Unveiling the Investment Potential of The Cooper Companies Inc (COO): A Comprehensive Analysis ...
The Cooper Companies Inc (NASDAQ:COO) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $318.38, The Cooper Companies Inc has witnessed a daily loss of 1.15%, marked against a three-month change of -15.45%. A thorough analysis, underlined by the GF Score, suggests that The Cooper Companies Inc is well-positioned for substantial growth in the near future.
Decoding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
Here are the key components of The Cooper Companies Inc's GF Score:
Financial strength rank: 6/10
Profitability rank: 9/10
Growth rank: 10/10
GF Value rank: 9/10
Momentum rank: 9/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high profitability rank and a slightly lower financial strength rank, GuruFocus assigned The Cooper Companies Inc the GF Score of 96 out of 100, which signals the highest outperformance potential.
Understanding The Cooper Companies Inc Business
The Cooper Companies Inc, with a market cap of $15.77 billion and sales of $3.51 billion, is one of the largest eye care companies in the U.S. It operates in two segments: CooperVision and CooperSurgical. CooperVision is a pure-play contact lens business and is composed of a suite of spherical, multifocal, and toric contact lenses. The company also has one of the most comprehensive specialty lens portfolios in the world. With brands including Proclear, Biofinity, MyDay, and clariti, Cooper controls roughly a quarter of the U.S. contact lens market. CooperSurgical, founded in 1990, is made up of equipment related to reproductive care, fertility, and women's care. Cooper has the broadest medical device coverage of the entire IVF cycle. It also has Paragard, the only hormone-free IUD in the U.S., and controls 17% of the U.S. IUD market.
Here is the income breakdown of The Cooper Companies Inc:
Financial Strength Breakdown
According to the Financial Strength rating, The Cooper Companies Inc's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. With a favorable Debt-to-Revenue ratio of 0.74, The Cooper Companies Inc's strategic handling of debt solidifies its financial health.
Profitability Rank Breakdown
The Profitability Rank shows The Cooper Companies Inc's impressive standing among its peers in generating profit. The Cooper Companies Inc's strong Predictability Rank of 5.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, The Cooper Companies Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 7.8%, which outperforms better than 51.57% of 731 companies in the Medical Devices & Instruments industry. Moreover, The Cooper Companies Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 2.3, and the rate over the past five years is 5.8. This trend accentuates the company's continued capability to drive growth.
Conclusion
Given The Cooper Companies Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. This analysis underscores the company's robust financial health, consistent profitability, and impressive growth trajectory, making it a compelling investment opportunity. GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article first appeared on GuruFocus.
