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1. Company Snapshot

1.a. Company Description

The Cooper Companies, Inc., together with its subsidiaries, develops, manufactures, and markets contact lens wearers.The company operates in two segments, CooperVision and CooperSurgical.The CooperVision segment offers spherical lense, including lenses that correct near and farsightedness; and toric and multifocal lenses comprising lenses correcting vision challenges, such as astigmatism, presbyopia, myopia, ocular dryness and eye fatigues in the Americas, Europe, Middle East, Africa, and Asia Pacific.


The CooperSurgical segment focuses on family and women's health care, which provides medical devices, fertility, genomics, diagnostics, and contraception to health care professionals and patients worldwide.It offers surgical and office products, including PARAGARD, uterine manipulators, retractors, closure products, point of care products, LEEP products, endosee, and illuminate and fetal pillows; fertility products and services, such as fertility consumables and equipment, and embryo options and preimplantation genetic testing.The Cooper Companies, Inc.


was founded in 1958 and is headquartered in San Ramon, California.

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1.b. Last Insights on COO

The Cooper Companies' recent performance is driven by several positive factors. The company's Q3 earnings beat estimates, with a $1.1 per share earnings, surpassing the Zacks Consensus Estimate of $1.07 per share. Its premium lens strategy, particularly MiSight myopia leadership, and fertility portfolio are expected to fuel long-term growth. Additionally, the company has a solid balance sheet and recently expanded its share repurchase program by $1 billion, a move that will likely boost shareholder value. Insider buying and positive trading momentum also support the stock.

1.c. Company Highlights

2. The Cooper Companies' Q3 2025 Earnings: A Strong Performance

The Cooper Companies reported consolidated revenues of $1.06 billion, up 5.7% year over year, with CooperVision (CVI) revenues growing 6.3% to $718 million and CooperSurgical (CSI) revenues growing 4.5% to $342 million. Non-GAAP earnings per share (EPS) rose 15% to $1.1, beating estimates of $1.07. Free cash flow was strong at $165 million, and the company repurchased $52 million of its stock during the quarter.

Publication Date: Aug -29

📋 Highlights
  • Revenue Growth:: Consolidated revenues rose 5.7% YoY to $1.06B, driven by 6.3% growth in CooperVision ($718M) and 4.5% in CooperSurgical ($342M).
  • Non-GAAP EPS & Free Cash Flow:: Non-GAAP EPS increased 15% to $1.10; free cash flow reached $165M, with $52M in stock repurchases.
  • MyDay Momentum:: CooperVision’s MyDay grew double digits, offsetting Clarity and Asia Pac e-commerce weakness, targeting $100M+ revenue in 2025.
  • Strategic Guidance:: 2-4% Q4 organic growth expected, with $2B in free cash flow over three years to fund growth, debt reduction, and buybacks.
  • Product Transition Dynamics:: Clarity’s demand dipped as optometrists shifted to MyDay; Asia Pac repositioning and pricing adjustments aim to stabilize growth.

Segment Performance

CVI's revenue growth was driven by its flagship product, MyDay, which grew double digits. However, this growth was offset by weakness in Clarity and the pure play e-commerce segment in Asia Pac. CSI's revenue growth was driven by strength in genomics and consumables, as well as its labor and delivery portfolio.

Guidance and Outlook

The company guided to 2% to 4% organic growth in Q4 and expects to outpace the contact lens market in fiscal 2026, driven by its strong product portfolio and operational excellence. As Al White noted, "I'm confident about MyDay's success, and it's a question of timing rather than if it will happen." The company also expects to generate approximately $2 billion in free cash flow over the next three fiscal years.

Valuation

With a P/E Ratio of 32.34, P/B Ratio of 1.58, and P/S Ratio of 3.24, the stock appears to be reasonably valued. The EV/EBITDA ratio of 19.05 suggests that the company's enterprise value is roughly 19 times its EBITDA. The company's ROE of 4.97% and ROIC of 4.28% indicate a moderate level of profitability. The Net Debt / EBITDA ratio of 2.9 suggests that the company has a manageable level of debt.

Growth Prospects

The company's growth prospects appear to be driven by the success of MyDay and the expected rebound in the fertility market. With new private label agreements and a focus on innovation, the company is well-positioned to drive growth in fiscal 2026. Analysts estimate revenue growth of 6.1% next year, which is slightly above the company's current guidance.

3. NewsRoom

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The Cooper Companies (COO) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Dec -05

Source: zacks.com

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The Cooper Companies (COO) Q4 Earnings and Revenues Surpass Estimates

Dec -04

Source: zacks.com

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Cooper Companies initiates strategic review; shares jump

Dec -04

Source: reuters.com

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CooperCompanies Announces New Chair of the Board and Strategic Review

Dec -04

Source: globenewswire.com

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CooperCompanies Announces Fourth Quarter and Full Year 2025 Results

Dec -04

Source: globenewswire.com

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Cooper Companies Likely To Report Higher Q4 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

Dec -04

Source: benzinga.com

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First Look: Insurers, Auto Rules, AI and Fed Jitters

Dec -04

Source: gurufocus.com

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Cooper Companies to Post Q4 Earnings: What's in Store for the Stock?

Dec -03

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

CooperVision

Expected Growth: 6.0%

CooperVision's 6.0% growth is driven by increasing demand for silicone hydrogel contact lenses, expansion in emerging markets, and strategic investments in digital marketing and e-commerce platforms. Additionally, the company's focus on innovative products, such as daily disposable lenses, and its strong relationships with eye care professionals contribute to its growth momentum.

CooperSurgical

Expected Growth: 6.0%

CooperSurgical's 6.0% growth driven by increasing demand for women's healthcare and fertility treatments, expansion in emerging markets, and strategic acquisitions. Additionally, investments in product innovation and digitalization are enhancing customer experience, contributing to revenue growth.

7. Detailed Products

Clariti 1-Day

Daily disposable contact lenses designed for comfort and clarity

Clariti 1-Month

Monthly disposable contact lenses for clear and comfortable vision

Biofinity

Monthly disposable contact lenses for astigmatism and presbyopia

Avaira

Two-weekly disposable contact lenses for comfort and clarity

Paragon CRT

Orthokeratology (OK) lenses for overnight wear to correct vision

Syringeal IOL

Intraocular lenses for cataract surgery

Clariti 1-Day Toric

Daily disposable contact lenses for astigmatism

8. The Cooper Companies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for The Cooper Companies, Inc. is medium due to the presence of alternative products and services in the medical device industry.

Bargaining Power Of Customers

The bargaining power of customers for The Cooper Companies, Inc. is low due to the company's strong brand reputation and diversified product portfolio.

Bargaining Power Of Suppliers

The bargaining power of suppliers for The Cooper Companies, Inc. is medium due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some bargaining power.

Threat Of New Entrants

The threat of new entrants for The Cooper Companies, Inc. is low due to the high barriers to entry in the medical device industry, including regulatory hurdles and high research and development costs.

Intensity Of Rivalry

The intensity of rivalry for The Cooper Companies, Inc. is high due to the presence of several established competitors in the medical device industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.39%
Debt Cost 5.75%
Equity Weight 74.61%
Equity Cost 8.81%
WACC 8.03%
Leverage 34.02%

11. Quality Control: The Cooper Companies, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Merit Medical Systems

A-Score: 4.4/10

Value: 2.6

Growth: 7.3

Quality: 6.5

Yield: 0.0

Momentum: 2.5

Volatility: 7.7

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DENTSPLY SIRONA

A-Score: 4.0/10

Value: 7.7

Growth: 1.4

Quality: 3.1

Yield: 6.0

Momentum: 0.0

Volatility: 5.7

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Teleflex

A-Score: 3.6/10

Value: 4.7

Growth: 3.4

Quality: 5.4

Yield: 1.0

Momentum: 0.5

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Repligen

A-Score: 3.0/10

Value: 0.2

Growth: 5.0

Quality: 3.9

Yield: 0.0

Momentum: 5.0

Volatility: 3.7

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Cooper

A-Score: 2.9/10

Value: 2.9

Growth: 1.2

Quality: 5.9

Yield: 0.0

Momentum: 1.0

Volatility: 6.3

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Azenta

A-Score: 2.8/10

Value: 5.1

Growth: 2.6

Quality: 4.2

Yield: 0.0

Momentum: 1.5

Volatility: 3.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

81.4$

Current Price

81.4$

Potential

-0.00%

Expected Cash-Flows