Coherent Corp (COHR) AI Stock Analysis

• Market Cap: $12.20B
• Dividend Yield: N/A
• Average Volume (3M): 3.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.14
• Revenue Growth: 21.68%
• EPS Growth: 92.07%
• Country: US
• Employees: 26,157
• Sector: Technology
• Sector Strength: 77
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.91
• Shares Outstanding: 155,440,610
• 10 Day Avg. Volume: 3,311,342
• 30 Day Avg. Volume: 3,294,932
• PEG Ratio: 1.90
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.52
• 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: $88.79
• Price Target Upside: 13.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 68 Neutral
• Price Target: $88.00 ▲( 12.16% Upside)

Coherent Corp's overall stock score reflects strong financial performance and positive earnings call guidance, despite valuation challenges and mixed technical indicators. Revenue growth and profitability improvements are key strengths, while high liabilities and market challenges pose risks. The stock's overbought technical conditions and unattractive valuation affect the outlook.

Positive Factors

Earnings Growth

The company is expected to lay out a plan towards increased earnings, as they highlight more durable datacomm and networking growth.

Product Innovation

New products such as 1.6 T transceivers and 400 G EML are expected to help drive growth.

Revenue Growth

Coherent reported third-quarter earnings that beat the Street’s expectations, which were fueled by AI data center–related revenue growth as well as operational improvements boosting gross margin and profitability.

Negative Factors

800G Demand Risk

There could still be risk to the downside if 800G demand conditions waiver.

SiC Business Concerns

There is caution around the messaging about the SiC business value, which could impact investor sentiment.

Visibility Concerns

Visibility concerns due to macro factors have caused the analyst to lower the target price from $105 to $95.

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'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
354.15M	123.17M	50.41M	116.28M	142.42M	-195.40M
	EBITDA
929.37M	682.94M	613.00M	689.84M	682.56M	246.36M
	Net Income Common Stockholders
36.34M	-279.51M	-259.46M	234.76M	297.55M	-67.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
917.82M	926.03M	833.33M	2.58B	1.59B	493.05M
	Total Assets
14.20B	14.49B	13.71B	7.84B	6.51B	5.23B
	Total Debt
4.06B	4.30B	4.49B	2.44B	1.53B	2.37B
	Net Debt
3.15B	3.38B	3.66B	-144.16M	-65.85M	1.88B
	Total Liabilities
6.23B	6.54B	6.48B	3.46B	3.11B	3.16B
	Stockholders Equity
7.60B	7.57B	4.99B	3.62B	3.41B	2.08B
Cash Flow		Free Cash Flow
229.30M	198.91M	197.97M	99.00M	428.02M	156.66M
	Operating Cash Flow
620.12M	545.73M	634.02M	413.33M	574.35M	297.29M
	Investing Cash Flow
-366.86M	-350.71M	-5.93B	-320.08M	-172.96M	-1.18B
	Financing Cash Flow
-366.95M	758.27M	3.55B	862.95M	675.73M	1.17B

Coherent Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 78.46 is above the 20-day moving average (MA) of 73.84, above the 50-day MA of 66.69, and below the 200-day MA of 84.04, indicating a neutral trend. The MACD of 4.13 indicates Negative momentum. The RSI at 64.44 is Neutral, neither overbought nor oversold. The STOCH value of 51.85 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
FLEX	80 Outperform	$15.49B	19.65	16.23%	―	-8.07%	-8.00%
MKSI	71 Outperform	$5.69B	25.30	9.50%	1.04%	-1.14%	―
LFUS	70 Outperform	$5.08B	47.64	4.39%	1.32%	-3.43%	-50.48%
COHR	68 Neutral	$12.20B	―	1.25%	―	21.68%	92.07%
JBL	64 Neutral	$17.72B	39.57	24.10%	0.19%	-14.45%	-64.32%
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%

Coherent Corp Corporate Events

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.