COTY INC-CL A (COTY.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:COTY - US2220702037 - Common Stock
2.62 EUR
-0.01 (-0.49%)
We assign a fundamental rating of 3 out of 10 to COTY. COTY was compared to 13 industry peers in the Personal Care Products industry. Both the profitability and financial health of COTY have multiple concerns. COTY is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year COTY was profitable.
- COTY had a positive operating cash flow in the past year.
- In multiple years COTY reported negative net income over the last 5 years.
- In the past 5 years COTY always reported a positive cash flow from operatings.
1.2 Ratios
- COTY has a Return On Assets of -3.28%. This is in the lower half of the industry: COTY underperforms 76.92% of its industry peers.
- With a Return On Equity value of -10.87%, COTY is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
- COTY has a worse Return On Invested Capital (2.78%) than 92.31% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for COTY is significantly below the industry average of 11.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.28% | ||
| ROE | -10.87% | ||
| ROIC | 2.78% |
ROA(3y)0.45%
ROA(5y)-0.07%
ROE(3y)1.41%
ROE(5y)-0.89%
ROIC(3y)3.14%
ROIC(5y)2.37%
1.3 Margins
- COTY's Operating Margin of 8.53% is on the low side compared to the rest of the industry. COTY is outperformed by 76.92% of its industry peers.
- In the last couple of years the Operating Margin of COTY has grown nicely.
- COTY has a better Gross Margin (64.82%) than 61.54% of its industry peers.
- In the last couple of years the Gross Margin of COTY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.53% | ||
| PM (TTM) | N/A | ||
| GM | 64.82% |
OM growth 3Y18.53%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.71%
GM growth 5Y2.3%
2. Health
2.1 Basic Checks
- COTY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- COTY has more shares outstanding than it did 1 year ago.
- Compared to 5 years ago, COTY has more shares outstanding
- Compared to 1 year ago, COTY has a worse debt to assets ratio.
2.2 Solvency
- COTY has an Altman-Z score of 0.17. This is a bad value and indicates that COTY is not financially healthy and even has some risk of bankruptcy.
- With a Altman-Z score value of 0.17, COTY is not doing good in the industry: 92.31% of the companies in the same industry are doing better.
- COTY has a debt to FCF ratio of 14.03. This is a negative value and a sign of low solvency as COTY would need 14.03 years to pay back of all of its debts.
- COTY's Debt to FCF ratio of 14.03 is on the low side compared to the rest of the industry. COTY is outperformed by 76.92% of its industry peers.
- A Debt/Equity ratio of 1.14 is on the high side and indicates that COTY has dependencies on debt financing.
- COTY has a Debt to Equity ratio of 1.14. This is in the lower half of the industry: COTY underperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 14.03 | ||
| Altman-Z | 0.17 |
ROIC/WACC0.47
WACC5.88%
2.3 Liquidity
- A Current Ratio of 0.85 indicates that COTY may have some problems paying its short term obligations.
- COTY's Current ratio of 0.85 is on the low side compared to the rest of the industry. COTY is outperformed by 76.92% of its industry peers.
- COTY has a Quick Ratio of 0.85. This is a bad value and indicates that COTY is not financially healthy enough and could expect problems in meeting its short term obligations.
- COTY has a Quick ratio of 0.54. This is amonst the worse of the industry: COTY underperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
- COTY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.76%.
- The Earnings Per Share has been decreasing by -6.60% on average over the past years.
- The Revenue has decreased by -5.70% in the past year.
- The Revenue has been growing slightly by 4.55% on average over the past years.
EPS 1Y (TTM)-54.76%
EPS 3Y-6.6%
EPS 5YN/A
EPS Q2Q%-20%
Revenue 1Y (TTM)-5.7%
Revenue growth 3Y3.57%
Revenue growth 5Y4.55%
Sales Q2Q%-5.64%
3.2 Future
- The Earnings Per Share is expected to grow by 24.69% on average over the next years. This is a very strong growth
- Based on estimates for the next years, COTY will show a small growth in Revenue. The Revenue will grow by 1.42% on average per year.
EPS Next Y98.63%
EPS Next 2Y50.17%
EPS Next 3Y34.56%
EPS Next 5Y24.69%
Revenue Next Year0.6%
Revenue Next 2Y1.47%
Revenue Next 3Y1.58%
Revenue Next 5Y1.42%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 16.38, the valuation of COTY can be described as correct.
- COTY's Price/Earnings ratio is rather cheap when compared to the industry. COTY is cheaper than 92.31% of the companies in the same industry.
- When comparing the Price/Earnings ratio of COTY to the average of the S&P500 Index (28.60), we can say COTY is valued slightly cheaper.
- Based on the Price/Forward Earnings ratio of 6.32, the valuation of COTY can be described as very cheap.
- Based on the Price/Forward Earnings ratio, COTY is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. COTY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.38 | ||
| Fwd PE | 6.32 |
4.2 Price Multiples
- COTY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. COTY is cheaper than 84.62% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of COTY indicates a rather cheap valuation: COTY is cheaper than 92.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.24 | ||
| EV/EBITDA | 7.35 |
4.3 Compensation for Growth
- COTY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- COTY's earnings are expected to grow with 34.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y50.17%
EPS Next 3Y34.56%
5. Dividend
5.1 Amount
- COTY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
COTY INC-CL A / COTY.PA FAQ
What is the fundamental rating for COTY stock?
ChartMill assigns a fundamental rating of 3 / 10 to COTY.PA.
Can you provide the valuation status for COTY INC-CL A?
ChartMill assigns a valuation rating of 8 / 10 to COTY INC-CL A (COTY.PA). This can be considered as Undervalued.
What is the profitability of COTY stock?
COTY INC-CL A (COTY.PA) has a profitability rating of 3 / 10.
Can you provide the financial health for COTY stock?
The financial health rating of COTY INC-CL A (COTY.PA) is 0 / 10.
Can you provide the dividend sustainability for COTY stock?
The dividend rating of COTY INC-CL A (COTY.PA) is 0 / 10 and the dividend payout ratio is -3.28%.