Loading...

Cochlear

ASX:COH
Snowflake Description

Flawless balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
COH
ASX
A$10B
Market Cap
  1. Home
  2. AU
  3. Healthcare
Company description

Cochlear Limited provides implantable hearing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The last earnings update was 60 days ago. More info.


Add to Portfolio Compare Print
COH Share Price and Events
7 Day Returns
6.5%
ASX:COH
3.4%
AU Medical Equipment
0.7%
AU Market
1 Year Returns
-5.3%
ASX:COH
-3.4%
AU Medical Equipment
4.7%
AU Market
COH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cochlear (COH) 6.5% -1.1% -7.1% -5.3% 66.6% 204.5%
AU Medical Equipment 3.4% 0.5% 0.7% -3.4% 39.3% 105.3%
AU Market 0.7% 1.1% 6.5% 4.7% 17.5% 4.9%
1 Year Return vs Industry and Market
  • COH underperformed the Medical Equipment industry which returned -3.4% over the past year.
  • COH underperformed the Market in Australia which returned 4.7% over the past year.
Price Volatility
COH
Industry
5yr Volatility vs Market

Value

 Is Cochlear undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cochlear to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cochlear.

ASX:COH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 12 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:COH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Medical Equipment Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.929 (1 + (1- 30%) (1.63%))
0.959
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.959 * 5.96%)
8.03%

Discounted Cash Flow Calculation for ASX:COH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cochlear is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:COH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 8.03%)
2019 198.00 Analyst x2 183.28
2020 219.00 Analyst x3 187.66
2021 261.00 Analyst x2 207.02
2022 327.57 Analyst x1 240.52
2023 369.12 Est @ 12.68% 250.88
2024 404.45 Est @ 9.57% 254.46
2025 434.36 Est @ 7.39% 252.97
2026 459.85 Est @ 5.87% 247.91
2027 481.93 Est @ 4.8% 240.51
2028 501.47 Est @ 4.06% 231.66
Present value of next 10 years cash flows A$2,296.87
ASX:COH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$501.47 × (1 + 2.31%) ÷ (8.03% – 2.31%)
A$8,974.59
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$8,974.59 ÷ (1 + 8.03%)10
A$4,145.87
ASX:COH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$2,296.87 + A$4,145.87
A$6,442.74
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$6,442.74 / 57.72
A$111.63
ASX:COH Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$111.63
Current discount Discount to share price of A$175.75
= -1 x (A$175.75 - A$111.63) / A$111.63
-57.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Cochlear is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cochlear's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cochlear's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:COH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$4.58
ASX:COH Share Price ** ASX (2019-04-18) in AUD A$175.75
Australia Medical Equipment Industry PE Ratio Median Figure of 8 Publicly-Listed Medical Equipment Companies 33.38x
Australia Market PE Ratio Median Figure of 545 Publicly-Listed Companies 16.18x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cochlear.

ASX:COH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:COH Share Price ÷ EPS (both in AUD)

= 175.75 ÷ 4.58

38.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cochlear is overvalued based on earnings compared to the AU Medical Equipment industry average.
  • Cochlear is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does Cochlear's expected growth come at a high price?
Raw Data
ASX:COH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 38.41x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
6.1%per year
Oceania Medical Equipment Industry PEG Ratio Median Figure of 5 Publicly-Listed Medical Equipment Companies 2.62x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

ASX:COH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 38.41x ÷ 6.1%

6.29x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cochlear is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Cochlear's assets?
Raw Data
ASX:COH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$11.33
ASX:COH Share Price * ASX (2019-04-18) in AUD A$175.75
Australia Medical Equipment Industry PB Ratio Median Figure of 30 Publicly-Listed Medical Equipment Companies 2.73x
Australia Market PB Ratio Median Figure of 1,676 Publicly-Listed Companies 1.68x
ASX:COH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:COH Share Price ÷ Book Value per Share (both in AUD)

= 175.75 ÷ 11.33

15.51x

* Primary Listing of Cochlear.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cochlear is overvalued based on assets compared to the AU Medical Equipment industry average.
X
Value checks
We assess Cochlear's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check)
  5. Cochlear has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Cochlear expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cochlear expected to grow at an attractive rate?
  • Cochlear's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Cochlear's earnings growth is positive but not above the Australia market average.
  • Cochlear's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:COH Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:COH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 6.1%
ASX:COH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 6.7%
Australia Medical Equipment Industry Earnings Growth Rate Market Cap Weighted Average 13%
Australia Medical Equipment Industry Revenue Growth Rate Market Cap Weighted Average 8.4%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.6%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:COH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:COH Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 1,802 321 1
2022-06-30 1,695 306 319 1
2021-06-30 1,731 323 313 10
2020-06-30 1,598 303 290 12
2019-06-30 1,465 289 267 12
ASX:COH Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,418 330 264
2018-09-30 1,391 294 255
2018-06-30 1,364 258 246
2018-03-31 1,329 254 234
2017-12-31 1,294 250 223
2017-09-30 1,274 255 223
2017-06-30 1,254 260 224
2017-03-31 1,218 237 215
2016-12-31 1,182 214 206
2016-09-30 1,156 199 198
2016-06-30 1,131 185 189
2016-03-31 1,088 179 179

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cochlear's earnings are expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).
  • Cochlear's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:COH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Cochlear Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:COH Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 5.69 5.69 5.69 1.00
2022-06-30 5.57 5.88 5.25 2.00
2021-06-30 5.51 6.20 4.62 9.00
2020-06-30 5.07 5.50 4.82 11.00
2019-06-30 4.65 4.81 4.54 11.00
ASX:COH Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 4.58
2018-09-30 4.42
2018-06-30 4.27
2018-03-31 4.08
2017-12-31 3.88
2017-09-30 3.89
2017-06-30 3.90
2017-03-31 3.75
2016-12-31 3.60
2016-09-30 3.45
2016-06-30 3.31
2016-03-31 3.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Cochlear is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Cochlear's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cochlear has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Cochlear performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cochlear's growth in the last year to its industry (Medical Equipment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cochlear's year on year earnings growth rate has been positive over the past 5 years.
  • Cochlear's 1-year earnings growth is less than its 5-year average (18.2% vs 19.8%)
  • Cochlear's earnings growth has not exceeded the AU Medical Equipment industry average in the past year (18.2% vs 62.3%).
Earnings and Revenue History
Cochlear's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cochlear Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:COH Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,417.90 263.60 524.70 175.30
2018-09-30 1,390.80 254.70 509.55 171.50
2018-06-30 1,363.70 245.80 494.40 167.70
2018-03-31 1,328.95 234.40 475.30 164.00
2017-12-31 1,294.20 223.00 456.20 160.30
2017-09-30 1,274.00 223.30 444.30 156.10
2017-06-30 1,253.80 223.60 432.40 151.90
2017-03-31 1,217.73 214.94 426.43 148.94
2016-12-31 1,181.66 206.29 420.45 145.98
2016-09-30 1,156.11 197.60 411.94 145.53
2016-06-30 1,130.55 188.92 403.43 145.08
2016-03-31 1,087.96 178.71 382.51 141.50
2015-12-31 1,045.37 168.50 361.58 137.92
2015-09-30 985.50 157.17 340.96 132.95
2015-06-30 925.63 145.84 320.35 127.99
2015-03-31 898.93 144.94 308.42 125.93
2014-12-31 872.22 144.04 296.49 123.87
2014-09-30 838.58 118.87 287.68 125.71
2014-06-30 804.94 93.71 278.87 127.56
2014-03-31 768.51 84.83 267.29 128.72
2013-12-31 732.08 75.94 255.71 129.87
2013-09-30 742.40 104.25 248.32 127.29
2013-06-30 752.72 132.56 240.94 124.72
2013-03-31 767.96 143.71 240.75 123.04
2012-12-31 783.20 154.86 240.55 121.36
2012-09-30 781.10 105.83 241.54 120.34
2012-06-30 779.00 56.80 242.52 119.32

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cochlear made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Cochlear used its assets more efficiently than the AU Medical Equipment industry average last year based on Return on Assets.
  • Cochlear's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Cochlear's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cochlear has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Cochlear's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cochlear's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cochlear is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cochlear's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Cochlear's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cochlear Company Filings, last reported 3 months ago.

ASX:COH Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 653.50 165.00 92.30
2018-09-30 653.50 165.00 92.30
2018-06-30 610.80 147.70 61.50
2018-03-31 610.80 147.70 61.50
2017-12-31 574.80 244.00 106.90
2017-09-30 574.80 244.00 106.90
2017-06-30 543.60 218.90 89.50
2017-03-31 543.60 218.90 89.50
2016-12-31 487.69 172.94 79.41
2016-09-30 487.69 172.94 79.41
2016-06-30 448.56 193.24 75.42
2016-03-31 448.56 193.24 75.42
2015-12-31 415.35 213.11 80.25
2015-09-30 415.35 213.11 80.25
2015-06-30 355.39 212.71 72.21
2015-03-31 355.39 212.71 72.21
2014-12-31 321.45 230.48 58.87
2014-09-30 321.45 230.48 58.87
2014-06-30 329.21 237.42 56.13
2014-03-31 329.21 237.42 56.13
2013-12-31 322.42 226.32 59.99
2013-09-30 322.42 226.32 59.99
2013-06-30 354.51 170.47 52.69
2013-03-31 354.51 170.47 52.69
2012-12-31 391.09 142.32 69.80
2012-09-30 391.09 142.32 69.80
2012-06-30 384.88 65.67 68.49
  • Cochlear's level of debt (25.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (70.2% vs 25.2% today).
  • Debt is well covered by operating cash flow (199.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 52.9x coverage).
X
Financial health checks
We assess Cochlear's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cochlear has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.79%
Current annual income from Cochlear dividends. Estimated to be 2.03% next year.
If you bought A$2,000 of Cochlear shares you are expected to receive A$36 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cochlear's pays a lower dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
  • Cochlear's dividend is below the markets top 25% of dividend payers in Australia (5.81%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:COH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Oceania Medical Equipment Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 1.7%
Australia Market Average Dividend Yield Market Cap Weighted Average of 417 Stocks 4.3%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:COH Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 3.95 1.00
2022-06-30 3.87 2.00
2021-06-30 3.89 11.00
2020-06-30 3.56 13.00
2019-06-30 3.23 13.00
ASX:COH Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-18 3.150 1.799
2018-08-14 3.200 1.719
2018-02-12 2.800 1.460
2017-08-16 2.800 1.660
2017-02-13 2.600 1.827
2016-08-12 2.400 1.862
2015-08-10 1.900 1.912
2015-02-09 1.800 2.082
2014-08-04 2.540 3.502
2014-02-10 2.540 4.293
2013-09-12 2.520 4.296
2013-08-06 2.520 4.323
2012-08-07 2.500 3.661
2012-02-07 2.400 3.841
2012-02-06 2.400 3.984
2011-08-09 2.400 4.138
2011-02-08 2.100 2.736
2010-08-10 2.100 2.843
2010-02-09 1.900 2.653
2009-08-11 1.900 2.993
2009-04-20 1.600 2.983

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Cochlear's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Cochlear's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cochlear afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cochlear has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Cochlear's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dig Howitt
COMPENSATION A$3,462,173
AGE 51
TENURE AS CEO 1.3 years
CEO Bio

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. Howitt served as its Chief Operating Officer since July 2016 until July 30, 2017. Mr. Howitt served as President of Asia Pacific Region at Cochlear Limited since September 2014 until July 2016. Mr. Howitt served as Senior Vice President of Manufacturing & Logistics at Cochlear Limited. Mr. Howitt joined Cochlear Limited in 2000. He has more than 10 years experience in general management and management consulting focused on strategy development and operational improvement. He served as General Manager of Sunstate Cement Ltd. He has been Executive Director of Cochlear Limited since November 14, 2017. He serves as Non-Executive Director of Organic Response Pty Ltd. He holds BE (Hons) (Syd), MBA (Stanford). He has an Electrical Engineering degree from the University of Sydney and an MBA from Stanford Business School.

CEO Compensation
  • Dig's compensation has increased by more than 20% in the past year.
  • Dig's remuneration is about average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Cochlear management team in years:

2.8
Average Tenure
  • The tenure for the Cochlear management team is about average.
Management Team

Dig Howitt

TITLE
CEO, MD
COMPENSATION
A$3M
AGE
51
TENURE
1.3 yrs

Brent Cubis

TITLE
Chief Financial Officer
COMPENSATION
A$996K
TENURE
2.1 yrs

Jan Janssen

TITLE
Chief Technology Officer
COMPENSATION
A$1M
TENURE
1.4 yrs

Richard Brook

TITLE
President of EMEA & Latin American Region
COMPENSATION
A$2M

Tony Manna

TITLE
President of Americas Region
COMPENSATION
A$1M
TENURE
3 yrs

Anthony Bishop

TITLE
President of Asia Pacific Region
COMPENSATION
A$860K
TENURE
2.8 yrs

David Hackshall

TITLE
Chief Information Officer
TENURE
3.8 yrs

Kristina Devon

TITLE
Head of Investor Relations

Jennifer Stevenson

TITLE
Head of Corporate Communications

Dean Phizacklea

TITLE
Senior Vice President of Global Marketing
TENURE
2.8 yrs
Board of Directors Tenure

Average tenure and age of the Cochlear board of directors in years:

4.3
Average Tenure
54
Average Age
  • The tenure for the Cochlear board of directors is about average.
Board of Directors

Rick Holliday-Smith

TITLE
Chairman
COMPENSATION
A$511K
AGE
68
TENURE
8.8 yrs

Dig Howitt

TITLE
CEO, MD
COMPENSATION
A$3M
AGE
51
TENURE
1.4 yrs

Andrew Denver

TITLE
Non-Executive Director
COMPENSATION
A$261K
AGE
69
TENURE
12.2 yrs

Yasmin Allen

TITLE
Non-Executive Director
COMPENSATION
A$271K
AGE
54
TENURE
8.7 yrs

Glen Boreham

TITLE
Independent Non-Executive Director
COMPENSATION
A$266K
AGE
54
TENURE
4.3 yrs

Donal O’Dwyer

TITLE
Non-Executive Director
COMPENSATION
A$241K
AGE
65
TENURE
13.7 yrs

Catriona Deans

TITLE
Independent Non-Executive Director
COMPENSATION
A$246K
AGE
51
TENURE
4.3 yrs

Bruce Robinson

TITLE
Non-Executive Director
COMPENSATION
A$241K
AGE
61
TENURE
2.3 yrs

Abbas Hussain

TITLE
Non-Executive Independent Director
AGE
53
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
05. Mar 19 Sell Pinnacle Fund Services Limited Company 31. Oct 18 20. Feb 19 -136,637 A$177.65 A$-24,274,222
05. Mar 19 Buy Pinnacle Fund Services Limited Company 08. Nov 18 28. Feb 19 476,503 A$169.31 A$80,678,576
04. Mar 19 Sell Hyperion Asset Management Limited Company 13. Feb 18 28. Feb 19 -57,701 A$199.12 A$-11,489,381
04. Mar 19 Buy Hyperion Asset Management Limited Company 13. Feb 18 28. Feb 19 4,925 A$157.89 A$777,629
26. Nov 18 Buy The Vanguard Group, Inc. Company 21. Nov 18 21. Nov 18 769 A$0.21 A$163
21. Nov 18 Sell The Vanguard Group, Inc. Company 19. Nov 18 19. Nov 18 -1,933 A$156.03 A$-301,606
20. Nov 18 Sell The Vanguard Group, Inc. Company 23. Jul 18 15. Nov 18 -48,843 A$220.94 A$-10,759,236
20. Nov 18 Buy The Vanguard Group, Inc. Company 19. Jul 18 16. Nov 18 42,261 A$218.93 A$9,252,201
13. Nov 18 Sell Diggory Howitt Individual 09. Nov 18 09. Nov 18 -5,000 A$175.23 A$-876,150
31. Oct 18 Buy Bruce Robinson Individual 25. Oct 18 25. Oct 18 286 A$173.24 A$49,547
23. Oct 18 Buy Bruce Robinson Individual 17. Oct 18 17. Oct 18 526 A$190.00 A$99,940
19. Aug 18 Buy Bruce Robinson Individual 15. Aug 18 15. Aug 18 518 A$194.33 A$100,663
29. May 18 Sell BlackRock, Inc. Company 25. Jul 17 25. May 18 -1,117,906 A$199.01 A$-29,174
29. May 18 Buy BlackRock, Inc. Company 25. Jul 17 25. May 18 302,789 A$197.93 A$12,270
X
Management checks
We assess Cochlear's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cochlear has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Cochlear Limited (ASX:COH) A Financially Strong Company?

Today we will look at COH’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Don’t forget that this is a general and concentrated examination of Cochlear's financial health, so you should conduct further analysis. … See our latest analysis for Cochlear

Simply Wall St -

Cochlear Limited (ASX:COH) Is Employing Capital Very Effectively

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Is Cochlear Limited (ASX:COH) A Cash Cow?

Two important questions to ask before you buy Cochlear Limited (ASX:COH) is, how it makes money and how it spends its cash. … I’ve analysed below, the health and outlook of Cochlear’s cash flow, which will help you understand the stock from a cash standpoint. … There are two methods I will use to evaluate the quality of Cochlear’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

Cochlear Limited (ASX:COH): Ex-Dividend Is In 4 Days

If you are interested in cashing in on Cochlear Limited's (ASX:COH) upcoming dividend of AU$1.55 per share, you only have 4 days left to buy the shares before its ex-dividend date, 25 March 2019, in time for dividends payable on the 16 April 2019. … How I analyze a dividend stock? … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?

Simply Wall St -

Cochlear Limited (ASX:COH): Will The Growth Last?

As Cochlear Limited (ASX:COH) released its earnings announcement on 31 December 2018, … with earnings expected to grow by 6.0% in the upcoming year … the higher past 5-year average growth rate of 20%.

Simply Wall St -

Can You Imagine How Chuffed Cochlear's Shareholders Feel About Its 197% Share Price Gain?

It might be of some concern to shareholders to see the Cochlear Limited (ASX:COH) share price down 13% in the last month. … In fact, the share price is 197% higher today. … So the EPS growth rate is rather close to the annualized share price gain of 24% per year.

Simply Wall St -

Do Institutions Own Shares In Cochlear Limited (ASX:COH)?

The big shareholder groups in Cochlear Limited (ASX:COH) have power over the company. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … Cochlear is a pretty big company.

Simply Wall St -

Have Insiders Been Selling Cochlear Limited (ASX:COH) Shares?

So before you buy or sell Cochlear Limited (ASX:COH), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … That means that even when the share price was below the current price of AU$194, an insider wanted to cash in some shares.

Simply Wall St -

Why Cochlear Limited's (ASX:COH) High P/E Ratio Isn't Necessarily A Bad Thing

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … That is equivalent to an earnings yield of about 2.2%. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Know This Before Buying Cochlear Limited (ASX:COH) For Its Dividend

Historically, Cochlear Limited (ASX:COH) has been paying a dividend to shareholders. … Does Cochlear tick all the boxes of a great dividend stock? … See our latest analysis for Cochlear?

Simply Wall St -

Company Info

Description

Cochlear Limited provides implantable hearing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers cochlear implants, including Nucleus 7 and Kanso sound processors; Carina middle-ear implants and accessories; and Baha bone conduction implants, such as Baha attract system, Baha connect system, Baha softband, Baha 5 sound processor, Baha 5 power, Baha 5 superpower, other sound processors, and wireless accessories. It also provides Cochlear true wireless devices comprising mini microphones, phone clips, and TV streamers; and Cochlear Vistafix bone-anchored facial prosthetic solutions to enhance the attachment and cosmetic outcome of facial prostheses. The company has strategic collaborations with Sensorion and GN Hearing A/S to focus on improving hearing outcomes in patients with cochlear implants. Cochlear Limited was incorporated in 1983 and is headquartered in Sydney, Australia.

Details
Name: Cochlear Limited
COH
Exchange: ASX
Founded: 1983
A$10,143,555,540
57,715,821
Website: http://www.cochlear.com
Address: Cochlear Limited
1 University Avenue,
Macquarie University,
Sydney,
New South Wales, 2109,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX COH Ordinary Shares Australian Securities Exchange AU AUD 12. Dec 1995
OTCPK CHEO.F Ordinary Shares Pink Sheets LLC US USD 12. Dec 1995
DB OC5 Ordinary Shares Deutsche Boerse AG DE EUR 12. Dec 1995
CHIA COH Ordinary Shares Chi-X Australia AU AUD 12. Dec 1995
OTCPK CHEO.Y UNSPONSORD ADR Pink Sheets LLC US USD 16. Jan 2009
Number of employees
Current staff
Staff numbers
3,500
Cochlear employees.
Industry
Health Care Equipment
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 10:32
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/02/18
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.