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COH

CochlearASX:COH Stock Report

Market Cap

AU$14.3b

7D

-1.6%

1Y

1.7%

Updated

17 Oct, 2021

Data

Company Financials +
COH fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance2/6
Financial Health6/6
Dividends3/6

COH Overview

Cochlear Limited provides implantable hearing solutions for adults and children worldwide.

Rewards

Earnings are forecast to grow 7.92% per year

Became profitable this year

Risk Analysis

COH passed our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Cochlear
Historical stock prices
Current Share PriceAU$216.88
52 Week HighAU$176.68
52 Week LowAU$257.76
Beta0.35
1 Month Change-8.98%
3 Month Change-10.13%
1 Year Change1.73%
3 Year Change18.17%
5 Year Change60.53%
Change since IPO7,251.86%

Recent News & Updates

Oct 12
This Is Why We Think Cochlear Limited's (ASX:COH) CEO Might Get A Pay Rise Approved By Shareholders

This Is Why We Think Cochlear Limited's (ASX:COH) CEO Might Get A Pay Rise Approved By Shareholders

Shareholders will be pleased by the robust performance of Cochlear Limited ( ASX:COH ) recently and this will be kept...

Oct 06
A Look At The Fair Value Of Cochlear Limited (ASX:COH)

A Look At The Fair Value Of Cochlear Limited (ASX:COH)

Today we will run through one way of estimating the intrinsic value of Cochlear Limited ( ASX:COH ) by taking the...

Shareholder Returns

COHAU Medical EquipmentAU Market
7D-1.6%-0.7%0.9%
1Y1.7%-4.9%20.2%

Return vs Industry: COH exceeded the Australian Medical Equipment industry which returned -4.9% over the past year.

Return vs Market: COH underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is COH's price volatile compared to industry and market?
COH volatility
COH Beta0.35
Industry Beta0.57
Market Beta1

Stable Share Price: COH is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: COH's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19814,000Dig Howitthttps://www.cochlear.com

Cochlear Limited provides implantable hearing solutions for adults and children worldwide. It offers cochlear implant systems, sound processor upgrades, bone conduction systems, accessories, and other products. The company was founded in 1981 and is headquartered in Sydney, Australia.

Cochlear Fundamentals Summary

How do Cochlear's earnings and revenue compare to its market cap?
COH fundamental statistics
Market CapAU$14.27b
Earnings (TTM)AU$326.50m
Revenue (TTM)AU$1.50b

43.7x

P/E Ratio

9.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
COH income statement (TTM)
RevenueAU$1.50b
Cost of RevenueAU$410.20m
Gross ProfitAU$1.09b
ExpensesAU$760.90m
EarningsAU$326.50m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 22, 2022

Earnings per share (EPS)4.96
Gross Margin72.61%
Net Profit Margin21.80%
Debt/Equity Ratio2.6%

How did COH perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

51%

Payout Ratio

Valuation

Is Cochlear undervalued compared to its fair value and its price relative to the market?

43.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: COH (A$216.88) is trading above our estimate of fair value (A$183.03)

Significantly Below Fair Value: COH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: COH is poor value based on its PE Ratio (43.7x) compared to the Australian Medical Equipment industry average (13.8x).

PE vs Market: COH is poor value based on its PE Ratio (43.7x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: COH is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: COH is overvalued based on its PB Ratio (8.4x) compared to the AU Medical Equipment industry average (4.5x).


Future Growth

How is Cochlear forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

7.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COH's forecast earnings growth (7.9% per year) is above the savings rate (1.9%).

Earnings vs Market: COH's earnings (7.9% per year) are forecast to grow slower than the Australian market (11.8% per year).

High Growth Earnings: COH's earnings are forecast to grow, but not significantly.

Revenue vs Market: COH's revenue (9.4% per year) is forecast to grow faster than the Australian market (5.5% per year).

High Growth Revenue: COH's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COH's Return on Equity is forecast to be low in 3 years time (18.4%).


Past Performance

How has Cochlear performed over the past 5 years?

-20.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COH has high quality earnings.

Growing Profit Margin: COH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: COH's earnings have declined by 20.2% per year over the past 5 years.

Accelerating Growth: COH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: COH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Medical Equipment industry (74.9%).


Return on Equity

High ROE: COH's Return on Equity (19.2%) is considered low.


Financial Health

How is Cochlear's financial position?


Financial Position Analysis

Short Term Liabilities: COH's short term assets (A$1.2B) exceed its short term liabilities (A$402.5M).

Long Term Liabilities: COH's short term assets (A$1.2B) exceed its long term liabilities (A$334.0M).


Debt to Equity History and Analysis

Debt Level: COH's debt to equity ratio (2.6%) is considered satisfactory.

Reducing Debt: COH's debt to equity ratio has reduced from 43% to 2.6% over the past 5 years.

Debt Coverage: COH's debt is well covered by operating cash flow (602.9%).

Interest Coverage: COH's interest payments on its debt are well covered by EBIT (41x coverage).


Balance Sheet


Dividend

What is Cochlear current dividend yield, its reliability and sustainability?

1.29%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: COH's dividend (1.29%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: COH's dividend (1.29%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: COH's dividend payments have been volatile in the past 10 years.

Growing Dividend: COH's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.3%), COH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: COH's dividends in 3 years are forecast to be covered by earnings (72.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Dig Howitt (54 yo)

3.75yrs

Tenure

AU$4,861,997

Compensation

Mr. Diggory William Howitt, also known as Dig, BE (Hons), MBA has been President of Cochlear Limited since July 31, 2017 and its Chief Executive Officer and Managing Director since January 3, 2018. Mr. How...


CEO Compensation Analysis

Compensation vs Market: Dig's total compensation ($USD3.61M) is about average for companies of similar size in the Australian market ($USD3.61M).

Compensation vs Earnings: Dig's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: COH's management team is seasoned and experienced (5 years average tenure).


Board Members

Experienced Board: COH's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: COH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cochlear Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Cochlear Limited
  • Ticker: COH
  • Exchange: ASX
  • Founded: 1981
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: AU$14.265b
  • Shares outstanding: 65.78m
  • Website: https://www.cochlear.com

Number of Employees


Location

  • Cochlear Limited
  • 1 University Avenue
  • Macquarie University
  • Sydney
  • New South Wales
  • 2109
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/17 07:04
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.