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COHR Stock Analysis: Hold (Score 46.6/100) | Blank Capital Research | Blank Capital Research
COHR
COHERENT CORP.
$308.79
+24.62 (+8.66%)
Score46.6
Data as of Apr 6, 2026
COHR
COHERENT CORP.
TechnologyMeasuring And Control Equipment
$308.79
+24.62 (+8.66%)
Open $295.95High $310.98Low $275.69Prev $284.17Vol ---52W: $45.58 – $300.20
Catalyst IntelligenceBullish Factor
Context:Accumulation identified following news: "Is Coherent (COHR) One of the Best Performing Blue Chip Stocks to Buy?". This headline is the primary catalyst for the 8.7% move.
Hold
Composite score
01234567890123456789.0123456789
Global rank
#1,003
Percentile
Top 23%
Business quality
38th
percentile
Standard operational efficiency. The business maintains stable margins and returns in line with broader market averages.
Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 37.8GRADE D
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
5.3%
Sector: -1.4%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
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Based on our 6-factor quantitative model, COHERENT CORP. (COHR) receives a "Hold" rating with a composite score of 46.6/100, ranked #1003 out of 4446 stocks. Key factor scores: Quality 38/100, Value 39/100, Momentum 77/100. This is quantitative analysis only — not investment advice.
COHERENT CORP. (COHR) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does COHERENT CORP. Do?
II-VI Incorporated develops, manufactures, and markets engineered materials, optoelectronic components, and devices worldwide. It operates through two segments, Compound Semiconductors and Photonic Solutions. The Compound Semiconductors segment provides optical and electro-optical components and materials used in high-power CO2 lasers, fiber-lasers, and direct diode lasers for materials processing applications; infrared optical components and high-precision optical assemblies for aerospace and defense, medical, and commercial laser imaging applications; semiconductor lasers and detectors for optical interconnects and sensing applications; engineered materials for thermoelectric, ceramics, and silicon carbide various applications; and compound semiconductor epitaxial wafers for applications in optical and wireless communication. The Photonic Solutions segment manufactures transceivers for data centers and telecom optical networks; pump lasers, optical amplifiers, wavelength selective switches, and advanced components for telecom networks; and crystal materials, optics, lasers, and optoelectronic modules in a range of applications, including optical communications, life sciences, and consumer electronics markets. The company serves original equipment manufacturers, laser end users, system integrators of high-power lasers, U.S. government prime contractors, and various U.S. government agencies, as well as manufacturers of equipment and devices for industrial, optical communications, consumer electronics, and security and monitoring applications. II-VI Incorporated was incorporated in 1971 and is headquartered in Saxonburg, Pennsylvania. COHERENT CORP. (COHR) is classified as a large-cap stock in the Technology sector, specifically within the Measuring And Control Equipment industry. The company is led by CEO Vincent D. Mattera and employs approximately 23,700 people, headquartered in Saxonburg, Pennsylvania. With a market capitalization of $46.5B, COHR is one of the prominent companies in the Technology sector.
COHERENT CORP. (COHR) Stock Rating — Hold (April 2026)
As of April 2026, COHERENT CORP. receives a Hold rating with a composite score of 46.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.COHR ranks #1,003 out of 4,446 stocks in our coverage universe. Within the Technology sector, COHERENT CORP. ranks #96 of 584 stocks, placing it in the top quartile of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
COHR Stock Price and 52-Week Range
COHERENT CORP. (COHR) currently trades at $308.79. The stock gained $24.62 (8.7%) in the most recent trading session. The 52-week high for COHR is $300.20, which means the stock is currently trading 2.9% from its annual peak. The 52-week low is $45.58, putting the stock 577.5% above its annual trough. Recent trading volume was 8.0M shares, reflecting moderate market activity.
Is COHR Overvalued or Undervalued? — Valuation Analysis
COHERENT CORP. (COHR) carries a value factor score of 39/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 111.85x, compared to the Technology sector average of 45.27x — a premium of 147%. The price-to-book ratio stands at 5.94x, versus the sector average of 3.16x. The price-to-sales ratio is 8.52x, compared to 1.06x for the average Technology stock. On an enterprise value basis, COHR trades at 107.39x EV/EBITDA, versus 12.79x for the sector.
At current multiples, COHERENT CORP. trades at a premium to most Technology peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
COHERENT CORP. Profitability — ROE, Margins, and Quality Score
COHERENT CORP. (COHR) earns a quality factor score of 38/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 5.3%, compared to the Technology sector average of -1.4%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 3.1% versus the sector average of -1.0%.
On a margin basis, COHERENT CORP. reports gross margins of 36.1%, compared to 50.9% for the sector. The operating margin is 8.3% (sector: -0.5%). Net profit margin stands at 7.5%, versus -1.5% for the average Technology stock. Revenue growth is running at 25.0% on a trailing basis, compared to 14.2% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
COHR Debt, Balance Sheet, and Financial Health
COHERENT CORP. has a debt-to-equity ratio of 38.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 2.25x, indicating strong short-term liquidity. Total debt on the balance sheet is $3.35B.
COHR has a beta of 2.83, meaning it is more volatile than the broader market — a $10,000 investment in COHR would be expected to move 183.5% more than the S&P 500 on any given day. The stability factor score for COHERENT CORP. is 30/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.
COHERENT CORP. Revenue and Earnings History — Quarterly Trend
In TTM 2026, COHERENT CORP. reported revenue of $6.20B and earnings per share (EPS) of $0.87. Net income for the quarter was $472M. Gross margin was 36.1%. Operating income came in at $523M.
In Q2 2026, COHERENT CORP. reported revenue of $1.69B and earnings per share (EPS) of $0.87. Net income for the quarter was $144M. Gross margin was 37.0%. Revenue grew 17.5% year-over-year compared to Q2 2025. Operating income came in at $168M.
In Q1 2026, COHERENT CORP. reported revenue of $1.58B and earnings per share (EPS) of $1.24. Net income for the quarter was $225M. Gross margin was 36.6%. Revenue grew 17.3% year-over-year compared to Q1 2025. Operating income came in at $217M.
In FY 2025, COHERENT CORP. reported revenue of $5.81B and earnings per share (EPS) of $-0.52. Net income for the quarter was $30M. Gross margin was 35.2%. Revenue grew 23.4% year-over-year compared to FY 2024. Operating income came in at $94M.
Over the past 8 quarters, COHERENT CORP. has demonstrated a growth trajectory, with revenue expanding from $4.71B to $6.20B. Investors analyzing COHR stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
COHR Dividend Yield and Income Analysis
COHERENT CORP. (COHR) does not currently pay a dividend. This is common among growth-oriented companies in the Measuring And Control Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.
COHR Momentum and Technical Analysis Profile
COHERENT CORP. (COHR) has a momentum factor score of 77/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 48/100 reflects moderate short selling activity.
COHR vs Competitors — Technology Sector Ranking and Peer Comparison
Comparing COHR against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full COHR vs S&P 500 (SPY) comparison to assess how COHERENT CORP. stacks up against the broader market across all factor dimensions.
COHR Next Earnings Date
No upcoming earnings date has been announced for COHERENT CORP. (COHR) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy COHR? — Investment Thesis Summary
COHERENT CORP. presents a balanced picture with arguments on both sides. The quality score of 38/100 flags below-average profitability. The value score of 39/100 indicates premium valuation. Price momentum is positive at 77/100, suggesting the trend favors buyers. High volatility (stability score 30/100) increases portfolio risk.
In summary, COHERENT CORP. (COHR) earns a Hold rating with a composite score of 46.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on COHR stock.
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Institutional Research Dossier
COHERENT CORP. (COHR) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Coherent Corp. (COHR). While the company operates in attractive growth markets like optical communications and industrial lasers, its high valuation and significant debt burden following the acquisition of Coherent Inc. limit its upside potential. The company's recent improvements in profitability are encouraging, but sustained execution is needed to justify its premium valuation.
Coherent's exposure to cyclical end markets and the inherent volatility in the technology sector present ongoing risks. The company's ability to successfully integrate its acquisitions and manage its debt will be crucial for future performance. While the momentum score is high, the quality and investment scores are concerning, suggesting that the market may be overly optimistic about the company's near-term prospects. We believe a wait-and-see approach is warranted until Coherent demonstrates consistent profitability and deleveraging.
Business Strategy & Overview
Coherent Corp. operates through two segments: Compound Semiconductors and Photonic Solutions. The Compound Semiconductors segment focuses on optical and electro-optical components and materials for high-power lasers, infrared optics, and semiconductor lasers. These products serve diverse applications in materials processing, aerospace and defense, medical imaging, and optical interconnects. The Photonic Solutions segment manufactures transceivers for data centers and telecom networks, pump lasers, optical amplifiers, and advanced components for telecom networks. This segment also provides crystal materials, optics, lasers, and optoelectronic modules for optical communications, life sciences, and consumer electronics markets.
The company's strategy revolves around providing vertically integrated solutions across the photonics value chain. This allows Coherent to capture a larger share of the market and offer customized solutions to its customers. The acquisition of Coherent Inc. significantly expanded the company's product portfolio and market reach, particularly in the areas of lasers and optical systems. However, this acquisition also increased the company's debt burden and integration complexity.
Coherent's strategic positioning is focused on high-growth markets such as optical communications, driven by the increasing demand for bandwidth and data transmission. The company is also targeting the industrial laser market, where its products are used in materials processing, cutting, and welding applications. In the life sciences market, Coherent provides lasers and optical components for medical imaging and diagnostics. The company's product pipeline includes new generations of transceivers, lasers, and optical components designed to meet the evolving needs of its customers.
The industry context for Coherent is characterized by rapid technological advancements and increasing competition. The optical communications market is dominated by a few large players, while the industrial laser market is more fragmented. Coherent faces competition from companies such as Lumentum, IPG Photonics, and MKS Instruments. The company's ability to differentiate its products and services through innovation and customer service will be critical for its success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
25.0%
Sector: 14.2%
+76% VS SCTR
Economic Moat Analysis
Coherent's economic moat is likely Narrow. The company possesses some intangible assets, particularly in the form of intellectual property related to its laser and optical component technologies. These patents and proprietary designs provide a degree of competitive advantage, allowing Coherent to offer differentiated products and services. However, the technology sector is characterized by rapid innovation, and patents can become obsolete relatively quickly. Therefore, the strength of Coherent's intangible assets is limited.
Switching costs for Coherent's customers are moderate. While some customers may have invested significant time and resources in integrating Coherent's products into their systems, alternative solutions are often available. The cost of switching to a different supplier may involve some disruption and requalification efforts, but it is unlikely to be prohibitive for most customers. This limits Coherent's ability to command premium pricing or retain customers in the face of competition.
Network effects are not a significant factor in Coherent's business. The value of its products and services does not increase as more customers adopt them. This contrasts with companies that benefit from strong network effects, such as social media platforms or online marketplaces. The absence of network effects weakens Coherent's competitive position.
Cost advantages are also not a primary source of competitive advantage for Coherent. While the company may benefit from some economies of scale in its manufacturing operations, it does not have a significant cost advantage over its competitors. The company's gross margin of 36.1% is lower than the sector average of 51.2%, suggesting that it does not have a cost advantage. Efficient scale is not a major factor in this industry, as there are many competitors of varying sizes.
Overall, Coherent's economic moat is relatively weak. While the company has some intangible assets and moderate switching costs, these advantages are not strong enough to create a wide moat. The company faces significant competition in its key markets, and its ability to sustain its competitive position will depend on its ability to innovate and execute effectively.
Financial Health & Profitability
Coherent's financial health presents a mixed picture. The company's revenue growth has been strong, with a TTM revenue of $1.69 billion representing a 25.0% increase compared to the sector average of 14.0%. This growth is primarily driven by the acquisition of Coherent Inc. and increased demand for its products in optical communications and industrial lasers. However, the company's profitability has been volatile, with net income fluctuating significantly over the past few years.
The company's TTM net income is $143.81 million, resulting in a net margin of 7.5%, which is significantly higher than the sector average of -1.5%. However, this profitability is not consistent across all quarters. For example, in Q3 FY2023, the company reported a net income of only $2.55 million. The company's gross margin of 36.1% is lower than the sector average of 51.2%, indicating that it may face challenges in controlling its cost of goods sold.
Coherent's balance sheet is highly leveraged, with a total debt of $3.35 billion. This debt burden is primarily due to the acquisition of Coherent Inc. The company's debt-to-equity ratio is 38.00, which is slightly lower than the sector average of 43.00. However, the absolute level of debt is still a concern. The company's current ratio of 2.25 indicates that it has sufficient liquidity to meet its short-term obligations.
The company's return on equity (ROE) is 5.3%, which is higher than the sector average of -1.5%. However, this ROE is still relatively low compared to other companies in the technology sector. The company's free cash flow is not available, making it difficult to assess its cash flow generation capabilities. The quarterly financial history shows that the company's profitability has improved in recent quarters, with net income increasing from $1.76 million in Q3 FY2025 to $143.81 million in Q2 FY2026. However, this improvement is not yet sustainable, and the company needs to demonstrate consistent profitability over a longer period.
Valuation Assessment
Coherent's valuation is stretched based on several key metrics. The company's P/E ratio is an extremely high 291.5x, significantly above the sector average of 45.3x. This suggests that investors are pricing in substantial future earnings growth, which may not materialize given the company's volatile profitability and high debt burden. The EV/EBITDA multiple is also elevated at 75.8x, far exceeding the sector average of 13.0x. This indicates that the company is expensive relative to its earnings before interest, taxes, depreciation, and amortization.
Given the lack of available free cash flow data, a traditional discounted cash flow analysis is not possible. However, based on the company's high P/E and EV/EBITDA multiples, it appears that the stock is overvalued. The market may be overly optimistic about the company's ability to generate sustainable earnings growth and deleverage its balance sheet. The company's recent improvements in profitability are encouraging, but they are not yet sufficient to justify its premium valuation.
Compared to its historical valuation, Coherent's current multiples are significantly higher than its historical averages. This suggests that the stock is trading at a premium due to the acquisition of Coherent Inc. and the perceived growth opportunities in optical communications and industrial lasers. However, the company's high debt burden and integration risks warrant a more cautious valuation approach.
Overall, Coherent's valuation is expensive relative to its growth, its history, and its sector. The company's high P/E and EV/EBITDA multiples suggest that the stock is overvalued. While the company operates in attractive growth markets, its high debt burden and integration risks limit its upside potential. We believe that a more reasonable valuation would be warranted if the company can demonstrate consistent profitability and deleveraging.
Risk & Uncertainty
Coherent faces several specific, idiosyncratic risks that could break the investment thesis. The most significant risk is the company's high debt burden following the acquisition of Coherent Inc. The company's ability to successfully deleverage its balance sheet will be crucial for its future performance. Failure to reduce debt could lead to financial distress and limit the company's ability to invest in growth opportunities.
Another significant risk is the integration of Coherent Inc. The acquisition was a large and complex transaction, and the company faces challenges in integrating the two businesses. Integration risks include cultural differences, operational inefficiencies, and the loss of key employees. Failure to successfully integrate Coherent Inc. could lead to lower-than-expected synergies and a negative impact on the company's financial performance.
Coherent also faces competition from other companies in the optical communications and industrial laser markets. The company competes with large, well-established players such as Lumentum, IPG Photonics, and MKS Instruments. Increased competition could lead to lower prices and reduced market share. The company's ability to differentiate its products and services through innovation and customer service will be critical for its success.
The company's exposure to cyclical end markets is another risk factor. The demand for its products is sensitive to economic conditions, and a slowdown in the global economy could lead to lower sales and reduced profitability. The technology sector is also subject to rapid technological advancements, and the company's products could become obsolete if it fails to keep pace with innovation.
Bulls Say / Bears Say
The Bull Case
BULL VIEWCoherent's acquisition of Coherent Inc. creates a vertically integrated photonics powerhouse poised to capitalize on the growth in optical communications and industrial lasers.
BULL VIEWThe company's recent improvements in profitability and strong revenue growth demonstrate its ability to execute its strategic plan and generate shareholder value.
BULL VIEWCoherent's exposure to high-growth markets such as data centers and electric vehicles provides significant long-term growth opportunities.
The Bear Case
BEAR VIEWCoherent's high debt burden and integration risks following the acquisition of Coherent Inc. limit its upside potential and create significant downside risk.
BEAR VIEWThe company's high valuation and volatile profitability make it an unattractive investment compared to other companies in the technology sector.
BEAR VIEWCoherent's exposure to cyclical end markets and intense competition could lead to lower-than-expected sales and reduced profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score COHR and 4,400+ other equities.
COHERENT CORP. exhibits a 420% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.1%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
36.1%
Sector: 50.9%
Operating Margin
Core business profitability
8.3%
Sector: -0.5%
Net Margin
Bottom-line profitability
7.5%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
