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COH

Cochlear ASX:COH Stock Report

Last Price

AU$218.31

Market Cap

AU$14.4b

7D

0.08%

1Y

-14.0%

Updated

16 Aug, 2022

Data

Company Financials +
COH fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance2/6
Financial Health6/6
Dividends0/6

COH Stock Overview

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

Rewards

Earnings are forecast to grow 10.89% per year

Became profitable this year

Risk Analysis

No risks detected for COH from our risk checks.

Cochlear Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cochlear
Historical stock prices
Current Share PriceAU$218.31
52 Week HighAU$257.76
52 Week LowAU$178.55
Beta0.38
1 Month Change3.09%
3 Month Change1.88%
1 Year Change-14.05%
3 Year Change1.37%
5 Year Change40.68%
Change since IPO7,300.34%

Recent News & Updates

Jul 16
The Returns On Capital At Cochlear (ASX:COH) Don't Inspire Confidence

The Returns On Capital At Cochlear (ASX:COH) Don't Inspire Confidence

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven...

May 19
A Look At The Fair Value Of Cochlear Limited (ASX:COH)

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

In this article we are going to estimate the intrinsic value of Cochlear Limited ( ASX:COH ) by projecting its future...

Shareholder Returns

COHAU Medical EquipmentAU Market
7D0.08%-1.8%0.7%
1Y-14.0%-19.2%-6.5%

Return vs Industry: COH exceeded the Australian Medical Equipment industry which returned -19.2% over the past year.

Return vs Market: COH underperformed the Australian Market which returned -6.5% over the past year.

Price Volatility

Is COH's price volatile compared to industry and market?
COH volatility
COH Average Weekly Movement4.0%
Medical Equipment Industry Average Movement11.5%
Market Average Movement10.6%
10% most volatile stocks in AU Market17.9%
10% least volatile stocks in AU Market4.6%

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$14.36b
Earnings (TTM)AU$260.10m
Revenue (TTM)AU$1.58b

55.2x

P/E Ratio

9.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
COH income statement (TTM)
RevenueAU$1.58b
Cost of RevenueAU$408.70m
Gross ProfitAU$1.17b
Other ExpensesAU$906.30m
EarningsAU$260.10m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 19, 2022

Earnings per share (EPS)3.95
Gross Margin74.05%
Net Profit Margin16.51%
Debt/Equity Ratio2.7%

How did COH perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

75%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is COH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for COH?

Other financial metrics that can be useful for relative valuation.

COH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue8.9x
Enterprise Value/EBITDA33.5x
PEG Ratio5.1x

Price to Earnings Ratio vs Peers

How does COH's PE Ratio compare to its peers?

COH PE Ratio vs Peers
The above table shows the PE ratio for COH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average52.9x
RHC Ramsay Health Care
44.6x22.5%AU$16.6b
SHL Sonic Healthcare
11x-16.4%AU$16.2b
ANN Ansell
10.3x3.8%AU$3.2b
PME Pro Medicus
145.8x21.3%AU$5.5b
COH Cochlear
55.2x10.9%AU$14.4b

Price-To-Earnings vs Peers: COH is expensive based on its Price-To-Earnings Ratio (55.2x) compared to the peer average (52.9x).


Price to Earnings Ratio vs Industry

How does COH's PE Ratio compare vs other companies in the Global Medical Equipment Industry?

Price-To-Earnings vs Industry: COH is expensive based on its Price-To-Earnings Ratio (55.2x) compared to the Global Medical Equipment industry average (24.5x)


Price to Earnings Ratio vs Fair Ratio

What is COH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

COH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio55.2x
Fair PE Ratio34.8x

Price-To-Earnings vs Fair Ratio: COH is expensive based on its Price-To-Earnings Ratio (55.2x) compared to the estimated Fair Price-To-Earnings Ratio (34.8x).


Share Price vs Fair Value

What is the Fair Price of COH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: COH (A$218.31) is trading above our estimate of fair value (A$197.06)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is lower than the current share price.


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Future Growth

How is Cochlear forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COH's forecast earnings growth (10.9% per year) is above the savings rate (1.8%).

Earnings vs Market: COH's earnings (10.9% per year) are forecast to grow faster than the Australian market (6.1% per year).

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

Revenue vs Market: COH's revenue (8.6% per year) is forecast to grow faster than the Australian market (5.6% per year).

High Growth Revenue: COH's revenue (8.6% 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 (19.1%).


Discover growth companies

Past Performance

How has Cochlear performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-13.3%

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 13.3% 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 (32.6%).


Return on Equity

High ROE: COH's Return on Equity (15%) is considered low.


Discover strong past performing companies

Financial Health

How is Cochlear's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: COH's short term assets (A$1.2B) exceed its short term liabilities (A$377.6M).

Long Term Liabilities: COH's short term assets (A$1.2B) exceed its long term liabilities (A$324.6M).


Debt to Equity History and Analysis

Debt Level: COH has more cash than its total debt.

Reducing Debt: COH's debt to equity ratio has reduced from 35.5% to 2.7% over the past 5 years.

Debt Coverage: COH's debt is well covered by operating cash flow (651.6%).

Interest Coverage: COH's interest payments on its debt are well covered by EBIT (51.1x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.42%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: COH's dividend (1.42%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.59%).

High Dividend: COH's dividend (1.42%) is low compared to the top 25% of dividend payers in the Australian market (6.35%).


Stability and Growth of Payments

Stable Dividend: COH is not paying a notable dividend for the Australian market, therefore no need to check if payments are stable.

Growing Dividend: COH is not paying a notable dividend for the Australian market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: COH is not paying a notable dividend for the Australian market.


Cash Payout to Shareholders

Cash Flow Coverage: COH is not paying a notable dividend for the Australian market.


Discover strong dividend paying companies

Management

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

6.1yrs

Average management tenure


CEO

Dig Howitt (55 yo)

5.08yrs

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 ($USD3.42M) is about average for companies of similar size in the Australian market ($USD4.21M).

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 (6.1 years average tenure).


Board Members

Experienced Board: COH's board of directors are considered experienced (5.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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
  • Implied Market Cap: AU$14.359b
  • 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 Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2021/12/31
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.