# Coherent (COHR.US)

Canonical: https://gigainvestors.com/s/COHR

Analysis as of: 2026-10-16T07:27:36.560Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $250.60 per share; close as of 2026-10-15.

Estimated value: low $22.34 per share, central $26.67 per share, high $29.62 per share. Buy at or below the central value $26.67 per share. Valuation as of 2026-10-16T07:27:36.560Z; scenarios are not confidence intervals.

Expected annual return: 3.5% at the stated quote. About 3.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 3

- Operating margin variation: 0.47×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.13×

- FY2018: 0.12×

- FY2019: 0.11×

- FY2020: 0.05×

- FY2021: 0.13×

- FY2022: 0.12×

- FY2023: 0.01×

- FY2024: 0.03×

- FY2025: 0.09×

- FY2026: 0.13×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 10.4%

- ROIC, second-lowest year: 1.5%

- Typical minus recent gross margin: 2.3 pp

- Typical gross margin (annual median): 37.7%

- Recent gross margin (lower of latest and 3-year median): 35.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 9.0%

- ROIC including acquisitions, ten-year median: 5.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 13.5%

- FY2018: 10.4%

- FY2019: 11.5%

- FY2020: 3.7%

- FY2021: 12.3%

- FY2022: 11.7%

- FY2023: 0.6%

- FY2024: 1.5%

- FY2025: 5.4%

- FY2026: 10.4%

### economics: pass

- Owner earnings / net income, 5-yr: 1.85×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.2B

- Net income, five-year total: $674M

- Return on incremental invested capital: 43.7%

- Working capital / revenue, annual change: -0.7 pp

- Working capital / revenue, change between three-year averages: -4.1 pp

- Working capital / revenue, final three-year average: 29.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: 0.05×

- FY2024: -0.36×

- FY2025: 3.28×

- FY2026: 1.00×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 11.5% vs 5.4%

- Per-share earnings: 1.34 to 0.26 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 12.1%

- Ordinary dilution, 5-year annual growth: 11.7%

- Market cap gain: $78B

- Cumulative retained earnings: $606M

- Diluted shares, 10-year annual growth: 12.1%

- Diluted shares, 5-year annual growth: 11.7%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -18.7%

- Per-share value change: -$1.08

- Per-share value, starting three-year median: $1.34

- Per-share value, ending three-year median: $0.26

- Buybacks concentrated in cheaper years (correlation): -0.20

- Average buyback yield: 0.4%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: $8.1B

- Cumulative net income, 10 years: $1.2B

- ROIC, first three-year median: 11.5%

- ROIC, last three-year median: 5.4%

Chart: Earnings per share; fiscal year observations.

- FY2017: $1.46

- FY2018: $1.34

- FY2019: $1.18

- FY2020: -$0.58

- FY2021: $2.56

- FY2022: $1.69

- FY2023: -$1.71

- FY2024: -$0.98

- FY2025: $0.26

- FY2026: $3.98

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: 4.0%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 234.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.10×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.67×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -1.6%

- FY2018: -4.1%

- FY2019: -3.6%

- FY2020: -7.0%

- FY2021: -4.3%

- FY2022: -2.3%

- FY2023: -6.5%

- FY2024: -4.8%

- FY2025: -3.9%

- FY2026: 4.0%

## Holders

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Arnold Van Den Berg](https://gigainvestors.com/VAN): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 36% since Jun 2026 · "Coherent (COHR) Stock Slides As New China Data Center Curbs Come Into View" (finance.yahoo.com, Aug 2026) · sales +22.5%

Story as of 2026-10-16T09:58:32.667Z; price observation 2026-10-15.

Price needs cash profits to grow 40.3% a year for ten years

- 2025-05-07: Coherent (NYSE:COHR) Delivers Strong Q1 Numbers, Guides for Strong Sales Next Quarter ([finance.yahoo.com](https://finance.yahoo.com/news/coherent-nyse-cohr-delivers-strong-210217752.html))

- 2025-07-30: Surging Earnings Estimates Signal Upside for Coherent (COHR) Stock ([finance.yahoo.com](https://finance.yahoo.com/news/surging-earnings-estimates-signal-upside-162002890.html))

- 2025-10-03: Why Coherent (COHR) Is Up 5.8% After ECOC Innovation Awards and Major Credit Expansion ([finance.yahoo.com](https://finance.yahoo.com/news/why-coherent-cohr-5-8-125230142.html))

- 2025-11-12: Why Analysts See Coherent’s Story Changing With New AI Growth and Upgraded Outlooks ([finance.yahoo.com](https://finance.yahoo.com/news/why-analysts-see-coherent-story-061435452.html))

- 2026-02-05: Coherent signals double-digit revenue growth for March and June quarters, eyes fiscal 2027 acceleration ([seekingalpha.com](https://seekingalpha.com/news/4547601-coherent-signals-double-digit-revenue-growth-for-march-and-june-quarters-eyes-fiscal-2027?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-04-09: Coherent Ramps AI Optics Output As Valuation And Volatility Stay In Focus ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/coherent-ramps-ai-optics-output-170750959.html))

### Sales · FY2025–2026

sales +22.5%; source https://www.sec.gov/Archives/edgar/data/21510/000002151021000060/cohr-20211002.htm; observed 2021-11-30.

- FY2017: $972M 

- FY2018: $1.2B 

- FY2019: $1.4B 

- FY2020: $2.4B 

- FY2021: $3.1B 

- FY2022: $3.3B 

- FY2023: $5.2B 

- FY2024: $4.7B 

- FY2025: $5.8B 

- FY2026: $7.1B 

### Gross margin · FY2026

gross margin 37.5%; source https://www.sec.gov/Archives/edgar/data/21510/000002151021000060/cohr-20211002.htm; observed 2021-11-30.

- FY2017: 40.0% 

- FY2018: 39.9% 

- FY2019: 38.3% 

- FY2020: 36.9% 

- FY2021: 37.9% 

- FY2022: 38.2% 

- FY2023: 31.4% 

- FY2024: 30.9% 

- FY2025: 35.4% 

- FY2026: 37.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in scientific & technical instruments; annual sales are USD 7.1 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); FY2026: revenue 7118181000; grossProfit 2669040000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); COHR.US: Coherent Corp. develops, manufactures, and markets lasers, transceivers, other optical and optoelectronic devices, modules, and systems worldwide. Its products include critical components consisting of detectors, passive optics, thermal solutions, and PICS; silicon photonics and other advanced optical technologies; and coherent transmission components, transport products, optical amplifiers, passive optical components, optical line systems, and multi-rail platform. The company's Datacenter and Communications segment offers transceivers, co-packaged optics, and optical circuit switches, as well as other systems, such as subsystems, modules, and semiconductor devices for datacenter and communications applications; and VCSELS, EELS, pump lasers, and other components, optics, and ICs for datacenter and communication applications. Its Industrial segment offers excimer lasers, solid-state lasers, and CO2 lasers; laser systems for various industrial applications, including semiconductor capital equipment, display manufacturing, precision manufacturing, and scientific research; and laser systems and subsystems comprising high-power lasers for materials processing. This segment also provides engineered materials, laser optics, thermoelectric components, and advanced ceramic and metal-matrix composite materials and products. It markets its products and services through a direct sales force, representatives, and distributors. The company was formerly known as II-VI Incorporated and changed its name to Coherent Corp. in September 2022. Coherent Corp. was incorporated in 1971 and is headquartered in Saxonburg, Pennsylvania.

### Why customers stay

Margins ranged from 30.9% to 37.5% during 2024–26; it earns 10.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); FY2024: grossProfit / revenue = 30.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); FY2025: grossProfit / revenue = 35.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); FY2026: grossProfit / revenue = 37.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); 10-year return on capital observations [[2017,0.135438594322604],[2018,0.1041598010790743],[2019,0.11537239673891886],[2020,0.0369458286218594],[2021,0.12251913627925115],[2022,0.1168590725662816],[2023,0.006238920149572988],[2024,0.014998933362599068],[2025,0.05372798441956354],[2026,0.10357489192593734]]; median 0.10386734650250581. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 73.1% of cash earnings on expansion; earns 43.7% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); FY2017: growth capex 45129721.861887485; upkeep 93387278.13811252; owner earnings 65523721.861887485. Growth capex / owner earnings = 0.6887539440603363.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); FY2018: growth capex 63693743.32183333; upkeep 89744256.67816667; owner earnings 79027743.32183333. Growth capex / owner earnings = 0.805966874980174.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); FY2019: growth capex 44757000; upkeep 92365000; owner earnings 107517000. Growth capex / owner earnings = 0.41627835598091467.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); FY2020: growth capex 0; upkeep 136877000; owner earnings 16976000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); FY2021: growth capex 0; upkeep 146337000; owner earnings 421284000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); FY2022: growth capex 27553000; upkeep 286779000; owner earnings 234759000. Growth capex / owner earnings = 0.11736717229158414.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); FY2024: growth capex 0; upkeep 346816000; owner earnings 56791000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); FY2025: growth capex 0; upkeep 440836000; owner earnings 162126000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); FY2026: growth capex 588188000; upkeep 521895000; owner earnings 804998000. Growth capex / owner earnings = 0.7306701383109027.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); Incremental return on capital 0.4365522014742031, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,20319000],[2022,34508000],[2023,27600000],[2024,34508000],[2025,11438000],[2026,11438000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 4.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); COHR.US SharesStats.PercentInsiders = 4.422000000000001 percentage points; cache date 2026-10-16.

### What could break it

"Changes in tax rates, tax liabilities or tax accounting rules could affect future results." (SEC filing, Nov 2021)

- Source: https://www.sec.gov/Archives/edgar/data/21510/000002151021000060/cohr-20211002.htm (filed 2021-11-30); Changes in tax rates, tax liabilities or tax accounting rules could affect future results.

### What the price says

The price assumes cash profits grow 40.3% yearly over ten years; actual growth was 14.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2021-11-30); Ten-year compound average after fade. Initial solved rate 0.5840945198354008. Price 250.6; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 1.0167528374245036 → FY2026 3.981196834817013. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $27.80 per share

- 2016-11: $30.20 per share

- 2016-12: $29.65 per share

- 2017-01: $36.50 per share

- 2017-02: $35.60 per share

- 2017-03: $36.05 per share

- 2017-04: $33.15 per share

- 2017-05: $30.00 per share

- 2017-06: $34.30 per share

- 2017-07: $38.10 per share

- 2017-08: $35.85 per share

- 2017-09: $41.15 per share

- 2017-10: $45.20 per share

- 2017-11: $47.40 per share

- 2017-12: $46.95 per share

- 2018-01: $42.65 per share

- 2018-02: $38.50 per share

- 2018-03: $40.90 per share

- 2018-04: $38.10 per share

- 2018-05: $43.95 per share

- 2018-06: $43.45 per share

- 2018-07: $39.20 per share

- 2018-08: $49.75 per share

- 2018-09: $47.30 per share

- 2018-10: $37.23 per share

- 2018-11: $37.42 per share

- 2018-12: $32.46 per share

- 2019-01: $37.96 per share

- 2019-02: $42.48 per share

- 2019-03: $37.24 per share

- 2019-04: $39.84 per share

- 2019-05: $31.43 per share

- 2019-06: $36.56 per share

- 2019-07: $39.70 per share

- 2019-08: $37.51 per share

- 2019-09: $35.21 per share

- 2019-10: $33.15 per share

- 2019-11: $29.19 per share

- 2019-12: $33.67 per share

- 2020-01: $33.65 per share

- 2020-02: $29.69 per share

- 2020-03: $28.50 per share

- 2020-04: $34.42 per share

- 2020-05: $47.53 per share

- 2020-06: $47.22 per share

- 2020-07: $50.72 per share

- 2020-08: $44.50 per share

- 2020-09: $40.56 per share

- 2020-10: $45.47 per share

- 2020-11: $67.65 per share

- 2020-12: $75.96 per share

- 2021-01: $84.07 per share

- 2021-02: $84.30 per share

- 2021-03: $68.37 per share

- 2021-04: $67.14 per share

- 2021-05: $67.37 per share

- 2021-06: $72.59 per share

- 2021-07: $69.81 per share

- 2021-08: $62.98 per share

- 2021-09: $59.36 per share

- 2021-10: $60.51 per share

- 2021-11: $62.53 per share

- 2021-12: $68.33 per share

- 2022-01: $63.40 per share

- 2022-02: $69.46 per share

- 2022-03: $72.49 per share

- 2022-04: $61.21 per share

- 2022-05: $62.50 per share

- 2022-06: $50.95 per share

- 2022-07: $52.64 per share

- 2022-08: $47.23 per share

- 2022-09: $34.85 per share

- 2022-10: $33.61 per share

- 2022-11: $36.67 per share

- 2022-12: $35.10 per share

- 2023-01: $43.40 per share

- 2023-02: $43.13 per share

- 2023-03: $38.08 per share

- 2023-04: $34.14 per share

- 2023-05: $36.96 per share

- 2023-06: $50.98 per share

- 2023-07: $47.36 per share

- 2023-08: $37.63 per share

- 2023-09: $32.64 per share

- 2023-10: $29.60 per share

- 2023-11: $36.79 per share

- 2023-12: $43.53 per share

- 2024-01: $47.54 per share

- 2024-02: $59.48 per share

- 2024-03: $60.62 per share

- 2024-04: $54.63 per share

- 2024-05: $57.06 per share

- 2024-06: $72.46 per share

- 2024-07: $69.68 per share

- 2024-08: $77.95 per share

- 2024-09: $88.91 per share

- 2024-10: $92.44 per share

- 2024-11: $100.16 per share

- 2024-12: $94.73 per share

- 2025-01: $90.49 per share

- 2025-02: $75.19 per share

- 2025-03: $64.94 per share

- 2025-04: $64.32 per share

- 2025-05: $75.63 per share

- 2025-06: $89.21 per share

- 2025-07: $107.60 per share

- 2025-08: $90.47 per share

- 2025-09: $107.72 per share

- 2025-10: $131.96 per share

- 2025-11: $164.26 per share

- 2025-12: $184.57 per share

- 2026-01: $212.18 per share

- 2026-02: $258.93 per share

- 2026-03: $238.21 per share

- 2026-04: $319.71 per share

- 2026-05: $361.47 per share

- 2026-06: $394.47 per share

- 2026-07: $262.89 per share

- 2026-08: $277.83 per share

- 2026-09: $287.81 per share

- 2026-10: $289.98 per share

## Annual estimated value (USD per share)

- FY2017: low $20.68 per share, central $25.88 per share, high $29.61 per share

- FY2018: low $19.13 per share, central $21.85 per share, high $24.86 per share

- FY2019: low $17.55 per share, central $23.55 per share, high $27.28 per share

- FY2020: low $19.29 per share, central $21.42 per share, high $24.25 per share

- FY2021: low $37.87 per share, central $48.47 per share, high $54.64 per share

- FY2022: low $39.98 per share, central $47.66 per share, high $52.73 per share

- FY2023: low $31.08 per share, central $34.71 per share, high $39.54 per share

- FY2024: low $9.08 per share, central $9.61 per share, high $10.33 per share

- FY2025: low $13.31 per share, central $14.57 per share, high $16.26 per share

- FY2026: low $21.63 per share, central $25.83 per share, high $28.69 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:33:16.590Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/21510/000002151021000060/cohr-20211002.htm); period 2021-10-02, filed 2021-11-30.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.