📊 COHR Key Takeaways
Is Coherent Corp.. (COHR) a Good Investment?
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.
Coherent shows solid reported profitability with double-digit operating and net margins, supported by a reasonably strong balance sheet and healthy liquidity. However, the quality of those earnings is weakened by very low operating cash flow relative to net income, negative free cash flow, and thin interest coverage. Fundamentally, this looks like a business with decent accounting profitability but meaningful execution and cash conversion risks that limit conviction.
Why Buy Coherent Corp.. Stock? COHR 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
- Conservative leverage ratio of 0.39x debt/equity providing balance sheet flexibility
- Healthy current ratio of 2.25x indicating adequate short-term liquidity
- Double-digit operating margin of 11.8% and net margin of 11.4% indicate the core business is currently profitable
- Balance sheet leverage appears manageable with debt-to-equity of 0.39x and a current ratio of 2.25x
- Large equity base and nearly $864M of cash provide some financial flexibility
COHR Stock Risks: Coherent Corp.. Investment 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
- Negative free cash flow of $153.69M suggests weak internal funding capacity despite positive net income
- Interest coverage of 1.7x is thin and leaves limited cushion if earnings soften or borrowing costs remain elevated
- Low ROE of 4.4% and ROA of 2.5% indicate modest capital efficiency for a company with a large asset base
Key Metrics to Watch
- Free cash flow trend and capex as percentage of revenue to assess if capital intensity is improving
- Operating cash flow growth relative to revenue to evaluate cash conversion quality
- Return on equity and return on assets progression toward industry benchmarks
- Interest coverage ratio movement and debt refinancing capacity
- Gross margin trends if disclosed to understand pricing and cost structure
- Operating cash flow and free cash flow conversion versus net income
- Interest coverage and debt reduction progress
Coherent Corp.. (COHR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.25x current ratio provides a solid financial cushion.
COHR Profit Margin, ROE & Profitability Analysis
COHR vs Industrial Sector: How Coherent Corp.. Compares
How Coherent Corp.. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Coherent Corp.. Stock Overvalued? COHR Valuation Analysis 2026
Based on fundamental analysis, Coherent Corp.. has mixed fundamental signals relative to the Industrial 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.
Coherent Corp.. Balance Sheet: COHR Debt, Cash & Liquidity
COHR Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
COHR Quarterly Earnings & Performance
| 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.
Coherent Corp.. Dividends, Buybacks & Capital Allocation
COHR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Coherent Corp.. (CIK: 0000820318)
📋 Recent SEC Filings
❓ Frequently Asked Questions about COHR
What is the AI rating for COHR?
Coherent Corp.. (COHR) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are COHR's key strengths?
Claude: 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. ChatGPT: Double-digit operating margin of 11.8% and net margin of 11.4% indicate the core business is currently profitable. Balance sheet leverage appears manageable with debt-to-equity of 0.39x and a current ratio of 2.25x.
What are the risks of investing in COHR?
Claude: 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. ChatGPT: Negative free cash flow of $153.69M suggests weak internal funding capacity despite positive net income. Interest coverage of 1.7x is thin and leaves limited cushion if earnings soften or borrowing costs remain elevated.
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?
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 rating reflects both perspectives for balanced insights.
Is COHR a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Coherent Corp.. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is COHR stock overvalued or undervalued?
Valuation metrics for COHR: ROE of 4.4% (sector avg: 15%), net margin of 11.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy COHR stock in 2026?
Our dual AI analysis gives Coherent Corp.. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is COHR's free cash flow?
Coherent Corp..'s operating cash flow is $103.9M, with capital expenditures of $257.5M. FCF margin is -4.7%.
How does COHR compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 11.4% (avg: 10%), ROE 4.4% (avg: 15%), current ratio 2.25 (avg: 1.8).