COTY INC-CL A (COTY.PA) Stock Fundamental Analysis
Europe • Euronext Paris • EPA:COTY • US2220702037
2.5675 EUR
-0.05 (-2%)
Last: Jan 29, 2026, 07:00 PM
Overall COTY gets a fundamental rating of 3 out of 10. We evaluated COTY against 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
- 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.
- Each year in the past 5 years COTY had a positive operating cash flow.
1.2 Ratios
- COTY's Return On Assets of -3.28% is on the low side compared to the rest of the industry. COTY is outperformed by 76.92% of its industry peers.
- The Return On Equity of COTY (-10.87%) is worse than 76.92% of its industry peers.
- The Return On Invested Capital of COTY (2.78%) is worse than 92.31% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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.
- Looking at the Gross Margin, with a value of 64.82%, COTY is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
- 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.
- Compared to 1 year ago, COTY has a worse debt to assets ratio.
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.
- Looking at the Altman-Z score, with a value of 0.17, COTY is doing worse than 92.31% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of COTY (14.03) is worse than 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.
- With a Debt to Equity ratio value of 1.14, COTY is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
| 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 worse Quick ratio (0.54) 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.
- 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.
- Measured over the past years, COTY shows a small growth in Revenue. The Revenue has been growing by 4.55% on average per year.
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.
- 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
- A Price/Earnings ratio of 16.05 indicates a correct valuation of COTY.
- Compared to the rest of the industry, the Price/Earnings ratio of COTY indicates a rather cheap valuation: COTY is cheaper than 92.31% of the companies listed in the same industry.
- COTY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.39.
- The Price/Forward Earnings ratio is 6.19, which indicates a rather cheap valuation of COTY.
- Based on the Price/Forward Earnings ratio, COTY is valued cheaper than 92.31% of the companies in the same industry.
- COTY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.05 | ||
| Fwd PE | 6.19 |
4.2 Price Multiples
- 84.62% of the companies in the same industry are more expensive than COTY, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, COTY is valued cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.05 | ||
| EV/EBITDA | 7.28 |
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)0.16
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%.