The Cooper Companies, Inc. (COO): history, ownership, mission, how it works & makes money

A Brief History of The Cooper Companies, Inc.

The Cooper Companies, Inc. (COO) is a global medical device company specializing in the design and manufacture of contact lenses and surgical instruments. As of 2024, Cooper is segmented into two primary business units: CooperVision and CooperSurgical.

Financial Performance Overview

For the nine months ending July 31, 2024, Cooper Companies reported net sales of $2.877 billion, which represented a 7.9% increase compared to $2.666 billion for the same period in 2023.

Segment Performance

CooperVision, the larger segment, reported net sales of $2.065 billion for the nine months ended July 31, 2024, a 9.1% increase from $1.895 billion in 2023.

Operating Expenses

For the nine months ended July 31, 2024, Cooper's total selling, general and administrative expenses reached $1.142 billion, a slight increase from $1.113 billion in 2023.

Cash Flow and Capital Resources

For the nine months ending July 31, 2024, Cooper reported operating cash flow of $441.2 million, compared to $433.3 million in 2023. The cash used in investing activities totaled $523.0 million, significantly higher than $288.2 million in the previous year.

Debt and Interest Expenses

Cooper's interest expense for the nine months ended July 31, 2024, stood at $87.3 million, up from $79.0 million in 2023. The increase was attributed to higher debt balances and interest rates.

Taxation

The effective tax rates for the nine months ended July 31, 2024, were 33.6%, compared to 31.6% for the same period in 2023.

Stock Performance

As of July 31, 2024, Cooper Companies had approximately 199.1 million shares outstanding, with a market capitalization fluctuating around $15 billion throughout the year.

In summary, The Cooper Companies, Inc. has demonstrated significant growth in net sales, net income, and operating income for the nine months ending July 31, 2024, driven by strong performance in both CooperVision and CooperSurgical segments, alongside effective management of expenses and investments.

A Who Owns The Cooper Companies, Inc. (COO)

Major Shareholders

As of 2024, the ownership structure of The Cooper Companies, Inc. (COO) is primarily composed of institutional and individual shareholders. The following table outlines the major shareholders along with their respective ownership percentages:

Insider Ownership

Insider ownership plays a significant role in the governance of The Cooper Companies. As of 2024, the following individuals hold significant stakes in the company:

Market Capitalization and Stock Performance

As of July 31, 2024, The Cooper Companies, Inc. has a market capitalization of approximately $15.5 billion. The stock price has shown a consistent upward trend, with a year-to-date increase of 12%. Below is a summary of the stock performance:

Recent Developments

In February 2024, The Cooper Companies executed a four-for-one stock split, which adjusted the number of outstanding shares to approximately 199.1 million. This move aimed to enhance liquidity and make shares more accessible to a broader range of investors. The following table illustrates key financial metrics following the stock split:

The Cooper Companies, Inc. (COO) Mission Statement

Mission Overview

The Cooper Companies, Inc. aims to improve the quality of life for its customers by providing innovative and effective solutions in the healthcare sector, particularly in vision care and surgical markets. The company focuses on advancing the science of vision and improving reproductive health through its subsidiaries, CooperVision and CooperSurgical.

Financial Performance

As of July 31, 2024, The Cooper Companies reported the following financial metrics:

Segment Financials

The Cooper Companies operates primarily through two segments: CooperVision and CooperSurgical. Here are the financial highlights for each segment for the nine months ended July 31, 2024:

Geographic Performance

The Cooper Companies also tracks its net sales by geographic region. The following figures represent net sales to unaffiliated customers for the nine months ended July 31, 2024:

Research and Development Investment

The Cooper Companies continues to invest in research and development to enhance its product offerings. The R&D expenses for the nine months ended July 31, 2024, were as follows:

Working Capital and Cash Flow

As of July 31, 2024, The Cooper Companies reported working capital of $957.2 million, reflecting an increase from $735.9 million in the previous fiscal year. Cash flows from operating activities for the nine months ended July 31, 2024, were $441.2 million, up from $433.3 million in 2023.

Debt and Interest Expense

The total long-term debt as of July 31, 2024, was $2,591.6 million, with interest expense for the nine months amounting to $87.3 million. The effective tax rate for the period was 33.6% compared to 31.6% in the previous year.

Shareholder Equity

The total stockholders' equity as of July 31, 2024, was $7,925.2 million, an increase from $7,551.0 million as of October 31, 2023. The company has a remaining share repurchase authorization of $256.4 million as of July 31, 2024.

Conclusion

The Cooper Companies, Inc. is committed to enhancing the quality of life through its innovative healthcare solutions while demonstrating strong financial performance and a commitment to research and development.

How The Cooper Companies, Inc. (COO) Works

Business Overview

The Cooper Companies, Inc. operates through two primary segments: CooperVision and CooperSurgical. As of July 31, 2024, the company reported net sales of $1,002.8 million for the third quarter, compared to $930.2 million for the same period in 2023, reflecting a growth of approximately 7.8% year-over-year.

Segment Performance

• CooperVision contributed net sales of $674.4 million, an increase from $615.0 million in Q3 2023.
• CooperSurgical posted net sales of $327.2 million, up from $300.0 million in Q3 2023.

Financial Highlights

Cost Structure

For Q3 2024, the cost of sales was $339.8 million, leading to a gross margin of approximately 66%. Selling, general, and administrative expenses amounted to $381.1 million, representing 38% of net sales.

Research and Development (R&D)

Cooper Companies allocated $39.0 million to R&D in Q3 2024, up from $36.5 million in Q3 2023. This investment focuses on advancing contact lens technology and fertility-related products.

Cash Flow Analysis

For the nine months ended July 31, 2024, cash flows from operating activities totaled $441.2 million, while cash used in investing activities was $523.0 million, primarily due to acquisitions and capital expenditures.

Debt and Financing

As of July 31, 2024, total long-term debt was reported at $2,591.6 million. The company's effective tax rate for Q3 2024 was 36.1%, an increase from 28.2% in Q3 2023.

Market Presence

In the nine months ended July 31, 2024, net sales by geographic region were as follows:

Recent Developments

In November 2023, CooperSurgical expanded its offerings through the acquisition of Cook Medical’s reproductive health business, which is expected to enhance its market share and product portfolio significantly.

Outlook

The Cooper Companies, Inc. continues to focus on innovation and strategic acquisitions to drive growth in both the vision care and surgical segments, maintaining a strong commitment to enhancing shareholder value.

How The Cooper Companies, Inc. (COO) Makes Money

Revenue Streams

The Cooper Companies, Inc. generates revenue primarily through two segments: CooperVision and CooperSurgical.

CooperVision

CooperVision specializes in the manufacturing and selling of contact lenses. The company has seen significant growth in net sales, particularly from silicone hydrogel contact lenses. The following table summarizes the net sales by category for the three and nine months ended July 31, 2024:

CooperSurgical

CooperSurgical focuses on the fertility and women’s health care market. It provides a range of products and services including medical devices, cryostorage, and fertility consumables. The following table summarizes CooperSurgical's net sales by category for the three and nine months ended July 31, 2024:

Financial Performance

For the three months ended July 31, 2024, Cooper Companies reported total net sales of $1,002.8 million, compared to $930.2 million in the same period of 2023. The gross profit for this period was $663.0 million, leading to an operating income of $192.5 million.

Cost Structure

The cost structure includes selling, general, and administrative (SGA) expenses, which for the three months ended July 31, 2024, were $381.1 million, representing 38% of net sales. The research and development (R&D) expenses for the same period were $39.0 million.

Geographic Revenue Distribution

Cooper Companies also generates revenue across various regions. The following table summarizes net sales to unaffiliated customers by geographic region for the three and nine months ended July 31, 2024:

Recent Developments

In November 2023, Cooper Companies acquired Cook Medical, which contributed to the increase in office and surgical net sales. The growth in fertility net sales is attributed to increases in consumable products and genomic services.

Profitability Metrics

The profitability metrics for the company indicate a gross margin of approximately 66-67% for the three and nine months ended July 31, 2024, consistent with previous periods.