Coherent, Inc. provides lasers, laser-based technologies, and laser-based system solutions for a range of scientific, commercial, and industrial applications.
The last earnings update was 75 days ago.
Discounted Cash Flow Calculation for DB:COI using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
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.
DB:COI DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Coherent's share price is below the future cash flow value, and at a moderate discount (> 20%).
Coherent's share price is below the future cash flow value, and at a substantial discount (> 40%).
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
is considered below, and whether this is a fair price.
Price based on past earnings
Coherent's earnings available for a low price, and how does
this compare to other companies in the same industry?
Coherent's earnings are expected to grow by 13.8% yearly, however this is not considered high growth (20% yearly).
Coherent's revenue is expected to grow by 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.
Coherent's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
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.
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.
TENURE AS CEO
Dr. John R. Ambroseo, Ph.D. has been the President and Chief Executive Officer as well as a Member of the Board of Directors of Coherent Inc. since October 2002. Dr. Ambroseo serves as the President of LEOMA (Laser Electro-Optics Manufacturers Association). Dr. Ambroseo served as Executive Vice President of Coherent DEOS, LLC. Dr. Ambroseo served as the Chief Executive Officer of Lambda Physik AG since August 5, 2003 and also served as Chairman and Member of Management Board. Dr. Ambroseo served as Chief Operating Officer of Coherent Inc. from June 2001 to September 2002. Dr. Ambroseo served as Executive Vice President, President and General Manager of Coherent Photonics Group from September 2000 to June 2001 and Coherent Laser Group. From September 1997 to September 2000 and Scientific Business Unit Manager from March 1997 to September 1997. During his 15-year tenure at Coherent, he held various positions in domestic and international operations, marketing and sales. Dr. Ambroseo status as Chief Executive Officer, his approximately 30-year tenure with Coherent, his extensive knowledge of products, technologies and end markets and his over a decade of service as a Director of Coherent make him an invaluable Member of the Board. From August 1988 to March 1997, he served as a Sales Engineer, Product Marketing Manager, National Sales Manager and Director of European Operations of Coherent. Dr. Ambroseo has been a Director of Coherent, Inc. since October 2002. Dr. Ambroseo has been Director of Rofin-Sinar Technologies Inc. since November 7, 2016. Dr. Ambroseo is a Trustee of the Purchase College Foundation. Dr. Ambroseo received a Bachelor degree from SUNY-College at Purchase and a PhD in Chemistry from the University of Pennsylvania.
John's compensation has been consistent with company performance over the past year.
John's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Coherent management team is over 5 years, this suggests they are a seasoned and experienced team.
Executive VP & CFO
Executive Vice President of Worldwide Sales & Services
Executive VP & GM of OEM Laser Sources
Executive VP and GM of Industrial Laser & Systems
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Coherent board of directors is about average.
Coherent, Inc. provides lasers, laser-based technologies, and laser-based system solutions for a range of scientific, commercial, and industrial applications. It operates through two segments, OEM Laser Sources and Industrial Lasers & Systems. The company designs, manufactures, markets, and services lasers, laser tools, precision optics, and related accessories; and laser measurement and control products. Its products are used in markets, including microelectronics, materials processing, original equipment manufacturer components and instrumentation, and scientific research and government programs. The company markets its products through a direct sales force in the United States, as well as through direct sales personnel and independent representatives internationally. Coherent, Inc. was founded in 1966 and is headquartered in Santa Clara, California.
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