COTY INC-CL A (COTY) Stock Fundamental Analysis
NYSE:COTY - New York Stock Exchange, Inc. - US2220702037 - Common Stock - Currency: USD
Taking everything into account, COTY scores 3 out of 10 in our fundamental rating. COTY was compared to 35 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. 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.
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
COTY has a Return On Assets of -3.57%. This is in the lower half of the industry: COTY underperforms 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.
The Return On Invested Capital of COTY (3.96%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for COTY is significantly below the industry average of 15.17%.
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's Operating Margin of 9.42% is fine compared to the rest of the industry. COTY outperforms 65.71% of its industry peers.
COTY's Operating Margin has improved in the last couple of years.
COTY's Gross Margin of 65.43% is in line compared to the rest of the industry. COTY outperforms 54.29% 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.
Compared to 5 years ago, COTY has more shares outstanding
COTY has a better debt/assets ratio than last year.
2.2 Solvency
COTY has an Altman-Z score of 0.32. 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 0.32. This is amonst the worse of the industry: COTY underperforms 80.00% 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.
COTY has a Debt to FCF ratio (10.98) which is comparable to the rest of the industry.
COTY has a Debt/Equity ratio of 1.13. This is a high value indicating a heavy dependency on external financing.
COTY's Debt to Equity ratio of 1.13 is on the low side compared to the rest of the industry. COTY is outperformed by 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 10.98 | ||
| Altman-Z | 0.32 |
ROIC/WACC0.5
WACC7.92%
2.3 Liquidity
A Current Ratio of 0.82 indicates that COTY may have some problems paying its short term obligations.
With a Current ratio value of 0.82, COTY is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
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.
The Quick ratio of COTY (0.51) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The earnings per share for COTY have decreased strongly by -44.19% in the last year.
COTY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.43% yearly.
The Revenue has decreased by -1.68% in the past year.
COTY shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.55% yearly.
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-4.67%
Revenue Next 2Y-1.72%
Revenue Next 3Y0.04%
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
Based on the Price/Earnings ratio of 19.88, the valuation of COTY can be described as rather expensive.
COTY's Price/Earnings ratio is a bit cheaper when compared to the industry. COTY is cheaper than 71.43% of the companies in the same industry.
COTY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
COTY is valuated reasonably with a Price/Forward Earnings ratio of 9.25.
88.57% of the companies in the same industry are more expensive than COTY, based on the Price/Forward Earnings ratio.
COTY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 9.25 |
4.2 Price Multiples
COTY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. COTY is cheaper than 80.00% of the companies in the same industry.
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 | 11.58 | ||
| EV/EBITDA | 7.97 |
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
No dividends for COTY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.77
+0.01 (+0.21%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners38.79%
Inst Owner Change-1.93%
Ins Owners5.9%
Ins Owner Change0%
Market Cap4.16B
Analysts72
Price Target7.2 (50.94%)
Short Float %7.09%
Short Ratio2.89
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%
PT rev (3m)-10.51%
EPS NQ rev (1m)-3.63%
EPS NQ rev (3m)-67.19%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.41%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.88 | ||
| Fwd PE | 9.25 | ||
| P/S | 0.69 | ||
| P/FCF | 11.58 | ||
| P/OCF | 7.1 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.97 |
EPS(TTM)0.24
EY5.03%
EPS(NY)0.52
Fwd EY10.81%
FCF(TTM)0.41
FCFY8.64%
OCF(TTM)0.67
OCFY14.08%
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 | 0.32 |
F-Score5
WACC7.92%
ROIC/WACC0.5
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-4.67%
Revenue Next 2Y-1.72%
Revenue Next 3Y0.04%
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%