CluenexCoherent Corp. COHR
Coherent Corp. scores average on business quality (5.0 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Coherent Corp. does
Coherent Corp designs and manufactures engineered materials, optoelectronic components, and devices for industrial, communications, electronics, and instrumentation markets. Customers pay for lasers and optics that power optical communications and advanced manufacturing. The business is pushing to scale production capacity to meet surging demand in optical networking components.
- What it does best
Coherent excels at supplying high-speed optical transceivers for data centers, capturing strong top-line gains with revenue reaching $7.1B. Its deep integration in photonics manufacturing creates technical hurdles that standard component makers struggle to match quickly.
- The main risk
Heavy capital expenditures of $1.1B paired with negative free cash flow of -$1.0B drain liquidity if demand in optical components slows or hits customer inventory bottlenecks.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin stands at 14.7% while free cash flow margin sits at -2.0% in the bottom quartile of its sector. Heavy capital investments weigh down near-term cash conversion despite revenue gains.
Operating in the bottom quartile of its sector for gross margin at 37.5%, the company lacks a wide pricing moat. Rivals can replicate standard optical components without heavy proprietary software locks.
Revenue growth surged to 22.5%, driven by strong demand across its core segments. This marks a sharp acceleration from prior years where revenue hovered near $5.8B.
Total debt sits at $3.2B with an interest coverage ratio of 5.5x, leaving debt service manageable but absorbing cash. Free cash flow dropped to -$1.0B due to heavy capital outlays, pointing to a softer near-term cash position.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
3 sold $2.4M outside pre-planned sales.
Our sealed record on COHR
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Coherent Corp. scores average on the Cluenex quality check (5.0 of 10), measured against its own industry. Profitability is weak, moat weak, growth fast and financial health fair.
In the last 90 days of SEC Form 4 filings: 3 sold $2.4M outside pre-planned sales.
Nov 3, 2026.
See COHR today
- Today's verdict on COHR, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Coherent Corp. (COHR)”, https://cluenex.com/stocks/cohr/, data as of Oct 10, 2026.