Cochlear (COH) AI Stock Analysis

• Market Cap: $19.17B
• Dividend Yield: 1.47%
• Average Volume (3M): 154.22K
• Price to Earnings (P/E): 49.3
• Beta (1Y): 0.53
• Revenue Growth: 4.32%
• EPS Growth: 9.24%
• Country: AU
• Employees: 4,996
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 2.84
• Shares Outstanding: 65,398,890
• 10 Day Avg. Volume: 135,899
• 30 Day Avg. Volume: 154,223
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 8.34
• Enterprise Value/Gross Profit: 11.29
• Enterprise Value/Ebitda: 32.23
• 1Y Price Target: $313.45
• Price Target Upside: 6.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 70 Outperform
• Price Target: AU$333.00 ▲(13.57% Upside)

Cochlear's overall stock score reflects strong financial performance and strategic product launches, tempered by technical indicators suggesting short-term bearish momentum and valuation concerns. The company's commitment to innovation and growth in emerging markets supports a positive long-term outlook, despite current profitability challenges.

Cochlear Business Overview & Revenue Model

Company Description

Cochlear Limited provides implantable hearing solutions for children and adults worldwide. It offers cochlear implant systems, sound processor upgrades, bone conduction systems, accessories, and other products. The company was founded in 1981 and is headquartered in Sydney, Australia.

How the Company Makes Money

Cochlear Limited generates revenue primarily through the sale of its implantable hearing devices and related accessories. The company's key revenue streams include the initial sale of implant systems to healthcare providers and hospitals, ongoing sales of sound processors and upgrades to existing customers, and the provision of support and maintenance services. Cochlear also benefits from strategic partnerships with healthcare professionals, research institutions, and government bodies to enhance its product offerings and expand market reach. Additionally, Cochlear invests in research and development to maintain its competitive edge in the hearing solutions market, which contributes to its sustained revenue growth.

Cochlear Financial Statement Overview

Summary

Cochlear exhibits strong financial health with robust revenue growth and profitability metrics. The balance sheet is solid with low leverage, and while cash flow performance has room for improvement, the company remains financially stable. Continued focus on cash flow management will be crucial for sustaining growth and operational efficiency.

Income Statement

Cochlear has demonstrated strong revenue growth with a 14.4% increase in the latest year. The company maintains healthy profitability with a gross profit margin of 73.7% and a net profit margin of 16.6%. EBIT and EBITDA margins are also robust at 22.6% and 26.5%, respectively. These metrics indicate efficient operations and strong market positioning in the medical devices industry.

Balance Sheet

The balance sheet reflects a solid financial structure with a low debt-to-equity ratio of 0.12, indicating conservative leverage. Return on equity is strong at 19.9%, showcasing effective use of shareholder funds. The equity ratio is healthy, suggesting a stable asset base. Overall, the company is well-capitalized with manageable debt levels.

Cash Flow

Cochlear's cash flow performance is mixed, with a significant decline in free cash flow growth by 49.5%. However, the operating cash flow to net income ratio is reasonable at 0.39, and the free cash flow to net income ratio is 0.57, indicating decent cash generation relative to earnings. The company needs to improve free cash flow generation to enhance financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.36B	2.34B	2.24B	1.94B	1.64B	1.49B
Gross Profit	1.74B	1.73B	1.67B	1.47B	1.23B	1.08B
EBITDA	610.20M	619.90M	579.50M	487.10M	475.40M	451.90M
Net Income	388.90M	388.90M	356.80M	300.60M	289.10M	326.50M
Balance Sheet
Total Assets	2.83B	2.83B	2.75B	2.57B	2.47B	2.43B
Cash, Cash Equivalents and Short-Term Investments	275.70M	275.70M	513.60M	555.50M	629.30M	609.60M
Total Debt	235.70M	235.70M	243.70M	201.80M	253.90M	264.30M
Total Liabilities	874.70M	874.70M	904.60M	819.90M	779.40M	736.50M
Stockholders Equity	1.95B	1.95B	1.84B	1.75B	1.69B	1.69B
Cash Flow
Free Cash Flow	175.20M	135.00M	299.00M	266.50M	299.30M	198.70M
Operating Cash Flow	237.60M	237.60M	388.80M	362.40M	376.50M	265.40M
Investing Cash Flow	-115.20M	-115.20M	-105.70M	-125.70M	-138.90M	279.90M
Financing Cash Flow	-366.90M	-366.90M	-323.80M	-310.40M	-220.70M	-495.10M

Cochlear Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 293.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:COH, the sentiment is Negative. The current price of 293.2 is below the 20-day moving average (MA) of 297.24, below the 50-day MA of 303.08, and above the 200-day MA of 285.23, indicating a neutral trend. The MACD of -1.75 indicates Positive momentum. The RSI at 40.80 is Neutral, neither overbought nor oversold. The STOCH value of 10.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:COH.

Cochlear Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COH	70 Outperform	$19.17B	49.34	20.11%	1.47%	4.32%	9.24%
PNV	65 Neutral	1.08B	82.20	15.87%	―	23.31%	151.32%
ARX	63 Neutral	231.17M	-66.34	-4.10%	―	20.36%	64.81%
4DX	52 Neutral	826.57M	-11.89	0.00%	―	55.91%	-52.84%
EMV	46 Neutral	181.30M	-18.48	0.00%	―	0.00%	-257.32%
CYC	42 Neutral	97.80M	-7.28	-30.89%	―	34.20%	-23.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Cochlear Corporate Events

Cochlear Limited Announces Issuance of New Securities

Cochlear Limited has announced the issuance of 791 ordinary fully paid securities, effective September 5, 2025. This move reflects the company’s ongoing efforts to manage its equity structure and potentially enhance its financial flexibility, which could impact its market positioning and stakeholder interests.

The most recent analyst rating on (AU:COH) stock is a Hold with a A$328.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Cochlear Limited Announces Director’s Change in Securities Holdings

Cochlear Limited has announced a change in the interests of its director, Diggory William Howitt, involving the acquisition and disposal of shares and options. The changes reflect a strategic adjustment in the director’s holdings, with implications for the company’s governance and potential market perception.

The most recent analyst rating on (AU:COH) stock is a Hold with a A$327.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Cochlear Director Increases Shareholding

Cochlear Limited has announced a change in the shareholding of its director, Michael del Prado, who has acquired 75 additional fully paid ordinary shares in the company. This purchase was made on the United States over-the-counter market, increasing his total holdings to 1,016 shares. This transaction reflects the director’s growing interest in the company and may signal confidence in its future performance.

The most recent analyst rating on (AU:COH) stock is a Hold with a A$327.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Cochlear Limited Announces Director’s Share Transfer

Cochlear Limited announced a change in the director’s interest notice, where Christine Frances McLoughlin transferred 1,900 shares from C F McLoughlin Super Investments Pty Ltd to Dundas Street Investments Pty Ltd. This off-market transfer reflects an internal reallocation of shares, with no net change in the total number of shares held by the director, potentially indicating strategic financial management within the company.

The most recent analyst rating on (AU:COH) stock is a Hold with a A$327.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.

Cochlear Director Acquires Additional Shares, Signaling Confidence

Cochlear Limited has announced a change in the interests of its director, Caroline Louise Clarke, involving the acquisition of 418 fully paid ordinary shares through on-market trades. This change reflects a strategic adjustment in the director’s investment in the company, potentially signaling confidence in Cochlear’s market performance and future prospects.

The most recent analyst rating on (AU:COH) stock is a Hold with a A$329.00 price target. To see the full list of analyst forecasts on Cochlear stock, see the AU:COH Stock Forecast page.