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The Cooper Companies Inc COO

Morningstar Rating
$94.31 +4.08 (4.52%)
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Company Report

CooperCompanies Earnings: Top Line and Margins Maintain Momentum Despite Capacity Constraints

Narrow-moat CooperCompanies reported fiscal second-quarter results above our expectations. Total sales of $943 million were up 7.4% year over year thanks to solid execution across geographies, with every market posting strong organic sales growth. With a backdrop of healthy demand and market outperformance, management raised its full-year guidance for both segments. Its earnings per share outlook is now $3.54-$3.60, up from $3.50-$3.58. After increasing our near-term assumptions and including the time value of money, we've raised our fair value estimate to $88 per share from $86.

Price vs Fair Value

COO is trading at a 414% premium.
Price
$94.31
Fair Value
$93.00
Uncertainty
Medium
1-Star Price
$851.90
5-Star Price
$65.80
Economic Moat
Zmnpct
Capital Allocation
Vzvhpglp

Bulls Say, Bears Say

Bulls

Cooper is one of the leading visioncare companies in the world with a proven record of successful product development. It will continue to launch technically superior products over the long term.

Bears

While the contact lens market share has been stable, lagging research and innovation could start to chip away at Cooper's presence in the space.

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News

Trading Information

Previous Close Price
$90.23
Day Range
$90.79–96.13
52-Week Range
$75.94–104.07
Bid/Ask
$92.07 / $95.85
Market Cap
$18.74 Bil
Volume/Avg
3.4 Mil / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
27.70
Price/Sales
5.05
Dividend Yield (Trailing)
< 0.01%
Dividend Yield (Forward)
0.02%
Total Yield
< 0.01%

Company Profile

CooperCompanies is one of the largest eyecare companies in the US. It operates in two segments: CooperVision and CooperSurgical. CooperVision is a pure-play contact lens business with a suite of spherical, multifocal, and toric contact lenses. The company also has one of the most comprehensive specialty lens portfolios in the world. With brands including Proclear, Biofinity, MyDay, and Clariti, Cooper controls roughly one fourth of the US contact lens market. CooperSurgical, founded in 1990, is made up of equipment related to reproductive care, fertility, and women’s care. Cooper has the broadest medical device coverage of the entire IVF cycle. It also has Paragard, the only hormone-free IUD in the US, and controls 17% of the US IUD market.
Sector
Healthcare
Industry
Medical Instruments & Supplies
Stock Style Box
Mid Core
Total Number of Employees
15,000

Competitors

Valuation

Metric
COO
JNJ
Price/Earnings (Normalized)
27.7014.02
Price/Book Value
2.415.04
Price/Sales
5.054.12
Price/Cash Flow
20.5115.85
Price/Earnings
COO
JNJ

Financial Strength

Metric
COO
JNJ
Quick Ratio
0.840.84
Current Ratio
1.951.17
Interest Coverage
5.2523.57
Quick Ratio
COO
JNJ

Profitability

Metric
COO
JNJ
Return on Assets (Normalized)
2.88%12.64%
Return on Equity (Normalized)
4.48%31.72%
Return on Invested Capital (Normalized)
4.10%20.11%
Return on Assets
COO
JNJ
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