COTY INC-CL A (COTY) Stock Fundamental Analysis
NYSE:COTY - New York Stock Exchange, Inc. - US2220702037 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to COTY. COTY was compared to 37 industry peers in the Personal Care Products industry. There are concerns on the financial health of COTY while its profitability can be described as average. 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
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.
Of the past 5 years COTY 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.00%, COTY perfoms like the industry average, outperforming 47.22% of the companies in the same industry.
COTY has a Return On Equity (0.01%) which is in line with its industry peers.
COTY has a Return On Invested Capital (4.44%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for COTY is significantly below the industry average of 13.42%.
The last Return On Invested Capital (4.44%) for COTY is above the 3 year average (3.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0% | ||
| ROE | 0.01% | ||
| ROIC | 4.44% |
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
COTY has a Profit Margin (0.00%) which is in line with its industry peers.
With a decent Operating Margin value of 10.25%, COTY is doing good in the industry, outperforming 72.22% of the companies in the same industry.
COTY's Operating Margin has improved in the last couple of years.
COTY has a Gross Margin (65.40%) which is comparable to the rest of the industry.
COTY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.25% | ||
| PM (TTM) | 0% | ||
| GM | 65.4% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), COTY is destroying value.
Compared to 1 year ago, COTY has more shares outstanding
Compared to 5 years ago, COTY has more shares outstanding
COTY has a better debt/assets ratio than last year.
2.2 Solvency
COTY has an Altman-Z score of 0.41. This is a bad value and indicates that COTY is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.41, COTY is doing worse than 72.22% of the companies in the same industry.
The Debt to FCF ratio of COTY is 12.20, which is on the high side as it means it would take COTY, 12.20 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 12.20, COTY perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
COTY has a Debt/Equity ratio of 0.93. This is a neutral value indicating COTY is somewhat dependend on debt financing.
The Debt to Equity ratio of COTY (0.93) is worse than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 12.2 | ||
| Altman-Z | 0.41 |
ROIC/WACC0.7
WACC6.36%
2.3 Liquidity
COTY has a Current Ratio of 0.71. This is a bad value and indicates that COTY is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of COTY (0.71) is worse than 91.67% of its industry peers.
COTY has a Quick Ratio of 0.71. This is a bad value and indicates that COTY is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.45, COTY is not doing good in the industry: 94.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.45 |
3. Growth
3.1 Past
COTY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -50.88%.
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.
COTY shows a small growth in Revenue. In the last year, the Revenue has grown by 1.35%.
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)-50.88%
EPS 3Y40.71%
EPS 5Y-9.43%
EPS Q2Q%-56%
Revenue 1Y (TTM)1.35%
Revenue growth 3Y9.74%
Revenue growth 5Y-0.55%
Sales Q2Q%-3.34%
3.2 Future
The Earnings Per Share is expected to grow by 17.33% on average over the next years. This is quite good.
COTY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.33% yearly.
EPS Next Y9.68%
EPS Next 2Y19.17%
EPS Next 3Y16.83%
EPS Next 5Y17.33%
Revenue Next Year-2.88%
Revenue Next 2Y-0.09%
Revenue Next 3Y1.05%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
COTY is valuated rather expensively with a Price/Earnings ratio of 20.39.
Based on the Price/Earnings ratio, COTY is valued a bit cheaper than 72.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. COTY is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 10.31, the valuation of COTY can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of COTY indicates a rather cheap valuation: COTY is cheaper than 91.67% of the companies listed 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 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
COTY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. COTY is cheaper than 80.56% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, COTY is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.14 | ||
| EV/EBITDA | 7.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
COTY's earnings are expected to grow with 16.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.11
PEG (5Y)N/A
EPS Next 2Y19.17%
EPS Next 3Y16.83%
5. Dividend
5.1 Amount
No dividends for COTY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.71
+0.06 (+1.06%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners38.17%
Inst Owner Change1.6%
Ins Owners5.85%
Ins Owner Change0.16%
Market Cap4.98B
Analysts73.85
Price Target9.06 (58.67%)
Short Float %4.86%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.02
Dividend Growth(5Y)-49.18%
DP4433.33%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-34.26%
Min EPS beat(2)-47.48%
Max EPS beat(2)-21.04%
EPS beat(4)0
Avg EPS beat(4)-63.86%
Min EPS beat(4)-166.84%
Max EPS beat(4)-20.1%
EPS beat(8)2
Avg EPS beat(8)23.49%
EPS beat(12)5
Avg EPS beat(12)30.11%
EPS beat(16)7
Avg EPS beat(16)27.11%
Revenue beat(2)0
Avg Revenue beat(2)-3.58%
Min Revenue beat(2)-4.85%
Max Revenue beat(2)-2.31%
Revenue beat(4)0
Avg Revenue beat(4)-2.72%
Min Revenue beat(4)-4.85%
Max Revenue beat(4)-0.89%
Revenue beat(8)4
Avg Revenue beat(8)-0.44%
Revenue beat(12)6
Avg Revenue beat(12)-0.29%
Revenue beat(16)7
Avg Revenue beat(16)-0.47%
PT rev (1m)-1.62%
PT rev (3m)-13.88%
EPS NQ rev (1m)-27.81%
EPS NQ rev (3m)-22.02%
EPS NY rev (1m)-19.29%
EPS NY rev (3m)-22.13%
Revenue NQ rev (1m)-8.06%
Revenue NQ rev (3m)-10.89%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.39 | ||
| Fwd PE | 10.31 | ||
| P/S | 0.82 | ||
| P/FCF | 17.14 | ||
| P/OCF | 9.25 | ||
| P/B | 1.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.88 |
EPS(TTM)0.28
EY4.9%
EPS(NY)0.55
Fwd EY9.7%
FCF(TTM)0.33
FCFY5.83%
OCF(TTM)0.62
OCFY10.81%
SpS6.98
BVpS4.34
TBVpS-3.96
PEG (NY)2.11
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0% | ||
| ROE | 0.01% | ||
| ROCE | 6.95% | ||
| ROIC | 4.44% | ||
| ROICexc | 4.57% | ||
| ROICexgc | 26.67% | ||
| OM | 10.25% | ||
| PM (TTM) | 0% | ||
| GM | 65.4% | ||
| FCFM | 4.77% |
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-Score5
Asset Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 12.2 | ||
| Debt/EBITDA | 3.38 | ||
| Cap/Depr | 59.15% | ||
| Cap/Sales | 4.07% | ||
| Interest Coverage | 2.82 | ||
| Cash Conversion | 51.6% | ||
| Profit Quality | 96833.3% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.45 | ||
| Altman-Z | 0.41 |
F-Score5
WACC6.36%
ROIC/WACC0.7
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)-50.88%
EPS 3Y40.71%
EPS 5Y-9.43%
EPS Q2Q%-56%
EPS Next Y9.68%
EPS Next 2Y19.17%
EPS Next 3Y16.83%
EPS Next 5Y17.33%
Revenue 1Y (TTM)1.35%
Revenue growth 3Y9.74%
Revenue growth 5Y-0.55%
Sales Q2Q%-3.34%
Revenue Next Year-2.88%
Revenue Next 2Y-0.09%
Revenue Next 3Y1.05%
Revenue Next 5Y5.33%
EBIT growth 1Y-3.97%
EBIT growth 3Y52.89%
EBIT growth 5Y19.15%
EBIT Next Year37.8%
EBIT Next 3Y15.84%
EBIT Next 5Y11.84%
FCF growth 1Y-35.03%
FCF growth 3Y36.64%
FCF growth 5Y11.64%
OCF growth 1Y-15.52%
OCF growth 3Y24.47%
OCF growth 5Y-0.79%