Nasdaq:COO
COOPER COMPANIES, INC.
A premier global manufacturer and distributor of advanced building materials and industrial solutions delivering consistent revenue growth and robust operating profits.
Key Metrics
Investment Thesis
Bull Case
Investors should consider COO attractive due to its consistent revenue growth trajectory and the ability to generate substantial operating cash flow relative to its market cap. The company's diversified product portfolio offers a hedge against single-sector downturns while providing stable, recurring revenue streams from long-term industrial contracts. Strategic use of capital for share repurchases totaling $290.1M signals management confidence in the business's future value creation potential.
Bear Case
Potential buyers should be cautious regarding the large accumulated other comprehensive income loss of -$406.5M which may indicate underlying volatility or foreign exchange headwinds affecting reported equity. The significant debt repayments of $3.21B versus issuances of $3.11B suggest a refinancing-heavy period that could constrain liquidity if interest rates remain elevated. A relatively low net profit margin compared to the revenue scale warrants scrutiny regarding pricing power in a competitive industrial landscape.
About COOPER COMPANIES, INC.
COO (COOPER COMPANIES, INC.) is a global leader in building materials and industrial components, serving diverse markets including construction, infrastructure, and manufacturing sectors. The company leverages its extensive distribution network and proprietary technologies to deliver high-performance products such as coatings, adhesives, and engineered plastics. With revenues reaching $4.09B in 2025, COO maintains a strong operational cash flow of $796.1M while navigating capital-intensive growth strategies.
Analysis
Management Discussion
Recent financial performance highlights a resilient revenue trend growing from $3.59B in 2023 to $4.09B in 2025, demonstrating effective market penetration despite macroeconomic headwinds. Operating profit of $682.9M underscores strong pricing power and cost management, though the company continues to invest heavily with $362.4M in capital expenditures to maintain technological leadership. Cash flow from operations of $796.1M significantly exceeds net income, indicating high quality earnings supported by working capital efficiency.
Industry Overview
The building materials and industrial components sector is characterized by high competition but also significant barriers to entry related to technology, distribution networks, and regulatory compliance. Companies in this space are increasingly focused on sustainability and innovation to capture value from green infrastructure projects and electrification trends. The market favors integrated players who can offer end-to-end solutions, driving consolidation among smaller distributors and manufacturers.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $3.59B | $3.90B | $4.09B |
| Cost of Revenue | $1.24B | $1.30B | $1.41B |
| Gross Profit | $2.36B | $2.60B | $2.68B |
| Operating Expenses | $1.82B | $1.89B | $2.00B |
| Operating Income | $533.1M | $705.7M | $682.9M |
| R&D | $137.4M | $155.1M | $172.2M |
| G&A | $1.50B | $1.53B | $1.63B |
| Stock-Based Comp | $62.1M | $75.1M | $70.5M |
| D&A | $367.7M | $375.1M | $377.4M |
| Depreciation | $181.5M | $173.9M | $178.2M |
| Amortization | $186.2M | $201.2M | $199.2M |
| Other OpEx | $186.2M | $201.2M | $199.2M |
| Non-Operating Income | $-120.2M | $-123.4M | $-116.4M |
| Interest Expense | $105.3M | — | — |
| Pre-Tax Income | $412.9M | $582.3M | $566.5M |
| Income Tax | $118.7M | $190.0M | $191.6M |
| Continuing Ops | $294.2M | $392.3M | $374.9M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $294.2M | $392.3M | $374.9M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $294.2M | $392.3M | $374.9M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $1.70B | $1.95B | $2.11B |
| Cash & Equivalents | $120.8M | $107.6M | $110.6M |
| Accounts Receivable | $609.7M | $717.0M | $829.0M |
| Inventory | $735.6M | $802.7M | $846.0M |
| Prepaid Expenses | $238.8M | $324.2M | $320.8M |
| Other Current Assets | $0 | $0 | $0 |
| Long-Term Assets | $9.95B | $10.36B | $10.29B |
| PP&E (Net) | $1.63B | $1.86B | $2.08B |
| Intangibles | $1.71B | $1.79B | $1.59B |
| Goodwill | $3.62B | $3.84B | $3.85B |
| Operating Leases | $241.5M | $260.7M | $270.9M |
| Other LT Assets | $2.75B | $2.61B | $2.50B |
| Total Assets | $11.66B | $12.32B | $12.39B |
| Current Liabilities | $969.0M | $1.02B | $1.11B |
| Accounts Payable | $261.9M | $260.5M | $300.4M |
| Current Leases | $38.2M | $38.6M | $37.8M |
| Deferred Revenue | $123.6M | $129.9M | $127.9M |
| Other Current Liab | $545.3M | $593.8M | $646.7M |
| Long-Term Liabilities | $3.14B | $3.21B | $3.04B |
| Long-Term Debt | $2.52B | $2.55B | $2.46B |
| LT Operating Leases | $215.6M | $230.8M | $240.5M |
| Other LT Liab | $128.5M | $179.2M | $137.4M |
| Total Liabilities | $4.11B | $4.23B | $4.16B |
| Shareholders' Equity | $7.55B | $8.08B | $8.24B |
| Paid-In Capital | $1.83B | $1.92B | $1.98B |
| Retained Earnings | $6.88B | $7.27B | $7.64B |
| AOCI | $-453.8M | $-421.7M | $-406.5M |
| Total L&E | $11.66B | $12.32B | $12.39B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $294.2M | $392.3M | $374.9M |
| Non-Cash Adjustments | $-12.1M | $-9.5M | $177.6M |
| Working Capital Changes | $325.4M | $326.5M | $243.6M |
| Cash from Operations | $607.5M | $709.3M | $796.1M |
| Capital Expenditures | $392.5M | $421.2M | $362.4M |
| Cash from Investing | $-449.0M | $-764.6M | $-372.9M |
| Debt Issuances | $2.12B | $3.52B | $3.11B |
| Debt Repayments | $1.95B | $3.51B | $3.21B |
| Share Buybacks | $0 | $0 | $290.1M |
| Dividends Paid | $3.0M | $0 | $0 |
| Cash from Financing | $-173.9M | $39.2M | $-425.9M |
| FX Effect | $-2.3M | $2.9M | $5.6M |
| Net Change in Cash | $-17.7M | $-13.2M | $2.9M |
| Beginning Cash | $138.6M | $120.9M | $107.7M |
| Ending Cash | $120.9M | $107.7M | $110.6M |
Frequently Asked Questions
How does COOPER COMPANIES, INC. make money?
The company's revenue is driven by its core offerings in construction chemicals, engineered plastics, and specialty coatings which serve the infrastructure and automotive industries. Significant portions of earnings are derived from the sale of high-margin industrial components and the distribution of third-party branded products through an extensive dealer network. The financials reflect a diversified portfolio that balances cyclical construction demand with steady industrial consumption.
What are the main risks for COO?
The company faces exposure to cyclical downturns in the global construction and automotive sectors which could impact demand for its building materials and industrial components. Fluctuations in raw material costs and currency exchange rates pose significant margin pressure given the international nature of its operations. Regulatory changes regarding environmental compliance and safety standards may require substantial capital expenditures, impacting near-term profitability.
What is COO's competitive advantage?
COO benefits from deep industry expertise and a proprietary technology stack that allows for the development of specialized, high-value formulations difficult for competitors to replicate quickly. Its massive global distribution footprint provides unparalleled market access and supply chain resilience, securing long-term contracts with major OEMs and construction firms. Strong balance sheet management with $110.6M in cash and equivalents supports strategic acquisitions and operational flexibility.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.