COTY INC-CL A (COTY) Stock Fundamental Analysis
NYSE:COTY - New York Stock Exchange, Inc. - US2220702037 - Common Stock
Taking everything into account, COTY scores 3 out of 10 in our fundamental rating. 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 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.
Of the past 5 years COTY 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 1.26%, COTY perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
COTY's Return On Equity of 3.89% is in line compared to the rest of the industry. COTY outperforms 58.33% of its industry peers.
COTY has a Return On Invested Capital (3.85%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for COTY is significantly below the industry average of 13.52%.
The last Return On Invested Capital (3.85%) for COTY is above the 3 year average (3.16%), which is a sign of increasing profitability.
| 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
COTY has a Profit Margin of 2.56%. This is in the better half of the industry: COTY outperforms 61.11% of its industry peers.
COTY has a Operating Margin of 9.69%. This is in the better half of the industry: COTY outperforms 66.67% of its industry peers.
COTY's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 64.93%, COTY perfoms like the industry average, outperforming 58.33% 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.
COTY has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, COTY has more shares outstanding
The debt/assets ratio for COTY has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.51, 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 0.51, COTY is doing worse than 69.44% of the companies in the same industry.
COTY has a debt to FCF ratio of 17.18. This is a negative value and a sign of low solvency as COTY would need 17.18 years to pay back of all of its debts.
COTY has a Debt to FCF ratio (17.18) which is comparable to the rest of the industry.
COTY has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.01, COTY is doing worse than 80.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 17.18 | ||
| Altman-Z | 0.51 |
ROIC/WACC0.57
WACC6.79%
2.3 Liquidity
A Current Ratio of 0.85 indicates that COTY may have some problems paying its short term obligations.
COTY has a Current ratio of 0.85. This is amonst the worse of the industry: COTY underperforms 80.56% 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.
With a Quick ratio value of 0.55, COTY is not doing good in the industry: 86.11% of the companies in the same industry are doing better.
| 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.
COTY shows a small growth in Revenue. In the last year, the Revenue has grown by 5.90%.
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
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 Y35.89%
EPS Next 2Y26.66%
EPS Next 3Y22.72%
EPS Next 5Y17.33%
Revenue Next Year1.84%
Revenue Next 2Y3.27%
Revenue Next 3Y4.08%
Revenue Next 5Y5.33%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 17.00, COTY is valued on the expensive side.
77.78% of the companies in the same industry are more expensive than COTY, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.96, COTY is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 11.41, the valuation of COTY can be described as reasonable.
COTY's Price/Forward Earnings ratio is rather cheap when compared to the industry. COTY is cheaper than 91.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of COTY to the average of the S&P500 Index (24.11), we can say COTY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 11.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COTY is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
61.11% of the companies in the same industry are more expensive than COTY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.15 | ||
| EV/EBITDA | 9.91 |
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 22.72% in the coming years.
PEG (NY)0.47
PEG (5Y)N/A
EPS Next 2Y26.66%
EPS Next 3Y22.72%
5. Dividend
5.1 Amount
COTY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
COTY INC-CL A
NYSE:COTY (1/17/2025, 8:04:00 PM)
After market: 7.14 0 (0%)7.14
-0.06 (-0.83%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners38.17%
Inst Owner Change0%
Ins Owners5.85%
Ins Owner Change0.16%
Market Cap6.21B
Analysts75
Price Target10.49 (46.92%)
Short Float %3.66%
Short Ratio2.39
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)-1.57%
PT rev (3m)-18.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.16%
EPS NY rev (1m)0.11%
EPS NY rev (3m)-7.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.32%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-3.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17 | ||
| Fwd PE | 11.41 | ||
| P/S | 1.01 | ||
| P/FCF | 26.15 | ||
| P/OCF | 12.53 | ||
| P/B | 1.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.91 |
EPS(TTM)0.42
EY5.88%
EPS(NY)0.63
Fwd EY8.76%
FCF(TTM)0.27
FCFY3.82%
OCF(TTM)0.57
OCFY7.98%
SpS7.07
BVpS4.65
TBVpS-4.08
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 | 0.51 |
F-Score7
WACC6.79%
ROIC/WACC0.57
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 Y35.89%
EPS Next 2Y26.66%
EPS Next 3Y22.72%
EPS Next 5Y17.33%
Revenue 1Y (TTM)5.9%
Revenue growth 3Y9.74%
Revenue growth 5Y-0.55%
Sales Q2Q%1.83%
Revenue Next Year1.84%
Revenue Next 2Y3.27%
Revenue Next 3Y4.08%
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%