COTY INC-CL A (COTY) Stock Fundamental Analysis
USA - NYSE:COTY - US2220702037 - Common Stock
4.11 USD
-0.16 (-3.75%)
4.14 USD
+0.03 (+0.73%)
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 valued quite cheap, but it does not seem to be growing.
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.
Of the past 5 years COTY 4 years had a positive operating cash flow.
1.2 Ratios
COTY has a Return On Assets of -3.57%. This is comparable to the rest of the industry: COTY outperforms 41.67% of its industry peers.
With a Return On Equity value of -11.71%, COTY perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
COTY has a Return On Invested Capital of 3.96%. This is comparable to the rest of the industry: COTY outperforms 55.56% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for COTY is significantly below the industry average of 12.97%.
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
Looking at the Operating Margin, with a value of 9.42%, COTY is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of COTY has grown nicely.
COTY's Gross Margin of 65.43% is in line compared to the rest of the industry. COTY outperforms 52.78% of its industry peers.
COTY's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), COTY is destroying value.
There is no outstanding debt for COTY. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
COTY has an Altman-Z score of 0.28. This is a bad value and indicates that COTY is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.28, COTY is doing worse than 75.00% of the companies in the same industry.
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 in line with its industry peers.
A Debt/Equity ratio of 1.13 is on the high side and indicates that COTY has dependencies on debt financing.
The Debt to Equity ratio of COTY (1.13) is worse than 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.13 | ||
| Debt/FCF | 10.98 | ||
| Altman-Z | 0.28 |
ROIC/WACC0.69
WACC5.74%
2.3 Liquidity
A Current Ratio of 0.82 indicates that COTY may have some problems paying its short term obligations.
COTY has a worse Current ratio (0.82) than 80.56% 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 has a worse Quick ratio (0.51) than 83.33% 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%.
COTY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.60% yearly.
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
Based on estimates for the next years, COTY will show a very strong growth in Earnings Per Share. The EPS will grow by 27.61% on average per year.
The Revenue is expected to grow by 0.57% on average over the next years.
EPS Next Y132.25%
EPS Next 2Y63.84%
EPS Next 3Y32.43%
EPS Next 5Y27.61%
Revenue Next Year0.17%
Revenue Next 2Y1.39%
Revenue Next 3Y1.74%
Revenue Next 5Y0.57%
3.3 Evolution
The EPS 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 18.68, the valuation of COTY can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of COTY indicates a somewhat cheap valuation: COTY is cheaper than 72.22% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of COTY to the average of the S&P500 Index (27.38), we can say COTY is valued slightly cheaper.
A Price/Forward Earnings ratio of 8.04 indicates a reasonable valuation of COTY.
COTY's Price/Forward Earnings ratio is rather cheap when compared to the industry. COTY is cheaper than 88.89% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, COTY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.68 | ||
| Fwd PE | 8.04 |
4.2 Price Multiples
COTY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. COTY is cheaper than 80.56% of the companies in the same industry.
88.89% 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 | 9.98 | ||
| EV/EBITDA | 7.39 |
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.
A more expensive valuation may be justified as COTY's earnings are expected to grow with 32.43% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y63.84%
EPS Next 3Y32.43%
5. Dividend
5.1 Amount
COTY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.11
-0.16 (-3.75%)
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 Change0.14%
Market Cap3.59B
Analysts68.8
Price Target6.1 (48.42%)
Short Float %6.89%
Short Ratio2.54
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)-15.3%
PT rev (3m)-15.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.61%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.68 | ||
| Fwd PE | 8.04 | ||
| P/S | 0.6 | ||
| P/FCF | 9.98 | ||
| P/OCF | 6.12 | ||
| P/B | 1.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.39 |
EPS(TTM)0.22
EY5.35%
EPS(NY)0.51
Fwd EY12.43%
FCF(TTM)0.41
FCFY10.02%
OCF(TTM)0.67
OCFY16.34%
SpS6.88
BVpS4.01
TBVpS-4.02
PEG (NY)0.14
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 | 0.28 |
F-Score5
WACC5.74%
ROIC/WACC0.69
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 3Y32.43%
EPS Next 5Y27.61%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-8.14%
Revenue Next Year0.17%
Revenue Next 2Y1.39%
Revenue Next 3Y1.74%
Revenue Next 5Y0.57%
EBIT growth 1Y-17.68%
EBIT growth 3Y52.89%
EBIT growth 5Y19.15%
EBIT Next Year26.79%
EBIT Next 3Y10.91%
EBIT Next 5Y3.86%
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%