The Cooper Companies, Inc. COO
Verdict: Sell. Fair value $64.20 against a price of $82.74 on 6 Jan 2026, 22% below the price.
In plain words
The case for: Narrow competitive moat provides durability. Industry tailwinds with growing market.
The case against: Intense competitive pressure could compress margins. The company has a 100% earnings beat rate over the last 4 quarters, but the average surprise is....
Main risks
- Poor Capital Allocation Efficiency: Key metrics like ROE (4.5%), ROIC (3.1%), and estimated 3-year ROIIC (3.9%) are significantly below industry averages and likely below the company's cost of capital, indicating inefficient use of shareholder funds to generate profits.
- Decelerating Revenue Growth: Top-line growth slowed to 4.9% in the latest year, down from a ~8.5% average in the two prior years, raising concerns about market saturation or competitive pressures.
- Stagnant Net Income: Despite revenue growth, Net Income has been flat to down over the last three years ($0.39B in 2022 vs. $0.37B in 2025), suggesting margin compression and an inability to translate top-line growth to the bottom line effectively.
- Intense competitive environment
- Valuation prices in optimistic scenario (limited margin for error)