Cooper Co (COO) AI Stock Analysis

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Cooper Co

(NASDAQ:COO)

Rating:69Neutral

Price Target:

$79.00

▲(11.05%Upside)

Cooper Co's strong financial performance is the primary driver of its score, supported by solid profitability and cash flow metrics. However, the stock is facing technical challenges, with bearish momentum and valuation concerns due to a high P/E ratio. Recent earnings call highlights strong growth but also points out market challenges. A positive corporate event adds to governance strength but does not significantly alter the overall 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.

Product Launch and Adoption

The broader release of MyDay now that it is no longer supply constrained and MiSight adoption from the longer trials could drive upside to Q4.

Stock Valuation

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

Negative Factors

Market Growth and Consumer Trends

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

Product Transition Risks

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

Revenue Guidance

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

Cooper Co (COO) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$14.19B

Dividend YieldN/A

Average Volume (3M)3.02M

Price to Earnings (P/E)34.5

Beta (1Y)0.86

Revenue Growth6.88%

EPS Growth21.11%

CountryUS

Employees16,000

SectorHealthcare

Sector Strength42

IndustryMedical - Instruments & Supplies

Share Statistics

EPS (TTM)0.96

Shares Outstanding199,512,500

10 Day Avg. Volume3,285,245

30 Day Avg. Volume3,020,357

Financial Highlights & Ratios

PEG Ratio-70.07

Price to Book (P/B)1.68

Price to Sales (P/S)0.00

P/FCF Ratio37.88

Enterprise Value/Market Cap1.15

Enterprise Value/Revenue1.05

Enterprise Value/Gross Profit6.46

Enterprise Value/Ebitda3.75

Forecast

1Y Price Target

$95.64

Price Target Upside34.44% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering13

Cooper Co Business Overview & Revenue Model

Company DescriptionCooper Co (COO) is a leading global provider of medical devices that cater primarily to the healthcare industry. The company operates in several sectors, including ophthalmic instruments and women's health, with a focus on designing, manufacturing, and distributing high-quality products. Its core products include contact lenses and diagnostic equipment, which are utilized by healthcare professionals worldwide to enhance patient care and improve health outcomes.

How the Company Makes MoneyCooper Co makes money primarily through the sale of its medical devices, particularly contact lenses and diagnostic equipment. The company generates revenue from direct sales to healthcare providers, clinics, and optical retailers. Additionally, Cooper Co benefits from long-term contracts and partnerships with hospitals and healthcare systems, which provide a steady stream of income. The company also invests in research and development to innovate and expand its product offerings, creating new revenue opportunities. Cooper Co's global distribution network and strong brand reputation further enhance its ability to capture market share and drive sales growth.

Cooper Co Key Performance Indicators (KPIs)

Any

Revenue by Geography

Chart InsightsCooper Co's revenue growth in the United States and Europe has been robust, with notable gains in the latest quarters, driven by strong performance in key segments like myopia management and surgical devices. However, the earnings call highlights potential risks, including tariff impacts and fertility market softness, which could temper future growth. Despite these challenges, the company remains optimistic, adjusting its revenue guidance upward for 2025, reflecting confidence in its strategic initiatives and market positioning.

Data provided by:

Main Street Data

Cooper Co Earnings Call Summary

Earnings Call Date:May 29, 2025

(Q2-2025)

% Change Since: -11.03%|

Next Earnings Date:Aug 27, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong revenue and earnings growth, driven by robust performance in key segments like office and surgical, and myopia management. However, challenges such as fertility market softness, reduced market growth assumptions, and tariff impacts were also noted. While the highlights are significant, the lowlights point to underlying market challenges.

Q2-2025 Updates

Positive Updates

Strong Revenue Growth

Consolidated revenues were $1,002,000,000, up 6% year over year or up 7% organically. CooperVision revenues were $670,000,000, up 5% or 7% organically, and CooperSurgical revenues were $333,000,000, up 8% or 7% organically.

Non-GAAP Earnings Increase

Non-GAAP earnings were $0.96, up 14% year over year, driven by operational improvements and OpEx leverage.

Myopia Management Growth

Myopia management portfolio grew 19% with MiSight up 35%, supported by a new pricing model and increased fitting activity.

Office and Surgical Segment Performance

Office and Surgical sales were $206,000,000, up 13% or 10% organically, driven by minimally invasive gynecological surgical devices and labor and delivery products.

PARAGARD Growth

PARAGARD grew 18% this quarter, driven by channel fill before a price increase and continued interest in the new single hand inserter.

Negative Updates

Fertility Market Softness

Fertility revenues were $127,000,000, up only 3% and 2% organically, due to market softness, particularly in Asia Pacific, and fertility clinics managing cash more tightly.

Lowered Market Growth Assumptions

Reduced growth expectations for contact lenses to 4-6% from 5-7% and fertility to low single digits from mid to upper single digits, due to softer market growth assumptions.

Tariff Impact on Costs

Expected negative impact from tariffs on cost of goods by $4,000,000 this year, with potential for further impact in fiscal 2026.

Channel Inventory Pressure

Noted pressure from channel inventory reductions, affecting revenue growth despite strong fitting activity.

Company Guidance

During the Q2 2025 earnings call for The Cooper Companies, Al White, the President and CEO announced a consolidated organic revenue growth of 7%, with total revenues reaching $1,002 million, a 6% increase year-over-year. CooperVision's revenues were $670 million, up 5% or 7% organically, while CooperSurgical's revenues were $333 million, an 8% increase. The company reported a 14% increase in non-GAAP earnings, with earnings per share at $0.96. The revenue guidance for fiscal 2025 was adjusted to a range of $4,110 million to $4,150 million, reflecting a 5.5% to 6.5% increase or 5% to 6% organically. Al White emphasized the strong performance of daily silicone hydrogel lenses, particularly MyDay, which grew by 10%, and the promising growth of the Myopia management portfolio, which rose by 19%, with MiSight up 35%. The effective tax rate was 14.6%, and free cash flow was $18 million, with capital expenditures of $78 million. The company also updated its non-GAAP EPS guidance to a range of $4.05 to $4.11, indicating a 10% to 11.5% growth.

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

Very Positive

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

Positive

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

Positive

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.99B	3.90B	3.59B	3.31B	2.92B	2.43B
Gross Profit	2.53B	2.60B	2.36B	2.14B	1.96B	1.53B
EBITDA	1.11B	1.07B	885.90M	908.60M	863.70M	622.90M
Net Income	414.20M	392.30M	294.20M	385.80M	2.94B	238.40M
Balance Sheet
Total Assets	12.41B	12.32B	11.66B	11.49B	9.61B	6.74B
Cash, Cash Equivalents and Short-Term Investments	116.20M	107.60M	120.90M	138.20M	95.90M	115.90M
Total Debt	2.59B	2.58B	2.57B	2.76B	1.71B	2.03B
Total Liabilities	4.13B	4.23B	4.11B	4.32B	2.66B	2.91B
Stockholders Equity	8.29B	8.08B	7.55B	7.17B	6.94B	3.82B
Cash Flow
Free Cash Flow	365.90M	288.10M	215.00M	450.40M	524.20M	176.20M
Operating Cash Flow	762.40M	709.30M	607.50M	692.40M	738.60M	486.60M
Investing Cash Flow	-541.70M	-764.60M	-449.00M	-1.83B	-450.30M	-364.50M
Financing Cash Flow	-221.20M	39.20M	-173.90M	1.19B	-311.40M	-95.50M

Cooper Co Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price71.14

Price Trends

50DMA

76.59

Negative

100DMA

80.75

Negative

200DMA

91.10

Negative

Market Momentum

MACD

-1.88

Negative

RSI

45.35

Neutral

STOCH

57.30

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COO, the sentiment is Neutral. The current price of 71.14 is above the 20-day moving average (MA) of 69.92, below the 50-day MA of 76.59, and below the 200-day MA of 91.10, indicating a neutral trend. The MACD of -1.88 indicates Negative momentum. The RSI at 45.35 is Neutral, neither overbought nor oversold. The STOCH value of 57.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for COO.

Cooper Co Risk Analysis

Cooper Co disclosed 40 risk factors in its most recent earnings report. Cooper Co reported the most risks in the "Legal & Regulatory" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Cooper Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATR	76 Outperform	$10.29B	28.49	15.15%	1.16%	0.34%	17.27%
WST	74 Outperform	$15.72B	34.37	17.42%	0.38%	-1.14%	-16.35%
HOLX	70 Outperform	$14.49B	27.45	11.77%	―	1.66%	21.95%
COO	69 Neutral	$14.19B	34.51	5.15%	―	6.88%	21.11%
MASI	63 Neutral	$9.12B	116.65	-23.93%	―	-0.12%	-713.82%
BAX	60 Neutral	$15.60B	136.07	-8.96%	2.24%	-20.17%	-138.32%
Sector *	51 Neutral	$7.41B	0.36	-61.88%	2.33%	16.99%	1.69%

* Healthcare Sector Average

Performance Comparison

COO

Cooper Co

71.14

-15.25

-17.65%

ATR

AptarGroup

155.82

18.48

13.46%

BAX

Baxter International

30.39

-1.91

-5.91%

HOLX

Hologic

65.01

-9.09

-12.27%

MASI

Masimo

168.21

51.81

44.51%

WST

West Pharmaceutical Services

218.87

-104.73

-32.36%

Cooper Co Corporate Events

Executive/Board Changes

Cooper Co Appoints Barbara Carbone to Board

Positive

Apr 30, 2025

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.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 07, 2025