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.


Snowflake Analysis

Excellent balance sheet with reasonable 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.2%

COHR

-6.1%

US Electronic

-4.1%

US Market


1 Year Return

-36.7%

COHR

-26.3%

US Electronic

-14.9%

US Market

Return vs Industry: COHR underperformed the US Electronic industry which returned -24.9% over the past year.

Return vs Market: COHR underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

COHRIndustryMarket
7 Day-6.2%-6.1%-4.1%
30 Day-28.0%-23.0%-19.1%
90 Day-42.0%-32.2%-23.4%
1 Year-36.7%-36.7%-25.6%-26.3%-13.2%-14.9%
3 Year-51.6%-51.6%-2.8%-5.6%10.7%3.5%
5 Year44.7%44.7%17.3%11.5%28.5%14.5%

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 ($99.75) is trading below our estimate of fair value ($325.81)

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 (99.6x) compared to the Electronic industry average (14.3x).

PE vs Market: COHR is poor value based on its PE Ratio (99.6x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: COHR is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: COHR is overvalued based on its PB Ratio (1.8x) compared to the US Electronic industry average (1.5x).


Next Steps

Future Growth

How is Coherent forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

123.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COHR's forecast earnings growth (123% per year) is above the savings rate (1.7%).

Earnings vs Market: COHR's earnings (123% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: COHR's revenue (13% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: COHR's revenue (13% 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 (13.7%).


Next Steps

Past Performance

How has Coherent performed over the past 5 years?

15.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COHR has a large one-off loss of $23.3M impacting its December 28 2019 financial results.

Growing Profit Margin: COHR's current net profit margins (1.8%) are lower than last year (13.3%).


Past Earnings Growth Analysis

Earnings Trend: COHR's earnings have grown by 15.8% 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 (-90%) over the past year, making it difficult to compare to the Electronic industry average (0.03%).


Return on Equity

High ROE: COHR's Return on Equity (1.8%) is considered low.


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 ($256.4M).

Long Term Liabilities: COHR's short term assets ($1.1B) exceed its long term liabilities ($641.7M).


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 (46%).

Interest Coverage: COHR's interest payments on its debt are well covered by EBIT (3.7x 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

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

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

7.1yrs

Average management tenure


CEO

John Ambroseo (58yo)

17.5s

Tenure

US$4,887,445

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 ($USD4.89M) is about average for companies of similar size in the US market ($USD5.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Ambroseo
President17.5yrsUS$4.89m0.77% $18.0m
Kevin Palatnik
Executive VP & CFO4.17yrsUS$1.74m0.11% $2.6m
Bret DiMarco
Executive VP13.83yrsUS$2.92m0.082% $1.9m
Mark Sobey
Executive VP & GM of OEM Laser Sources10yrsUS$3.16m0.037% $856.6k
Paul Sechrist
0.58yrUS$1.24m0.057% $1.3m
Thomas Merk
Executive VP and GM of Industrial Laser & Systems3.33yrsno data0.020% $469.7k

7.1yrs

Average Tenure

58.5yo

Average Age

Experienced Management: COHR's management team is seasoned and experienced (7.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Ambroseo
President17.5yrsUS$4.89m0.77% $18.0m
Sandeep Vij
Independent Director15.42yrsUS$320.21k0.024% $551.9k
Stephen Skaggs
Independent Director6.33yrsUS$319.21k0.052% $1.2m
Jay Flatley
Independent Director9.25yrsUS$316.71k0.17% $3.9m
Garry Rogerson
Independent Chairman12.83yrsUS$383.71k0.053% $1.2m
Michael McMullen
Independent Director1.58yrsUS$307.71k0.0026% $59.5k
Susan James
Independent Director12.25yrsUS$340.71k0.026% $600.3k
Pamela Fletcher
Independent Director2.83yrsUS$314.58k0.0057% $132.8k
Beverly Matthews
Independent Director0.92yrUS$237.53kno data

9.3yrs

Average Tenure

58yo

Average Age

Experienced Board: COHR's board of directors are considered experienced (9.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: COHR 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

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$2.335b
  • 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
COIBRSE (Berne Stock Exchange)YesCommon StockCHCHFDec 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 in 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 00:25
End of Day Share Price2020/04/02 00:00
Earnings2019/12/28
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.