OTCPK:CHEO.Y

Stock Analysis Report

Executive Summary

Cochlear Limited provides implantable hearing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

Snowflake

Fundamentals

Flawless balance sheet average dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-2.5%

OTCPK:CHEO.Y

-1.2%

US Medical Equipment

1.2%

US Market


1 Year Return

-0.6%

OTCPK:CHEO.Y

8.7%

US Medical Equipment

1.7%

US Market

CHEO.Y underperformed the Medical Equipment industry which returned 8.7% over the past year.

CHEO.Y underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

CHEO.YIndustryMarket
7 Day-2.5%-1.2%1.2%
30 Day4.1%1.4%4.9%
90 Day3.7%4.8%3.7%
1 Year0.2%-0.6%9.6%8.7%3.9%1.7%
3 Year47.3%41.8%70.8%65.5%47.2%37.7%
5 Year163.9%145.0%130.4%104.1%60.0%42.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

44.13x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Cochlear's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Cochlear's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Cochlear is overvalued based on earnings compared to the US Medical Equipment industry average.

Cochlear is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Cochlear is poor value based on expected growth next year.


Price Based on Value of Assets

Cochlear is overvalued based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is Cochlear expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cochlear's revenue is expected to grow by 9.2% yearly, however this is not considered high growth (20% yearly).

Cochlear's earnings are expected to grow by 8.5% yearly, however this is not considered high growth (20% yearly).

Cochlear's revenue growth is expected to exceed the United States of America market average.

Cochlear's earnings growth is positive but not above the United States of America market average.

Cochlear's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Cochlear is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Cochlear performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (12.6% vs 16.6%)

Cochlear's earnings growth has not exceeded the US Medical Equipment industry average in the past year (12.6% vs 28.9%).


Return on Equity

Cochlear has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Cochlear used its assets more efficiently than the US Medical Equipment industry average last year based on Return on Assets.


Return on Capital Employed

Cochlear's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cochlear's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Cochlear's level of debt (25%) 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 (72.1% vs 25% today).

Debt is well covered by operating cash flow (163%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 78.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 3.5x debt.


Next Steps

Dividend

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

1.87%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Cochlear's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).

Cochlear's dividend is below the markets top 25% of dividend payers in United States of America (3.67%).

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

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).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Dig Howitt (52yo)

1.7yrs

Tenure

AU$3,694,565

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

Dig's remuneration is lower than average for companies of similar size in United States of America.

Dig's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.2yrs

Average Tenure

The tenure for the Cochlear management team is about average.


Board Age and Tenure

4.7yrs

Average Tenure

55yo

Average Age

The tenure for the Cochlear board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Dig Howitt (52yo)

    CEO, MD

    • Tenure: 1.7yrs
    • Compensation: AU$3.69m
  • Richard Brook

    President of EMEA & Latin American Region

    • Tenure: 0yrs
    • Compensation: AU$1.86m
  • Jan Janssen

    Chief Technology Officer

    • Tenure: 1.8yrs
    • Compensation: AU$1.55m
  • Brent Cubis

    Chief Financial Officer

    • Tenure: 2.5yrs
    • Compensation: AU$1.09m
  • David Hackshall

    Chief Information Officer

    • Tenure: 4.2yrs
  • Tony Manna

    President of Americas Region

    • Tenure: 3.4yrs
    • Compensation: AU$1.49m
  • Jennifer Stevenson

    Head of Corporate Communications

    • Tenure: 0yrs
  • Kristina Devon

    Head of Investor Relations

    • Tenure: 0yrs
  • Anthony Bishop

    President of Asia Pacific Region

    • Tenure: 3.2yrs
    • Compensation: AU$940.84k
  • Dean Phizacklea

    Senior Vice President of Global Marketing

    • Tenure: 3.3yrs

Board Members

  • Andrew Denver (70yo)

    Non-Executive Director

    • Tenure: 12.6yrs
    • Compensation: AU$266.22k
  • Donal O’Dwyer (66yo)

    Non-Executive Director

    • Tenure: 14.1yrs
    • Compensation: AU$245.85k
  • Rick Holliday-Smith (69yo)

    Chairman

    • Tenure: 9.2yrs
    • Compensation: AU$526.15k
  • Catriona Deans (52yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: AU$251.07k
  • Dig Howitt (52yo)

    CEO, MD

    • Tenure: 1.7yrs
    • Compensation: AU$3.69m
  • Yasmin Allen (55yo)

    Non-Executive Director

    • Tenure: 9.1yrs
    • Compensation: AU$276.22k
  • Bruce Robinson (62yo)

    Non-Executive Director

    • Tenure: 2.8yrs
    • Compensation: AU$256.22k
  • Glen Boreham (55yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: AU$271.22k
  • Abbas Hussain (54yo)

    Non-Executive Independent Director

    • Tenure: 0.8yrs
    • Compensation: AU$122.61k

Company Information

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


Key Information

  • Name: Cochlear Limited
  • Ticker: CHEO.Y
  • Exchange: OTCPK
  • Founded: 1981
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: AU$12.236b
  • Listing Market Cap: AU$8.428b
  • Shares outstanding: 57.81m
  • Website: https://www.cochlear.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHEO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 1995
COHASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 1995
OC5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 1995
COHCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 1995
CHEO.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDJan 2009

Biography

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 pro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 00:35
End of Day Share Price2019/09/12 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.