📊 COO Key Takeaways
Is Cooper Companies, Inc.. (COO) a Good Investment?
Cooper Companies maintains a fundamentally sound business with strong gross margins (67.9%) and solid free cash flow generation ($255.1M), supported by conservative debt management (0.23x debt/equity). However, deteriorating profitability—net income declining 4.4% YoY despite 5.1% revenue growth—reveals operational efficiency challenges, compounded by critically weak capital returns (0.6% ROE, 0.4% ROA) and liquidity pressures (0.78x quick ratio).
Cooper Companies shows solid core profitability with a high 67.9% gross margin, healthy 20.8% operating margin, and positive free cash flow generation, indicating a resilient underlying business model. However, the latest period shows only modest revenue growth alongside declining net income and EPS, while interest coverage is only moderate and returns on assets and equity are currently low, which tempers the fundamental outlook.
Cooper Companies, Inc.. Key Strengths (COO)
- Robust gross margin of 67.9% demonstrates strong pricing power and product-market position in ophthalmic sector
- Solid free cash flow generation of $255.1M with 12.1% FCF margin indicates effective cash conversion despite profitability compression
- Conservative capital structure with debt-to-equity ratio of 0.23x and interest coverage of 3.1x provides financial stability
- High gross and operating margins support strong underlying earnings quality
- Positive operating cash flow and 15.5% free cash flow margin indicate solid cash generation
- Balance sheet leverage appears manageable with 0.22x debt-to-equity and a 1.34x current ratio
COO Stock Risks: Cooper Companies, Inc.. Investment Risks
- Declining net income (-4.4% YoY) and EPS (-4.6% YoY) despite revenue growth signals serious profitability deterioration and operational inefficiency
- Exceptionally low net margin (2.5%) and returns on capital (0.6% ROE, 0.4% ROA) with 65.4pp gap between gross and net margins indicate unsustainable cost structure
- Liquidity constraints with quick ratio of 0.78x below 1.0 and minimal cash position of $138.8M create financial inflexibility
- Net income and diluted EPS declined despite revenue growth, suggesting margin or cost pressure below the gross profit line
- Interest coverage of 3.6x is adequate but not especially strong for a company carrying $1.88B of long-term debt
- Quick ratio of 0.79x and low reported ROA and ROE point to limited liquidity cushion and weak near-term capital efficiency
Key Metrics to Watch
- Operating margin and SG&A expense ratio—critical to determine if profitability compression is structural or cyclical
- Net income trajectory—must stabilize and inflect positive to justify holding position
- Working capital and free cash flow sustainability—essential given below-1.0 quick ratio and tight cash position
- Operating margin and net margin trend versus revenue growth
- Free cash flow conversion and interest coverage
Cooper Companies, Inc.. (COO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Cooper Companies, Inc.. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
COO Profit Margin, ROE & Profitability Analysis
COO vs Market Sector: How Cooper Companies, Inc.. Compares
How Cooper Companies, Inc.. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Cooper Companies, Inc.. Stock Overvalued? COO Valuation Analysis 2026
Based on fundamental analysis, Cooper Companies, Inc.. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Cooper Companies, Inc.. Balance Sheet: COO Debt, Cash & Liquidity
COO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Cooper Companies, Inc..'s revenue has grown significantly by 40% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.48 reflects profitable operations.
COO Revenue Growth, EPS Growth & YoY Performance
COO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $1.0B | $52.9M | $0.27 |
| Q1 2026 | $964.7M | $104.3M | $0.52 |
| Q3 2025 | $1.0B | $81.2M | $0.49 |
| Q2 2025 | $942.6M | $81.2M | $0.44 |
| Q1 2025 | $931.6M | $81.2M | $0.41 |
| Q3 2024 | $930.2M | $39.8M | $0.43 |
| Q2 2024 | $877.4M | $39.8M | $0.20 |
| Q1 2024 | $858.5M | $81.2M | $0.41 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Cooper Companies, Inc.. Dividends, Buybacks & Capital Allocation
COO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Cooper Companies, Inc.. (CIK: 0000711404)
📋 Recent SEC Filings
❓ Frequently Asked Questions about COO
What is the AI rating for COO?
Cooper Companies, Inc.. (COO) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are COO's key strengths?
Claude: Robust gross margin of 67.9% demonstrates strong pricing power and product-market position in ophthalmic sector. Solid free cash flow generation of $255.1M with 12.1% FCF margin indicates effective cash conversion despite profitability compression. ChatGPT: High gross and operating margins support strong underlying earnings quality. Positive operating cash flow and 15.5% free cash flow margin indicate solid cash generation.
What are the risks of investing in COO?
Claude: Declining net income (-4.4% YoY) and EPS (-4.6% YoY) despite revenue growth signals serious profitability deterioration and operational inefficiency. Exceptionally low net margin (2.5%) and returns on capital (0.6% ROE, 0.4% ROA) with 65.4pp gap between gross and net margins indicate unsustainable cost structure. ChatGPT: Net income and diluted EPS declined despite revenue growth, suggesting margin or cost pressure below the gross profit line. Interest coverage of 3.6x is adequate but not especially strong for a company carrying $1.88B of long-term debt.
What is COO's revenue and growth?
Cooper Companies, Inc.. reported revenue of $2.1B.
Does COO pay dividends?
Cooper Companies, Inc.. does not currently pay dividends.
Where can I find COO SEC filings?
Official SEC filings for Cooper Companies, Inc.. (CIK: 0000711404) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is COO's EPS?
Cooper Companies, Inc.. has a diluted EPS of $0.27.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is COO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Cooper Companies, Inc.. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is COO stock overvalued or undervalued?
Valuation metrics for COO: ROE of 0.6% (sector avg: 15%), net margin of 2.5% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is COO's AI grade for 2026?
Our dual AI analysis gives Cooper Companies, Inc.. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is COO's free cash flow?
Cooper Companies, Inc..'s operating cash flow is $443.7M, with capital expenditures of $188.6M. FCF margin is 12.1%.
How does COO compare to other Market stocks?
Vs Default sector averages: Net margin 2.5% (avg: 12%), ROE 0.6% (avg: 15%), current ratio 1.27 (avg: 1.8).