COTY INC-CL A (COTY.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:COTY - US2220702037 - Common Stock
2.838 EUR
+0.07 (+2.42%)
Overall COTY gets a fundamental rating of 3 out of 10. We evaluated COTY against 12 industry peers in the Personal Care Products industry. COTY may be in some trouble as it scores bad on both profitability and health. COTY has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- In the past year COTY was profitable.
- In the past year COTY had a positive cash flow from operations.
- In multiple years COTY reported negative net income over the last 5 years.
- In the past 5 years COTY always reported a positive cash flow from operatings.
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 75.00% of its industry peers.
- COTY's Return On Equity of -10.87% is on the low side compared to the rest of the industry. COTY is outperformed by 75.00% of its industry peers.
- The Return On Invested Capital of COTY (2.78%) is worse than 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 12.19%.
| 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 75.00% of its industry peers.
- In the last couple of years the Operating Margin of COTY has grown nicely.
- COTY has a Gross Margin (64.82%) which is in line with 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
- COTY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 a worse debt to assets ratio.
2.2 Solvency
- COTY has an Altman-Z score of 0.18. This is a bad value and indicates that COTY is not financially healthy and even has some risk of bankruptcy.
- COTY has a worse Altman-Z score (0.18) than 91.67% of its industry peers.
- 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.
- The Debt to FCF ratio of COTY (14.03) is worse than 75.00% 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.
- The Debt to Equity ratio of COTY (1.14) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 14.03 | ||
| Altman-Z | 0.18 |
ROIC/WACC0.47
WACC5.96%
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 75.00% of its industry peers.
- A Quick Ratio of 0.54 indicates that COTY may have some problems paying its short term obligations.
- COTY's Quick ratio of 0.54 is on the low side compared to the rest of the industry. COTY is outperformed by 83.33% 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.
- Measured over the past years, COTY shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.60% on average per year.
- 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
- The Earnings Per Share is expected to grow by 24.69% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 1.42% on average over the next years.
EPS Next Y98.63%
EPS Next 2Y50.17%
EPS Next 3Y34.56%
EPS Next 5Y24.69%
Revenue Next Year0.6%
Revenue Next 2Y1.41%
Revenue Next 3Y1.6%
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
- Based on the Price/Earnings ratio of 17.74, the valuation of COTY can be described as rather expensive.
- 91.67% of the companies in the same industry are more expensive than COTY, based on the Price/Earnings ratio.
- COTY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.32.
- COTY is valuated cheaply with a Price/Forward Earnings ratio of 6.70.
- 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 is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.74 | ||
| Fwd PE | 6.7 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, COTY is valued cheaper than 83.33% 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 91.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.78 | ||
| EV/EBITDA | 7.53 |
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)0.18
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%.