Is the business good?
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.
5.5%
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 17% · 12 months to Q4 2026
- Cash conversion
- −1.27×
Cash conversion · 3.90× a year ago · some of the reported 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 from the cash flow statement.
Scientific & Technical Instruments
Ranks #11 of 16 by Smart Score