COHRCoherent Corp.
Is the business good?
The checks split: margins widening, but thin cash backing (0.1×).
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit outpaces operating cash flow, watch accruals and working capital. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 5% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is COHR?
Coherent Corp. earns 5.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 3.5 points below what the capital costs: growth destroys value
- Operating margin
- 12%
Operating margin · Scientific & Technical Instruments median 16% · 12 months to Q4 2026
- Cash conversion
- 0.10×
Cash conversion · 8.52× a year ago · the operating profit has not turned into cash yet
- R&D as % of revenue
- 10%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | 13% |
| FY2022 | 12% |
| FY2023 | −0.72% |
| FY2024 | 2.0% |
| FY2025 | 1.6% |
| FY2026 | 12% |
Details›
- Gross margin12 months to Q4 2026
- 38%
- Operating margin12 months to Q4 2026
- 12%
- Net margin12 months to Q4 2026
- 11%
- Free cash flow margin
- −14%
- R&D as % of revenue
- 10%
- Revenue, trailing twelve months
- $7.12B
- Free cash flow, trailing twelve months
- −$1.02B
- Net income, trailing twelve months
- $805M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Scientific & Technical Instruments
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