COO  Cooper Companies Inc. (The)

Exchange

NYSE

Sector

Health Care

Industry

Ophthalmic Goods

Market Cap.

10.64B

Vuru Grade

50.91/100

Current Price

$217.46
-0.86 (-0.39%)

Growth Price

$102.14
Overvalued by 53.03%

Stability Price

$17.02
Overvalued by 92.17%

Company Metrics

  • P/E 35.84
  • P/S 5.30
  • P/B 3.79
  • EPS 6.07
  • Cash ROIC 7.06%
  • Cash Ratio 0.19
  • Dividend 0.06 / 0.03 %
  • Avg. Vol. 380,447.00
  • Shares 48.93M
  • Market Cap. 10.64B

Company Description

The Cooper Companies, Inc., through its subsidiaries, develops, manufactures, and markets healthcare products serving the vision care and women's healthcare markets worldwide. It offers a range of soft contact lenses for the vision care market, such as toric lenses, which correct astigmatism; multifocal lenses for presbyopia; and spherical lenses that correct the common visual defects. The company... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

First Trust Advisors LP Reduces Stake in Cooper Companies Inc (COO)
The Cerbat Gem - 1 hour ago
Cooper Companies logo First Trust Advisors LP lowered its stake in Cooper Companies Inc (NYSE:COO) by 3.1% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC).
Norinchukin Bank The Acquires 224 Shares of Cooper Companies Inc (COO) - Sports Perspectives
Frontier Capital Management Co. LLC Sells 39983 Shares of Cooper Companies Inc ... - Chaffey Breeze
Risk Malaise Alert in Option Market: Cooper Companies Inc (The) Implied Price ...
CML News - May 26, 2017
Before we dive into any analysis we simply note that Cooper Companies Inc (The) (NYSE:COO) risk is actually priced pretty low by the option market as of right now.
Market Focus – Taking a Peek at Shares of The Cooper Companies, Inc. (NYSE:COO)
Baxter Review - 7 hours ago
The Cooper Companies, Inc. (NYSE:COO)'s 12 month volatility is presently 14.906800. The 6 month volatility is seen at 15.297500, and the 3 month is seen at 12.170000.
Price Alert: Cooper Companies Inc (The) (NYSE:COO) Stock Nears Resistance ...
CML News - May 28, 2017
Price Alert: Cooper Companies Inc (The) (NYSE:COO) has now crossed into technical strength -- watch the technical oscillators for momentum gaps.
Bbva Compass Bancshares Inc. Has $392000 Position in Cooper Companies Inc (COO)
BBNS - 28 minutes ago
Cooper Companies logo Bbva Compass Bancshares Inc. lowered its position in shares of Cooper Companies Inc (NYSE:COO) by 1.6% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC).
Zeroing in on Company Shares of The Cooper Companies, Inc. (NYSE:COO) and ... - FLBC News
Analysts Set Cooper Companies Inc (COO) Price Target at $212.50
The Cerbat Gem - May 22, 2017
Cooper Companies logo Shares of Cooper Companies Inc (NYSE:COO) have been given an average rating of “Buy” by the eleven brokerages that are presently covering the company.
Cooper Companies Inc (COO) Stake Boosted by Janney Montgomery Scott LLC
The Cerbat Gem - May 22, 2017
Cooper Companies logo Janney Montgomery Scott LLC boosted its stake in shares of Cooper Companies Inc (NYSE:COO) by 62.6% during the first quarter, according to its most recent filing with the Securities and Exchange Commission.
Cooper Companies Inc (COO) Stake Boosted by State Treasurer State of Michigan
The Cerbat Gem - May 19, 2017
Cooper Companies logo State Treasurer State of Michigan boosted its stake in Cooper Companies Inc (NYSE:COO) by 0.6% during the first quarter, according to its most recent filing with the Securities and Exchange Commission.
Breaking: The Cooper Companies Inc (NYSE:COO) Stock Through Resistance ... - CML News
Cooper Companies Inc. (The) (COO) Moves Higher on Volume Spike for May 19 - Equities.com
HL Financial Services LLC Has $263000 Stake in Cooper Companies Inc (COO)
The Cerbat Gem - May 22, 2017
Cooper Companies logo HL Financial Services LLC raised its stake in Cooper Companies Inc (NYSE:COO) by 10.0% during the first quarter, according to its most recent 13F filing with the SEC.
Cooper Companies Inc (COO) Receives Average Recommendation of “Buy” from Analysts
The Cerbat Gem - May 12, 2017
Cooper Companies logo Shares of Cooper Companies Inc (NYSE:COO) have received an average rating of “Buy” from the twelve analysts that are covering the company.
The Cooper Companies Inc (COO) Shares Bought by Handelsinvest ... - BangaloreWeekly
Large Cap Stock Analysis of: The Cooper Companies, Inc., (COO) from Healthcare ... - The Daily Leicester
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for COO to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate COO's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$217.46 Current Price

$102.14 Growth Price (DCF)

Overvalued by 53.03%


Growth Rate Assumed by Market: 30.10%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$17.02 Stability Price (EPV)

Overvalued by 92.17%


Discount Rate: 15.0%

$116.69 Book Price

Overvalued by 46.34%


Poor Cash Return on Invested Capital over the past 5 years

COO has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

COO has only created $7.06 of cash for every $100 invested.
Figures in USD. Fiscal year ends in October
20122013201420152016
Free Cash Flow 215.34M 237.80M 216.76M 147.95M 357.00M
divided by
Invested Capital 2.67B 2.74B 3.99B 3.88B 3.84B
Cash ROIC 8.08% 8.68% 5.43% 3.82% 9.30%

Satisfactory Return on Equity over the past 5 years

COO has generated adequate returns with capital that shareholders have invested. This is sufficient and implies that management performance has been good.

COO has generated $10.43 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in October
20122013201420152016
Net Income 248.64M 296.91M 271.83M 205.14M 274.93M
divided by
Stockholders' Equity 2.19B 2.40B 2.57B 2.67B 2.70B
Return on Equity 11.34% 12.35% 10.58% 7.69% 10.18%

Good Business Performance over the past 10 years

It's likely COO has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is COO has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

COO has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in October
2007200820092010201120122013201420152016
Free Cash Flow -49.64M -28.36M 129.22M 193.91M 232.62M 215.34M 237.80M 216.76M 147.95M 357.00M

Good Balance Sheet

COO's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in October
2007200820092010201120122013201420152016
Cash 3.23M 1.94M 3.93M 3.57M 5.18M 12.84M 77.39M 25.22M 16.43M 100.82M
Current Assets 517.52M 526.03M 503.88M 491.34M 540.35M 657.86M 747.24M 791.62M 841.82M 934.46M
Total Assets 2.56B 2.59B 2.55B 2.53B 2.62B 2.94B 3.14B 4.46B 4.46B 4.48B
Current Liabilities 286.48M 255.41M 175.41M 199.52M 267.21M 262.55M 321.25M 442.18M 569.17M 536.46M
Total Liabilities 1.14B 1.17B 1.01B 858.24M 687.03M 748.63M 732.73M 1.89B 1.79B 1.78B
Stockholder' Equity 1.42B 1.42B 1.54B 1.67B 1.94B 2.19B 2.40B 2.57B 2.67B 2.70B
Current Ratio 1.81 2.06 2.87 2.46 2.02 2.51 2.33 1.79 1.48 1.74
TL-to-TA 0.44 0.45 0.40 0.34 0.26 0.25 0.23 0.42 0.40 0.40

Consistent Reinvestment of Profits over the past 10 years

COO has consistently retained profits. This may put COO in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, COO can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in October
2007200820092010201120122013201420152016
Retained Earnings 334.13M 402.24M 500.08M 600.52M 773.14M 1.02B 1.31B 1.58B 1.78B 2.05B
Retained Earnings Growth - 20.39% 24.32% 20.09% 28.74% 31.75% 28.79% 20.35% 12.71% 15.23%

Growing Competitive Advantage over the past 10 years

COO has a growing competitive advantage. This could be due to strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at its future prospects to determine sustainability and whether the economic moat will continue to strengthen.

$11.43 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in October
2007200820092010201120122013201420152016
Net Income -11.19M 65.48M 100.55M 112.80M 175.43M 248.64M 296.91M 271.83M 205.14M 274.93M
divided by
Revenue 950.64M 1.06B 1.08B 1.16B 1.33B 1.45B 1.59B 1.72B 1.80B 1.97B
Net Profit Margin -1.18% 6.16% 9.31% 9.74% 13.18% 17.21% 18.70% 15.82% 11.42% 13.98%

Strong Pricing Power over the past 10 years

COO has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$59.75 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in October
2007200820092010201120122013201420152016
Gross Profit 519.53M 610.03M 596.49M 676.72M 804.80M 924.01M 1.03B 1.09B 1.07B 1.17B
divided by
Revenue 950.64M 1.06B 1.08B 1.16B 1.33B 1.45B 1.59B 1.72B 1.80B 1.97B
Gross Margin 54.65% 57.38% 55.21% 58.41% 60.47% 63.94% 64.67% 63.55% 59.56% 59.64%

High Capital Intensity over the past 10 years

COO spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

85.59% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in October
2007200820092010201120122013201420152016
Capital Expenditure 183.63M 124.89M 93.91M 73.76M 103.67M 99.78M 178.13M 238.07M 243.02M 152.64M
divided by
Net Income -11.19M 65.48M 100.55M 112.80M 175.43M 248.64M 296.91M 271.83M 205.14M 274.93M
Capital Expenditure Ratio -1,640.68% 190.73% 93.39% 65.39% 59.09% 40.13% 59.99% 87.58% 118.46% 55.52%

Very Strong Dividend History over the past 10 years

COO has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests COO is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in October
2007200820092010201120122013201420152016
Dividend Paid 2.68M 2.70M 2.71M 2.73M 2.82M 2.86M 2.92M 5.32M 4.02M 2.91M
divided by
Shares Outstanding 44.71M 46.84M 45.48M 46.51M 48.31M 49.15M 49.69M 48.96M 49.18M 49.03M
Dividend Paid Per Share 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.11 0.08 0.06
Price at Year End 37.36 16.40 38.16 56.58 70.49 91.51 124.99 163.79 135.48 174.93
Dividend Yield 0.16% 0.35% 0.16% 0.10% 0.08% 0.06% 0.05% 0.07% 0.06% 0.03%

History of Stock Buybacks over the past 10 years

COO has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in October
2007200820092010201120122013201420152016
Shares Outstanding 44.71M 46.84M 45.48M 46.51M 48.31M 49.15M 49.69M 48.96M 49.18M 49.03M
Stock Bought Back - -4.56% 3.00% -2.21% -3.73% -1.72% -1.07% 1.48% -0.45% 0.31%
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