COO is now overvalued and could go down -23%

Based on our analysis, Cooper Companies received a fairly valued rating of 2 out of 5 stars from Cashu. This rating stems from various financial ratios that indicate areas of concern when compared to its sector. One of the key concerns is the Price-to-Earnings (PE) ratio, which stands at 35.35, significantly higher than the sector average of 14.18. A high PE ratio may suggest that the stock is overvalued relative to its earnings, potentially indicating that investors have high expectations for future growth that may not be met. Additionally, Cooper Companies does not pay dividends, resulting in a Dividend Yield of 0.00, while the sector average is 1.18. A lack of dividends can be a red flag for income-focused investors who often prefer companies that return cash to shareholders. The Return on Assets (ROA) ratio for Cooper is 3.19, contrasting sharply with the sector average of -47.59. While a positive ROA indicates that the company generates profit from its assets, the relatively low figure suggests that there may be inefficiencies in asset utilization compared to sector peers. In summary, while Cooper Companies shows strengths in certain financial metrics, its elevated PE ratio, zero dividend yield, and modest ROA indicate potential overvaluation concerns relative to its sector. These factors contribute to the company receiving a fair valuation rating. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.