Cooper Companies, Inc. (NASDAQ: COO)

Sector: Healthcare Industry: Medical Instruments & Supplies CIK: 0000711404
Market Cap 16.34 Bn
P/B 1.98
P/E 43.59
P/S 3.99
ROIC (Qtr) 4.48
Div Yield % 0.00
Rev 1y % (Qtr) 4.59
Total Debt (Qtr) 2.51 Bn
Debt/Equity (Qtr) 0.30
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About

The Cooper Companies, Inc. (COO), a global medical device company, operates in the healthcare industry through two business segments: CooperVision and CooperSurgical. Headquartered in Pleasanton, California, the company has a strong presence in various markets, including the Americas, Europe, the Middle East, and Asia Pacific. CooperVision is a well-known manufacturer of contact lenses, offering a wide range of products designed to address various vision challenges such as astigmatism, presbyopia, and myopia. The company's primary markets include...

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Investment thesis

Bull case

  • Healthy cash reserves of 110.60M provide 2.31x coverage of short-term debt 47.80M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 796.10M provides strong 11.29x coverage of stock compensation 70.50M, indicating sustainable incentive practices.
  • Strong tangible asset base of 6.96B provides 2.78x coverage of total debt 2.51B, indicating robust asset backing and low credit risk.
  • Tangible assets of 6.96B provide exceptional 21.10x coverage of deferred revenue 329.70M, showing strong service capability backing.
  • Operating cash flow of 796.10M fully covers other non-current liabilities 255.70M by 3.11x, showing strong long-term stability.

Bear case

  • Operating cash flow of 796.10M barely covers its investment activities of (372.90M), with a coverage ratio of -2.13, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • With cash reserves of 110.60M against inventory of 846M, the 0.13 cash-to-inventory ratio suggests potential liquidity risks if inventory turnover slows, particularly concerning given current supply chain volatilities.
  • Investment activities of (372.90M) provide weak support for R&D spending of 172.20M, which is -2.17x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 110.60M provide limited coverage of acquisition spending of (10.50M), which is -10.53x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 433.70M represents just -5.43x of debt issuance (79.90M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Geographical Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Medical Instruments & Supplies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ISRG Intuitive Surgical Inc 176.13 Bn 61.67 17.50 0.00 Bn
2 BDX Becton Dickinson & Co 50.84 Bn 28.94 2.32 19.54 Bn
3 ALC Alcon Inc 39.87 Bn 38.08 3.91 5.24 Bn
4 RMD Resmed Inc 37.63 Bn 36.86 8.03 0.85 Bn
5 HOLX Hologic Inc 16.89 Bn 31.05 4.09 2.52 Bn
6 COO Cooper Companies, Inc. 16.34 Bn 43.59 3.99 2.51 Bn
7 WST West Pharmaceutical Services Inc 15.98 Bn 228.35 15.87 0.32 Bn
8 ALGN Align Technology Inc 13.70 Bn 36.21 3.44 0.09 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.51 2.69
EV to Cash from Ops. EV/CFO 23.48 33.85
EV to Debt EV to Debt 7.46 26.88
EV to EBIT EV/EBIT 28.05 21.42
EV to EBITDA EV/EBITDA 17.16 13.45
EV to Free Cash Flow [EV/FCF] EV/FCF 43.10 108.54
EV to Market Cap EV to Market Cap 1.14 -4.25
EV to Revenue EV/Rev 4.57 291.65
Price to Book Value [P/B] P/B 1.98 6.13
Price to Earnings [P/E] P/E 43.59 168.84
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -1.12
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.62
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 7.48
Interest Coverage Int. cover (Qtr) 6.67 11.77
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 13.96 -62.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 2.79 419.59
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -1.67
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -6.01 -57.55
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -1.88 -107.89
EBIT Growth (1y) % EBIT 1y % (Qtr) -4.32 -37.41
EBT Growth (1y) % EBT 1y % (Qtr) -2.71 -40.02
EPS Growth (1y) % EPS 1y % (Qtr) -4.57 -9.45
FCF Growth (1y) % FCF 1y % (Qtr) 50.54 57.56
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.33 66.70
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.33 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.10 2.52
Current Ratio Curr Ratio (Qtr) 1.89 7.80
Debt to Equity Ratio Debt/Equity (Qtr) 0.30 0.55
Interest Cover Ratio Int Coverage (Qtr) 6.67 11.77
Times Interest Earned Times Interest Earned (Qtr) 6.67 11.77
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 26.60 -2,368.82
EBIT Margin % EBIT Margin % (Qtr) 16.29 -2,472.83
EBT Margin % EBT Margin % (Qtr) 13.84 -2,442.75
Gross Margin % Gross Margin % (Qtr) 65.50 29.78
Net Profit Margin % Net Margin % (Qtr) 9.20 -2,438.72