📊 COHR Key Takeaways
Is Coherent Corp.. (COHR) a Good Investment?
Coherent demonstrates healthy reported profitability with 11.1% net margins and strong balance sheet fundamentals, but severe cash flow deterioration is a critical red flag: negative $537.2M free cash flow despite $564.5M net income signals earnings quality concerns and unsustainable cash generation. Combined with low returns on capital (ROE 5.3%, ROA 3.3%), the company appears to be burning cash while reporting profits, indicating structural profitability challenges.
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.
Coherent Corp.. Key Strengths (COHR)
- Strong balance sheet with 0.30x debt-to-equity ratio and $1.6B cash position
- Excellent liquidity with 3.05x current ratio and 2.04x quick ratio
- Substantial revenue base of $5.1B with healthy operating margins (11.2%) and net margins (11.1%)
- 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
- Severe negative free cash flow of -$537.2M (-10.6% FCF margin) indicates cash burn despite reported profitability
- Operating cash flow of only $10.1M versus net income of $564.5M reveals significant disconnect and earnings quality concerns
- Extremely low returns on equity (5.3%) and assets (3.3%) demonstrate capital inefficiency and poor capital allocation
- Capital expenditure of $547.2M not generating sufficient cash returns, suggesting investment productivity issues
- 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
- Operating cash flow trend and reconciliation to net income divergence
- Free cash flow trajectory and sustainability of capex spending
- Return on invested capital (ROIC) and capital efficiency improvements
- Working capital changes and accrual-to-cash conversion rates
- 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 3.05x 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 |
|---|---|---|---|
| Q3 2026 | $1.5B | $15.7M | $-0.11 |
| 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 |
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 Grade of C from Claude (C) and ChatGPT (B) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are COHR's key strengths?
Claude: Strong balance sheet with 0.30x debt-to-equity ratio and $1.6B cash position. Excellent liquidity with 3.05x current ratio and 2.04x quick ratio. 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: Severe negative free cash flow of -$537.2M (-10.6% FCF margin) indicates cash burn despite reported profitability. Operating cash flow of only $10.1M versus net income of $564.5M reveals significant disconnect and earnings quality concerns. 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 $5.1B.
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 $2.92.
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 COHR's fundamental grade?
Based on our AI fundamental analysis in June 2026, Coherent Corp.. has a C grade with 75% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is COHR stock overvalued or undervalued?
Valuation metrics for COHR: ROE of 5.3% (sector avg: 15%), net margin of 11.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is COHR's AI grade for 2026?
Our dual AI analysis gives Coherent Corp.. a combined C grade 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 $10.1M, with capital expenditures of $547.2M. FCF margin is -10.6%.
How does COHR compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 11.1% (avg: 10%), ROE 5.3% (avg: 15%), current ratio 3.05 (avg: 1.8).