Coats Group
Market Cap
UK£1.0b
Last Updated
2020/02/16 20:36 UTC
Data Sources
Company Financials +
Executive Summary
Coats Group plc manufactures and supplies industrial threads worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Proven track record with moderate growth potential.
Share Price & News
How has Coats Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: COA has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.7%
COA
-0.6%
GB Luxury
-0.2%
GB Market
1 Year Return
-17.9%
COA
-8.6%
GB Luxury
6.1%
GB Market
Return vs Industry: COA underperformed the UK Luxury industry which returned -8.6% over the past year.
Return vs Market: COA underperformed the UK Market which returned 6.1% over the past year.
Shareholder returns
| COA | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.7% | -0.6% | -0.2% |
| 30 Day | -6.8% | -13.2% | -2.7% |
| 90 Day | -1.1% | -4.7% | 3.9% |
| 1 Year | -16.6%-17.9% | -6.4%-8.6% | 11.8%6.1% |
| 3 Year | 32.8%26.9% | 5.6%-1.1% | 17.5%2.6% |
| 5 Year | 248.6%233.2% | 9.1%-2.8% | 34.8%3.7% |
Price Volatility Vs. Market
How volatile is Coats Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
We Think Coats Group (LON:COA) Can Stay On Top Of Its Debt2 weeks ago | Simply Wall St
Coats Group's (LON:COA) Earnings Are Growing But Is There More To The Story?4 weeks ago | Simply Wall St
Why Coats Group plc’s (LON:COA) Return On Capital Employed Is ImpressiveValuation
Is Coats Group undervalued compared to its fair value and its price relative to the market?
27.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: COA (£0.73) is trading below our estimate of fair value (£1.01)
Significantly Below Fair Value: COA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: COA is poor value based on its PE Ratio (19.2x) compared to the Luxury industry average (18.8x).
PE vs Market: COA is poor value based on its PE Ratio (19.2x) compared to the UK market (18.5x).
Price to Earnings Growth Ratio
PEG Ratio: COA is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: COA is overvalued based on its PB Ratio (4.6x) compared to the GB Luxury industry average (2.4x).
Next Steps
Future Growth
How is Coats Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
11.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: COA's forecast earnings growth (11.8% per year) is above the savings rate (0.5%).
Earnings vs Market: COA's earnings (11.8% per year) are forecast to grow slower than the UK market (12.2% per year).
High Growth Earnings: COA's earnings are forecast to grow, but not significantly.
Revenue vs Market: COA's revenue (5% per year) is forecast to grow faster than the UK market (3.4% per year).
High Growth Revenue: COA's revenue (5% 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 high in 3 years time (26.4%)
Next Steps
Past Performance
How has Coats Group performed over the past 5 years?
25.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: COA has high quality earnings.
Growing Profit Margin: COA's current net profit margins (5.1%) are higher than last year (4.8%).
Past Earnings Growth Analysis
Earnings Trend: COA has become profitable over the past 5 years, growing earnings by 25.9% per year.
Accelerating Growth: COA's earnings growth over the past year (11.4%) is below its 5-year average (25.9% per year).
Earnings vs Industry: COA earnings growth over the past year (11.4%) exceeded the Luxury industry -7.1%.
Return on Equity
High ROE: Whilst COA's Return on Equity (27.41%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Coats Group's financial position?
Financial Position Analysis
Short Term Liabilities: COA's short term assets ($614.0M) exceed its short term liabilities ($378.2M).
Long Term Liabilities: COA's short term assets ($614.0M) do not cover its long term liabilities ($618.9M).
Debt to Equity History and Analysis
Debt Level: COA's debt to equity ratio (101.4%) is considered high.
Reducing Debt: COA's debt to equity ratio has increased from 67.9% to 101.4% over the past 5 years.
Debt Coverage: COA's debt is well covered by operating cash flow (39.5%).
Interest Coverage: COA's interest payments on its debt are well covered by EBIT (12.9x coverage).
Balance Sheet
Inventory Level: COA has a high level of physical assets or inventory.
Debt Coverage by Assets: COA's debt is covered by short term assets (assets are 1.8x debt).
Next Steps
Dividend
What is Coats Group's current dividend yield, its reliability and sustainability?
1.74%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: COA's dividend (1.74%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).
High Dividend: COA's dividend (1.74%) is low compared to the top 25% of dividend payers in the UK market (5.1%).
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 increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34.4%), COA's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: COA's dividends in 3 years are forecast to be well covered by earnings (26.1% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.1yrs
Average management tenure
CEO
Rajiv Sharma (52yo)
3.1yrs
Tenure
US$3,293,100
Compensation
Mr. Rajiv Sharma is a Non Executive Director at Senior plc since January 1, 2019. Mr. Sharma has been the Group Chief Executive at Coats Group Plc and Coats Group Limited since January 1, 2017. Mr. Sharma ...
CEO Compensation Analysis
Compensation vs Market: Rajiv's total compensation ($USD4.29M) is above average for companies of similar size in the UK market ($USD1.82M).
Compensation vs Earnings: Rajiv's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Executive Director | 3.1yrs | US$3.29m | 0.028% $293.2k | |
| CFO & Executive Director | 3.6yrs | US$2.02m | 0.021% $219.9k | |
| Chief Digital & Technology Officer | 3.1yrs | no data | no data | |
| Head of Investor Relations | 0yrs | no data | no data | |
| Chief Legal & Risk Officer and Group Company Secretary | 0yrs | no data | no data | |
| Head of Communications | 0yrs | no data | no data | |
| Chief Human Resource Officer | 1.9yrs | no data | no data | |
| Chief Supply Chain Officer | 2.6yrs | no data | no data | |
| Managing Director of Coats Global Services and Group Director of Strategy & M&A | 5.1yrs | no data | no data | |
| President of Performance Materials | 3.1yrs | no data | no data |
3.1yrs
Average Tenure
57yo
Average Age
Experienced Management: COA's management team is considered experienced (3.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Group Chief Executive & Executive Director | 3.1yrs | US$3.29m | 0.028% $293.2k | |
| CFO & Executive Director | 3.6yrs | US$2.02m | 0.021% $219.9k | |
| Chairman of the Board | 5.8yrs | US$250.90k | 0.10% $1.1m | |
| Independent Non-Executive Director | 4.9yrs | US$70.00k | no data | |
| Independent Non-Executive Director | 4.9yrs | US$73.90k | 0.055% $576.5k | |
| Senior Independent Non-Executive Director | 4.8yrs | US$72.60k | 0.035% $366.5k | |
| Independent Non-Executive Director | 3.3yrs | US$67.50k | no data | |
| Non-Executive Director | 1.9yrs | US$58.60k | no data | |
| Non-Executive Director | 2.2yrs | US$61.50k | 0.0010% $11.0k |
4.8yrs
Average Tenure
59yo
Average Age
Experienced Board: COA's board of directors are considered experienced (4.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: COA 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.
Top Shareholders
Company Information
Coats Group plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Coats Group plc
- Ticker: COA
- Exchange: LSE
- Founded:
- Industry: Textiles
- Sector: Consumer Durables
- Market Cap: UK£1.049b
- Shares outstanding: 1.43b
- Website: https://www.coats.com
Number of Employees
Location
- Coats Group plc
- 1 The Square
- Stockley Park
- Uxbridge
- Middlesex
- UB11 1TD
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| COA | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Dec 2002 |
| COAL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Dec 2002 |
| 4TC | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Dec 2002 |
| GPGR.F | OTCPK (Pink Sheets LLC) | CDI (1:1) | US | USD | Mar 2015 |
Biography
Coats Group plc manufactures and supplies industrial threads worldwide. It provides sewing threads; engineered yarns; metal, plastic, and spiral zippers; and interlinings and reflective tapes for apparel, automotive and other transport, composite, electronic textile, fashion accessories travel and luggage, footwear, household and recreation, medical, health and food, personal protection, wire and cable, and other applications. The company was formerly known as Guinness Peat Group plc and changed its name to Coats Group plc in March 2015. Coats Group plc is headquartered in Uxbridge, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 20:36 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.