.62B	1.27B	1.18B	791.18M
EBITDA	888.80M	682.94M	613.00M	689.84M	682.56M	246.36M
Net Income	65.24M	-156.15M	-259.46M	234.76M	297.55M	-67.03M
Balance Sheet
Total Assets	14.44B	14.49B	13.71B	7.84B	6.51B	5.23B
Cash, Cash Equivalents and Short-Term Investments	890.26M	926.03M	821.31M	2.58B	1.59B	493.05M
Total Debt	3.94B	4.30B	4.49B	2.44B	1.53B	2.37B
Total Liabilities	6.28B	6.54B	6.48B	3.46B	2.38B	3.16B
Stockholders Equity	7.81B	7.57B	7.23B	3.62B	3.41B	2.08B
Cash Flow
Free Cash Flow	256.25M	198.91M	197.97M	99.00M	428.02M	160.41M
Operating Cash Flow	665.64M	545.73M	634.02M	413.33M	574.35M	297.29M
Investing Cash Flow	-385.21M	-350.71M	-5.93B	-320.08M	-172.96M	-1.18B
Financing Cash Flow	-448.13M	758.27M	3.55B	862.95M	675.73M	1.17B

Coherent Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 88.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COHR, the sentiment is Positive. The current price of 88.36 is above the 20-day moving average (MA) of 82.83, above the 50-day MA of 76.96, and above the 200-day MA of 85.18, indicating a bullish trend. The MACD of 3.06 indicates Negative momentum. The RSI at 62.24 is Neutral, neither overbought nor oversold. The STOCH value of 82.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COHR.

Coherent Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKSI	74 Outperform	$7.02B	31.18	9.50%	0.84%	-1.14%	―
COHR	73 Outperform	$13.73B	―	1.25%	―	21.68%	92.07%
LFUS	72 Outperform	$5.87B	55.05	4.39%	1.18%	-3.43%	-50.48%
FLEX	69 Neutral	$18.96B	24.03	16.23%	―	-8.07%	-8.00%
Sector *	69 Neutral	¥228.24B	14.40	7.64%	2.72%	9.13%	8.48%
JBL	67 Neutral	$23.20B	42.02	32.41%	0.14%	-6.13%	-53.35%

Coherent Corp Corporate Events

Coherent Corp Outlines Growth Strategy at Investor Day

On May 28, 2025, Coherent Corp. held its 2025 Investor Day in New York, where it outlined its long-term growth strategy and financial model, highlighting significant progress in revenue and earnings per share growth. The company emphasized its focus on expanding its market presence in AI Datacenters and industrial sectors, with plans for double-digit revenue growth and enhanced shareholder value, as detailed by its CEO and other executives.

The most recent analyst rating on (COHR) stock is a Buy with a $106.00 price target. To see the full list of analyst forecasts on Coherent Corp stock, see the COHR Stock Forecast page.

Coherent Corp Reports Strong Q3 2025 Financial Results

Coherent Corp. reported its third-quarter fiscal 2025 results on May 7, 2025, with a revenue of $1.50 billion, marking a 24% year-over-year increase. The company experienced strong growth driven by AI-related datacenter demand and introduced new optical networking products. The GAAP gross margin increased to 35.2%, and the non-GAAP EPS improved to $0.91. Coherent also paid down $136 million in debt, focusing on cash and capital allocation for long-term growth.