Cooper Co (COO) AI Stock Analysis

• Market Cap: $14.02B
• Dividend Yield: N/A
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): 34.1
• Beta (1Y): 0.85
• Revenue Growth: 6.88%
• EPS Growth: 21.11%
• Country: US
• Employees: 16,000
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.96
• Shares Outstanding: 199,512,500
• 10 Day Avg. Volume: 1,424,227
• 30 Day Avg. Volume: 2,286,015
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 4.73
• Enterprise Value/Gross Profit: 7.46
• Enterprise Value/Ebitda: 17.01
• 1Y Price Target: $92.17
• Price Target Upside: 31.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 74 Outperform
• Price Target: $82.00 ▲(16.66% Upside)

Cooper Co's solid financial performance and strong earnings growth are key strengths, providing a solid foundation despite moderated revenue growth. Mixed technical indicators and a high P/E ratio indicate potential valuation concerns. Market challenges noted in the earnings call and recent positive corporate governance changes contribute to a moderate overall stock score.

Positive Factors

Earnings and Financial Performance

The company reported non-GAAP EPS of $0.96, up 14% year over year, driven by operating leverage following the company’s internal investments.

Growth and Expansion

The broader release of MyDay and MiSight adoption could drive upside to Q4.

Market Sentiment

A perceived gap between the company's valuation and its strong fundamentals presents an attractive opportunity for investors.

Negative Factors

Guidance and Outlook

COO lowered FY25 revenue organic growth guidance due to softening in contact lenses and fertility markets.

Market Conditions

The overall contacts market growth will be slower due to a softer consumer backdrop.

Product Transition

The company is actively phasing out traditional hydrogel lenses, which might add a degree of risk to short term growth.

Cooper Co Business Overview & Revenue Model

Company Description

Cooper Co (COO) is a diversified healthcare company that operates primarily in the medical device and vision care sectors. The company is renowned for its innovative solutions in contact lens manufacturing and surgical products, providing high-quality products that cater to a range of medical and vision care needs across the globe.

How the Company Makes Money

Cooper Co primarily generates revenue through the sale of its contact lenses and related vision care products, which are distributed worldwide to eye care professionals and consumers. The company's revenue model also includes surgical products designed for medical professionals, contributing significantly to its earnings. Key revenue streams include the CooperVision business unit, which focuses on contact lenses, and the CooperSurgical unit, which offers medical devices and fertility solutions. Strategic partnerships with healthcare providers, continuous innovation in product development, and a strong global distribution network are significant contributors to Cooper Co's financial success.

Cooper Co Financial Statement Overview

Summary

Cooper Co demonstrates strong financial performance with robust revenue growth, profitability, and cash flow management. The company maintains a stable balance sheet with a conservative leverage structure, though revenue growth has slightly moderated.

Income Statement

Cooper Co has demonstrated strong revenue growth and profitability. The TTM revenue grew by 2.38% over the previous year. Gross profit margin is robust at 63.44%, and the net profit margin is healthy at 10.39%. EBIT and EBITDA margins are solid, reflecting strong operational efficiency. However, the revenue growth rate has slowed compared to previous periods.

Balance Sheet

The company's balance sheet shows a strong equity position with an equity ratio of 66.76%. The debt-to-equity ratio is manageable at 0.31, indicating prudent leverage. Return on equity has increased to 5.00%, suggesting improved profitability on equity investments. The overall balance sheet reflects stability and financial health, with a focus on maintaining a conservative leverage approach.

Cash Flow

Cooper Co's cash flow from operations is strong, with a stable operating cash flow to net income ratio of 1.84. Free cash flow has grown by 27.01% TTM, indicating effective cash management and the ability to fund operations and investments without relying heavily on external financing. The free cash flow to net income ratio is solid, showcasing efficient conversion of income to cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.90B	3.59B	3.31B	2.92B	2.43B
Gross Profit	2.60B	2.36B	2.14B	1.96B	1.53B
EBITDA	1.07B	885.90M	908.60M	863.70M	622.90M
Net Income	392.30M	294.20M	385.80M	2.94B	238.40M
Balance Sheet
Total Assets	12.32B	11.66B	11.49B	9.61B	6.74B
Cash, Cash Equivalents and Short-Term Investments	107.60M	120.90M	138.20M	95.90M	115.90M
Total Debt	2.58B	2.57B	2.76B	1.71B	2.03B
Total Liabilities	4.23B	4.11B	4.32B	2.66B	2.91B
Stockholders Equity	8.08B	7.55B	7.17B	6.94B	3.82B
Cash Flow
Free Cash Flow	288.10M	215.00M	450.40M	524.20M	176.20M
Operating Cash Flow	709.30M	607.50M	692.40M	738.60M	486.60M
Investing Cash Flow	-764.60M	-449.00M	-1.83B	-450.30M	-364.50M
Financing Cash Flow	39.20M	-173.90M	1.19B	-311.40M	-95.50M

Cooper Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 70.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COO, the sentiment is Negative. The current price of 70.29 is below the 20-day moving average (MA) of 71.98, below the 50-day MA of 71.64, and below the 200-day MA of 85.88, indicating a bearish trend. The MACD of -0.92 indicates Positive momentum. The RSI at 44.33 is Neutral, neither overbought nor oversold. The STOCH value of 18.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COO.

Cooper Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WST	78 Outperform	$17.33B	36.10	17.72%	0.35%	2.88%	-5.50%
COO	74 Outperform	$14.02B	34.09	5.15%	―	6.88%	21.11%
HOLX	74 Outperform	$15.14B	28.24	11.38%	―	1.28%	-17.73%
ATR	71 Outperform	$9.27B	24.28	15.36%	1.28%	1.51%	21.70%
BAX	54 Neutral	$12.17B	136.07	-3.30%	3.38%	-27.41%	67.01%
Sector *	51 Neutral	$7.27B	-0.06	-62.84%	2.34%	15.16%	-2.86%
MASI	51 Neutral	$7.86B	116.65	-20.54%	―	-8.36%	-669.36%

Cooper Co Corporate Events

Cooper Co Appoints Barbara Carbone to Board

CooperCompanies announced the appointment of Barbara Carbone as an independent director to its Board of Directors, effective May 1, 2025. Ms. Carbone, who brings nearly four decades of experience, primarily from her tenure at KPMG LLP, will also join the Audit Committee. Her extensive expertise in financial and accounting matters, along with leadership skills, is expected to contribute significantly to the company’s governance and strategic direction.