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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
The Cooper Companies, Inc. (XNYS:COO) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
COO
Name:
THE COOPER COMPANIES, INC. (XNYS:COO)
Sector:
109.00M
Industry:
Medical Instruments & Supplies
CEO:
Mr. Albert White
Total Employees:
12,000
Our Technological Advancement Rating
Our Rating:
A
Technological advancement compared to industry is 294.04% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF THE COOPER COMPANIES, INC.(COO) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND MEDICAL INSTRUMENTS & SUPPLIES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
295.53
One Month Price Target:
$297.07
Six Month Price Target :
$304.8
Likely Price in One Year's Time:
Ticker:
$314.06
Likely Trading Range Today Under (Normal Volatility)
$294.57
Price Upper limit ($) :
$296.58
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$283.38
This week:
$268.36
This month :
$241.19
Other Primary facts
Market Cap:
14.62B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
49.35M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
9.79%
-13.54%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$351.94
$326.20
$239.12
$264.86
Medium risk (<10%) entry points
Buy Call
Sell Call
$317.82
Buy Put:
Sell Put:
$312.33
$273.17
$278.73
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
COO
Sharpe Ratio:
0.30%
Comparison:
COO, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -81.04% lower than the industry
& is -86.68% lower than the market/S&P 500 average
Average Returns/Yield of
COO
Daily returns:
0.01%
Weekly returns:
0.07%
Monthly returns:
0.30%
Yearly returns:
14.68%
Comparison of returns:
Average annual returns/yield (last 3 years) is -75.57% below industry average
Classification:
COO, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.96
Statistical test of Returns:
COO has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.01%
Weekly Volatility:
4.49%
Monthly Volatility:
8.99%
Yearly Volatility:
31.13%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
2.73%
Volatility in last five trading days has been 35.88% above long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.11%
Weekly VaR:
-9.19%
Monthly VaR:
-18.39%
How Much Can the price of
COO
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-16%
Worst case (decline):
-63.70%
This translates to price declining to:
$247.97
This translates to price declining to:
$107.28
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
COO is a 29.79% riskier investment compared to the market/S&P 500 & is 11.19% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -30.78% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
COO
Beta in relation to market/S&P 500--0.93
Expected beta in 1 year's time:
0.893
Expected beta in 3 year's time:
1.263
Unlevered (debt free) Beta:
0.547
Beta in relation to Nasdaq (XNAS):
0.715
Beta in relation to all global stocks::
0.678
Beta Comparison & Analysis
Beta of competitors/peers::
1.056
Beta is -11.66% lower than peers
Average Industry Beta:
0.989
Beta is -5.66% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
45.47%
Sustainable growth rate is 209.40% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.060
Alpha is -225.22% below industry average alpha yield
Alpha is -379% below the market average
Analysis of Cost of Capital of
COO
Equity cost of capital:
0.095
Equity cost of capital is -3.87% below industry mean WACC
Unlevered (without debt) cost of capital:
5.59%
Before-tax cost of debt:
0.77%
After-tax cost of debt:
0.61%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
0.61%
WACC is -21.97% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$63.62
Revenue growth rate per share of (3Y):
2.11
Annual revenue growth rate is -70.31% below industry average
EPS:
$19.02
Expected Annual growth rate of EPS (3Y):
25.62%
Expected future EPS growth rate is 121.50% higher than the Medical Instruments & Supplies industry
Free cash flow (FCF) per share:
$9.71
Balance sheet equity growth per share: 3.23%
Equity growth rate per share is 1147.43% higher than the industry
Debt per share
$52.43
EBITDA per share
$17.42
Valuation Analysis Today of
COO
P/E Ratio:
34.19
P/E Ratio of Competitors/Peers:
22.88
P/E ratio is 49.45% higher than main peers & is -31.46% lower than the industry
Stock price/value with industry average P/E ratio: $948.90
COO is -68.86% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $20.31
Present value of the expected future dividends only: $1.26
P/S (Price to Sales ratio):
4.65
Price to sales ratio is -37.36% below the industry mean
P/B (Price to book value ratio):
2.11
Price to free cash flow: 30.43
-
Net income growth rate (3Y):
2000.42%
Net income growth rate is -1993.00% lower than the industry average net income growth rate
Dividend Analysis
-
Dividend yeild: 0.04%
Previous Dividend: $0.03
Previous adjusted dividend: $0.03
Previous Dividend: $0.12
-
-
Average dividend payment (long-term): $0.03
Average dividend increase/decrease (growth rate) % per period: 0.00%
Expected next dividend payment date: 05/10/2022
Expected next dividend record date: 21/04/2022
Expected next dividend declaration date: 03/08/2022
Previous dividend payment date: 02/09/2022
Previous dividend record date: 21/01/2022
Previous dividend declaration date: 12/08/2021
Dividend History:
2022-01-20--$0.03
2021-01-21--$0.03
2020-01-22--$0.03
2021-07-26--$0.03
2020-07-22--$0.03
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
37.36%
Net debt to equity ratio:
47.52%
Debt to assets ratio:
22.18%
Net debt to assets ratio:
28.22%
Debt-to-asset ratio is -38.20% below industry average
Ability to repay debt:
Interest coverage ratio:
31.36
Interest coverage ratio is -55.78% less than industry average
Looking forward:
Debt growth rate:
-4.39%
Annual debt growth is -104% lower than industry average debt growth rate
Debt repayment rate in last quarter: 17.48%
Analysis of Key Statistics
Correlation of price movement with the market:
0.707
Statistical significance of correlation:
COO has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.505
Stock price is 40.02% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.505
Correlation of price movement with Nasdaq (^IXIC):
0.017
Covariance of price movement with the market:
0.02
Kurtosis
6.888
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.533
Returns are left (negative) skewed; mean returns are lower than median and mode returns
Fundamental Analysis & Dupont Analysis of
COO
Gross Profit Margin Ratio:
264%
Operating Profit Margin Ratio:
15.69%
Operating profit margin is 17.22% higher than the industry
Net Profit Margin Ratio:
264%
Effective Tax Rate:
-89.43%
Effective tax rate is -372.10% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
13.69%
Return on equity (ROE) is -130.01% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
8.13%
Return on assets (ROA) is 13.46% higher than the industry
Financial Leverage:
1.3x
Current Ratio:
1.02
Current ratio is -72.05% below industry average
Cash Conversion Cycle (days):
61.8
Cash conversion cycle is 17.23% above industry average
The remaining useful life of property plant & equipment is: 11.0 years
Stock based compensation to net income ratio:
-1.06%
In-depth Efficiency Analysis
Revenue generated per employee:
261.6K
Each employee generates -26% less revenue than industry average revenue per employee
EBITDA generated per employee:
71.6K
Each employee generates -36% less EBITDA than industry average revenue per employee
Profit generated per employee:
79.0K
Each employee generates 2% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
9.1K
Each employee generates -258% less free cash flow than industry average revenue per employee
Assets/Capital per employee
830.3K
Each employee generates -258% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- -0.64%
Growth rate in R&D investment/expenditure is -348.37% lower than the industry
Competitors/Peer firms of
COO
BIO-B
BIO-RAD LABORATORIES, INC. (XNYS:BIO)
Catalent, Inc. (XNYS:CTLT)
QUEST DIAGNOSTICS INCORPORATED (XNYS:DGX)
Fresenius Medical Care AG & Co KGaA (XNYS:FMS)
PERKINELMER, INC. (XNYS:PKI)
MOLINA HEALTHCARE, INC. (XNYS:MOH)
STERIS PUBLIC LIMITED COMPANY (XNYS:STE)
CHARLES RIVER LABORATORIES INTERNATIONAL, INC. (XNYS:CRL)
Current Analyst Ratings
Strong buy�29%
Buy�13%
Hold�21%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
4/30/22
Revenue:
3.14B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
1.07B
2.07B
102.80M
664.10M
1.31B
-
74.30M
1.48B
-
27.40M
331.70M
859.40M
492.60M
947.70M
500.30M
- 447400.00K
947.70M
Statement of Cash Flow
Date:
Period:
82.00M
Differed Income Tax :
14.00M
Stock Based Compensation :
- 10000.00K
Change in Working Capital :
6.20M
Accounts Receivables:
-
Other Working Capital:
34.00M
Other Non-Cash Items:
- 21200.00K
Net Cash Provided by Operating Activities:
166.00M
Investments in PP&E:
- 57000.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
1/31/22
2022
Q1
280.00M
-
280.00M
525.00M
588.00M
305.00M
1.70B
2.96B
3.84B
1.84B
-
2.49B
- 1164000.00K
9.96B
-
11.66B
149.00M
984.00M
-
-
531.00M
1.66B
2.59B
385.00M
3.07B
-
4.74B
5.00M
6.30B
- 377000.0K
1.00B
January 31, 2022 at 7:00:00 AM
2.55B
6.93B
11.66B
-
3.57B
3.3B
-
- 1612000.00K
- 1669000.00K
- 548000.00K
1.00M
- 78000.00K
-
2.32B
1.69B
- 3000.00K
187.00M
283.00M
96.00M
166.00M
- 57000.00K
109.00M
Our Proprietary Portfolio Rating
Our Rating:
A+
Price Forecast/Expected Price in Next 5 Years of
COO
2023
2024
2025
2026
2027
$315.63
$570.89
$606.69
$644.74
$685.18