NasdaqGS:COHR

Stock Analysis Report

Executive Summary

Coherent, Inc. provides lasers, laser-based technologies, and laser-based system solutions for a range of scientific, commercial, and industrial applications.

Rewards

Trading at 67.2% below its fair value

Earnings are forecast to grow 48.9% per year

Risk Analysis

Large one-off items impacting financial results

Profit margins (3.8%) are lower than last year (13%)



Snowflake Analysis

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.6%

COHR

1.8%

US Electronic

0.8%

US Market


1 Year Return

25.6%

COHR

23.7%

US Electronic

17.8%

US Market

Return vs Industry: COHR exceeded the US Electronic industry which returned 23.7% over the past year.

Return vs Market: COHR exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

COHRIndustryMarket
7 Day0.6%1.8%0.8%
30 Day-5.5%0.9%1.8%
90 Day-10.9%6.2%4.1%
1 Year25.6%25.6%25.0%23.7%20.4%17.8%
3 Year12.7%12.7%47.0%42.9%45.9%36.4%
5 Year142.7%142.7%83.2%74.2%68.1%49.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: COHR ($147.79) is trading below our estimate of fair value ($450.62)

Significantly Below Fair Value: COHR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: COHR is poor value based on its PE Ratio (66.2x) compared to the Electronic industry average (20.9x).

PE vs Market: COHR is poor value based on its PE Ratio (66.2x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: COHR is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: COHR is overvalued based on its PB Ratio (2.8x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

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

48.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COHR's forecast earnings growth (48.9% per year) is above the savings rate (1.7%).

Earnings vs Market: COHR's earnings (48.9% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: COHR's revenue (6.9% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: COHR's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COHR's Return on Equity is forecast to be low in 3 years time (16.5%).


Next Steps

Past Performance

How has Coherent performed over the past 5 years?

23.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COHR has a large one-off loss of $24.4M impacting its September 28 2019 financial results.

Growing Profit Margin: COHR's current net profit margins (3.8%) are lower than last year (13%).


Past Earnings Growth Analysis

Earnings Trend: COHR's earnings have grown significantly by 23% per year over the past 5 years.

Accelerating Growth: COHR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: COHR had negative earnings growth (-78.2%) over the past year, making it difficult to compare to the Electronic industry average (53.7%).


Return on Equity

High ROE: COHR's Return on Equity (4.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Coherent's financial position?


Financial Position Analysis

Short Term Liabilities: COHR's short term assets ($1.1B) exceed its short term liabilities ($240.3M).

Long Term Liabilities: COHR's short term assets ($1.1B) exceed its long term liabilities ($558.1M).


Debt to Equity History and Analysis

Debt Level: COHR's debt to equity ratio (31.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if COHR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: COHR's debt is well covered by operating cash flow (44.7%).

Interest Coverage: COHR's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: COHR's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate COHR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate COHR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if COHR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if COHR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

John Ambroseo (58yo)

17.2yrs

Tenure

US$9,531,892

Compensation

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. Dr. Ambroseo serves as the President of LEOMA (L ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD9.53M) is above average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.8yrs

Average Tenure

58.5yo

Average Age

Experienced Management: COHR's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

8.9yrs

Average Tenure

58yo

Average Age

Experienced Board: COHR's board of directors are considered experienced (8.9 years average tenure).


Insider Trading

Insider Buying: COHR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$236,37012 Nov 19
Stephen Skaggs
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$157.58

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • John Ambroseo (58yo)

    President

    • Tenure: 17.2yrs
    • Compensation: US$9.53m
  • Bret DiMarco (51yo)

    Executive VP

    • Tenure: 13.5yrs
    • Compensation: US$1.78m
  • Mark Sobey (59yo)

    Executive VP & GM of OEM Laser Sources

    • Tenure: 9.7yrs
    • Compensation: US$2.17m
  • Thomas Merk (57yo)

    Executive VP and GM of Industrial Laser & Systems

    • Tenure: 3yrs
  • Kevin Palatnik (61yo)

    Executive VP & CFO

    • Tenure: 3.8yrs
    • Compensation: US$2.32m
  • Paul Sechrist (60yo)

    • Tenure: 0.3yrs
    • Compensation: US$1.98m

Board Members

  • John Ambroseo (58yo)

    President

    • Tenure: 17.2yrs
    • Compensation: US$9.53m
  • Sandeep Vij (53yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$271.79k
  • Steve Skaggs (56yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$267.54k
  • Jay Flatley (66yo)

    Independent Director

    • Tenure: 8.9yrs
    • Compensation: US$265.04k
  • Garry Rogerson (66yo)

    Chairman

    • Tenure: 12.5yrs
    • Compensation: US$327.79k
  • Mike McMullen (58yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$212.48k
  • Sue James (73yo)

    Independent Director

    • Tenure: 11.9yrs
    • Compensation: US$292.29k
  • Pamela Fletcher (52yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$264.29k
  • Beverly Matthews

    Director

    • Tenure: 0.6yrs

Company Information

Coherent, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Coherent, Inc.
  • Ticker: COHR
  • Exchange: NasdaqGS
  • Founded: 1966
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$3.520b
  • Shares outstanding: 24.15m
  • Website: https://www.coherent.com

Number of Employees


Location

  • Coherent, Inc.
  • 5100 Patrick Henry Drive
  • Santa Clara
  • California
  • 95054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COHRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1972
COIDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972
0I17LSE (London Stock Exchange)YesCommon StockGBUSDDec 1972

Biography

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 So ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 23:32
End of Day Share Price2019/12/11 00:00
Earnings2019/09/28
Annual Earnings2019/09/28


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.