COOPER COS INC/THE (COO) Stock Fundamental Analysis
NASDAQ:COO - Nasdaq - US2166485019 - Common Stock - Currency: USD
Overall COO gets a fundamental rating of 5 out of 10. We evaluated COO against 189 industry peers in the Health Care Equipment & Supplies industry. COO has an excellent profitability rating, but there are some minor concerns on its financial health. COO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year COO was profitable.
In the past year COO had a positive cash flow from operations.
COO had positive earnings in each of the past 5 years.
COO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.40%, COO is doing good in the industry, outperforming 78.84% of the companies in the same industry.
COO has a Return On Equity of 5.11%. This is in the better half of the industry: COO outperforms 79.89% of its industry peers.
The Return On Invested Capital of COO (4.52%) is better than 76.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for COO is below the industry average of 7.87%.
The last Return On Invested Capital (4.52%) for COO is above the 3 year average (3.86%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 5.11% | ||
| ROIC | 4.52% |
ROA(3y)3.02%
ROA(5y)8.65%
ROE(3y)4.71%
ROE(5y)12.56%
ROIC(3y)3.86%
ROIC(5y)3.93%
1.3 Margins
COO's Profit Margin of 10.57% is amongst the best of the industry. COO outperforms 85.19% of its industry peers.
In the last couple of years the Profit Margin of COO has declined.
With an excellent Operating Margin value of 18.70%, COO belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
In the last couple of years the Operating Margin of COO has declined.
With a decent Gross Margin value of 67.00%, COO is doing good in the industry, outperforming 72.49% of the companies in the same industry.
In the last couple of years the Gross Margin of COO has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.7% | ||
| PM (TTM) | 10.57% | ||
| GM | 67% |
OM growth 3Y0.82%
OM growth 5Y-2.83%
PM growth 3Y-53.59%
PM growth 5Y-10.55%
GM growth 3Y-0.14%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so COO is destroying value.
Compared to 1 year ago, COO has more shares outstanding
COO has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, COO has an improved debt to assets ratio.
2.2 Solvency
COO has an Altman-Z score of 3.86. This indicates that COO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.86, COO is in the better half of the industry, outperforming 75.66% of the companies in the same industry.
The Debt to FCF ratio of COO is 6.60, which is on the high side as it means it would take COO, 6.60 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 6.60, COO is doing good in the industry, outperforming 77.78% of the companies in the same industry.
COO has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.31, COO is in line with its industry, outperforming 49.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 6.6 | ||
| Altman-Z | 3.86 |
ROIC/WACC0.54
WACC8.35%
2.3 Liquidity
COO has a Current Ratio of 1.99. This is a normal value and indicates that COO is financially healthy and should not expect problems in meeting its short term obligations.
COO has a Current ratio of 1.99. This is in the lower half of the industry: COO underperforms 67.20% of its industry peers.
COO has a Quick Ratio of 1.14. This is a normal value and indicates that COO is financially healthy and should not expect problems in meeting its short term obligations.
COO's Quick ratio of 1.14 is on the low side compared to the rest of the industry. COO is outperformed by 72.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
COO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.38%, which is quite good.
Measured over the past 5 years, COO shows a small growth in Earnings Per Share. The EPS has been growing by 3.69% on average per year.
The Revenue has been growing slightly by 7.15% in the past year.
Measured over the past years, COO shows a small growth in Revenue. The Revenue has been growing by 7.98% on average per year.
EPS 1Y (TTM)13.38%
EPS 3Y3.78%
EPS 5Y3.69%
EPS Q2Q%8.24%
Revenue 1Y (TTM)7.15%
Revenue growth 3Y10.05%
Revenue growth 5Y7.98%
Sales Q2Q%3.55%
3.2 Future
The Earnings Per Share is expected to grow by 8.90% on average over the next years. This is quite good.
Based on estimates for the next years, COO will show a small growth in Revenue. The Revenue will grow by 6.03% on average per year.
EPS Next Y8.81%
EPS Next 2Y9.96%
EPS Next 3Y10.37%
EPS Next 5Y8.9%
Revenue Next Year5.45%
Revenue Next 2Y6.01%
Revenue Next 3Y6.2%
Revenue Next 5Y6.03%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 21.62 indicates a rather expensive valuation of COO.
Compared to the rest of the industry, the Price/Earnings ratio of COO indicates a rather cheap valuation: COO is cheaper than 80.42% of the companies listed in the same industry.
COO is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.22, which indicates a rather expensive current valuation of COO.
Based on the Price/Forward Earnings ratio, COO is valued a bit cheaper than the industry average as 78.84% of the companies are valued more expensively.
COO is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 18.22 |
4.2 Price Multiples
78.31% of the companies in the same industry are more expensive than COO, based on the Enterprise Value to EBITDA ratio.
75.66% of the companies in the same industry are more expensive than COO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.37 | ||
| EV/EBITDA | 17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
COO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.45
PEG (5Y)5.87
EPS Next 2Y9.96%
EPS Next 3Y10.37%
5. Dividend
5.1 Amount
With a yearly dividend of 0.02%, COO is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.82, COO pays a better dividend. On top of this COO pays more dividend than 89.95% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, COO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
5.2 History
COO has been paying a dividend for at least 10 years, so it has a reliable track record.
COO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years15
5.3 Sustainability
DP0%
EPS Next 2Y9.96%
EPS Next 3Y10.37%
81.5
-0.41 (-0.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners100.1%
Inst Owner Change0.61%
Ins Owners0.55%
Ins Owner Change12.84%
Market Cap16.30B
Analysts79.17
Price Target108.76 (33.45%)
Short Float %2.37%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.02% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.45%
Min EPS beat(2)-0.21%
Max EPS beat(2)3.11%
EPS beat(4)3
Avg EPS beat(4)2.24%
Min EPS beat(4)-0.21%
Max EPS beat(4)4.45%
EPS beat(8)5
Avg EPS beat(8)1.9%
EPS beat(12)6
Avg EPS beat(12)0.07%
EPS beat(16)9
Avg EPS beat(16)0.72%
Revenue beat(2)0
Avg Revenue beat(2)-2.07%
Min Revenue beat(2)-2.35%
Max Revenue beat(2)-1.79%
Revenue beat(4)0
Avg Revenue beat(4)-1.53%
Min Revenue beat(4)-2.35%
Max Revenue beat(4)-0.42%
Revenue beat(8)3
Avg Revenue beat(8)-0.43%
Revenue beat(12)7
Avg Revenue beat(12)-0.07%
Revenue beat(16)11
Avg Revenue beat(16)0.72%
PT rev (1m)-1.71%
PT rev (3m)-5.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.61%
EPS NY rev (1m)0%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 18.22 | ||
| P/S | 4.15 | ||
| P/FCF | 42.37 | ||
| P/OCF | 20.97 | ||
| P/B | 2.01 | ||
| P/tB | 6.28 | ||
| EV/EBITDA | 17 |
EPS(TTM)3.77
EY4.63%
EPS(NY)4.47
Fwd EY5.49%
FCF(TTM)1.92
FCFY2.36%
OCF(TTM)3.89
OCFY4.77%
SpS19.64
BVpS40.64
TBVpS12.98
PEG (NY)2.45
PEG (5Y)5.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.4% | ||
| ROE | 5.11% | ||
| ROCE | 6.55% | ||
| ROIC | 4.52% | ||
| ROICexc | 4.56% | ||
| ROICexgc | 9.03% | ||
| OM | 18.7% | ||
| PM (TTM) | 10.57% | ||
| GM | 67% | ||
| FCFM | 9.79% |
ROA(3y)3.02%
ROA(5y)8.65%
ROE(3y)4.71%
ROE(5y)12.56%
ROIC(3y)3.86%
ROIC(5y)3.93%
ROICexc(3y)3.91%
ROICexc(5y)3.98%
ROICexgc(3y)7.96%
ROICexgc(5y)8.62%
ROCE(3y)5.65%
ROCE(5y)5.73%
ROICexcg growth 3Y7.03%
ROICexcg growth 5Y-21.56%
ROICexc growth 3Y2.56%
ROICexc growth 5Y-10.24%
OM growth 3Y0.82%
OM growth 5Y-2.83%
PM growth 3Y-53.59%
PM growth 5Y-10.55%
GM growth 3Y-0.14%
GM growth 5Y0.13%
F-Score8
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 6.6 | ||
| Debt/EBITDA | 2.3 | ||
| Cap/Depr | 106.28% | ||
| Cap/Sales | 9.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 70.4% | ||
| Profit Quality | 92.61% | ||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 3.86 |
F-Score8
WACC8.35%
ROIC/WACC0.54
Cap/Depr(3y)96.32%
Cap/Depr(5y)93.28%
Cap/Sales(3y)9.68%
Cap/Sales(5y)9.83%
Profit Quality(3y)87.75%
Profit Quality(5y)70.99%
High Growth Momentum
Growth
EPS 1Y (TTM)13.38%
EPS 3Y3.78%
EPS 5Y3.69%
EPS Q2Q%8.24%
EPS Next Y8.81%
EPS Next 2Y9.96%
EPS Next 3Y10.37%
EPS Next 5Y8.9%
Revenue 1Y (TTM)7.15%
Revenue growth 3Y10.05%
Revenue growth 5Y7.98%
Sales Q2Q%3.55%
Revenue Next Year5.45%
Revenue Next 2Y6.01%
Revenue Next 3Y6.2%
Revenue Next 5Y6.03%
EBIT growth 1Y26.29%
EBIT growth 3Y10.95%
EBIT growth 5Y4.93%
EBIT Next Year27.65%
EBIT Next 3Y15.54%
EBIT Next 5Y12.69%
FCF growth 1Y-9.5%
FCF growth 3Y-18.09%
FCF growth 5Y-7.31%
OCF growth 1Y12.15%
OCF growth 3Y-1.34%
OCF growth 5Y-0.11%