COTY INC-CL A (COTY) Stock Fundamental Analysis
USA - NYSE:COTY - US2220702037 - Common Stock
3.77 USD
+0.2 (+5.6%)
3.76 USD
-0.01 (-0.27%)
Overall COTY gets a fundamental rating of 3 out of 10. We evaluated COTY against 34 industry peers in the Personal Care Products industry. While COTY is still in line with the averages on profitability rating, there are concerns on its financial health. COTY is cheap, 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.
Each year in the past 5 years COTY had a positive operating cash flow.
1.2 Ratios
COTY has a Return On Assets of -3.28%. This is in the lower half of the industry: COTY underperforms 64.71% of its industry peers.
COTY's Return On Equity of -10.87% is in line compared to the rest of the industry. COTY outperforms 44.12% of its industry peers.
With a Return On Invested Capital value of 4.10%, COTY perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for COTY is significantly below the industry average of 12.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.28% | ||
| ROE | -10.87% | ||
| ROIC | 4.1% |
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
With a decent Operating Margin value of 8.52%, COTY is doing good in the industry, outperforming 64.71% of the companies in the same industry.
In the last couple of years the Operating Margin of COTY has grown nicely.
Looking at the Gross Margin, with a value of 64.81%, COTY is in line with its industry, outperforming 44.12% 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 | 8.52% | ||
| PM (TTM) | N/A | ||
| GM | 64.81% |
OM growth 3Y18.51%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.71%
GM growth 5Y2.3%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), COTY is destroying value.
Compared to 1 year ago, COTY has more shares outstanding
The number of shares outstanding for COTY has been increased compared to 5 years ago.
The debt/assets ratio for COTY is higher compared to a year ago.
2.2 Solvency
COTY has an Altman-Z score of 0.20. This is a bad value and indicates that COTY is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.20, COTY is not doing good in the industry: 76.47% of the companies in the same industry are doing better.
The Debt to FCF ratio of COTY is 14.04, which is on the high side as it means it would take COTY, 14.04 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 14.04, COTY is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 1.14 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 1.14, COTY is doing worse than 73.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 14.04 | ||
| Altman-Z | 0.2 |
ROIC/WACC0.65
WACC6.29%
2.3 Liquidity
A Current Ratio of 0.85 indicates that COTY may have some problems paying its short term obligations.
COTY has a Current ratio of 0.85. This is amonst the worse of the industry: COTY underperforms 88.24% 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 0.54, COTY is doing worse than 88.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 |
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%.
COTY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.60% yearly.
Looking at the last year, COTY shows a decrease in Revenue. The Revenue has decreased by -5.68% in the last 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)-5.68%
Revenue growth 3Y3.57%
Revenue growth 5Y4.55%
Sales Q2Q%-5.64%
3.2 Future
COTY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.61% yearly.
COTY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.57% yearly.
EPS Next Y100.92%
EPS Next 2Y51.98%
EPS Next 3Y33.97%
EPS Next 5Y27.61%
Revenue Next Year0.17%
Revenue Next 2Y1.35%
Revenue Next 3Y1.85%
Revenue Next 5Y0.57%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.84 indicates a rather expensive valuation of COTY.
Based on the Price/Earnings ratio, COTY is valued a bit cheaper than 64.71% of the companies in the same industry.
COTY is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
COTY is valuated cheaply with a Price/Forward Earnings ratio of 7.42.
Based on the Price/Forward Earnings ratio, COTY is valued cheaper than 85.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, COTY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.84 | ||
| Fwd PE | 7.42 |
4.2 Price Multiples
76.47% of the companies in the same industry are more expensive than COTY, based on the Enterprise Value to EBITDA ratio.
85.29% 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 | 11.1 | ||
| EV/EBITDA | 7.77 |
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 33.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y51.98%
EPS Next 3Y33.97%
5. Dividend
5.1 Amount
COTY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.77
+0.2 (+5.6%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners37.42%
Inst Owner Change3.74%
Ins Owners6.11%
Ins Owner Change0.17%
Market Cap3.29B
Revenue(TTM)5.80B
Net Income(TTM)-396.10M
Analysts68.33
Price Target5.19 (37.67%)
Short Float %6.79%
Short Ratio2.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.02
Dividend Growth(5Y)-43.22%
DP-3.36%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-199.21%
Min EPS beat(2)-378.2%
Max EPS beat(2)-20.22%
EPS beat(4)0
Avg EPS beat(4)-132.08%
Min EPS beat(4)-378.2%
Max EPS beat(4)-20.22%
EPS beat(8)1
Avg EPS beat(8)-88.91%
EPS beat(12)3
Avg EPS beat(12)-21.1%
EPS beat(16)6
Avg EPS beat(16)-4.41%
Revenue beat(2)1
Avg Revenue beat(2)0.21%
Min Revenue beat(2)-1.98%
Max Revenue beat(2)2.4%
Revenue beat(4)1
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-4.85%
Max Revenue beat(4)2.4%
Revenue beat(8)2
Avg Revenue beat(8)-1.52%
Revenue beat(12)5
Avg Revenue beat(12)-0.51%
Revenue beat(16)7
Avg Revenue beat(16)-0.57%
PT rev (1m)-12.26%
PT rev (3m)-27.9%
EPS NQ rev (1m)-1.36%
EPS NQ rev (3m)-11.12%
EPS NY rev (1m)-0.86%
EPS NY rev (3m)-14.26%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-2.19%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.84 | ||
| Fwd PE | 7.42 | ||
| P/S | 0.57 | ||
| P/FCF | 11.1 | ||
| P/OCF | 6.72 | ||
| P/B | 0.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.77 |
EPS(TTM)0.19
EY5.04%
EPS(NY)0.51
Fwd EY13.48%
FCF(TTM)0.34
FCFY9.01%
OCF(TTM)0.56
OCFY14.89%
SpS6.64
BVpS4.17
TBVpS-4.13
PEG (NY)0.2
PEG (5Y)N/A
Graham Number4.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.28% | ||
| ROE | -10.87% | ||
| ROCE | 5.19% | ||
| ROIC | 4.1% | ||
| ROICexc | 4.22% | ||
| ROICexgc | 19.54% | ||
| OM | 8.52% | ||
| PM (TTM) | N/A | ||
| GM | 64.81% | ||
| FCFM | 5.12% |
ROA(3y)0.45%
ROA(5y)-0.07%
ROE(3y)1.41%
ROE(5y)-0.89%
ROIC(3y)4.63%
ROIC(5y)3.5%
ROICexc(3y)4.79%
ROICexc(5y)3.61%
ROICexgc(3y)25.33%
ROICexgc(5y)19.37%
ROCE(3y)5.86%
ROCE(5y)4.43%
ROICexgc growth 3Y14.73%
ROICexgc growth 5YN/A
ROICexc growth 3Y23.65%
ROICexc growth 5YN/A
OM growth 3Y18.51%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.71%
GM growth 5Y2.3%
F-Score3
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 14.04 | ||
| Debt/EBITDA | 4.61 | ||
| Cap/Depr | 47.21% | ||
| Cap/Sales | 3.34% | ||
| Interest Coverage | 2.25 | ||
| Cash Conversion | 54.24% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.2 |
F-Score3
WACC6.29%
ROIC/WACC0.65
Cap/Depr(3y)53.88%
Cap/Depr(5y)45.01%
Cap/Sales(3y)3.89%
Cap/Sales(5y)3.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-54.76%
EPS 3Y-6.6%
EPS 5YN/A
EPS Q2Q%-20%
EPS Next Y100.92%
EPS Next 2Y51.98%
EPS Next 3Y33.97%
EPS Next 5Y27.61%
Revenue 1Y (TTM)-5.68%
Revenue growth 3Y3.57%
Revenue growth 5Y4.55%
Sales Q2Q%-5.64%
Revenue Next Year0.17%
Revenue Next 2Y1.35%
Revenue Next 3Y1.85%
Revenue Next 5Y0.57%
EBIT growth 1Y-17.12%
EBIT growth 3Y22.74%
EBIT growth 5YN/A
EBIT Next Year20.38%
EBIT Next 3Y8.36%
EBIT Next 5Y5.03%
FCF growth 1Y-32.37%
FCF growth 3Y-20.5%
FCF growth 5YN/A
OCF growth 1Y-24.4%
OCF growth 3Y-12.15%
OCF growth 5YN/A
COTY INC-CL A / COTY FAQ
What is the fundamental rating for COTY stock?
ChartMill assigns a fundamental rating of 3 / 10 to COTY.
What is the valuation status for COTY stock?
ChartMill assigns a valuation rating of 8 / 10 to COTY INC-CL A (COTY). This can be considered as Undervalued.
What is the profitability of COTY stock?
COTY INC-CL A (COTY) has a profitability rating of 4 / 10.
What are the PE and PB ratios of COTY INC-CL A (COTY) stock?
The Price/Earnings (PE) ratio for COTY INC-CL A (COTY) is 19.84 and the Price/Book (PB) ratio is 0.9.
How financially healthy is COTY INC-CL A?
The financial health rating of COTY INC-CL A (COTY) is 0 / 10.