COH -Cochlear
29/6/26
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Cochlear Limited (ASX: COH) is a global medical device leader that has delivered steady revenue growth and robust profits over the last five years, though recent earnings have faced headwinds from softer market demand and upgraded cost guidance, significantly depressing its stock price.
Financial Snapshot
- Market Capitalization: ~A$7.8 billion
- Revenue (TTM): ~A$2.34 billion, representing a compound annual growth rate (CAGR) of over 14% across recent years.
- Profit (TTM): ~A$345 million. The company has generally maintained healthy net profit margins around 14% to 17%.
- Return on Equity (ROE): 18.15%.
Debt Profile & Balance Sheet
- Cochlear maintains a pristine balance sheet characterized by a very low debt-to-equity ratio of just 12.5%.
- It carries minimal long-term debt and generates strong cash flow, with a current ratio of 2.46, putting it in a low-risk position to comfortably cover liabilities.
Performance Trends & Recent Challenges
- 5-Year Profit Trend: From 2021 to mid-2025, Cochlear saw a strong upward trajectory in both profit and EBITDA. However, 1H 2026 net income dropped 21% year-over-year to A$161.5 million due to cost-of-living pressures delaying customer upgrades.
- 2026 Earnings Cut: In April 2026, Cochlear significantly cut its full-year profit guidance (lowering underlying NPAT to A$290-A$330 million) due to soft market growth and higher-than-expected costs, causing a sharp pullback in its share price.
- Dividends: Despite the recent share price volatility, Cochlear has steadily increased its annual dividend payouts every year over the last 5 years (moving from $2.55 to upwards of $4.30 per share).
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