COO  Cooper Companies Inc. (The)

Exchange

NYSE

Sector

Health Care

Industry

Ophthalmic Goods

Market Cap.

11.72B

Vuru Grade

57.42/100

Current Price

$239.40
-0.86 (-0.36%)

Growth Price

$156.00
Overvalued by 34.84%

Stability Price

$28.60
Overvalued by 88.05%

Company Metrics

  • P/E 34.33
  • P/S 5.61
  • P/B 3.8
  • EPS 6.97
  • Cash ROIC 7.58%
  • Cash Ratio 0.22
  • Dividend 0.06 / 0.02%
  • Avg. Vol. 466,165.00
  • Shares 48.96M
  • Market Cap. 11.72B

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

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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.

$239.40 Current Price

$156.00 Growth Price (DCF)

Overvalued by 34.84%


Growth Rate Assumed by Market: 25.52%


Future Free Cash Flow Growth Rate: 9.9%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$28.60 Stability Price (EPV)

Overvalued by 88.05%


Discount Rate: 15.0%

$143.26 Book Price

Overvalued by 40.16%


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 $7.58 of cash for every $100 invested.
Figures in USD. Fiscal year ends in October
20132014201520162017
Free Cash Flow 237.80M 216.76M 147.95M 357.00M 466.40M
divided by
Invested Capital 2.74B 3.99B 3.88B 3.84B 4.37B
Cash ROIC 8.68% 5.43% 3.82% 9.30% 10.66%

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 $10.51 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in October
20132014201520162017
Net Income 296.91M 271.83M 205.14M 274.93M 372.90M
divided by
Stockholders' Equity 2.40B 2.57B 2.67B 2.70B 3.18B
Return on Equity 12.35% 10.58% 7.69% 10.18% 11.74%

Excellent Business Performance over the past 10 years

COO has been able to maintain profitability in good times and bad. This could mean COO has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

COO has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in October
2008200920102011201220132014201520162017
Free Cash Flow -28.36M 129.22M 193.91M 232.62M 215.34M 237.80M 216.76M 147.95M 357.00M 466.40M

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
2008200920102011201220132014201520162017
Cash 1.94M 3.93M 3.57M 5.18M 12.84M 77.39M 25.22M 16.43M 100.82M 88.80M
Current Assets 526.03M 503.88M 491.34M 540.35M 657.86M 747.24M 791.62M 841.82M 934.46M 953.20M
Total Assets 2.59B 2.55B 2.53B 2.62B 2.94B 3.14B 4.46B 4.46B 4.48B 4.86B
Current Liabilities 255.41M 175.41M 199.52M 267.21M 262.55M 321.25M 442.18M 569.17M 536.46M 396.10M
Total Liabilities 1.17B 1.01B 858.24M 687.03M 748.63M 732.73M 1.89B 1.79B 1.78B 1.68B
Stockholder' Equity 1.42B 1.54B 1.67B 1.94B 2.19B 2.40B 2.57B 2.67B 2.70B 3.18B
Current Ratio 2.06 2.87 2.46 2.02 2.51 2.33 1.79 1.48 1.74 2.41
TL-to-TA 0.45 0.40 0.34 0.26 0.25 0.23 0.42 0.40 0.40 0.35

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
2008200920102011201220132014201520162017
Retained Earnings 402.24M 500.08M 600.52M 773.14M 1.02B 1.31B 1.58B 1.78B 2.05B 2.43B
Retained Earnings Growth - 24.32% 20.09% 28.74% 31.75% 28.79% 20.35% 12.71% 15.23% 18.72%

Potential Competitive Advantage over the past 10 years

COO potentially has a competitive advantage. This could be 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 strengthen.

$13.29 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in October
2008200920102011201220132014201520162017
Net Income 65.48M 100.55M 112.80M 175.43M 248.64M 296.91M 271.83M 205.14M 274.93M 372.90M
divided by
Revenue 1.06B 1.08B 1.16B 1.33B 1.45B 1.59B 1.72B 1.80B 1.97B 2.14B
Net Profit Margin 6.16% 9.31% 9.74% 13.18% 17.21% 18.70% 15.82% 11.42% 13.98% 17.43%

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.

$60.67 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
2008200920102011201220132014201520162017
Gross Profit 610.03M 596.49M 676.72M 804.80M 924.01M 1.03B 1.09B 1.07B 1.17B 1.37B
divided by
Revenue 1.06B 1.08B 1.16B 1.33B 1.45B 1.59B 1.72B 1.80B 1.97B 2.14B
Gross Margin 57.38% 55.21% 58.41% 60.47% 63.94% 64.67% 63.55% 59.56% 59.64% 63.85%

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.

80.44% 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
2008200920102011201220132014201520162017
Capital Expenditure 124.89M 93.91M 73.76M 103.67M 99.78M 178.13M 238.07M 243.02M 152.64M 127.20M
divided by
Net Income 65.48M 100.55M 112.80M 175.43M 248.64M 296.91M 271.83M 205.14M 274.93M 372.90M
Capital Expenditure Ratio 190.73% 93.39% 65.39% 59.09% 40.13% 59.99% 87.58% 118.46% 55.52% 34.11%

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
2008200920102011201220132014201520162017
Dividend Paid 2.70M 2.71M 2.73M 2.82M 2.86M 2.92M 5.32M 4.02M 2.91M 2.90M
divided by
Shares Outstanding 46.84M 45.48M 46.51M 48.31M 49.15M 49.69M 48.96M 49.18M 49.03M 49.60M
Dividend Paid Per Share 0.06 0.06 0.06 0.06 0.06 0.06 0.11 0.08 0.06 0.06
Price at Year End 16.40 38.16 56.58 70.49 91.51 124.99 163.79 135.48 174.93 207.59
Dividend Yield 0.35% 0.16% 0.10% 0.08% 0.06% 0.05% 0.07% 0.06% 0.03% 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
2008200920102011201220132014201520162017
Shares Outstanding 46.84M 45.48M 46.51M 48.31M 49.15M 49.69M 48.96M 49.18M 49.03M 49.60M
Stock Bought Back - 3.00% -2.21% -3.73% -1.72% -1.07% 1.48% -0.45% 0.31% -1.16%
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