NYSE:COO

Stock Analysis Report

Executive Summary

The Cooper Companies, Inc. operates as a medical device company worldwide.

Rewards

PE ratio (37.4x) is below the Medical Equipment industry average (47.1x)

Earnings are forecast to grow 12.29% per year

Earnings grew by 233.6% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record with adequate balance sheet.


Similar Companies

Share Price & News

How has Cooper Companies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: COO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

COO

2.2%

US Medical Equipment

1.5%

US Market


1 Year Return

26.6%

COO

22.1%

US Medical Equipment

20.1%

US Market

Return vs Industry: COO exceeded the US Medical Equipment industry which returned 22.1% over the past year.

Return vs Market: COO exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

COOIndustryMarket
7 Day1.5%2.2%1.5%
30 Day-0.6%1.0%1.4%
90 Day15.6%8.7%8.7%
1 Year26.6%26.6%23.0%22.1%22.7%20.1%
3 Year80.5%80.3%84.6%79.4%50.1%40.5%
5 Year113.4%113.1%117.1%94.4%73.1%54.1%

Price Volatility Vs. Market

How volatile is Cooper Companies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

37.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: COO ($353.31) is trading above our estimate of fair value ($311.18)

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


Price To Earnings Ratio

PE vs Industry: COO is good value based on its PE Ratio (37.4x) compared to the Medical Equipment industry average (47.1x).

PE vs Market: COO is poor value based on its PE Ratio (37.4x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: COO is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: COO is overvalued based on its PB Ratio (4.8x) compared to the US Medical Equipment industry average (4x).


Next Steps

Future Growth

How is Cooper Companies forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COO's forecast earnings growth (12.3% per year) is above the savings rate (1.7%).

Earnings vs Market: COO's earnings (12.3% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: COO's revenue (5.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: COO's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COO's Return on Equity is forecast to be low in 3 years time (15.4%).


Next Steps

Past Performance

How has Cooper Companies performed over the past 5 years?

10.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COO has high quality earnings.

Growing Profit Margin: COO's current net profit margins (17.6%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: COO's earnings have grown by 10.1% per year over the past 5 years.

Accelerating Growth: COO's earnings growth over the past year (233.6%) exceeds its 5-year average (10.1% per year).

Earnings vs Industry: COO earnings growth over the past year (233.6%) exceeded the Medical Equipment industry 7.1%.


Return on Equity

High ROE: COO's Return on Equity (12.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cooper Companies's financial position?


Financial Position Analysis

Short Term Liabilities: COO's short term assets ($1.2B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: COO's short term assets ($1.2B) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: COO's debt to equity ratio (50.3%) is considered high.

Reducing Debt: COO's debt to equity ratio has reduced from 53.4% to 50.3% over the past 5 years.

Debt Coverage: COO's debt is well covered by operating cash flow (39.1%).

Interest Coverage: COO's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet

Inventory Level: COO has a high level of physical assets or inventory.

Debt Coverage by Assets: COO's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

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

0.016%

Current Dividend Yield


Dividend Yield vs Market

company0.02%marketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Years0.02%

Current dividend yield vs market & industry

Notable Dividend: COO's dividend (0.016%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: COO's dividend (0.016%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: COO is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of COO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Albert White (49yo)

1.8yrs

Tenure

US$7,724,745

Compensation

Mr. Albert G. White, III, has been President, Director and Chief Executive Officer of The Cooper Companies since May 1, 2018. Mr. White served as Chief Financial Officer of The Cooper Companies Inc. since  ...


CEO Compensation Analysis

Compensation vs Market: Albert's total compensation ($USD7.72M) is about average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Albert's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Albert White
President1.8yrsUS$7.72m0.082% $14.3m
Brian Andrews
Senior VP1.8yrsUS$1.99m0.0060% $1.0m
Daniel McBride
Executive VP & COO6.3yrsUS$3.58m0.070% $12.2m
Holly Sheffield
Executive VP & Chief Strategy Officer1.7yrsUS$2.51m0.00057% $99.0k
Robert Auerbach
President of Coopersurgical Inc1.8yrsUS$1.86m0.0080% $1.4m
Agostino Ricupati
Senior VP of Finance & Tax and Chief Accounting Officer2.3yrsUS$1.21m0.0016% $276.2k
Kim Duncan
Vice President of Investor Relations & Administration0yrsno datano data
Randal Golden
VP, General Counsel & Corporate Secretary6yrsno data0.0034% $590.6k
Juan Aragón
President of CooperVision Specialty EyeCare Division2yrsno datano data

1.9yrs

Average Tenure

52yo

Average Age

Experienced Management: COO's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Albert White
President1.8yrsUS$7.72m0.082% $14.3m
Allan Rubenstein
Vice Chairman & Lead Director17.6yrsUS$472.28k0.0065% $1.1m
A. Bender
Independent Chairman17.6yrsUS$594.40k0.038% $6.6m
Robert Weiss
Non-Independent Director24.1yrsUS$375.48k0.29% $50.2m
Michael Kalkstein
Independent Director28.1yrsUS$470.46k0.012% $2.1m
William Kozy
Independent Director3.8yrsUS$447.46k0.0080% $1.4m
Gary Petersmeyer
Independent Director7.1yrsUS$452.46k0.0027% $472.5k
Jody Lindell
Independent Director14.1yrsUS$467.96k0.038% $6.6m
Colleen Jay
Independent Director3.8yrsUS$448.46k0.0074% $1.3m

14.1yrs

Average Tenure

72yo

Average Age

Experienced Board: COO's board of directors are seasoned and experienced ( 14.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: COO insiders have only sold shares 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

The Cooper Companies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Cooper Companies, Inc.
  • Ticker: COO
  • Exchange: NYSE
  • Founded: 1980
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: US$17.371b
  • Shares outstanding: 49.17m
  • Website: https://www.coopercos.com

Number of Employees


Location

  • The Cooper Companies, Inc.
  • 6101 Bollinger Canyon Road
  • Suite 500
  • San Ramon
  • California
  • 94583
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COONYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1983
CP6DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1983
COO *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1983
0I3ILSE (London Stock Exchange)YesCommon StockGBUSDJan 1983
C1OO34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 10 REPR 1 COMBRBRLJan 2020

Biography

The Cooper Companies, Inc. operates as a medical device company worldwide. It operates through CooperVision and CooperSurgical business units. The company develops, manufactures, and markets a range of contact lenses, including spherical lenses, and toric and multifocal lenses that correct near- and farsightedness, as well as addresses various complex visual defects, such as astigmatism and presbyopia. It also provides range of products and services focusing on women, babies, and families, including medical devices, fertility, genomics, and diagnostics and contraception for hospitals and surgical centers, obstetricians' and gynecologists' (OB/GYNs) medical offices, and fertility clinics. In addition, the company develops mechanical surgical solutions for skin closure; and offers PARAGARD, a contraceptive option, as well as provides assisted reproductive technology products, genetic screening and testing, and products within the general OB/GYN offerings. It markets its products under Biofinity, clariti 1day, MyDay, Avaira Vitality, and Proclear 1 Day brand name through a network of field sales representatives, independent agents, and distributors. The Cooper Companies, Inc. was founded in 1980 and is based in San Ramon, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:39
End of Day Share Price2020/02/14 00:00
Earnings2019/10/31
Annual Earnings2019/10/31


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.