COTY INC-CL A (COTY.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:COTY - US2220702037 - Common Stock
2.5675 EUR
-0.05 (-2%)
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.
- 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
- With a Return On Assets value of -3.28%, COTY is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
- 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.
- Looking at the Return On Invested Capital, with a value of 2.78%, COTY is doing worse than 92.31% of the companies in the same industry.
- 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.
- The Gross Margin of COTY (64.82%) is better 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), COTY 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.
- The debt/assets ratio for COTY is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.17, we must say that COTY is in the distress zone and 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.
- The Debt to FCF ratio of COTY is 14.03, which is on the high side as it means it would take COTY, 14.03 years of fcf income to pay off all of its debts.
- COTY has a worse Debt to FCF ratio (14.03) than 76.92% of its industry peers.
- 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 | 0.17 |
ROIC/WACC0.47
WACC5.88%
2.3 Liquidity
- COTY has a Current 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.
- Looking at the Current ratio, with a value of 0.85, COTY is doing worse than 76.92% of the companies in the same industry.
- A Quick Ratio of 0.54 indicates that COTY may have some problems paying its short term obligations.
- The Quick ratio of COTY (0.54) is worse than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
- The earnings per share for COTY have decreased strongly by -54.76% in the last year.
- 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
- COTY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.42% yearly.
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
- The Price/Earnings ratio is 16.05, which indicates a correct valuation of COTY.
- 92.31% of the companies in the same industry are more expensive than COTY, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of COTY to the average of the S&P500 Index (28.39), we can say COTY is valued slightly cheaper.
- A Price/Forward Earnings ratio of 6.20 indicates a rather cheap valuation of COTY.
- 92.31% of the companies in the same industry are more expensive than COTY, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, COTY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 6.2 |
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.
- 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 | 9.05 | ||
| 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.
- A more expensive valuation may be justified as COTY's earnings are expected to grow with 34.56% in the coming years.
PEG (NY)0.16
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%.