Company name Coherent, Inc.
Stock ticker COHR
Live stock price [stckqut]COHR[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Poor
EPS growth Poor
P/E growth Fair
EBIT growth Good

ANALYSIS

Confident Investor Rating Poor
Target stock price (TWCA growth scenario) $41.85
Target stock price (averages with growth) $41.6
Target stock price (averages with no growth) $25.75
Target stock price (manual assumptions) $50.78

The following company description is from Google Finance: http://www.google.com/finance?q=cohr

Coherent, Inc. (Coherent) is a suppliers of photonics-based solutions in a range of commercial and scientific research applications. The Company designs, manufactures, service and markets lasers and related accessories for a group of customers. The Company is organized into two operating segments: Commercial Lasers and Components (CLC) and Specialty Lasers and Systems (SLS). CLC’s markets include materials processing, original equipment manufacturer (OEM) components and instrumentation and microelectronics. SLS develops and manufactures configurable, advanced performance products serving the microelectronics, scientific research and government programs and OEM components and instrumentation markets. The Company’s products address a range of applications the Company group into the four markets: Microelectronics, Materials Processing, OEM Components and Instrumentation, and Scientific Research and Government Programs.

 

Confident Investor comments: At this price and at this time, I do not think that a Confident Investor can confidently invest in Coherent, Inc.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Coherent, Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $55.74
  • Growth: 0.08
  • Current EPS (TTM): $2.42
  • P/E: 23
  • Future EPS Calc: $3.55
  • Future Stock Price Calc: $81.78
  • Target stock price: $50.78

I hope that this makes you a better investor. [/s2If]