The Cooper Companies, Inc.
The Cooper Companies, Inc. Fundamental Analysis
The Cooper Companies, Inc. (COO) shows weak financial fundamentals with a PE ratio of 43.50, profit margin of 9.16%, and ROE of 4.54%. The company generates $4.1B in annual revenue with moderate year-over-year growth of 8.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.2/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze COO's fundamental strength across five key dimensions:
Efficiency Score
WeakCOO struggles to generate sufficient returns from assets.
Valuation Score
ModerateCOO shows balanced valuation metrics.
Growth Score
ExcellentCOO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentCOO maintains a strong and stable balance sheet.
Profitability Score
WeakCOO struggles to sustain strong margins.
Key Financial Metrics
Is COO Expensive or Cheap?
P/E Ratio
COO trades at 43.50 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, COO's PEG of -5.55 indicates potential undervaluation.
Price to Book
The market values The Cooper Companies, Inc. at 1.98 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.43 times EBITDA. This signals the market has high growth expectations.
How Well Does COO Make Money?
Net Profit Margin
For every $100 in sales, The Cooper Companies, Inc. keeps $9.16 as profit after all expenses.
Operating Margin
Core operations generate 16.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.54 in profit for every $100 of shareholder equity.
ROA
The Cooper Companies, Inc. generates $3.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Cooper Companies, Inc. produces operating cash flow of $798.95M, showing steady but balanced cash generation.
Free Cash Flow
The Cooper Companies, Inc. generates strong free cash flow of $435.25M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.19 in free cash annually.
FCF Yield
COO converts 2.65% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.50
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-5.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.34
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.89
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How COO Stacks Against Its Sector Peers
| Metric | COO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.50 | 29.28 | Worse (Expensive) |
| ROE | 4.54% | 820.00% | Weak |
| Net Margin | 9.16% | -19743.00% (disorted) | Weak |
| Debt/Equity | 0.34 | 0.26 | Weak (High Leverage) |
| Current Ratio | 1.89 | 4.69 | Neutral |
| ROA | 3.02% | -17807.00% (disorted) | Weak |
COO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Cooper Companies, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-63.61%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
-79.17%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-75.35%
Industry Style: Defensive, Growth, Innovation
Declining