COTY INC-CL A (COTY.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:COTY - US2220702037 - Common Stock
2.83 EUR
-0.01 (-0.28%)
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. COTY has a bad profitability rating. Also its financial health evaluation is rather negative. COTY is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
- COTY had positive earnings in the past year.
- COTY had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: COTY reported negative net income in multiple years.
- Each year in the past 5 years COTY had a positive operating cash flow.
1.2 Ratios
- COTY has a worse Return On Assets (-3.28%) than 76.92% of its industry peers.
- COTY has a Return On Equity of -10.87%. This is in the lower half of the industry: COTY underperforms 76.92% of its industry peers.
- COTY has a Return On Invested Capital of 2.78%. This is amonst the worse of the industry: COTY underperforms 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 has a Operating Margin of 8.53%. This is in the lower half of the industry: COTY underperforms 76.92% of its industry peers.
- In the last couple of years the Operating Margin of COTY has grown nicely.
- COTY has a Gross Margin of 64.82%. This is in the better half of the industry: COTY outperforms 61.54% of its industry peers.
- COTY's Gross Margin has improved in the last couple of years.
| 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.
- The number of shares outstanding for COTY has been increased compared to 1 year ago.
- COTY has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, COTY has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.18, we must say that COTY is in the distress zone and has some risk of bankruptcy.
- COTY's Altman-Z score of 0.18 is on the low side compared to the rest of the industry. COTY is outperformed by 92.31% of its industry peers.
- 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.
- With a Debt to FCF ratio value of 14.03, COTY is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
- COTY has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external 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 | 0.18 |
ROIC/WACC0.47
WACC5.96%
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.
- A Quick Ratio of 0.54 indicates that COTY may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.54, COTY is doing worse than 84.62% of the companies in the same industry.
| 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%.
- COTY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.60% yearly.
- Looking at the last year, COTY shows a decrease in Revenue. The Revenue has decreased by -5.70% in the last 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
- Based on estimates for the next years, COTY will show a very strong growth in Earnings Per Share. The EPS will grow by 24.69% on average per year.
- 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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 17.69, which indicates a rather expensive current valuation of COTY.
- Based on the Price/Earnings ratio, COTY is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
- COTY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 6.70, which indicates a rather cheap valuation of COTY.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of COTY indicates a rather cheap valuation: COTY is cheaper than 92.31% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of COTY to the average of the S&P500 Index (25.98), we can say COTY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.69 | ||
| Fwd PE | 6.7 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, COTY is valued cheaper than 84.62% of the companies in the same industry.
- COTY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. COTY is cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.79 | ||
| EV/EBITDA | 7.53 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as COTY's earnings are expected to grow with 34.56% in the coming years.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y50.17%
EPS Next 3Y34.56%
5. Dividend
5.1 Amount
- No dividends for COTY!.
| 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%.