COTY INC-CL A (COTY) Stock Fundamental Analysis
USA - NYSE:COTY - US2220702037 - Common Stock
4.33 USD
+0.14 (+3.34%)
4.29 USD
-0.04 (-0.92%)
COTY gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 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 cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
COTY had positive earnings in the past year.
COTY had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: COTY reported negative net income in multiple years.
COTY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of COTY (-3.20%) is comparable to the rest of the industry.
The Return On Equity of COTY (-10.76%) is comparable to the rest of the industry.
The Return On Invested Capital of COTY (4.60%) is comparable to the rest of the industry.
COTY had an Average Return On Invested Capital over the past 3 years of 4.63%. This is significantly below the industry average of 12.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.2% | ||
| ROE | -10.76% | ||
| ROIC | 4.6% |
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 9.26%, COTY is doing good in the industry, outperforming 66.67% of the companies in the same industry.
COTY's Operating Margin has improved in the last couple of years.
COTY has a Gross Margin (65.10%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of COTY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.26% | ||
| PM (TTM) | N/A | ||
| GM | 65.1% |
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
COTY has more shares outstanding than it did 5 years ago.
COTY has a worse debt/assets ratio than last year.
2.2 Solvency
COTY has an Altman-Z score of 0.24. This is a bad value and indicates that COTY is not financially healthy and even has some risk of bankruptcy.
COTY has a worse Altman-Z score (0.24) than 77.78% of its industry peers.
COTY has a debt to FCF ratio of 14.77. This is a negative value and a sign of low solvency as COTY would need 14.77 years to pay back of all of its debts.
With a Debt to FCF ratio value of 14.77, COTY perfoms like the industry average, outperforming 52.78% of the companies in the same industry.
COTY has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
COTY has a worse Debt to Equity ratio (1.16) than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 14.77 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.72
WACC6.41%
2.3 Liquidity
COTY has a Current Ratio of 0.77. 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 worse Current ratio (0.77) than 86.11% of its industry peers.
COTY has a Quick Ratio of 0.77. 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 (0.46) is worse than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.46 |
3. Growth
3.1 Past
The earnings per share for COTY have decreased strongly by -43.59% in the last year.
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 -3.68% in the past year.
Measured over the past years, COTY shows a small growth in Revenue. The Revenue has been growing by 4.55% on average per year.
EPS 1Y (TTM)-43.59%
EPS 3Y-6.6%
EPS 5YN/A
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y3.57%
Revenue growth 5Y4.55%
Sales Q2Q%-8.14%
3.2 Future
The Earnings Per Share is expected to grow by 27.61% 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 0.57% on average per year.
EPS Next Y102.67%
EPS Next 2Y52.53%
EPS Next 3Y33.6%
EPS Next 5Y27.61%
Revenue Next Year0.15%
Revenue Next 2Y1.37%
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
With a Price/Earnings ratio of 19.68, COTY is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of COTY indicates a somewhat cheap valuation: COTY is cheaper than 66.67% of the companies listed in the same industry.
COTY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.34.
Based on the Price/Forward Earnings ratio of 9.71, the valuation of COTY can be described as reasonable.
Based on the Price/Forward Earnings ratio, COTY is valued cheaper than 83.33% of the companies in the same industry.
COTY is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.68 | ||
| Fwd PE | 9.71 |
4.2 Price Multiples
COTY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. COTY is cheaper than 77.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, COTY is valued cheaply inside the industry as 80.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.63 | ||
| EV/EBITDA | 7.9 |
4.3 Compensation for Growth
COTY's 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 33.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.19
PEG (5Y)N/A
EPS Next 2Y52.53%
EPS Next 3Y33.6%
5. Dividend
5.1 Amount
No dividends for COTY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.33
+0.14 (+3.34%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners37.42%
Inst Owner Change0.82%
Ins Owners6.11%
Ins Owner Change0.14%
Market Cap3.78B
Analysts68.33
Price Target5.92 (36.72%)
Short Float %6.19%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.02
Dividend Growth(5Y)-43.22%
DP-3.49%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-230.31%
Min EPS beat(2)-378.2%
Max EPS beat(2)-82.41%
EPS beat(4)0
Avg EPS beat(4)-132.28%
Min EPS beat(4)-378.2%
Max EPS beat(4)-21.04%
EPS beat(8)1
Avg EPS beat(8)-90.18%
EPS beat(12)4
Avg EPS beat(12)-16.87%
EPS beat(16)7
Avg EPS beat(16)7.95%
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-2.54%
Max Revenue beat(2)2.4%
Revenue beat(4)1
Avg Revenue beat(4)-1.82%
Min Revenue beat(4)-4.85%
Max Revenue beat(4)2.4%
Revenue beat(8)3
Avg Revenue beat(8)-1.05%
Revenue beat(12)5
Avg Revenue beat(12)-0.41%
Revenue beat(16)7
Avg Revenue beat(16)-0.54%
PT rev (1m)-4.26%
PT rev (3m)-17.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.14%
EPS NY rev (1m)-12.74%
EPS NY rev (3m)-13.51%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.83%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.68 | ||
| Fwd PE | 9.71 | ||
| P/S | 0.64 | ||
| P/FCF | 13.63 | ||
| P/OCF | 7.68 | ||
| P/B | 1.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.9 |
EPS(TTM)0.22
EY5.08%
EPS(NY)0.45
Fwd EY10.3%
FCF(TTM)0.32
FCFY7.34%
OCF(TTM)0.56
OCFY13.02%
SpS6.74
BVpS4.05
TBVpS-4.27
PEG (NY)0.19
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.2% | ||
| ROE | -10.76% | ||
| ROCE | 5.82% | ||
| ROIC | 4.6% | ||
| ROICexc | 4.73% | ||
| ROICexgc | 23.49% | ||
| OM | 9.26% | ||
| PM (TTM) | N/A | ||
| GM | 65.1% | ||
| FCFM | 4.71% |
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%
ROICexcg growth 3Y14.73%
ROICexcg 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-Score4
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 14.77 | ||
| Debt/EBITDA | 4.24 | ||
| Cap/Depr | 51.19% | ||
| Cap/Sales | 3.65% | ||
| Interest Coverage | 2.49 | ||
| Cash Conversion | 51.01% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.46 | ||
| Altman-Z | 0.24 |
F-Score4
WACC6.41%
ROIC/WACC0.72
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)-43.59%
EPS 3Y-6.6%
EPS 5YN/A
EPS Q2Q%-66.67%
EPS Next Y102.67%
EPS Next 2Y52.53%
EPS Next 3Y33.6%
EPS Next 5Y27.61%
Revenue 1Y (TTM)-3.68%
Revenue growth 3Y3.57%
Revenue growth 5Y4.55%
Sales Q2Q%-8.14%
Revenue Next Year0.15%
Revenue Next 2Y1.37%
Revenue Next 3Y1.85%
Revenue Next 5Y0.57%
EBIT growth 1Y-6.45%
EBIT growth 3Y22.74%
EBIT growth 5YN/A
EBIT Next Year20.38%
EBIT Next 3Y8.36%
EBIT Next 5Y5.03%
FCF growth 1Y-24.85%
FCF growth 3Y-20.5%
FCF growth 5YN/A
OCF growth 1Y-19.85%
OCF growth 3Y-12.15%
OCF growth 5YN/A