COTY INC-CL A (COTY.PA) Stock Fundamental Analysis
EPA:COTY - Euronext Paris - Matif - US2220702037 - Common Stock - Currency: EUR
Taking everything into account, COTY scores 3 out of 10 in our fundamental rating. 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 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.
In multiple years COTY reported negative net income over the last 5 years.
COTY had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of COTY (-3.57%) is worse than 83.33% of its industry peers.
Looking at the Return On Equity, with a value of -11.71%, COTY is doing worse than 83.33% of the companies in the same industry.
COTY has a Return On Invested Capital of 3.96%. 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 11.81%.
The last Return On Invested Capital (3.96%) for COTY is above the 3 year average (3.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.57% | ||
| ROE | -11.71% | ||
| ROIC | 3.96% |
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
Looking at the Operating Margin, with a value of 9.42%, COTY is in line with its industry, outperforming 41.67% of the companies in the same industry.
In the last couple of years the Operating Margin of COTY has grown nicely.
COTY's Gross Margin of 65.43% is fine compared to the rest of the industry. COTY outperforms 66.67% of its industry peers.
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 | 9.42% | ||
| PM (TTM) | N/A | ||
| GM | 65.43% |
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.
The number of shares outstanding for COTY has been increased compared to 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 0.33. This is a bad value and indicates that COTY is not financially healthy and even has some risk of bankruptcy.
COTY has a Altman-Z score of 0.33. This is amonst the worse of the industry: COTY underperforms 91.67% of its industry peers.
The Debt to FCF ratio of COTY is 10.98, which is on the high side as it means it would take COTY, 10.98 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.98, COTY is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
COTY has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
COTY has a Debt to Equity ratio of 1.13. This is comparable to the rest of the industry: COTY outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 10.98 | ||
| Altman-Z | 0.33 |
ROIC/WACC0.67
WACC5.93%
2.3 Liquidity
A Current Ratio of 0.82 indicates that COTY may have some problems paying its short term obligations.
COTY has a worse Current ratio (0.82) than 75.00% of its industry peers.
A Quick Ratio of 0.51 indicates that COTY may have some problems paying its short term obligations.
COTY's Quick ratio of 0.51 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 | 0.82 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
COTY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.19%.
The Earnings Per Share has been decreasing by -9.43% on average over the past years.
Looking at the last year, COTY shows a decrease in Revenue. The Revenue has decreased by -1.68% in the last year.
The Revenue has been decreasing by -0.55% on average over the past years.
EPS 1Y (TTM)-44.19%
EPS 3Y40.71%
EPS 5Y-9.43%
EPS Q2Q%-80%
Revenue 1Y (TTM)-1.68%
Revenue growth 3Y9.74%
Revenue growth 5Y-0.55%
Sales Q2Q%-6.24%
3.2 Future
COTY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.60% yearly.
The Revenue is expected to grow by 2.06% on average over the next years.
EPS Next Y-7.99%
EPS Next 2Y14.97%
EPS Next 3Y15.26%
EPS Next 5Y17.6%
Revenue Next Year-4.71%
Revenue Next 2Y-1.8%
Revenue Next 3Y-0.05%
Revenue Next 5Y2.06%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 20.25, COTY is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of COTY indicates a rather cheap valuation: COTY is cheaper than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.51. COTY is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 9.65, the valuation of COTY can be described as very 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.
The average S&P500 Price/Forward Earnings ratio is at 35.58. COTY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 9.65 |
4.2 Price Multiples
83.33% of the companies in the same industry are more expensive than COTY, based on the Enterprise Value to EBITDA ratio.
83.33% 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 | 12.07 | ||
| EV/EBITDA | 8.16 |
4.3 Compensation for Growth
A more expensive valuation may be justified as COTY's earnings are expected to grow with 15.26% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.97%
EPS Next 3Y15.26%
5. Dividend
5.1 Amount
COTY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:COTY (7/14/2025, 7:00:00 PM)
4.2535
-0.08 (-1.76%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners38.79%
Inst Owner ChangeN/A
Ins Owners5.9%
Ins Owner ChangeN/A
Market Cap3.71B
Analysts72
Price Target6.37 (49.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.01
Dividend Growth(5Y)-49.18%
DP-3.23%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-64.94%
Min EPS beat(2)-82.41%
Max EPS beat(2)-47.48%
EPS beat(4)0
Avg EPS beat(4)-79.44%
Min EPS beat(4)-166.84%
Max EPS beat(4)-21.04%
EPS beat(8)1
Avg EPS beat(8)-47.56%
EPS beat(12)4
Avg EPS beat(12)14.07%
EPS beat(16)7
Avg EPS beat(16)28.21%
Revenue beat(2)0
Avg Revenue beat(2)-3.7%
Min Revenue beat(2)-4.85%
Max Revenue beat(2)-2.54%
Revenue beat(4)0
Avg Revenue beat(4)-3.13%
Min Revenue beat(4)-4.85%
Max Revenue beat(4)-2.31%
Revenue beat(8)3
Avg Revenue beat(8)-1.18%
Revenue beat(12)5
Avg Revenue beat(12)-0.57%
Revenue beat(16)7
Avg Revenue beat(16)-0.49%
PT rev (1m)0%
PT rev (3m)-21.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-65.95%
EPS NY rev (1m)3.87%
EPS NY rev (3m)-17.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.41%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 9.65 | ||
| P/S | 0.72 | ||
| P/FCF | 12.07 | ||
| P/OCF | 7.4 | ||
| P/B | 1.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.16 |
EPS(TTM)0.21
EY4.94%
EPS(NY)0.44
Fwd EY10.37%
FCF(TTM)0.35
FCFY8.29%
OCF(TTM)0.57
OCFY13.51%
SpS5.89
BVpS3.43
TBVpS-3.44
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.57% | ||
| ROE | -11.71% | ||
| ROCE | 6.2% | ||
| ROIC | 3.96% | ||
| ROICexc | 4.07% | ||
| ROICexgc | 19.31% | ||
| OM | 9.42% | ||
| PM (TTM) | N/A | ||
| GM | 65.43% | ||
| FCFM | 5.99% |
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 | 1.13 | ||
| Debt/FCF | 10.98 | ||
| Debt/EBITDA | 4 | ||
| Cap/Depr | 53.95% | ||
| Cap/Sales | 3.77% | ||
| Interest Coverage | 2.47 | ||
| Cash Conversion | 59.48% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 0.33 |
F-Score5
WACC5.93%
ROIC/WACC0.67
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)-44.19%
EPS 3Y40.71%
EPS 5Y-9.43%
EPS Q2Q%-80%
EPS Next Y-7.99%
EPS Next 2Y14.97%
EPS Next 3Y15.26%
EPS Next 5Y17.6%
Revenue 1Y (TTM)-1.68%
Revenue growth 3Y9.74%
Revenue growth 5Y-0.55%
Sales Q2Q%-6.24%
Revenue Next Year-4.71%
Revenue Next 2Y-1.8%
Revenue Next 3Y-0.05%
Revenue Next 5Y2.06%
EBIT growth 1Y-17.68%
EBIT growth 3Y52.89%
EBIT growth 5Y19.15%
EBIT Next Year26.68%
EBIT Next 3Y10.91%
EBIT Next 5Y9.61%
FCF growth 1Y23.59%
FCF growth 3Y36.64%
FCF growth 5Y11.64%
OCF growth 1Y20.09%
OCF growth 3Y24.47%
OCF growth 5Y-0.79%