One-glance verdict
Overvalued
$10.38 our estimate vs market $305.37
Wall Street consensus: $415.36 (3,901.9% higher than our fair-value estimate)
2842% above our estimate, beyond the bull case
Fundamentals snapshot
Coherent Corp.
COHR · NYQ · Technology · Scientific & Technical Instruments
Current price
$305.37
52-week range
$100.63 - $440.00
Market cap
$59.80B
Balance sheet
Watch
4.74x Stretched
Net debt $1.56B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 22.5% last year.
- Reward Returns 8.0% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 8/10 years.
What this company does
Coherent Corp.
Coherent makes high-tech lasers and optical parts that are essential for sending data and for precision manufacturing. It primarily sells these components to two types of customers: data centers that power the internet and industrial factories that make things like computer chips and car parts. This is important because the company's products are critical building blocks for the digital world and many advanced technologies we rely on.
How the company got here
Coherent Corp. started its life as a company named II-VI Incorporated, founded in 1971 in Pennsylvania. [1, 16] The unusual name, pronounced 'Two-Six,' was a chemistry reference to the elements it used to create its first products, which were specialized crystals for industrial lasers. [1] For decades, the company grew by inventing new materials and by purchasing other companies with unique technologies. [1] A huge turning point came in 2022 when II-VI bought a major laser-maker called Coherent, Inc., and decided to adopt its more recognizable name for the combined, much larger company. [2, 3, 14] This big merger created a global leader in materials, networking components, and lasers. [14]
What it actually does
Coherent makes the essential, high-tech 'parts inside the parts' that power much of the modern world, although you won't see their brand on a store shelf. The company specializes in turning materials like special glass and crystals into components that can generate or manipulate light and electricity with extreme precision. [1, 12] Think of them as making the tiny engines and lenses that send information at the speed of light through the fiber optic cables of the internet. They also build powerful lasers used in factories to cut and shape metal, and create advanced materials that make electronics like electric cars more efficient. [15, 28]
Datacenter and Communications
This is the company's largest and fastest-growing business, making up the majority of its sales. [21, 25] It builds critical components for the internet's plumbing, especially for the massive data centers that power cloud computing and artificial intelligence (AI). The key products are called optical transceivers, which are small devices that convert data from electrical signals into light and back again, allowing huge amounts of information to be sent over long distances through fiber optic cables. [13, 36] The customers are giant tech companies that build AI infrastructure and telecommunications providers that manage internet traffic. [15]
Industrial
This part of the company bundles together Coherent's long history in lasers and advanced materials. It creates high-power laser systems that manufacturers use for very precise cutting, welding, and marking of everything from smartphone screens to car parts. [4, 19] This segment also produces highly engineered materials, most notably silicon carbide, a type of semiconductor that is much more efficient at handling high power than regular silicon. [15, 28] The main customers are carmakers building electric vehicles and charging stations, as well as companies in the electronics, defense, and scientific research industries. [15]
What management is betting on now
The company's leadership is heavily focused on the explosive growth of Artificial Intelligence (AI). Their main bet is that the demand for faster and more powerful AI systems will require a massive build-out of data centers, and Coherent aims to be the top supplier of the essential optical networking parts that connect all the computers inside. [15, 24, 31] They are investing heavily to increase their manufacturing capacity (the amount of product they can make) for these high-speed components. [22] A second major bet is on the shift to electric vehicles, by expanding their production of silicon carbide materials that help make those cars and their power systems more efficient. [15, 28]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$61.00M
FY2025 Q2
$81.70M
FY2025 Q3
$51.14M
FY2025 Q4
$-1.07M
FY2026 Q1
$-57.99M
FY2026 Q2
$-95.70M
FY2026 Q3
$-383.48M
FY2026 Q4
$-486.23M
Revenue
$2.05B
Net income
$240.53M
Diluted EPS
1.20
Operating cash flow
$69.46M
Free cash flow
$-486.23M
Fetching…
Sources
Revenue
$1.81B
Net income
$191.40M
Diluted EPS
0.97
Operating cash flow
$-93.80M
Free cash flow
$-383.48M
Fetching…
Sources
Revenue
$1.69B
Net income
$146.72M
Diluted EPS
0.76
Operating cash flow
$57.90M
Free cash flow
$-95.70M
Fetching…
Sources
Revenue
$1.58B
Net income
$226.35M
Diluted EPS
1.19
Operating cash flow
$45.95M
Free cash flow
$-57.99M
Fetching…
Sources
Revenue
$1.53B
Net income
$-95.62M
Diluted EPS
-0.81
Operating cash flow
$130.28M
Free cash flow
$-1.07M
Fetching…
Sources
Revenue
$1.50B
Net income
$15.71M
Diluted EPS
-0.11
Operating cash flow
$162.96M
Free cash flow
$51.14M
Fetching…
Sources
Revenue
$1.43B
Net income
$103.39M
Diluted EPS
0.44
Operating cash flow
$187.38M
Free cash flow
$81.70M
Fetching…
Sources
Revenue
$1.35B
Net income
$25.89M
Diluted EPS
-0.04
Operating cash flow
$152.98M
Free cash flow
$61.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $10.38 vs current price $305.37
Wall Street consensus is the average analyst price target: $415.36 (3,901.9% higher than our fair-value estimate).
Our most-likely fair value is $10.38 a share — about 96.6% below today's price of $305.37, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $1.6B. Interest coverage 4.7x.
Net debt
$1.56B
Interest coverage
4.74x
Coherent Corp.'s profit covers its interest bill about 4.7 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
COHR
BASELINE
Coherent Corp.
Total debt $3.55B Interest coverage 4.74x This is the baseline the peer rows are being compared against.
Total debt $1.67B Interest coverage 24.60x +419% vs COHR Carries about 5.2x more debt cushion than COHR.
Total debt $4.19B Interest coverage 2.48x -48% vs COHR Carries about 1.9x less debt cushion than COHR.
Total debt $16.25M Interest coverage 0.77x -84% vs COHR Carries about 6.1x less debt cushion than COHR.
Total debt $1.46B Interest coverage 8.22x +73% vs COHR Carries about 1.7x more debt cushion than COHR.
What you should know
The case for and against COHR
3 Rewards
0 Risks
Rewards
-
Revenue grew 22.5% last year.
-
Returns 8.0% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
73.94x
Forward P/E
21.88x
P/B
5.48x
P/S
8.40x
EV/EBITDA
41.67x
PEG ratio
0.92x
Profitability
How much profit each dollar creates
Gross margin
37.5%
Operating margin
11.8%
Net margin
11.3%
ROE
8.0%
ROA
3.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.32x
Current ratio
2.43x
Quick ratio
1.17x
Total debt
$3.55B
Total cash
$1.99B
Growth
How the business has been compounding
Revenue TTM
$7.12B
Revenue 5Y CAGR
21.0%
EPS TTM
4.13
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$79.51M
Free CF TTM
$-1.02B
FCF margin
-14.4%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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