Coherent Corp (COHR) AI Stock Analysis

• Market Cap: $17.00B
• Dividend Yield: N/A
• Average Volume (3M): 5.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.84
• Revenue Growth: 23.42%
• EPS Growth: 71.17%
• Country: US
• Employees: 26,157
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.00
• Shares Outstanding: 155,805,480
• 10 Day Avg. Volume: 4,089,465
• 30 Day Avg. Volume: 5,290,833
• 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: 1.16
• Enterprise Value/Revenue: 3.39
• Enterprise Value/Gross Profit: 9.64
• Enterprise Value/Ebitda: 29.47
• 1Y Price Target: $115.08
• Price Target Upside: 5.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15

• Rating: 60 Neutral
• Price Target: $100.00 ▼(-8.35% Downside)

Coherent Corp's overall stock score reflects a mixed financial performance with strong revenue growth and cash flow generation but is offset by low profitability margins and high leverage. Technical indicators suggest bearish momentum, and valuation metrics are unattractive due to a negative P/E ratio. The earnings call provided positive guidance and strategic advancements, which are significant positives.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Coherent's products, enhancing its market position and supporting long-term financial health.

Strategic Partnerships

The partnership with Apple can drive significant revenue and market expansion, reinforcing Coherent's competitive edge in the photonics industry.

Debt Reduction

Reducing debt levels improves financial flexibility and reduces interest expenses, strengthening Coherent's balance sheet and long-term stability.

Negative Factors

Profitability Margins

Low profitability margins indicate inefficiencies in cost management, which could hinder the company's ability to generate sustainable profits.

High Leverage

High leverage can strain financial resources and limit strategic flexibility, posing risks to long-term financial health if not managed properly.

Industrial Market Challenges

Declining industrial market revenues could impact overall growth, necessitating strategic adjustments to mitigate sector-specific risks.

Coherent Corp Business Overview & Revenue Model

Company Description

Coherent, Inc. provides lasers, laser-based technologies, and laser-based system solutions for a range of commercial, industrial, and scientific research applications. It operates in two segments, Original Equipment Manufacturers (OEM) Laser Sources and Industrial Lasers & Systems. The company designs, manufactures, markets, and services lasers, laser tools, precision optics, and related accessories; and laser measurement and control products. Its products are used for applications in microelectronics, materials processing, OEM components and instrumentation, and scientific research and government programs. The company markets its products through a direct sales force in the United States, as well as through direct sales personnel and independent representatives internationally. Coherent, Inc. was founded in 1966 and is headquartered in Santa Clara, California. As of July 1, 2022, Coherent, Inc. operates as a subsidiary of II-VI Incorporated.

How the Company Makes Money

Coherent Corp generates revenue primarily through the sale of laser systems and components, which are critical in various applications within industrial, scientific, and medical sectors. Key revenue streams include the manufacture and sale of laser products, optics, and related accessories. The company also benefits from recurring revenue through service contracts and maintenance agreements for its systems. Significant partnerships with major technology companies enhance its market reach and contribute to its earnings, as these collaborations often lead to joint product development and access to new markets. Additionally, Coherent Corp invests in research and development to drive innovation, which helps maintain its competitive edge and supports long-term revenue growth.

Coherent Corp Financial Statement Overview

Summary

Coherent Corp shows a mixed financial performance with strengths in revenue growth and cash flow generation. However, profitability margins and high leverage remain areas of concern. The company needs to focus on improving operational efficiencies and managing debt levels to enhance financial stability and shareholder value.

Income Statement

Coherent Corp has shown a positive revenue growth rate of 3.84% in the TTM, indicating a recovery from the previous year's decline. The gross profit margin has improved to 35.16%, reflecting efficient cost management. However, the net profit margin remains low at 0.85%, suggesting challenges in translating revenue growth into net income. The EBIT margin is notably low, indicating potential operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.57, indicating higher leverage and potential financial risk. Return on equity is low at 0.77%, reflecting limited profitability relative to shareholder equity. The equity ratio is stable, suggesting a balanced asset structure, but the high debt levels could pose risks if not managed carefully.

Cash Flow

Coherent Corp has achieved a significant free cash flow growth rate of 50.79% in the TTM, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.63, indicating good cash conversion efficiency. However, the free cash flow to net income ratio is moderate, suggesting room for improvement in cash profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.81B	5.81B	4.71B	5.16B	3.32B	3.11B
Gross Profit	2.04B	2.04B	1.46B	1.62B	1.27B	1.18B
EBITDA	668.51M	668.51M	700.59M	613.00M	689.84M	682.56M
Net Income	49.40M	49.40M	-156.15M	-259.46M	234.76M	297.55M
Balance Sheet
Total Assets	14.91B	14.91B	14.49B	13.71B	7.84B	6.51B
Cash, Cash Equivalents and Short-Term Investments	909.20M	909.20M	926.03M	821.31M	2.58B	1.59B
Total Debt	3.89B	3.89B	4.30B	4.49B	2.44B	1.53B
Total Liabilities	6.43B	6.43B	6.54B	6.48B	3.46B	2.38B
Stockholders Equity	8.13B	8.13B	7.57B	7.23B	4.38B	4.13B
Cash Flow
Free Cash Flow	386.40M	192.76M	198.91M	197.97M	99.00M	428.02M
Operating Cash Flow	1.14B	633.60M	545.73M	634.02M	413.33M	574.35M
Investing Cash Flow	-697.46M	-414.21M	-350.71M	-5.93B	-320.08M	-172.96M
Financing Cash Flow	-837.83M	-451.73M	758.27M	3.55B	862.95M	675.73M

Coherent Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 109.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COHR, the sentiment is Positive. The current price of 109.11 is above the 20-day moving average (MA) of 97.87, above the 50-day MA of 99.83, and above the 200-day MA of 86.01, indicating a bullish trend. The MACD of 2.84 indicates Negative momentum. The RSI at 64.45 is Neutral, neither overbought nor oversold. The STOCH value of 86.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COHR.

Coherent Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTV	75 Outperform	16.45B	21.95	7.41%	0.51%	-0.12%	-11.27%
MKSI	74 Outperform	8.64B	32.69	10.42%	0.68%	4.47%	2887.37%
FLEX	74 Outperform	22.01B	25.76	17.51%	―	-3.63%	2.26%
TRMB	69 Neutral	19.70B	70.69	26.18%	―	-3.72%	-80.83%
JBL	67 Neutral	24.08B	43.61	44.90%	0.14%	-6.13%	-53.35%
COHR	60 Neutral	$17.00B	―	0.63%	―	23.42%	71.17%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Coherent Corp Corporate Events

Coherent Corp Reports Record Revenue for FY 2025

On August 13, 2025, Coherent Corp. reported its financial results for the fourth quarter and full fiscal year 2025, ending June 30, 2025. The company achieved a record annual revenue of $5.81 billion, marking a 23% year-over-year increase, and improved its non-GAAP gross margin to 37.9%. Despite a GAAP net loss, the non-GAAP earnings per share showed significant improvement. The company also announced plans to sell its Aerospace and Defense business, focusing on long-term growth opportunities.