Coherent Corp. (COHR) stock analysis

P/E below its 5-year median

Coherent's P/E of 48.7 is below its own 5-year median of 68.4.

P/E above the industry

Coherent's P/E of 48.7 is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 36.5.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B above the industry

Coherent's price-to-book of 4.05 is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 3.17.

Trading above fair value

The share price of $234.51 is above our fair value estimate of $203.84.

Margin of safety under 20%

The price is 15.0% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 11.3% a year over the last three fiscal years.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth accelerating

Net income grew 286% over the last twelve months, against a 5-year average of 22.0% a year.

Growing faster than the industry

Revenue grew 30.8% over the last twelve months; the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median is 8.4%.

Guidance issued

The latest outlook (first quarter of fiscal 2027 Revenue, Aug 12, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin improving

Gross margin was 38.2% over the last twelve months, against 35.8% a year earlier.

Return on equity under 15%

Return on equity was 11.2% over the last twelve months and averaged 1.6% over five years; we look for 15% on both.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Coherent's return on equity of 11.2% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of 1.1%.

Earnings grew over 5 years

Net income grew 22.0% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 12.2% over the last twelve months, against a 5-year average of 2.2%.

Net margin above the industry

Coherent's net margin of 12.2% is above the Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments median of -1.3%.

Low debt

Debt is 35.3% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 40.4% five years ago to 35.3%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals -1.5% of total debt; we look for at least 20%.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.29 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.98; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Coherent has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.