Coherent Corp Rated 43% by Value Investor Model

Coherent Corp (COHR) earns a 43% rating under the Value Investor model, indicating a mixture of weaknesses and strengths in fundamentals. The rating suggests investors should proceed with caution given the failed criteria related to long-term EPS growth and price/book ratio.

Date: 01-03-2025

AI Rating: 5

Investment Evaluation
According to the report, Coherent Corp (COHR) has garnered a 43% rating under the Value Investor model derived from Benjamin Graham's strategy. This method emphasizes stocks with favorable financial characteristics such as low P/B and P/E ratios, minimal debt, and solid long-term earnings growth.

The findings indicate that COHR has passed the criteria related to sales and current ratio, which is a positive sign for potential revenue generation and liquidity management. However, these positives are overshadowed by several failures in key areas:

Long-Term EPS Growth: The failure in long-term EPS growth is a significant concern as it indicates the company may not have demonstrated sufficient profit accumulation over time, potentially impacting investor confidence and expectations regarding future earnings.
Long-Term Debt in Relation to Net Current Assets: Another red flag is the failure relating to long-term debt. High debt levels compared to current assets can pose risks to stability and may indicate struggles in managing financial obligations.
Price/Book Ratio: The failure in the price/book ratio suggests that the stock may not be viewed favorably in terms of its valuation compared to book value, which can affect investor interest.

Overall, while some aspects of COHR's financial health like sales performance are strong, the concerns regarding long-term EPS growth and debt management raise red flags for investors. This mixed performance rating might influence stock prices negatively as investor sentiment can be affected by the weight of these weaknesses. Ignoring these elements could lead to a volatile future for COHR.

Stocks: COHR