| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 51.40 | -36 |
| Intrinsic value (DCF) | 36.00 | -55 |
| Graham-Dodd Method | 23.80 | -71 |
| Graham Formula | 24.30 | -70 |
The Cooper Companies, Inc. (NYSE: COO) is a leading global medical device company specializing in contact lenses and women's healthcare solutions. Headquartered in San Ramon, California, Cooper operates through two key segments: CooperVision and CooperSurgical. CooperVision is a major player in the contact lens market, offering a diverse portfolio including spherical, toric, and multifocal lenses designed to address vision challenges like astigmatism and presbyopia. CooperSurgical focuses on women's health, providing fertility, diagnostics, and surgical products such as PARAGARD and preimplantation genetic testing services. With a presence across the Americas, Europe, the Middle East, Africa, and Asia Pacific, Cooper serves healthcare professionals and patients worldwide. The company, founded in 1958, has established itself as a trusted name in ophthalmology and women's health, leveraging innovation and strategic acquisitions to maintain its competitive edge in the $157 billion medical instruments and supplies industry.
The Cooper Companies presents a compelling investment case with its diversified portfolio in high-growth segments—contact lenses and women's healthcare. The company's strong revenue ($3.9B in FY 2024) and net income ($392M) reflect robust demand for its products. However, investors should note its high leverage (total debt of $2.58B) and beta of 1.08, indicating market sensitivity. The absence of dividends may deter income-focused investors, but its consistent operating cash flow ($709M) and reinvestment in R&D and acquisitions signal long-term growth potential. Competitive pressures from larger rivals like Johnson & Johnson and Alcon could impact margins, but Cooper's niche focus and global reach provide resilience.
The Cooper Companies competes in two distinct but synergistic markets: contact lenses (CooperVision) and women's healthcare (CooperSurgical). In contact lenses, CooperVision holds a strong position as the third-largest player globally, trailing Johnson & Johnson Vision and Alcon. Its competitive edge lies in specialized lenses (e.g., toric, multifocal) and a direct-to-eye-care-professional distribution model, fostering brand loyalty. However, it lacks the scale and marketing budgets of J&J or Alcon, which dominate with mass-market products like Acuvue and Dailies. In women's health, CooperSurgical competes with Hologic and Boston Scientific in fertility and diagnostics. Its PARAGARD IUD is a key differentiator, but the segment faces pricing pressure from generic alternatives. Cooper's dual-segment approach mitigates sector-specific risks, but its mid-size scale limits bargaining power with suppliers and payers compared to diversified giants like J&J. Strategic acquisitions (e.g., Generate Life Sciences) bolster its fertility segment, yet integration risks persist. Overall, Cooper's innovation-focused strategy and global footprint position it well, but execution in a consolidating industry remains critical.