Cooper Companies, Inc. (COO) stock analysis

P/E below its 5-year median

Cooper Companies's P/E of 21.5 is below its own 5-year median of 43.7.

P/E below the industry

Cooper Companies's P/E of 21.5 is below the Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks median of 30.2.

EV/EBITDA below its 5-year median

Cooper Companies's EV/EBITDA of 15.5 is below its 5-year median of 21.5.

P/B below the industry

Cooper Companies's price-to-book of 1.44 is below the Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks median of 3.19.

Trading below fair value

The share price of $62.93 is below our fair value estimate of $99.38.

Margin of safety over 20%

The price is 36.7% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 7.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -1.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 39.8% over the last twelve months, against a 5-year average of 9.5% a year.

Growing slower than the industry

Revenue grew 4.7% over the last twelve months; the Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks median is 8.0%.

Guidance lowered

Cooper Companies lowered its Fiscal fourth quarter 2026 CSI revenue outlook on Sep 9, 2026.

Gross margin slipping

Gross margin was 65.9% over the last twelve months, against 67.0% a year earlier.

Return on equity under 15%

Return on equity was 6.8% over the last twelve months and averaged 14.8% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 5.1%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Cooper Companies's return on equity of 6.8% is above the Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks median of 1.0%.

Earnings grew over 5 years

Net income grew 9.5% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 13.5% over the last twelve months, against a 5-year average of 28.0%.

Net margin above the industry

Cooper Companies's net margin of 13.5% is above the Measuring, Analyzing, and Controlling Instruments; Photographic, Medical and Optical Goods; Watches and Clocks median of 0.5%.

Low debt

Debt is 30.5% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 46.9% five years ago to 30.5%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 40.6% of total debt.

Interest well covered

Operating income covers interest expense 6.1 times.

Short-term assets cover short-term debts

Current assets are 1.22 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.07; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Cooper Companies 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.