NYSE:COTY

Stock Analysis Report

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Executive Summary

Coty Inc., together with its subsidiaries, manufactures, markets, distributes, and sells beauty products worldwide. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Coty's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: COTY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.1%

COTY

2.5%

US Personal Products

-0.8%

US Market


1 Year Return

-71.4%

COTY

8.9%

US Personal Products

18.0%

US Market

Return vs Industry: COTY underperformed the US Personal Products industry which returned 9.6% over the past year.

Return vs Market: COTY underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

COTYIndustryMarket
7 Day3.1%2.5%-0.8%
30 Day15.1%9.2%6.8%
90 Day-16.2%16.9%8.9%
1 Year-70.8%-71.4%10.0%8.9%20.7%18.0%
3 Year-75.0%-77.5%56.3%49.6%41.5%32.1%
5 Year-86.7%-88.4%69.8%55.5%84.6%63.8%

Price Volatility Vs. Market

How volatile is Coty's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

24.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: COTY ($3.36) is trading below our estimate of fair value ($4.44)

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


Price To Earnings Ratio

PE vs Industry: COTY is unprofitable, so we can't compare its PE Ratio to the US Personal Products industry average.

PE vs Market: COTY is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate COTY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: COTY is good value based on its PB Ratio (0.9x) compared to the US Personal Products industry average (2.3x).


Next Steps

Future Growth

How is Coty forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

92.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COTY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: COTY is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: COTY's is expected to become profitable in the next 3 years.

Revenue vs Market: COTY's revenue (3.9% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: COTY's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COTY's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has Coty performed over the past 5 years?

-69.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COTY is currently unprofitable.

Growing Profit Margin: COTY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: COTY is unprofitable, and losses have increased over the past 5 years at a rate of 69.8% per year.

Accelerating Growth: Unable to compare COTY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: COTY is unprofitable, making it difficult to compare its past year earnings growth to the Personal Products industry (7.3%).


Return on Equity

High ROE: COTY has a negative Return on Equity (-27.09%), as it is currently unprofitable.


Next Steps

Financial Health

How is Coty's financial position?


Financial Position Analysis

Short Term Liabilities: COTY's short term assets ($6.5B) exceed its short term liabilities ($3.6B).

Long Term Liabilities: COTY's short term assets ($6.5B) do not cover its long term liabilities ($9.1B).


Debt to Equity History and Analysis

Debt Level: COTY's debt to equity ratio (202.9%) is considered high.

Reducing Debt: COTY's debt to equity ratio has reduced from 246.8% to 202.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: COTY has sufficient cash runway for 12 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: Insufficient data to determine if COTY has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Coty current dividend yield, its reliability and sustainability?

4.09%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate COTY'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 COTY's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: COTY is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Sue Nabi (52 yo)

0.083

Tenure

Ms. Sue Y. Nabi serves as Chief Executive Officer and Director at Coty Inc. since September 1, 2020. Ms. Nabi is the founder and Chief Executive Officer of the new-age luxury skincare line, Orveda. Previou ...


Leadership Team

NamePositionTenureCompensationOwnership
Pierre-André Terisse
CFO & COO1.67yrsUS$14.96m0.11%
$ 2.8m
Edgar Huber
Chief Commercial Officer4yrsUS$4.67m0.025%
$ 631.9k
Richard Jones
Chief Supply Officer and Head of Research & Development0.92yrUS$4.39m0.032%
$ 825.5k
Sue Nabi
CEO & Director0.083yrno datano data
Olga Levinzon
Vice President of Investor Relations1.33yrsno datano data
Kristin Blazewicz
Chief Legal Officer0.58yrno datano data
Anne Jaeckin
Chief Human Resources Officer0.75yrno datano data
Peggy Elsrode
Senior Vice President of North America Luxury6.17yrsno datano data
Sean Foster
Global Senior Vice President of eCommerce3.5yrsno datano data
Simon Worraker
Senior Vice President of Global Trade Marketing & In-Store Excellence - Coty Consumer Beautyno datano datano data
Simona Cattaneo
President of Luxury Brandsno datano data0.0087%
$ 223.1k
Jean-Claude Thomas
Chief of Supply Operations1.08yrsno data0.0029%
$ 74.8k

1.2yrs

Average Tenure

53yo

Average Age

Experienced Management: COTY's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Sue Nabi
CEO & Director0.083yrno datano data
Robert Singer
Lead Independent Director0.42yrUS$249.10k0.037%
$ 957.6k
Peter Harf
Founder & Independent Chairman1.92yrsUS$607.30k1.61%
$ 41.4m
Erhard Schoewel
Independent Director14.75yrsUS$279.10k0.051%
$ 1.3m
Beatrice Ballini
Independent Director1.08yrsUS$170.86kno data
Sabine Chalmers
Independent Director3.5yrsUS$219.10kno data
Paul Michaels
Independent Director5.33yrsUS$219.10k0.000090%
$ 2.3k
Isabelle Parize
Independent Non-Executive Director0.67yrUS$43.02kno data
Justine Tan
Independent Non-Executive Director0.67yrUS$43.02kno data
Joachim Creus
Independent Director0.92yrUS$143.28kno data
Olivier Goudet
Independent Director7.42yrsUS$219.10k0.055%
$ 1.4m
Johannes Huth
Independent Vice Chairman of the Boardno datano datano data

1.1yrs

Average Tenure

62yo

Average Age

Experienced Board: COTY's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: COTY 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

Coty Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Coty Inc.
  • Ticker: COTY
  • Exchange: NYSE
  • Founded: 1904
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: US$2.571b
  • Shares outstanding: 765.13m
  • Website: https://www.coty.com

Number of Employees


Location

  • Coty Inc.
  • 350 Fifth Avenue
  • New York
  • New York
  • 10118
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COTYNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJun 2013
CO3ADB (Deutsche Boerse AG)YesClass A Common StockDEEURJun 2013
CO3AXTRA (XETRA Trading Platform)YesClass A Common StockDEEURJun 2013
0I4ALSE (London Stock Exchange)YesClass A Common StockGBUSDJun 2013
COTY34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COM 'CLASS A' USD0.01BRBRLJul 2015

Biography

Coty Inc., together with its subsidiaries, manufactures, markets, distributes, and sells beauty products worldwide. The company provides prestige fragrances, skin care, and color cosmetics products through ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 00:06
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.