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COHR Stock Analysis - COHERENT CORP. AI Rating

COHR NYSE Optical Instruments & Lenses PA CIK: 0000820318
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
HOLD
62% Confidence

📊 COHR Key Takeaways

Revenue: $3.3B
Net Margin: 11.4%
Free Cash Flow: $-153.7M
Current Ratio: 2.25x
Debt/Equity: 0.39x
EPS: $1.95
AI Rating: HOLD with 62% confidence

Investment Thesis

Coherent demonstrates solid profitability with 11.4% net margins and reasonable financial leverage (0.39x debt/equity), but significant operational concerns emerge from negative free cash flow (-$153.7M) despite positive operating cash flow, suggesting heavy capital intensity outpaces cash generation. The 1.7x interest coverage ratio indicates limited buffer for debt service, and low returns on equity (4.4%) and assets (2.5%) raise questions about capital efficiency despite the substantial $15.1B asset base.

COHR Strengths

  • + Strong gross asset base of $15.1B with solid stockholders' equity of $8.5B
  • + Adequate net profit margin of 11.4% and operating margin of 11.8% demonstrating pricing power
  • + Conservative leverage ratio of 0.39x debt/equity providing balance sheet flexibility
  • + Healthy current ratio of 2.25x indicating adequate short-term liquidity

COHR Risks

  • ! Negative free cash flow of -$153.7M with capex ($257.5M) exceeding operating cash flow ($103.9M) raising sustainability concerns
  • ! Weak interest coverage ratio of 1.7x provides minimal cushion for debt obligations and economic downturns
  • ! Exceptionally low returns on equity (4.4%) and assets (2.5%) suggest inefficient capital deployment relative to asset base
  • ! Significant capex burden (-4.7% FCF margin) indicates ongoing investment pressures that may limit shareholder returns
  • ! Elevated insider trading activity (18 Form 4 filings in 90 days) warrants monitoring for insider sentiment

Key Metrics to Watch

COHR Financial Metrics

Revenue
$3.3B
Net Income
$373.1M
EPS (Diluted)
$1.95
Free Cash Flow
$-153.7M
Total Assets
$15.1B
Cash Position
$863.7M

💡 AI Analyst Insight

Strong liquidity with a 2.25x current ratio provides a solid financial cushion.

COHR Profitability Ratios

Gross Margin N/A
Operating Margin 11.8%
Net Margin 11.4%
ROE 4.4%
ROA 2.5%
FCF Margin -4.7%

COHR vs Default Sector

How COHERENT CORP. compares to Default sector averages

Net Margin
COHR 11.4%
vs
Sector Avg 12.0%
COHR Sector
ROE
COHR 4.4%
vs
Sector Avg 15.0%
COHR Sector
Current Ratio
COHR 2.3x
vs
Sector Avg 1.8x
COHR Sector
Debt/Equity
COHR 0.4x
vs
Sector Avg 0.7x
COHR Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

COHR Balance Sheet & Liquidity

Current Ratio
2.25x
Quick Ratio
1.30x
Debt/Equity
0.39x
Debt/Assets
41.1%
Interest Coverage
1.74x
Long-term Debt
$3.4B

COHR 5-Year Financial Trend

COHR 5-year financial data: Year 2020: Revenue $3.1B, Net Income $88.0M, EPS $1.35. Year 2022: Revenue $3.3B, Net Income -$67.0M, EPS $-0.79. Year 2023: Revenue $5.2B, Net Income $297.6M, EPS $2.37. Year 2024: Revenue $5.2B, Net Income $234.8M, EPS $1.45. Year 2025: Revenue $5.8B, Net Income -$259.5M, EPS $-2.93.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: COHERENT CORP.'s revenue has grown significantly by 87% over the 5-year period, indicating strong business expansion. The most recent EPS of $-2.93 indicates the company is currently unprofitable.

COHR Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
-4.7%
Free cash flow / Revenue

COHR Quarterly Performance

Quarterly financial performance data for COHERENT CORP. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q2 2026 $1.4B $103.4M $0.41
Q1 2026 $1.3B $25.9M $-0.04
Q3 2025 $1.2B -$13.2M $-0.11
Q2 2025 $1.1B -$27.0M $-0.38
Q1 2025 $1.1B $25.9M $-0.04
Q3 2024 $1.2B $2.5M $-0.24
Q2 2024 $1.1B -$27.0M $-0.38
Q1 2024 $1.1B -$38.7M $-0.56

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

COHR Capital Allocation

Operating Cash Flow
$103.9M
Cash generated from operations
Capital Expenditures
$257.5M
Investment in assets
Dividends
None
No dividend program

COHR SEC Filings

Access official SEC EDGAR filings for COHERENT CORP. (CIK: 0000820318)

📋 Recent SEC Filings

Date Form Document Action
Mar 18, 2026 4 xslF345X06/form4.xml View →
Mar 12, 2026 4 xslF345X05/form4.xml View →
Mar 11, 2026 4 xslF345X05/form4.xml View →
Mar 9, 2026 4 xslF345X05/form4.xml View →
Mar 4, 2026 4 xslF345X05/form4.xml View →

Frequently Asked Questions about COHR

What is the AI rating for COHR?

COHERENT CORP. (COHR) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.

What are COHR's key strengths?

Strong gross asset base of $15.1B with solid stockholders' equity of $8.5B. Adequate net profit margin of 11.4% and operating margin of 11.8% demonstrating pricing power.

What are the risks of investing in COHR?

Negative free cash flow of -$153.7M with capex ($257.5M) exceeding operating cash flow ($103.9M) raising sustainability concerns. Weak interest coverage ratio of 1.7x provides minimal cushion for debt obligations and economic downturns.

What is COHR's revenue and growth?

COHERENT CORP. reported revenue of $3.3B.

Does COHR pay dividends?

COHERENT CORP. does not currently pay dividends.

Where can I find COHR SEC filings?

Official SEC filings for COHERENT CORP. (CIK: 0000820318) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is COHR's EPS?

COHERENT CORP. has a diluted EPS of $1.95.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-31 | Powered by Claude AI