Coherent, Inc. (COHR) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Coherent, Inc.

Updated on October 11, 2026 · accounts published on August 12, 2026

Reading of October 9, 2026: A growing, soundly financed business whose returns on capital and cash generation still lag

Coherent trades at a P/E of 76.1 over the last 12 months, 114 % above its sector median, after the stock rose 156 % in a year.

• Is Coherent expensive or cheap? Coherent trades at a P/E of 76.1 over the last 12 months, 114 % above its sector median of 35.6.
• How is the business doing? Revenue grew 23 % over the last 12 months and the operating margin reached 12 %, above its 9.7 % average since 2015.
• How strong is the balance sheet? Net debt was $9.82 per share in fiscal 2026, only 3.1 % of the share price and 1.5× EBITDA.
• What to expect from the next earnings? Analysts expect EPS of $1.97 on November 4, 2026; Coherent has beaten estimates in 8 of the last 8 quarters.
• Is it growing with real cash or by diluting shareholders? Free cash flow was −15 % of revenue in fiscal 2026, against the 20 % that marks a healthy tech company.

Is Coherent expensive or cheap?

Over the last 12 months Coherent trades at a P/E of 76.1, 114 % above the 35.6 median of the 363 companies in its sector. EV/EBITDA says the same: 40.7× against its own five-year average of 21.4×, nearly double and well past the 110 % line where the multiple counts as expensive. The earnings yield is only 0.9 % and price to book stands at 5.6×. The share price rose 156 % over the last 12 months, and even at 27 % below its 52-week high of $426.89, the market is paying today for a lot of future growth.

How is the business doing?

Revenue rose 23 % over the last 12 months and EPS rose 892 % year on year. The operating margin of 12 % over the last 12 months, and 12.7 % in fiscal 2026, is above the 9.7 % average of the 12 fiscal years from 2015 to 2026, so profitability is improving. Returns on capital are the weak spot. ROIC is 5.1 % over the last 12 months, 3.1 points below the 8.2 % sector median, and it has not topped 10 % in any of the last 10 fiscal years. A net margin of 11.3 % and an ROE of 8.4 % describe a business that makes money but earns little on the capital it uses.

How strong is the balance sheet?

Debt is not a concern. In fiscal 2026 net debt came to $9.82 per share ($21.03 of debt minus $11.21 of cash). That is just 3.1 % of the current price and 1.5× EBITDA, inside the 2.0× that hardware companies can tolerate. Over the last 12 months debt to equity is 0.32 and the current ratio is 2.43, so short-term obligations are well covered. An Altman Z of 6.9 puts the company in the safe zone, and a Piotroski score of 7 out of 9 indicates solid fundamentals. The balance sheet leaves Coherent room to keep investing without straining itself.

What to expect from the next earnings?

Coherent reports on November 4, 2026, and analysts expect EPS of $1.97 for the quarter. Its record sets a high bar, with EPS estimates beaten in each of the last 8 quarters. The most recent report, on August 12, 2026, delivered $1.74 against $1.62 expected, a 7.4 % beat. The 2027 EPS consensus has barely moved over the last 26 days, going from $9.44 to $9.45 across 13 analysts, and revenue forecasts are just as steady. Of 31 analysts, 24 recommend buying, 6 holding and none selling, so the market goes into the report with high expectations.

Is it growing with real cash or by diluting shareholders?

Generic metrics fall short in technology. In this sector value depends on growth, pricing power and how much stock pay dilutes owners. Coherent passes on dilution: stock-based compensation was 2.6 % of revenue in fiscal 2026, well under the 10 % the sector considers healthy. Its gross margin of 37.5 % clears the 35 % hardware bar, though only narrowly. The cash test fails. Free cash flow was −15 % of revenue in fiscal 2026, against a healthy level of 20 % or more. Revenue per share grew only 2.3 % a year over fiscal 2023-2026, far below the 15 % benchmark.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.