LSE:COA

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

High growth potential with adequate balance sheet.

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 is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: COA's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-3.0%

COA

-2.5%

GB Luxury

-2.4%

GB Market


1 Year Return

-18.8%

COA

-16.2%

GB Luxury

-8.0%

GB Market

Return vs Industry: COA underperformed the UK Luxury industry which returned -16.2% over the past year.

Return vs Market: COA underperformed the UK Market which returned -8% over the past year.


Shareholder returns

COAIndustryMarket
7 Day-3.0%-2.5%-2.4%
30 Day-10.2%-4.8%-0.5%
90 Day8.3%25.3%18.1%
1 Year-18.8%-18.8%-16.2%-16.2%-4.4%-8.0%
3 Year-18.4%-20.8%-37.1%-40.3%3.7%-9.0%
5 Year189.2%176.4%-19.5%-27.2%43.1%15.6%

Long-Term 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

Valuation

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

31.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: COA (£0.62) is trading above our estimate of fair value (£0.33)

Significantly Below Fair Value: COA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: COA is poor value based on its PE Ratio (31.8x) compared to the XE Luxury industry average (30.7x).

PE vs Market: COA is poor value based on its PE Ratio (31.8x) compared to the UK market (22.9x).


Price to Earnings Growth Ratio

PEG Ratio: COA is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: COA is good value based on its PB Ratio (3.7x) compared to the GB Luxury industry average (3.8x).


Next Steps

Future Growth

How is Coats Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

44.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COA's forecast earnings growth (44.5% per year) is above the savings rate (1%).

Earnings vs Market: COA's earnings (44.5% per year) are forecast to grow faster than the UK market (24% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: COA's revenue (9.3% per year) is forecast to grow faster than the UK market (6.4% per year).

High Growth Revenue: COA's revenue (9.3% 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 (29.5%)


Next Steps

Past Performance

How has Coats Group performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COA has high quality earnings.

Growing Profit Margin: COA's current net profit margins (3.1%) are lower than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: COA's earnings have grown by 12.6% per year over the past 5 years.

Accelerating Growth: COA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: COA had negative earnings growth (-46.1%) over the past year, making it difficult to compare to the Luxury industry average (-33.2%).


Return on Equity

High ROE: COA's Return on Equity (15.8%) is considered low.


Next Steps

Financial Health

How is Coats Group's financial position?


Financial Position Analysis

Short Term Liabilities: COA's short term assets ($506.7M) exceed its short term liabilities ($301.7M).

Long Term Liabilities: COA's short term assets ($506.7M) do not cover its long term liabilities ($522.4M).


Debt to Equity History and Analysis

Debt Level: COA's debt to equity ratio (83.9%) is considered high.

Reducing Debt: COA's debt to equity ratio has reduced from 120.8% to 83.9% over the past 5 years.

Debt Coverage: COA's debt is well covered by operating cash flow (41.6%).

Interest Coverage: COA's interest payments on its debt are well covered by EBIT (7.2x coverage).


Balance Sheet


Next Steps

Dividend

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

2.46%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate COA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate COA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if COA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if COA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: COA is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of COA's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Rajiv Sharma (53 yo)

4yrs

Tenure

US$3,284,948

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 ($USD3.28M) is above average for companies of similar size in the UK market ($USD1.75M).

Compensation vs Earnings: Rajiv's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rajiv Sharma
Group Chief Executive & Executive Director4yrsUS$3.28m0.28%
$ 2.5m
Simon Boddie
CFO & Executive Director4.5yrsUS$2.23m0.021%
$ 184.5k
Rob Mann
Head of Investor Relationsno datano datano data
Stuart Morgan
Chief Legal & Risk Officer and Group Company Secretaryno datano datano data
Kristina Blissett
Head of Communicationsno datano datano data
Monica McKee
Chief Human Resource Officer2.83yrsno datano data
Michael Schofer
Chief Supply Chain Officer3.5yrsno datano data
Yael Loewinger
Managing Director of Coats Global Services and Group Director of Strategy & M&A6yrsno datano data
Ronan Cox
President of Performance Materials4yrsno datano data
Adrian Elliott
President of Apparel & Footwear4yrsno datano data
Kevin Finn
President of Business Operations3.75yrsno datano data
Shantanu Banerjee
Group Head of Innovation2.75yrsno datano data

4.0yrs

Average Tenure

58yo

Average Age

Experienced Management: COA's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rajiv Sharma
Group Chief Executive & Executive Director4yrsUS$3.28m0.28%
$ 2.5m
Simon Boddie
CFO & Executive Director4.5yrsUS$2.23m0.021%
$ 184.5k
Michael Clasper
Chairman of the Board6.75yrsUS$336.14k0.12%
$ 1.0m
Jakob Sigurdsson
Independent Non-Executive Director0.25yrno datano data
David Gosnell
Independent Non-Executive Director0.67yrUS$102.24k0.076%
$ 676.5k
Nicholas Bull
Senior Independent Non-Executive Director5.75yrsUS$99.07k0.035%
$ 307.5k
Frances Philip
Independent Non-Executive Director4.25yrsUS$99.33k0.0017%
$ 15.4k
Anne Fahy
Independent Non-Executive Director2.83yrsUS$98.40k0.0028%
$ 24.6k
Hongyan Lu
Independent Non-Executive Director3.08yrsUS$81.98k0.0010%
$ 9.2k

4.3yrs

Average Tenure

60yo

Average Age

Experienced Board: COA's board of directors are considered experienced (4.3 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: 1909
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: UK£885.453m
  • Shares outstanding: 1.44b
  • Website: https://www.coats.com

Number of Employees


Location

  • Coats Group plc
  • 4 Longwalk Road
  • Stockley Park
  • Uxbridge
  • Greater London
  • UB11 1FE
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COALSE (London Stock Exchange)YesOrdinary SharesGBGBPDec 2002
COALBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPDec 2002
4TCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2002
GPGR.FOTCPK (Pink Sheets LLC)CDI (1:1)USUSDMar 2015

Biography

Coats Group plc, together with its subsidiaries, manufactures and supplies industrial threads worldwide. It provides protective layers for cables/steel replacement composites under the Ultrabloc, Gotex ARG...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/28 02:08
End of Day Share Price2021/01/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.