Fundamental Analysis
Who We Are
Coherent was founded in May of 1966. As it was for most companies starting out in the mid-60’s, the company’s start was modest. With limited financial resources, Coherent established its headquarters in the Palo Alto, CA home of one of its founders. At that time, the most pressing need was for a 220-volt power outlet, which forced Coherent’s brain trust to build their first laser in a laundry room. In the summer of 1966, next to a washer and dryer, and using a piece of rain gutter as a key component, Coherent’s founders began building their first laser. Four months later, Coherent unveiled the very first CO2 commercially available laser.
Today, Coherent is one of the world’s leading photonics manufacturers and innovators. With headquarters in the heart of Silicon Valley, California, and offices spanning the globe, Coherent offers a unique and distinct product portfolio that touches many different markets and industries.
Reasons to buy – COHERENT
High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
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- Here we see COHERENT makes a margin of 21% on Operating Level and about 13% on Net level. This means that out of $1 that it makes $0.23 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
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- Here we see net revenue growth of 14% in the revenue and the net profit figures grew by 56%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
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- Here we see COHERENT makes a Return on Assets of 11% and Return of Equity of 20% which is pretty good.
Coherent is a leading global supplier of industrial and fiber laser solutions. With the ratios that are being produced by the company we classify it among the good guys.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by COHERENT to the SEC. All the data on the above analysis can be found at the link below
Balance Sheet
Income Statement
