Coats Group (LSE:COA) - Share price, News & Analysis

COA fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	2/6
Past Performance	4/6
Financial Health	6/6
Dividends	3/6

COA Stock Overview

Coats Group plc, together with its subsidiaries, manufactures and supplies industrial threads worldwide.

Rewards

Trading at 39.4% below our estimate of its fair value

Earnings are forecast to grow 15.43% per year

Earnings grew by 236.7% over the past year

Risk Analysis

Unstable dividend track record

Coats Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Coats Group
Historical stock prices
Current Share Price	UK£0.71
52 Week High	UK£0.82
52 Week Low	UK£0.58
Beta	1.2
1 Month Change	2.17%
3 Month Change	16.67%
1 Year Change	8.44%
3 Year Change	-12.72%
5 Year Change	-5.42%
Change since IPO	263.68%

Recent News & Updates

May 16

Returns At Coats Group (LON:COA) Appear To Be Weighed Down

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

May 03

Is Now The Time To Look At Buying Coats Group plc (LON:COA)?

Coats Group plc ( LON:COA ), is not the largest company out there, but it led the LSE gainers with a relatively large...

Shareholder Returns

	COA	GB Luxury	GB Market
7D	-1.9%	1.3%	0.6%
1Y	8.4%	-32.9%	-2.7%

Return vs Industry: COA exceeded the UK Luxury industry which returned -32.9% over the past year.

Return vs Market: COA exceeded the UK Market which returned -2.7% over the past year.

Price Volatility

Is COA's price volatile compared to industry and market?
COA volatility
COA Average Weekly Movement	7.5%
Luxury Industry Average Movement	8.6%
Market Average Movement	6.0%
10% most volatile stocks in GB Market	11.6%
10% least volatile stocks in GB Market	3.1%

Stable Share Price: COA is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: COA's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1909	18,638	Rajiv Sharma	https://www.coats.com

Coats Group plc, together with its subsidiaries, manufactures and supplies industrial threads worldwide. The company provides apparel and footwear, and accessories threads for sport/athleisure, denim, women wear, menswear, children’s wear, leather wear, workwear, footwear, and intimates and underwear under Epic, Dual Duty, Seamsoft, Nylbond, Gral, Gramax, Astra, Sylko, Knit, EcoVerde, Eloflex, and Drybond brands; zips, trims, and crafting’s for use in zips, interlinings, reflective tapes, and crafting products under Opti, Signal, and Connect brands; and software solutions that enables supply chain productivity gains and enhances supply and facilitating compliance under Coats Digital, FastReactPlan, VisionPLM, GSDCost, Intellocut, and Intellobuy. It also offers performance materials comprising fire retardant and cut resistant threads and yarns for personal protection sectors under Firefly, FlamePro, and Armoren brands; composites for telecommunications and energy, automotive, and footwear sectors under Gotex, Synergex, Lattice, Ultrabloc, Aptan XU, Gral Binder, and Protos Ripcord brands; and performance threads and yarns for the automotive, and household and recreation industries, as well as other technical industrial applications under Gral, Helios, Gral Quilt, Protos Fil, Epic, Gramax, Admiral, and Neophil brands.

Coats Group Fundamentals Summary

How do Coats Group's earnings and revenue compare to its market cap?
COA fundamental statistics
Market Cap	US$1.31b
Earnings (TTM)	US$88.90m
Revenue (TTM)	US$1.50b

14.4x

P/E Ratio

0.9x

P/S Ratio

Is COA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
COA income statement (TTM)
Revenue	US$1.50b
Cost of Revenue	US$1.03b
Gross Profit	US$478.50m
Other Expenses	US$389.60m
Earnings	US$88.90m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 02, 2022

Earnings per share (EPS)	0.061
Gross Margin	31.82%
Net Profit Margin	5.91%
Debt/Equity Ratio	43.5%

How did COA perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

35%

Payout Ratio

Valuation

Is Coats Group undervalued compared to its fair value and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

39.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: COA (£0.71) is trading below our estimate of fair value (£1.17)

Significantly Below Fair Value: COA is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: COA is good value based on its Price-To-Earnings Ratio (14.4x) compared to the UK Luxury industry average (19.6x).

PE vs Market: COA is good value based on its Price-To-Earnings Ratio (14.4x) compared to the UK market (15.4x).

Price to Earnings Growth Ratio

PEG Ratio: COA is good value based on its PEG Ratio (0.9x)

Price to Book Ratio

PB vs Industry: COA is good value based on its Price-To-Book Ratio (2.3x) compared to the GB Luxury industry average (3.2x).

Future Growth

How is Coats Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

15.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: COA's forecast earnings growth (15.4% per year) is above the savings rate (0.9%).

Earnings vs Market: COA's earnings (15.4% per year) are forecast to grow faster than the UK market (11.3% per year).

High Growth Earnings: COA's earnings are forecast to grow, but not significantly.

Revenue vs Market: COA's revenue (3.6% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: COA's revenue (3.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: COA's Return on Equity is forecast to be low in 3 years time (19.7%).

Past Performance

How has Coats Group performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-0.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: COA has high quality earnings.

Growing Profit Margin: COA's current net profit margins (5.9%) are higher than last year (2.3%).

Past Earnings Growth Analysis

Earnings Trend: COA's earnings have declined by 0.9% per year over the past 5 years.

Accelerating Growth: COA's earnings growth over the past year (236.7%) exceeds its 5-year average (-0.9% per year).

Earnings vs Industry: COA earnings growth over the past year (236.7%) exceeded the Luxury industry 59.4%.

Return on Equity

High ROE: COA's Return on Equity (18.6%) is considered low.

Financial Health

How is Coats Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: COA's short term assets ($665.2M) exceed its short term liabilities ($456.4M).

Long Term Liabilities: COA's short term assets ($665.2M) exceed its long term liabilities ($470.8M).

Debt to Equity History and Analysis

Debt Level: COA's net debt to equity ratio (25.2%) is considered satisfactory.

Reducing Debt: COA's debt to equity ratio has reduced from 432.1% to 43.5% over the past 5 years.

Debt Coverage: COA's debt is well covered by operating cash flow (50.6%).

Interest Coverage: COA's interest payments on its debt are well covered by EBIT (12x coverage).

Balance Sheet

Dividend

What is Coats Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.38%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: COA's dividend (2.38%) is higher than the bottom 25% of dividend payers in the UK market (1.78%).

High Dividend: COA's dividend (2.38%) is low compared to the top 25% of dividend payers in the UK market (4.85%).

Stability and Growth of Payments

Stable Dividend: COA's dividend payments have been volatile in the past 10 years.

Growing Dividend: COA's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (34.6%), COA's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (31.4%), COA's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure

CEO

Rajiv Sharma (54 yo)

5.33yrs

Tenure

US$2,381,114

Compensation

Mr. Rajiv Sharma is Independent Non-Executive Director at Senior plc since January 1, 2019. Mr. Sharma has been the Group Chief Executive at Coats Group Plc and Coats Group Limited since January 1, 2017. M...

CEO Compensation Analysis

Compensation vs Market: Rajiv's total compensation ($USD2.38M) is about average for companies of similar size in the UK market ($USD1.85M).

Compensation vs Earnings: Rajiv's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: COA's management team is seasoned and experienced (5.3 years average tenure).

Board Members

Experienced Board: COA's board of directors are considered experienced (5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31