We assign a fundamental rating of 3 out of 10 to COTY. COTY was compared to 36 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 is valued quite cheap, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
The reported net income has been mixed in the past 5 years: COTY reported negative net income in multiple years.
In the past 5 years COTY always reported a positive cash flow from operatings.

1.2 Ratios

With a Return On Assets value of -3.28%, COTY is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
COTY has a Return On Equity (-10.87%) which is comparable to the rest of the industry.
COTY has a Return On Invested Capital (4.11%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for COTY is significantly below the industry average of 11.85%.

		Industry Rank	Sector Rank
ROA	-3.28%
ROE	-10.87%
ROIC	4.11%

ROA(3y)0.45%

ROA(5y)-0.07%

ROE(3y)1.41%

ROE(5y)-0.89%

ROIC(3y)4.63%

ROIC(5y)3.5%

1.3 Margins

COTY's Operating Margin of 8.53% is fine compared to the rest of the industry. COTY outperforms 66.67% of its industry peers.
COTY's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 64.82%, COTY perfoms like the industry average, outperforming 47.22% of the companies in the same industry.
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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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 a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 0.18, we must say that COTY is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.18, COTY is doing worse than 75.00% of the companies in the same industry.
COTY has a debt to FCF ratio of 14.03. This is a negative value and a sign of low solvency as COTY would need 14.03 years to pay back of all of its debts.
With a Debt to FCF ratio value of 14.03, COTY perfoms like the industry average, outperforming 52.78% of the companies in the same industry.
COTY has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.14, COTY is doing worse than 63.89% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	1.14
Debt/FCF	14.03
Altman-Z	0.18

ROIC/WACC0.55

WACC7.42%

2.3 Liquidity

A Current Ratio of 0.85 indicates that COTY may have some problems paying its short term obligations.
COTY has a worse Current ratio (0.85) than 80.56% of its industry peers.
A Quick Ratio of 0.54 indicates that COTY may have some problems paying its short term obligations.
COTY has a worse Quick ratio (0.54) than 80.56% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.85
Quick Ratio	0.54

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

COTY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -54.76%.
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.
The Revenue has decreased by -5.70% in the past year.
The Revenue has been growing slightly by 4.55% on average over the past years.

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

Based on estimates for the next years, COTY will show a very strong growth in Earnings Per Share. The EPS will grow by 24.69% on average per year.
Based on estimates for the next years, COTY will show a small growth in Revenue. The Revenue will grow by 1.42% on average per year.

EPS Next Y98.63%

EPS Next 2Y50.17%

EPS Next 3Y34.56%

EPS Next 5Y24.69%

Revenue Next Year0.6%

Revenue Next 2Y1.47%

Revenue Next 3Y1.58%

Revenue Next 5Y1.42%

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 decreasing: in the next years the growth will be less than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 17.68, the valuation of COTY can be described as rather expensive.
Based on the Price/Earnings ratio, COTY is valued a bit cheaper than 72.22% of the companies in the same industry.
COTY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
A Price/Forward Earnings ratio of 6.77 indicates a rather cheap valuation of COTY.
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.
COTY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.

		Industry Rank	Sector Rank
PE	17.68
Fwd PE	6.77

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, COTY is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, COTY is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	9.89
EV/EBITDA	7.56

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.
COTY's earnings are expected to grow with 34.56% in the coming years. This may justify a more expensive valuation.