One-glance verdict
Within fair range
$43.00 our estimate vs market $54.12
Wall Street consensus: $66.21 (54.0% higher than our fair-value estimate)
26% above our estimate
Fundamentals snapshot
The Cooper Companies, Inc.
COO · NMS · Healthcare · Medical Instruments & Supplies
Current price
$54.12
52-week range
$51.01 - $89.83
Market cap
$10.29B
Balance sheet
Watch
6.83x Adequate
Net debt $2.65B. 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 3.5% last year.
- Reward Returns 6.8% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 10/10 years.
What this company does
The Cooper Companies, Inc.
The Cooper Companies makes money in two main ways: selling a wide variety of contact lenses and offering women's health products, including fertility treatments and medical devices. Its contact lens business is the largest part of the company, which matters because customers must regularly replace their lenses, creating a steady flow of revenue (the total money a company brings in from sales).
How the company got here
Founded in 1958 as a small laboratory, the company initially grew by acquiring other businesses. A major turning point was the decision to focus on medical devices, leading to its current structure. It significantly expanded its contact lens business through the acquisition of Ocular Sciences in 2005. Over the years, it has also built up its women's health division through various purchases, including fertility and genetic testing services.
What it actually does
The Cooper Companies is a medical device maker that operates as two distinct businesses. One part of the company is a global leader in making soft contact lenses for all sorts of vision problems. The other part focuses on healthcare for women and families, offering products for fertility, contraception, and surgical procedures. Essentially, they create and sell specialized products used by eye doctors and women's healthcare providers.
CooperVision
This is the larger of the two businesses, making up the majority of the company's sales. CooperVision develops and manufactures a wide variety of soft contact lenses that people buy on a recurring basis. They sell lenses that correct common issues like nearsightedness and farsightedness, as well as specialty lenses for more complex conditions like astigmatism (an imperfection in the eye's curve). A key product is their MiSight® 1 day lens, which is the first FDA-approved soft contact lens designed to slow the progression of nearsightedness in children.
CooperSurgical
This segment provides medical devices, fertility products, and services for women's healthcare. Its customers are typically hospitals, clinics, and doctors' offices specializing in obstetrics and gynecology. Products range from contraceptive devices like the Paragard IUD to a wide array of tools and services used in fertility treatments, such as genetic testing and cryostorage (the freezing of eggs, sperm, or embryos). This part of the business has grown significantly through acquisitions and is more focused on the U.S. market compared to the global reach of the contact lens business.
What management is betting on now
The company is focused on growing its key product lines, especially its premium contact lenses that offer higher profitability. For its CooperVision segment, a major priority is expanding its global sales and marketing to drive growth and innovation in the contact lens market. In the CooperSurgical division, the focus is on improving operational performance and growing its fertility business. The company also recently completed a strategic review and decided to keep both business segments, while increasing its share repurchase (buying back its own stock to return cash to investors) program.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$128.10M
FY2025 Q1
$101.20M
FY2025 Q2
$18.10M
FY2025 Q3
$164.50M
FY2025 Q4
$149.90M
FY2026 Q1
$158.70M
FY2026 Q2
$96.40M
FY2026 Q3
$273.00M
Revenue
$1.07B
Net income
$432.80M
Diluted EPS
2.24
Operating cash flow
$341.70M
Free cash flow
$273.00M
Fetching…
Sources
Revenue
$1.08B
Net income
$-77.90M
Diluted EPS
-0.40
Operating cash flow
$182.80M
Free cash flow
$96.40M
Fetching…
Sources
Revenue
$1.02B
Net income
$130.80M
Diluted EPS
0.66
Operating cash flow
$260.90M
Free cash flow
$158.70M
Fetching…
Sources
Revenue
$1.07B
Net income
$84.60M
Diluted EPS
0.42
Operating cash flow
$247.90M
Free cash flow
$149.90M
Fetching…
Sources
Revenue
$1.06B
Net income
$98.30M
Diluted EPS
0.49
Operating cash flow
$261.40M
Free cash flow
$164.50M
Fetching…
Sources
Revenue
$1.00B
Net income
$87.70M
Diluted EPS
0.44
Operating cash flow
$96.20M
Free cash flow
$18.10M
Fetching…
Sources
Revenue
$964.70M
Net income
$104.30M
Diluted EPS
0.52
Operating cash flow
$190.60M
Free cash flow
$101.20M
Fetching…
Sources
Revenue
$1.02B
Net income
$117.50M
Diluted EPS
0.59
Operating cash flow
$268.10M
Free cash flow
$128.10M
Fetching…
Sources
Is it cheap or expensive?
Fair value $43.00 vs current price $54.12
Wall Street consensus is the average analyst price target: $66.21 (54.0% higher than our fair-value estimate).
Our most-likely fair value is $43.00 a share — about 20.6% away from today's price of $54.12, so the stock currently looks fairly priced.
Is it drowning in debt?
Watch
Net debt $2.6B. Interest coverage 6.8x.
Net debt
$2.65B
Interest coverage
6.83x
The Cooper Companies, Inc.'s profit covers its interest bill about 6.8 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
COO
BASELINE
The Cooper Companies, Inc.
Total debt $2.80B Interest coverage 6.83x This is the baseline the peer rows are being compared against.
Total debt $5.30B Interest coverage 6.67x -2% vs COO Has roughly the same debt cushion as COO.
Total debt $5.11B Interest coverage 0.45x -93% vs COO Carries about 15.3x less debt cushion than COO.
Total debt $35.94M Interest coverage -10.00x -100% vs COO This peer has almost no interest-payment cushion compared with COO.
Total debt $17.55B Interest coverage 10.75x +57% vs COO Carries about 1.6x more debt cushion than COO.
Total debt $288.68M Interest coverage 276.81x +3,953% vs COO Carries about 40.5x more debt cushion than COO.
What you should know
The case for and against COO
3 Rewards
0 Risks
Rewards
-
Revenue grew 3.5% last year.
-
Returns 6.8% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 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)
18.60x
Forward P/E
11.53x
P/B
1.24x
P/S
2.43x
EV/EBITDA
13.88x
PEG ratio
0.52x
Profitability
How much profit each dollar creates
Gross margin
65.9%
Operating margin
20.8%
Net margin
13.5%
ROE
6.8%
ROA
2.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.34x
Current ratio
1.22x
Quick ratio
0.51x
Total debt
$2.80B
Total cash
$154.70M
Growth
How the business has been compounding
Revenue TTM
$4.24B
Revenue 5Y CAGR
8.8%
EPS TTM
2.91
EPS 5Y CAGR
-1.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.03B
Free CF TTM
$433.70M
FCF margin
10.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
2023-07-26