Coherent Corp (COHR) AI Stock Analysis

• Market Cap: $29.20B
• Dividend Yield: N/A
• Average Volume (3M): 4.72M
• Price to Earnings (P/E): 275.2
• Beta (1Y): 2.90
• Revenue Growth: 20.80%
• EPS Growth: N/A
• Country: US
• Employees: 26,157
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.16
• Shares Outstanding: 157,153,610
• 10 Day Avg. Volume: 4,942,729
• 30 Day Avg. Volume: 4,718,283
• PEG Ratio: -3.90
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 2.38
• P/FCF Ratio: 71.64
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 3.21
• Enterprise Value/Gross Profit: 8.92
• Enterprise Value/Ebitda: 16.07
• 1Y Price Target: $175.92
• Price Target Upside: -7.89% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 5.1
• Revenue Forecast (FY): $6.70B

• Rating: 66 Neutral
• Price Target: $201.00 ▲(5.25% Upside)

Coherent Corp's overall stock score reflects strong earnings call performance and positive technical indicators, offset by high valuation concerns and financial performance challenges. The company's strategic focus on growth in the Datacenter and Communications segment is promising, but profitability and cash flow management need improvement. The stock's high P/E ratio suggests caution for value investors.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market positioning, particularly in AI data centers and communications.

Debt Reduction

Reducing debt enhances financial flexibility and lowers interest expenses, improving long-term financial health.

Business Realignment

Streamlining operations can enhance efficiency and better align with market demands, potentially improving competitive positioning.

Negative Factors

Profitability Challenges

Low profitability margins indicate operational challenges, which may hinder the company's ability to reinvest and grow.

Cash Flow Issues

Negative cash flow growth can limit the company's ability to fund operations and strategic initiatives, impacting long-term sustainability.

Supply Constraints

Supply constraints can limit production capacity and revenue growth, affecting the company's ability to meet market demand.

Coherent Corp Business Overview & Revenue Model

Company Description

Coherent Corp (COHR) is a leading provider of photonics-based solutions, specializing in laser technology and optical systems. The company serves a diverse range of sectors including industrial manufacturing, communications, life sciences, and defense. Core products include lasers, laser-based systems, and other photonic components used in advanced applications ranging from materials processing to medical devices.

How the Company Makes Money

Coherent Corp generates revenue through the sale of its laser systems and components, which are utilized across various industries for applications such as cutting, welding, and marking materials. Key revenue streams include direct sales of laser products, systems integration services, and recurring revenue from maintenance and support contracts. The company also benefits from partnerships with technology firms and research institutions that enhance its product offerings and market reach. Additionally, Coherent capitalizes on innovation in photonics technology, driving demand for higher-performance solutions in emerging markets.

Coherent Corp Financial Statement Overview

Summary

Coherent Corp demonstrates growth potential with a positive revenue trajectory but faces challenges in profitability and cash flow management. The balance sheet is stable with a balanced leverage position, yet there is room for enhancing returns on equity. The company should focus on improving profitability and cash flow conversion to strengthen its financial health.

Income Statement

Coherent Corp shows a moderate revenue growth rate of 4.01% TTM, indicating a positive trend. However, the net profit margin is low at 0.85% TTM, suggesting limited profitability. The gross profit margin is stable at 35.17% TTM, but the EBIT margin of 4.30% TTM reflects operational challenges. Overall, the income statement indicates growth potential but highlights profitability concerns.

Balance Sheet

The company's debt-to-equity ratio of 0.48 TTM indicates a balanced leverage position, which is a positive sign. However, the return on equity is low at 0.68% TTM, suggesting inefficiencies in generating returns for shareholders. The equity ratio of 39.65% TTM shows a strong equity base, providing stability. The balance sheet reflects a stable financial position with room for improving shareholder returns.

Cash Flow

Coherent Corp's free cash flow growth rate is negative, indicating cash flow challenges. The operating cash flow to net income ratio of 0.63 TTM suggests moderate cash generation relative to net income. The free cash flow to net income ratio of 0.34 TTM highlights limited cash flow conversion. Overall, the cash flow statement reveals potential liquidity issues and the need for improved cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.04B	5.81B	4.71B	5.16B	3.32B	3.11B
Gross Profit	2.18B	2.06B	1.46B	1.78B	1.27B	1.18B
EBITDA	1.21B	1.11B	682.94M	961.67M	689.84M	672.19M
Net Income	249.83M	49.36M	-156.15M	-259.46M	234.76M	297.55M
Balance Sheet
Total Assets	14.70B	14.91B	14.49B	13.71B	7.84B	6.51B
Cash, Cash Equivalents and Short-Term Investments	852.78M	909.20M	926.03M	821.31M	2.58B	1.59B
Total Debt	3.51B	3.89B	4.30B	4.49B	2.44B	1.53B
Total Liabilities	6.01B	6.43B	6.54B	6.48B	3.46B	2.38B
Stockholders Equity	8.34B	8.13B	7.57B	7.23B	4.38B	4.13B
Cash Flow
Free Cash Flow	73.78M	192.76M	198.91M	197.97M	99.00M	428.02M
Operating Cash Flow	526.58M	633.60M	545.73M	634.02M	413.33M	574.35M
Investing Cash Flow	-51.68M	-414.21M	-350.71M	-5.93B	-320.08M	-172.96M
Financing Cash Flow	-747.55M	-451.73M	758.27M	3.55B	862.95M	675.73M

Coherent Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 190.98
• 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 COHR, the sentiment is Positive. The current price of 190.98 is above the 20-day moving average (MA) of 175.35, above the 50-day MA of 150.37, and above the 200-day MA of 101.83, indicating a bullish trend. The MACD of 10.09 indicates Positive momentum. The RSI at 64.83 is Neutral, neither overbought nor oversold. The STOCH value of 46.74 is Neutral, 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	75 Outperform	$10.72B	38.80	11.12%	0.55%	8.13%	780.20%
FLEX	74 Outperform	$23.76B	28.15	17.45%	―	0.77%	0.51%
TRMB	74 Outperform	$19.24B	55.73	6.13%	―	-0.86%	-75.37%
JBL	73 Outperform	$24.21B	35.24	47.87%	0.14%	13.18%	-38.37%
FTV	72 Outperform	$17.44B	31.35	7.79%	0.44%	-8.96%	-30.29%
COHR	66 Neutral	$29.20B	275.23	3.08%	―	20.80%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Coherent Corp Corporate Events

Coherent Corp Announces Business Realignment

Coherent Corp. announced a realignment of its business operations into two segments: Datacenter & Communications and Industrial, effective from July 1, 2025. This change, which was disclosed in a report dated August 15, 2025, aims to streamline operations based on product and service similarities. The company has provided recast historical financial information to reflect this new segment structure, which does not impact its historical financial position or cash flows. The reorganization is expected to enhance operational efficiency and align with market demands, potentially benefiting stakeholders by improving the company’s industry positioning.

Coherent Corp Secures Waiver Agreement with Bain Capital

On November 20, 2025, Coherent Corp. entered into a Waiver Agreement with Bain Capital, a major holder of its Series B Preferred Stock. Bain Capital waived its rights to receive dividends on these shares, aligning its interests with common shareholders and supporting Coherent’s strategic priorities. This agreement is seen as a positive step for Coherent, highlighting a shared commitment to the company’s success and strengthening its relationship with one of its largest shareholders.

Coherent Corp Shareholders Approve Key Proposals at Meeting

On November 13, 2025, Coherent Corp. held its Annual Meeting of Shareholders, where a significant 87.62% of total eligible votes were represented. During the meeting, shareholders elected five Class Two Directors to serve until 2028, approved executive compensation for fiscal year 2025, and ratified Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending June 30, 2026.

Coherent Corp Reports Strong Q1 2026 Financial Results

On November 5, 2025, Coherent Corp reported its first quarter fiscal 2026 results, showing a revenue of $1.58 billion, a 17% year-over-year increase, and a GAAP gross margin of 36.6%. The company attributed its 19% pro forma revenue growth to strong demand from AI-related datacenters and communications. Coherent also paid down $400 million in debt and refinanced its debt to reduce interest expenses, indicating a strengthening financial position.

Coherent Corp Amends Credit Agreement with JPMorgan

On September 26, 2025, Coherent Corp. entered into significant amendments to its Credit Agreement with JPMorgan Chase Bank and other lenders. These amendments included refinancing existing revolving credit commitments and obtaining additional senior secured incremental revolving credit commitments, increasing the total facility to $700 million. The company also secured a new tranche of senior secured incremental term A loans amounting to $1.25 billion, which were used to repay existing loans and for general corporate purposes. Additionally, Amendment No. 5 replaced the outstanding term B-2 loans with new term B-3 loans, maintaining similar terms but with adjusted interest rates.