COTY INC-CL A (COTY.PA) Stock Fundamental Analysis
EPA:COTY - Euronext Paris - Matif - US2220702037 - Common Stock - Currency: EUR
We assign a fundamental rating of 2 out of 10 to COTY. COTY was compared to 12 industry peers in the Personal Care Products industry. COTY has a bad profitability rating. Also its financial health evaluation is rather negative. COTY has a valuation in line with the averages, 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.
In multiple years COTY reported negative net income over the last 5 years.
Of the past 5 years COTY 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of COTY (1.26%) is worse than 83.33% of its industry peers.
COTY's Return On Equity of 3.89% is on the low side compared to the rest of the industry. COTY is outperformed by 91.67% of its industry peers.
COTY has a Return On Invested Capital of 3.85%. This is amonst the worse of the industry: COTY underperforms 91.67% 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 11.84%.
The 3 year average ROIC (3.16%) for COTY is below the current ROIC(3.85%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 3.89% | ||
| ROIC | 3.85% |
ROA(3y)1.68%
ROA(5y)-0.65%
ROE(3y)5.64%
ROE(5y)-5.48%
ROIC(3y)3.16%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 2.56%, COTY is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
COTY has a Operating Margin of 9.69%. This is in the lower half of the industry: COTY underperforms 66.67% of its industry peers.
COTY's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 64.93%, COTY is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of COTY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.69% | ||
| PM (TTM) | 2.56% | ||
| GM | 64.93% |
OM growth 3Y39.33%
OM growth 5Y19.8%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.4%
GM growth 5Y1.28%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so COTY is destroying value.
Compared to 1 year ago, COTY has more shares outstanding
COTY has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, COTY has an improved debt to assets ratio.
2.2 Solvency
COTY has an Altman-Z score of 0.50. This is a bad value and indicates that COTY is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of COTY (0.50) is worse than 91.67% of its industry peers.
The Debt to FCF ratio of COTY is 17.18, which is on the high side as it means it would take COTY, 17.18 years of fcf income to pay off all of its debts.
COTY has a worse Debt to FCF ratio (17.18) than 83.33% of its industry peers.
COTY has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
COTY's Debt to Equity ratio of 1.01 is on the low side compared to the rest of the industry. COTY is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 17.18 | ||
| Altman-Z | 0.5 |
ROIC/WACC0.58
WACC6.7%
2.3 Liquidity
A Current Ratio of 0.85 indicates that COTY may have some problems paying its short term obligations.
The Current ratio of COTY (0.85) is worse than 66.67% of its industry peers.
A Quick Ratio of 0.55 indicates that COTY may have some problems paying its short term obligations.
COTY has a worse Quick ratio (0.55) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
COTY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.22%.
Measured over the past years, COTY shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.43% on average per year.
The Revenue has been growing slightly by 5.90% in the past year.
Measured over the past years, COTY shows a decrease in Revenue. The Revenue has been decreasing by -0.55% on average per year.
EPS 1Y (TTM)-22.22%
EPS 3Y40.71%
EPS 5Y-9.43%
EPS Q2Q%25%
Revenue 1Y (TTM)5.9%
Revenue growth 3Y9.74%
Revenue growth 5Y-0.55%
Sales Q2Q%1.83%
3.2 Future
Based on estimates for the next years, COTY will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.33% on average per year.
The Revenue is expected to grow by 5.33% on average over the next years.
EPS Next Y34.91%
EPS Next 2Y26.48%
EPS Next 3Y21.53%
EPS Next 5Y17.33%
Revenue Next Year1.74%
Revenue Next 2Y3.18%
Revenue Next 3Y3.65%
Revenue Next 5Y5.33%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.32, which indicates a correct valuation of COTY.
Based on the Price/Earnings ratio, COTY is valued cheaper than 91.67% of the companies in the same industry.
COTY is valuated rather cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.08 indicates a reasonable valuation of COTY.
91.67% 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 92.74, COTY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 11.08 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than COTY, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of COTY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.32 | ||
| EV/EBITDA | 9.67 |
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.
COTY's earnings are expected to grow with 21.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y26.48%
EPS Next 3Y21.53%
5. Dividend
5.1 Amount
No dividends for COTY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
COTY INC-CL A
EPA:COTY (2/4/2025, 7:00:00 PM)
6.69
-0.22 (-3.18%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners38.17%
Inst Owner ChangeN/A
Ins Owners5.85%
Ins Owner ChangeN/A
Market Cap5.82B
Analysts75
Price Target9.83 (46.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.02
Dividend Growth(5Y)-49.18%
DP8.51%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-93.94%
Min EPS beat(2)-166.84%
Max EPS beat(2)-21.04%
EPS beat(4)1
Avg EPS beat(4)-45.74%
Min EPS beat(4)-166.84%
Max EPS beat(4)25.01%
EPS beat(8)3
Avg EPS beat(8)34.39%
EPS beat(12)6
Avg EPS beat(12)38.14%
EPS beat(16)8
Avg EPS beat(16)34.2%
Revenue beat(2)0
Avg Revenue beat(2)-2.57%
Min Revenue beat(2)-2.82%
Max Revenue beat(2)-2.31%
Revenue beat(4)1
Avg Revenue beat(4)-1.29%
Min Revenue beat(4)-2.82%
Max Revenue beat(4)0.85%
Revenue beat(8)4
Avg Revenue beat(8)0.11%
Revenue beat(12)6
Avg Revenue beat(12)-0.18%
Revenue beat(16)7
Avg Revenue beat(16)-0.37%
PT rev (1m)-1.52%
PT rev (3m)-15.09%
EPS NQ rev (1m)-2.14%
EPS NQ rev (3m)-9.15%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)-8.21%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-5.43%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-3.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.32 | ||
| Fwd PE | 11.08 | ||
| P/S | 0.98 | ||
| P/FCF | 25.32 | ||
| P/OCF | 12.13 | ||
| P/B | 1.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.67 |
EPS(TTM)0.41
EY6.13%
EPS(NY)0.6
Fwd EY9.02%
FCF(TTM)0.26
FCFY3.95%
OCF(TTM)0.55
OCFY8.24%
SpS6.84
BVpS4.5
TBVpS-3.95
PEG (NY)0.47
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.26% | ||
| ROE | 3.89% | ||
| ROCE | 6.03% | ||
| ROIC | 3.85% | ||
| ROICexc | 3.97% | ||
| ROICexgc | 19.04% | ||
| OM | 9.69% | ||
| PM (TTM) | 2.56% | ||
| GM | 64.93% | ||
| FCFM | 3.86% |
ROA(3y)1.68%
ROA(5y)-0.65%
ROE(3y)5.64%
ROE(5y)-5.48%
ROIC(3y)3.16%
ROIC(5y)N/A
ROICexc(3y)3.27%
ROICexc(5y)N/A
ROICexgc(3y)18.34%
ROICexgc(5y)N/A
ROCE(3y)4.95%
ROCE(5y)N/A
ROICexcg growth 3Y73.18%
ROICexcg growth 5Y49.37%
ROICexc growth 3Y62.67%
ROICexc growth 5Y29.53%
OM growth 3Y39.33%
OM growth 5Y19.8%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.4%
GM growth 5Y1.28%
F-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 17.18 | ||
| Debt/EBITDA | 4.02 | ||
| Cap/Depr | 61.66% | ||
| Cap/Sales | 4.2% | ||
| Interest Coverage | 2.62 | ||
| Cash Conversion | 48.86% | ||
| Profit Quality | 150.79% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 0.5 |
F-Score7
WACC6.7%
ROIC/WACC0.58
Cap/Depr(3y)48.05%
Cap/Depr(5y)42.24%
Cap/Sales(3y)3.77%
Cap/Sales(5y)4.15%
Profit Quality(3y)489.65%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-22.22%
EPS 3Y40.71%
EPS 5Y-9.43%
EPS Q2Q%25%
EPS Next Y34.91%
EPS Next 2Y26.48%
EPS Next 3Y21.53%
EPS Next 5Y17.33%
Revenue 1Y (TTM)5.9%
Revenue growth 3Y9.74%
Revenue growth 5Y-0.55%
Sales Q2Q%1.83%
Revenue Next Year1.74%
Revenue Next 2Y3.18%
Revenue Next 3Y3.65%
Revenue Next 5Y5.33%
EBIT growth 1Y-1.37%
EBIT growth 3Y52.89%
EBIT growth 5Y19.15%
EBIT Next Year38.37%
EBIT Next 3Y16.49%
EBIT Next 5Y11.84%
FCF growth 1Y-40.62%
FCF growth 3Y36.64%
FCF growth 5Y11.64%
OCF growth 1Y-17.93%
OCF growth 3Y24.47%
OCF growth 5Y-0.79%