Cooper Companies: DCF P(above)=17.2%, FV=$59 vs target $90 and current price ~$70-80. Vision care (soft contact lenses) and CooperSurgical (fertility/OBGYN). DCF says overvalued with only 17% probability above current. Prior target $90 is above current — was optimistic. Downgrade to 5 (Lean Avoid): DCF does not support entry, contact lens market mature and fertility segment growing but not enough catalyst.
Weekly reeval Mar 15 (HELD). COO at .92, below MA50 (.2) but above MA200 (.7). Cooper Surgical is an ongoing drag, CooperVision is the quality business (contact lens market). fPE 13.9x cheap. Analyst target (30% upside). Position down 4.2%. Below MA50 suggests continued selling pressure. The contact lens business is defensively positioned but lacks a near-term catalyst. Conviction 6 — holding but not a top conviction name.
Fair Value Distribution — percentile bands
18.6% of simulations place fair value above current price
WHAT IS PRICED IN
Revenue-Based Reverse DCF
8.3%/yr
±4.0% · revenue growth to justify current price
FCF-Based Reverse DCF
21.6%/yr
±3.6% · FCF growth to justify current price
THE GAP
Market pricing margin compression or rising capex
KEY VALUE DRIVERS
Spearman correlation — what moves this valuation most
RSI 23 — deeply oversold, one of the most extreme readings in the portfolio universe. Q1 FY26 beat with revenue +6.2% and strong OCF of $261M. MiSight myopia control launching in Japan, opening a massive new TAM. At $73 vs $105 target, 43.8% upside with proven execution.
Contact lens market is mature and competitive — CooperVision grows but pricing power is limited. Surgical segment (CooperSurgical) faces reimbursement headwinds. Conviction at 7 means this is a good-not-great business — it won't re-rate to premium multiples. Needs to prove MiSight can scale beyond early adopters.
MiSight Japan launch fails to gain traction, surgical margins compress below 25%, revenue growth stalls below 4%
Updated Mar 11
Cooper Companies delivered Q1 FY2026 earnings beat with revenue +6% YoY to B and raised Q2 guidance (.58-4.66 EPS). Stock declined 2.2% on mixed reception. Oversold territory with Wall Street expectin...
Q1 FY2026 (ended Jan 31, 2026): Revenue $1,024M (+6.2%), op income $212.8M (+17% / +190bps), net income +25%. CVI +7.6% with toric/multifocal +9.9% confirming premium mix shift. CSI +3.3% with fertili...
Falcon deep read: Revenue .1B (CVI .74B +4.9%, CSI .35B +4.0%). Organic growth 3.2% vs 5-6% original guidance — deceleration real. Gross margin 65.5%. Premium drivers strong: MyDay Multifocal +20%, To...
Q1 FY2026 (ended Jan 31, 2026): Revenue ,024M (+6.2% YoY), operating income M (+17% YoY), net income M (+25%). CooperVision +7.6%, CooperSurgical +3.3%. OCF surged to M vs M. Gross margin flat at 68%....
COO is a dual-revenue business: CooperVision (contact lenses, 60% rev) and CooperSurgical (fertility/women's health, 40% rev). FY2025 shows 6-8% organic growth guided, forward P/E of 17x on .98-.02 EP...