The Cooper Companies
COO
$76.22
+0.08%
The Cooper Companies, Inc. is a global medical device company operating through two segments: CooperVision, a leading contact lens manufacturer, and CooperSurgical, a provider of fertility and women's health products. With roughly a quarter of the U.S. contact lens market and a strong specialty lens portfolio, Cooper is a key player in the eyecare industry, while CooperSurgical holds a 17% share of the U.S. IUD market with its Paragard product. The company is currently navigating a period of mixed financial performance, with recent quarterly results showing a net loss due to one-time charges, while investors focus on its growth potential in contact lenses and fertility, as well as its valuation relative to historical levels.…
COO
The Cooper Companies
$76.22
Related headlines
Investment Opinion: Should I buy COO Today?
Based on the analysis, COO is rated a 'Buy' with a thesis that the company's strong revenue growth, high gross margins, and positive free cash flow will drive earnings recovery, supported by a reasonable forward PE of 15.26. The analyst consensus is 'Buy' with an average target of $81.50, implying 6.9% upside. Key supporting evidence includes 7.9% YoY revenue growth, 68% gross margin, $569.5M TTM free cash flow, and a forward PE below the market average. However, the recent net loss and negative operating income are significant risks. This 'Buy' rating would be downgraded to 'Hold' if revenue growth decelerates below 5% or if gross margins fall below 65%, and upgraded to 'Strong Buy' if the company returns to profitability with operating margins above 15%. Overall, the stock appears fairly valued relative to its growth prospects, but investors should monitor margin recovery closely.
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COO 12-Month Price Forecast
The AI assessment is neutral with medium confidence. COO's fundamentals are mixed: strong revenue growth and high gross margins are offset by a recent net loss and operational challenges. The forward valuation is attractive, but the earnings recovery is not guaranteed. The stance would be upgraded to bullish if the company reports a return to profitability with operating margins above 15% and revenue growth accelerates. It would be downgraded to bearish if the next quarter shows continued losses or margin deterioration.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on The Cooper Companies's 12-month outlook, with a consensus price target around $81.50 and implied upside of +6.9% versus the current price.
Average Target
$81.50
0 analysts
Implied Upside
+6.9%
vs. current price
Analyst Count
—
covering this stock
Price Range
$66 - $92
Analyst target range
Analyst coverage is robust with 14 analysts, and the consensus recommendation is 'Buy' (mean rating of 2.0, where 1 is Strong Buy and 5 is Sell). The average target price is $81.50, implying an upside of 6.9% from the current price of $76.22. The distribution includes 7 Buy/Outperform ratings, 4 Neutral/Equal Weight, and 3 Sell/Underperform, indicating a moderately bullish sentiment. The low target of $66.00 suggests a downside of -13.4%, while the high target of $92.00 implies an upside of 20.7%. The wide range of $26 (from $66 to $92) reflects high uncertainty about the company's near-term earnings recovery and the impact of one-time charges. Recent ratings have been mostly reaffirmed, with no major downgrades, suggesting analysts are waiting for clearer signs of margin improvement.
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Bulls vs Bears: COO Investment Factors
COO presents a mixed picture: strong revenue growth and high gross margins are offset by a recent net loss and operational challenges. The bull case rests on the company's market leadership, robust cash flow, and attractive forward valuation, while the bear case highlights earnings volatility, underperformance vs. the market, and valuation concerns. Currently, the evidence slightly favors the bull case, as the forward PE is reasonable and analysts remain optimistic. The key tension is whether the Q2 loss is a one-time event or a sign of deeper operational issues; if margins recover, the stock could re-rate higher, but if losses persist, the stock may face further downside.
Bullish
- Strong Revenue Growth: Q2 2026 revenue grew 7.9% YoY to $1.0815B, with consistent growth across recent quarters (Q1 2026: $1.024B). This demonstrates sustained demand for contact lenses and surgical products.
- High Gross Margin: Gross margin remained robust at 68.0% in Q2 2026, slightly above Q1's 67.9%. This indicates strong pricing power and cost control, providing a solid foundation for profitability recovery.
- Positive Free Cash Flow: Trailing twelve-month free cash flow is $569.5M, showing the company generates substantial cash despite the recent net loss. This supports ongoing operations and potential investments.
- Attractive Forward Valuation: Forward PE of 15.26 suggests the market expects earnings to recover strongly. This is reasonable for a medical device company with a leading market position and growth prospects.
Bearish
- Recent Net Loss: Q2 2026 reported a net loss of -$77.9M, a sharp swing from Q1's $130.8M profit, due to one-time charges and negative operating income. This raises concerns about earnings stability.
- Negative Operating Income: Operating income was -$31M in Q2 2026, with operating margin at -2.9%. This is a significant deterioration from Q1's 20.8% operating margin, indicating operational challenges.
- High Valuation vs. History: PS ratio of 3.42 is below historical averages (e.g., 20.1 in Q1 2025), but still at a premium to typical medical device companies. The stock may be priced for perfection.
- Underperformance vs. Market: COO has underperformed the S&P 500 over the past year (4.35% vs. 20.48% for SPY). Relative strength is negative on 1-year, 6-month, and YTD bases, indicating persistent weakness.
COO Technical Analysis
The stock is currently in a recovery phase after a significant decline. Over the past year, COO has gained 4.35%, but this masks a volatile trajectory: it fell from a 52-week high of $89.83 to a low of $58.89, a drawdown of 30.05%. As of the latest close, the stock trades at $76.22, which is 84.8% of the 52-week range (calculated as (76.22-58.89)/(89.83-58.89)). This positioning suggests the stock is recovering from oversold conditions but still below its highs, indicating potential for further upside if momentum continues.
Beta
0.82
0.82x market volatility
Max Drawdown
-30.1%
Largest decline past year
52-Week Range
$59-$90
Price range past year
Annual Return
+4.4%
Cumulative gain past year
| Period | COO Return | S&P 500 |
|---|---|---|
| 1m | +8.1% | +3.6% |
| 3m | +21.9% | +2.7% |
| 6m | -9.3% | +11.4% |
| 1y | +4.4% | +18.7% |
| ytd | -6.0% | +12.3% |
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COO Fundamental Analysis
Revenue has shown steady growth, with the most recent quarter (Q2 2026, ended April 30, 2026) reporting $1.0815 billion, up 7.9% year-over-year. This growth is consistent with the prior quarter's revenue of $1.024 billion (Q1 2026) and reflects continued demand for contact lenses and surgical products. However, the company reported a net loss of -$77.9 million in Q2 2026, a sharp swing from the $130.8 million net income in Q1 2026, primarily due to a one-time charge (other expenses of $47.7 million) and a negative operating income of -$31 million. Gross margin remains robust at 68.0% (Q2 2026), slightly above the 67.9% in Q1, indicating stable pricing power. The company's profitability is under pressure in the short term, but the underlying business remains profitable on an adjusted basis, as seen in the trailing twelve-month free cash flow of $569.5 million.
Quarterly Revenue
$1.1B
2026-04
Revenue YoY Growth
+7.9%
YoY Comparison
Gross Margin
68.0%
Latest Quarter
Free Cash Flow
$569500000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is COO Overvalued?
Given the negative trailing net income, the price-to-sales (PS) ratio is the most appropriate valuation metric. The current PS ratio is 3.42, which is below the historical average of around 15-20 seen in earlier quarters (e.g., 20.1 in Q1 2025). This suggests the stock is trading at a significant discount to its own historical valuation, reflecting the recent earnings miss and market pessimism. The forward PE of 15.26 indicates that the market expects earnings to recover strongly, as the trailing PE is not meaningful due to the loss. Compared to the industry average (not provided), the PS ratio of 3.42 is likely at a premium to typical medical device companies, but the company's strong gross margins and market position may justify this. The PEG ratio is negative due to negative earnings growth, making it unreliable.
PE
37.2x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 2x~57x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
15.8x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks: COO's recent net loss of -$77.9M in Q2 2026, driven by a -$31M operating loss and $47.7M in other expenses, highlights earnings volatility. The company's debt-to-equity ratio is 0.34, which is manageable, but interest expenses of $20.9M in Q2 add to fixed costs. Revenue concentration in contact lenses (CooperVision) and surgical products (CooperSurgical) exposes the company to segment-specific risks, such as competition and regulatory changes. The negative operating margin of -2.9% in Q2, versus 20.8% in Q1, underscores the risk of margin compression if operational issues persist.