COTY INC-CL A (COTY) Stock Fundamental Analysis
NYSE:COTY - US2220702037 - Common Stock
3.69 USD
-0.12 (-3.15%)
3.81 USD
+0.12 (+3.25%)
COTY gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals 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 bad growth rate and is valued cheaply.
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.
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
Looking at the Return On Assets, with a value of -3.57%, COTY is doing worse than 62.86% of the companies in the same industry.
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.
COTY has a Return On Invested Capital (3.96%) 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 12.91%.
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
COTY has a better Operating Margin (9.42%) than 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.
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
COTY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
COTY has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 0.26, we must say that COTY is in the distress zone and has some risk of bankruptcy.
COTY has a worse Altman-Z score (0.26) than 77.14% of its industry peers.
COTY has a debt to FCF ratio of 10.98. This is a negative value and a sign of low solvency as COTY would need 10.98 years to pay back of all of its debts.
The Debt to FCF ratio of COTY (10.98) is comparable to the rest of the industry.
A Debt/Equity ratio of 1.13 is on the high side and indicates that COTY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.13, COTY is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 10.98 | ||
| Altman-Z | 0.26 |
ROIC/WACC0.7
WACC5.68%
2.3 Liquidity
COTY has a Current Ratio of 0.82. This is a bad value and indicates that COTY is not financially healthy enough and could expect problems in meeting its short term obligations.
COTY has a Current ratio of 0.82. This is amonst the worse of the industry: COTY underperforms 80.00% of its industry peers.
COTY has a Quick Ratio of 0.82. This is a bad value and indicates that COTY is not financially healthy enough and could expect problems in meeting 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 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 -43.59%.
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.
EPS 1Y (TTM)-43.59%
EPS 3Y-6.6%
EPS 5YN/A
EPS Q2Q%-66.67%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-8.14%
3.2 Future
The Earnings Per Share is expected to grow by 38.27% on average over the next years. This is a very strong growth
Based on estimates for the next years, COTY will show a small growth in Revenue. The Revenue will grow by 3.91% on average per year.
EPS Next Y132.25%
EPS Next 2Y63.84%
EPS Next 3Y41.03%
EPS Next 5Y38.27%
Revenue Next Year1.31%
Revenue Next 2Y2.48%
Revenue Next 3Y2.6%
Revenue Next 5Y3.91%
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.
4. Valuation
4.1 Price/Earnings Ratio
COTY is valuated correctly with a Price/Earnings ratio of 16.77.
Compared to the rest of the industry, the Price/Earnings ratio of COTY indicates a somewhat cheap valuation: COTY is cheaper than 80.00% of the companies listed in the same industry.
COTY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
COTY is valuated cheaply with a Price/Forward Earnings ratio of 7.22.
COTY's Price/Forward Earnings ratio is rather cheap when compared to the industry. COTY is cheaper than 94.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of COTY to the average of the S&P500 Index (22.67), we can say COTY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.77 | ||
| Fwd PE | 7.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of COTY indicates a rather cheap valuation: COTY is cheaper than 82.86% of the companies listed in the same industry.
COTY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. COTY is cheaper than 91.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.96 | ||
| EV/EBITDA | 7.13 |
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 41.03% in the coming years.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y63.84%
EPS Next 3Y41.03%
5. Dividend
5.1 Amount
No dividends for COTY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.69
-0.12 (-3.15%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners37.98%
Inst Owner Change-6.46%
Ins Owners5.9%
Ins Owner Change0%
Market Cap3.22B
Analysts72
Price Target6.92 (87.53%)
Short Float %7.28%
Short Ratio3.13
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)-3.93%
PT rev (3m)-13.56%
EPS NQ rev (1m)-0.96%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)-5.28%
EPS NY rev (3m)-1.61%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.77 | ||
| Fwd PE | 7.22 | ||
| P/S | 0.54 | ||
| P/FCF | 8.96 | ||
| P/OCF | 5.49 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.13 |
EPS(TTM)0.22
EY5.96%
EPS(NY)0.51
Fwd EY13.85%
FCF(TTM)0.41
FCFY11.17%
OCF(TTM)0.67
OCFY18.2%
SpS6.88
BVpS4.01
TBVpS-4.02
PEG (NY)0.13
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 | 0.26 |
F-Score5
WACC5.68%
ROIC/WACC0.7
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)-43.59%
EPS 3Y-6.6%
EPS 5YN/A
EPS Q2Q%-66.67%
EPS Next Y132.25%
EPS Next 2Y63.84%
EPS Next 3Y41.03%
EPS Next 5Y38.27%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-8.14%
Revenue Next Year1.31%
Revenue Next 2Y2.48%
Revenue Next 3Y2.6%
Revenue Next 5Y3.91%
EBIT growth 1Y-17.68%
EBIT growth 3Y52.89%
EBIT growth 5Y19.15%
EBIT Next Year26.79%
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%