COO

Healthcare

Cooper Companies (The)

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Market Data

Financials

XBRL · SEC EDGAR

2016–2025(10yr)

Revenue

Net Income

Free CF

Metric	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$2.0B	$2.1B	$2.5B	$2.7B	$2.4B	$2.9B	$3.3B	$3.6B	$3.9B	$4.1B	+5.1%
Gross Profit	$1.2B	$1.4B	$1.6B	$1.8B	$1.5B	$2.0B	$2.1B	$2.4B	$2.6B	$2.7B	+3.3%
Gross Margin	59.6%	63.9%	64.4%	66.2%	63.1%	66.9%	64.7%	65.6%	66.6%	65.5%	-1.1pp
Operating Income	$324.1M	$429.1M	$403.1M	$546.7M	$311.8M	$505.8M	$507.6M	$533.1M	$705.7M	$682.9M	-3.2%
Operating Margin	16.5%	20.1%	15.9%	20.6%	12.8%	17.3%	15.3%	14.8%	18.1%	16.7%	-1.4pp
Net Income	$273.9M	$372.9M	$139.9M	$466.7M	$238.4M	$2.9B	$385.8M	$294.2M	$392.3M	$374.9M	-4.4%
Net Margin	13.9%	17.4%	5.5%	17.6%	9.8%	100.8%	11.7%	8.2%	10.1%	9.2%	-0.9pp
Free Cash Flow	$357.0M	$466.4M	$475.3M	$421.1M	$176.2M	$524.2M	$450.4M	$215.0M	$288.1M	$433.7M	+50.5%
FCF Margin	18.2%	21.8%	18.8%	15.9%	7.2%	17.9%	13.6%	6.0%	7.4%	10.6%	+3.2pp
EPS (Diluted)	$5.59	$7.52	$2.81	$9.33	$4.81	$59.16	$7.76	$5.91	$1.96	$1.87	-4.6%

Total Debt$2.5B

Cash & Equiv.$110.6M

Net Debt$2.3B

4 min read

1. THE BIG PICTURE

Cooper Companies is currently a story of clinical differentiation meeting operational transition. By holding the only FDA-approved contact lens for slowing myopia progression in children, Cooper Companies (The) has carved out a high-margin niche that shields it from the pure commodity pressures of the broader vision market. However, the business is currently in a state of self-imposed friction as it navigates a massive reorganization and a multiyear technology overhaul intended to modernize its global delivery.

2. WHERE THE RISKS HIT HARDEST

Cooper Companies (The)’s "Customer Focus" on large optical chains and global retailers (10-K Item 1) is increasingly threatened by its ongoing ERP implementation. Because these key accounts represent a larger, centralized proportion of revenue, any software-driven disruption to order receipt or product delivery could have a disproportionate impact on the top line (10-K Item 1A). Furthermore, the strength of its clinical differentiation in products like MiSight 1 day is vulnerable to manufacturing dependency. Because Cooper Companies produces certain products at only a single site, a localized disruption would immediately undermine its status as the sole provider of these regulated medical devices (10-K Item 1A).

3. WHAT THE NUMBERS SAY TOGETHER

While Cooper Companies maintains a competitive gross margin of 67.3%—ranking third among its peers—it struggles to convert that into cash as effectively as the competition (XBRL). Its free cash flow (FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders) margin of 10.9% is the lowest in its peer group, trailing significantly behind leaders like Hologic at 32.3%. This suggests that while the products are profitable to manufacture, the administrative and logistical "tail" of the business is currently heavy.

The growth trajectory remains remarkably consistent: TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth of 5.1% aligns almost perfectly with the fiscal 2026 organic growth guidance of 4.5% to 5.5% (8-K). This stability is supported by a 6% revenue increase in the most recent quarter, though a 4% decline in Asia Pacific suggests geographic headwinds are offsetting some of the 15% growth seen in EMEA (10-Q). Short interest stands at 3.6% of the float, indicating a moderate level of market skepticism regarding Cooper Companies (The)'s ability to hit its ambitious goal of generating $2.2 billion in free cash flow through 2028 (8-K).

4. IS IT WORTH IT AT THIS PRICE?

At a forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations of 14.9x, Cooper Companies trades at a 27% discount to the peer median of 20.4x (XBRL). This discount appears justified by Cooper Companies (The)'s position as the fifth-slowest grower in its six-company peer group and its last-place ranking in FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin.

According to the (CAPM analysis), the current price implies a long-term growth rate of 3.5%. This is a conservative hurdle that Cooper Companies (The) is currently clearing with its 5.1% TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter growth. If management can successfully execute the ERP transition and meet its $600 million+ FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders guidance for 2026, the stock could see a valuation re-rating toward the peer median. However, if growth were to slow to a GDP-pace of 2.5%, the justified multiple would drop to 13.0x, suggesting roughly 13% downside from current levels.

5. WHAT WOULD CHANGE THIS VIEW?

Constructive if the FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin moves toward the peer median of 17%+, signaling that the "meaningful synergies" from recent reorganizations are finally reaching the bottom line.
Cautious if there is any reported delay or "operating restriction" related to the ERP rollout at CooperVision, which would signal a breakdown in Cooper Companies (The)'s ability to service its high-volume retail accounts.
Cautious if the Asia Pacific segment shows a second consecutive quarter of contraction, as this would suggest Cooper Companies (The)'s myopia management leads are failing to offset regional macro pressures.

6. BOTTOM LINE

Structural Advantage: A clinical monopoly on FDA-approved myopia-control contact lenses combined with high switching costs in its integrated fertility services.

Bottom Line: Cooper Companies is a reasonably valued incumbent whose stock will remain capped until it proves it can generate cash as efficiently as its medical-device peers.

Source: Synthesis · LLM Analysis

3 min read

1. Top 5 Material Risks

Macroeconomic and Recessionary Pressures: Recessionary trends, inflation, and geopolitical instability threaten Cooper Companies (The)’s liquidity and ability to access capital markets to replace maturing liabilities.
Customer Concentration: The emergence of centralized large customer groups and retail chains means these key accounts represent a larger proportion of the business, making Cooper Companies (The) vulnerable to any disruption in these specific relationships.
Inflationary Cost Structures: Higher costs for labor, logistics, and supply chain inputs may outpace the ability of Cooper Companies (The) to raise product prices, directly impacting operating results.
International Operational Complexity: With approximately half of net sales derived from outside the United States, Cooper Companies (The) faces risks including currency fluctuations, trade barriers, and the difficulty of managing a large, geographically dispersed organization.
ERP Implementation: The multiyear process of implementing new enterprise resource planning systems at CooperVision and CooperSurgical is complex and costly, with the potential to negatively affect financial accounting, order receipt, and product delivery.

2. Company-Specific Risks

Manufacturing Dependency: Cooper Companies (The) manufactures certain products at only one site; a prolonged disruption at these specific facilities could lead to lost customers and reduced market share.
Silicone Hydrogel Supply: The production of key contact lens products, including MyDay, Biofinity, Avaira, and clariti, relies on few or sole suppliers, creating a risk of inventory shortages if these partners fail to deliver.
Internal Control Weakness: Management identified a material weakness in IT general controls for U.S. CooperSurgical operations during fiscal 2024, which, if not maintained, could adversely affect the ability to report financial information accurately.
Product Obsolescence: Cooper Companies (The) faces the risk that technological developments, such as new pharmaceutical products or corneal refractive surgeries, could decrease demand for its contact lenses and vision correction products.

3. Regulatory/Legal Risks

Medical Device Regulation: Cooper Companies (The) must comply with evolving frameworks like the EU MDR and EU IVDR; failure to maintain CE marks or meet new safety requirements would prevent the sale of products in the EU and EEA.
Genetic Testing Oversight: The FDA’s classification of laboratory developed tests (LDTs) as medical devices may increase compliance costs and regulatory burdens for the genetic testing services offered by Cooper Companies (The).
Healthcare Fraud and Abuse: Cooper Companies (The) is subject to the federal Anti-Kickback Statute, the Stark Law, and the False Claims Act; violations could result in exclusion from federal healthcare programs like Medicare and Medicaid.
HCT/P Compliance: The fertility and stem cell storage business relies on the classification of products as "361 HCT/Ps"; if the FDA reclassifies these as biologics or medical devices, Cooper Companies (The) would face significant costs to obtain premarket approval or clearance.

4. Financial Impact Map

Macroeconomic/Recessionary Pressures → Liquidity and Financial Condition → Limits ability to access capital markets and replace maturing liabilities. Customer Concentration → Net Sales → Disruption to key account relationships would have a material adverse impact on total revenue. Inflationary Cost Structures → Cost of Goods Sold / Operating Results → Inability to raise prices sufficiently to offset rising labor and manufacturing costs. ERP Implementation → Financial Reporting / Operating Expenses → Potential for excessive costs and disruption to financial accounting and reporting processes. Internal Control Weakness → Financial Statements → Ineffective IT controls could affect the ability to record, process, and report financial information accurately within required time periods.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-Q	Mar 2026	Jan 2026
8-K	Mar 2026	—
10-K	Dec 2025	Oct 2025