COTY INC-CL A (COTY) Stock Fundamental Analysis
NYSE:COTY - New York Stock Exchange, Inc. - US2220702037 - Common Stock - Currency: USD
Overall COTY gets a fundamental rating of 3 out of 10. We evaluated COTY against 35 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.
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.
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 62.86% of its industry peers.
With a Return On Equity value of -11.71%, COTY is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 3.96%, COTY is in line with its industry, outperforming 54.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for COTY is significantly below the industry average of 15.14%.
The 3 year average ROIC (3.16%) for COTY is below the current ROIC(3.96%), indicating increased profibility in the last year.
| 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
COTY has a Operating Margin of 9.42%. This is in the better half of the industry: COTY outperforms 65.71% of its industry peers.
COTY's Operating Margin has improved in the last couple of years.
COTY has a Gross Margin (65.43%) which is in line with its industry peers.
COTY's Gross Margin has been stable in the last couple of years.
| 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
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
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 0.33, we must say that COTY is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of COTY (0.33) is worse than 77.14% 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.
COTY has a Debt to FCF ratio (10.98) which is in line with its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that COTY has dependencies on debt financing.
COTY has a Debt to Equity ratio of 1.13. This is in the lower half of the industry: COTY underperforms 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 10.98 | ||
| Altman-Z | 0.33 |
ROIC/WACC0.64
WACC6.17%
2.3 Liquidity
A Current Ratio of 0.82 indicates that COTY may have some problems paying its short term obligations.
COTY's Current ratio of 0.82 is on the low side compared to the rest of the industry. COTY is outperformed by 80.00% of its industry peers.
A Quick Ratio of 0.51 indicates that COTY may have some problems paying its short term obligations.
COTY has a Quick ratio of 0.51. This is amonst the worse of the industry: COTY underperforms 85.71% 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%.
COTY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.43% yearly.
COTY shows a decrease in Revenue. In the last year, the revenue decreased by -1.68%.
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
Based on estimates for the next years, COTY will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.14% on average per year.
COTY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.76% yearly.
EPS Next Y-11.42%
EPS Next 2Y14.58%
EPS Next 3Y15.16%
EPS Next 5Y18.14%
Revenue Next Year-4.74%
Revenue Next 2Y-1.91%
Revenue Next 3Y-0.1%
Revenue Next 5Y3.76%
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
With a Price/Earnings ratio of 20.71, COTY is valued on the expensive side.
COTY's Price/Earnings ratio is a bit cheaper when compared to the industry. COTY is cheaper than 68.57% of the companies in the same industry.
COTY is valuated rather cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
COTY is valuated reasonably with a Price/Forward Earnings ratio of 9.71.
Based on the Price/Forward Earnings ratio, COTY is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.30. COTY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.71 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COTY is valued a bit cheaper than the industry average as 77.14% of the companies are valued more expensively.
85.71% 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 | 12.06 | ||
| 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 15.16% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.58%
EPS Next 3Y15.16%
5. Dividend
5.1 Amount
No dividends for COTY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.97
+0.1 (+2.05%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners38.7%
Inst Owner Change1.85%
Ins Owners5.9%
Ins Owner Change0%
Market Cap4.34B
Analysts74.07
Price Target8 (60.97%)
Short Float %5.52%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.02
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)-0.54%
PT rev (3m)-11.68%
EPS NQ rev (1m)-67.06%
EPS NQ rev (3m)-67.72%
EPS NY rev (1m)-18.41%
EPS NY rev (3m)-19.23%
Revenue NQ rev (1m)-8.63%
Revenue NQ rev (3m)-8.36%
Revenue NY rev (1m)-1.98%
Revenue NY rev (3m)-1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.71 | ||
| Fwd PE | 9.71 | ||
| P/S | 0.72 | ||
| P/FCF | 12.06 | ||
| P/OCF | 7.4 | ||
| P/B | 1.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.16 |
EPS(TTM)0.24
EY4.83%
EPS(NY)0.51
Fwd EY10.3%
FCF(TTM)0.41
FCFY8.29%
OCF(TTM)0.67
OCFY13.51%
SpS6.88
BVpS4.01
TBVpS-4.02
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
WACC6.17%
ROIC/WACC0.64
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-11.42%
EPS Next 2Y14.58%
EPS Next 3Y15.16%
EPS Next 5Y18.14%
Revenue 1Y (TTM)-1.68%
Revenue growth 3Y9.74%
Revenue growth 5Y-0.55%
Sales Q2Q%-6.24%
Revenue Next Year-4.74%
Revenue Next 2Y-1.91%
Revenue Next 3Y-0.1%
Revenue Next 5Y3.76%
EBIT growth 1Y-17.68%
EBIT growth 3Y52.89%
EBIT growth 5Y19.15%
EBIT Next Year26.68%
EBIT Next 3Y10.91%
EBIT Next 5Y10.47%
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%