COTY INC-CL A (COTY)
US2220702037 - Common Stock
COTY gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 37 industry peers in the Personal Care Products industry. COTY has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, COTY is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
COTY had positive earnings in the past year.
In the past year COTY had a positive cash flow from operations.
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
COTY's Return On Assets of 2.39% is in line compared to the rest of the industry. COTY outperforms 54.05% of its industry peers.
Looking at the Return On Equity, with a value of 7.02%, COTY is in the better half of the industry, outperforming 62.16% of the companies in the same industry.
The Return On Invested Capital of COTY (4.34%) is comparable to the rest of the industry.
COTY had an Average Return On Invested Capital over the past 3 years of 2.29%. This is significantly below the industry average of 13.68%.
The last Return On Invested Capital (4.34%) for COTY is above the 3 year average (2.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 7.02% | ||
| ROIC | 4.34% |
ROA(3y)0.73%
ROA(5y)-5.05%
ROE(3y)1.44%
ROE(5y)-22.38%
ROIC(3y)2.29%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 5.17%, COTY is doing good in the industry, outperforming 64.86% of the companies in the same industry.
COTY has a Operating Margin of 10.82%. This is in the better half of the industry: COTY outperforms 72.97% of its industry peers.
COTY's Operating Margin has improved in the last couple of years.
The Gross Margin of COTY (63.86%) 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 | 10.82% | ||
| PM (TTM) | 5.17% | ||
| GM | 63.86% |
OM growth 3YN/A
OM growth 5Y18.79%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.31%
GM growth 5Y0.98%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), COTY is destroying value.
The number of shares outstanding for COTY has been increased compared to 1 year ago.
COTY has more shares outstanding than it did 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 0.80. This is a bad value and indicates that COTY is not financially healthy and even has some risk of bankruptcy.
COTY's Altman-Z score of 0.80 is on the low side compared to the rest of the industry. COTY is outperformed by 64.86% of its industry peers.
The Debt to FCF ratio of COTY is 11.06, which is on the high side as it means it would take COTY, 11.06 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 11.06, COTY perfoms like the industry average, outperforming 48.65% of the companies in the same industry.
COTY has a Debt/Equity ratio of 0.87. This is a neutral value indicating COTY is somewhat dependend on debt financing.
COTY has a Debt to Equity ratio of 0.87. This is in the lower half of the industry: COTY underperforms 75.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 11.06 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.55
WACC7.91%
2.3 Liquidity
A Current Ratio of 0.85 indicates that COTY may have some problems paying its short term obligations.
The Current ratio of COTY (0.85) is worse than 86.49% 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.
Looking at the Quick ratio, with a value of 0.58, COTY is doing worse than 75.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
COTY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 46.15%, which is quite impressive.
COTY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.75% yearly.
COTY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.07%.
Measured over the past years, COTY shows a decrease in Revenue. The Revenue has been decreasing by -4.08% on average per year.
EPS 1Y (TTM)46.15%
EPS 3YN/A
EPS 5Y-3.75%
EPS growth Q2Q13.64%
Revenue 1Y (TTM)14.07%
Revenue growth 3Y5.59%
Revenue growth 5Y-4.08%
Revenue growth Q2Q13.39%
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 10.72% yearly.
The Revenue is expected to grow by 6.39% on average over the next years.
EPS Next Y-18.89%
EPS Next 2Y0.27%
EPS Next 3Y6.35%
EPS Next 5Y10.72%
Revenue Next Year11.11%
Revenue Next 2Y8.46%
Revenue Next 3Y7.58%
Revenue Next 5Y6.39%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.35, the valuation of COTY can be described as rather expensive.
Based on the Price/Earnings ratio, COTY is valued a bit cheaper than the industry average as 64.86% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of COTY to the average of the S&P500 Index (27.73), we can say COTY is valued slightly cheaper.
A Price/Forward Earnings ratio of 20.24 indicates a rather expensive valuation of COTY.
COTY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. COTY is cheaper than 67.57% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of COTY to the average of the S&P500 Index (20.41), we can say COTY is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.35 | ||
| Fwd PE | 20.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of COTY indicates a somewhat cheap valuation: COTY is cheaper than 70.27% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as COTY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.96 | ||
| EV/EBITDA | 12.76 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y0.27%
EPS Next 3Y6.35%
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 (5/3/2024, 7:04:00 PM)
After market: 11.51 -0.09 (-0.78%)11.6
+0.03 (+0.26%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.35 | ||
| Fwd PE | 20.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.39% | ||
| ROE | 7.02% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.82% | ||
| PM (TTM) | 5.17% | ||
| GM | 63.86% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)46.15%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-18.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.07%
Revenue growth 3Y5.59%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y