MeritValue

COHERENT CORP.

COHRdata completeness 100%18 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'gainsOnRealEstateSales'

The thesis, from the filings

COHERENT CORP. earns about 2% on invested capital, but has diluted owners by 68% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $2.57 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$3.32B1$5.16B2$4.71B3$5.81B3$7.12B3
Net income$234.8M4−$259.5M5−$156.2M6$49.4M6$805M6
Operating cash flow$413.3M7$634M8$545.7M9$633.6M9$79.5M9
Capital expenditure$314.3M10$436.1M11$346.8M12$440.8M12$1.1B12
Free cash flow (derived)$99M7$198M8$198.9M9$192.8M9−$1.02B9
Total debt$4.6B13$8.62B14$8.2B15$7.37B16$6.44B16
Cash & equivalents$2.58B17$821.3M18$926M18$909.2M19$1.16B19
Diluted shares116.5M137.6M151.6M154.8M195.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$558.05
your share of equity
Profit it earned you last year
$41.2
Free cash flow it threw off
−$52.38
Debt you’d be carrying
$329.83

10 shares is a claim on $558.05 of net worth that earned you $41.2 and generated −$52.38 of cash last year, against $329.83 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
2% avg · 5y
FY22 6%FY23 -0%FY24 -1%FY25 0%FY26 5%

It earned an average 2% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+68% shares · 5y

Share count is up 68% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 40% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0
DCF · Growth Exit 10Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$192.8M
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$192.8M
Earnings Power Value
$2.57
assumptions (8)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$49.4M
  • growthAssumed0.0%
Graham Number
$71.92
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-06-30 · accession 0000820318-24-000016 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-06-30 · accession 0000820318-25-000014 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-06-30 · accession 0000820318-26-000020 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-06-30 · accession 0000820318-24-000016 (NetIncomeLoss)
  5. 10-K · period ending 2023-06-30 · accession 0000820318-25-000014 (NetIncomeLoss)
  6. 10-K · period ending 2024-06-30 · accession 0000820318-26-000020 (NetIncomeLoss)
  7. 10-K · period ending 2022-06-30 · accession 0000820318-24-000016 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-06-30 · accession 0000820318-25-000014 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-06-30 · accession 0000820318-26-000020 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-06-30 · accession 0000820318-24-000016 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-06-30 · accession 0000820318-25-000014 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-06-30 · accession 0000820318-26-000020 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-06-30 · accession 0000820318-23-000016 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-06-30 · accession 0000820318-24-000016 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2024-06-30 · accession 0000820318-25-000014 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2025-06-30 · accession 0000820318-26-000020 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2022-06-30 · accession 0000820318-24-000016 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-06-30 · accession 0000820318-25-000014 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2025-06-30 · accession 0000820318-26-000020 (CashAndCashEquivalentsAtCarryingValue)