NYSE:COTY

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with moderate growth potential.

Risks

  • Coty has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-1.7%

NYSE:COTY

-3.2%

US Personal Products

0.8%

US Market


1 Year Return

-16.6%

NYSE:COTY

13.8%

US Personal Products

1.9%

US Market

COTY underperformed the Personal Products industry which returned 14.6% over the past year.

COTY underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

COTYIndustryMarket
7 Day-1.7%-3.2%0.8%
30 Day14.9%7.0%3.4%
90 Day-21.7%1.5%2.1%
1 Year-12.5%-16.6%15.5%13.8%4.2%1.9%
3 Year-50.7%-55.7%45.8%38.1%46.7%37.2%
5 Year-30.0%-39.1%82.3%63.3%62.3%44.5%

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 based on future cash flows and its price relative to the stock market?

44%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Coty's share price is below the future cash flow value, and at a moderate discount (> 20%).

Coty's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Coty is loss making, we can't compare its value to the US Personal Products industry average.

Coty is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Coty, we can't assess if its growth is good value.


Price Based on Value of Assets

Coty is good value based on assets compared to the US Personal Products industry average.


Next Steps

Future Growth

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

109.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Coty's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Coty's earnings are expected to grow significantly at over 20% yearly.

Coty's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Coty's earnings growth is expected to exceed the United States of America market average.

Coty's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Coty is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Coty performed over the past 5 years?

-74.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Coty does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Coty's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Coty's 1-year growth to the US Personal Products industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Coty has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Coty has efficiently used its assets last year compared to the US Personal Products industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Coty improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Coty's financial position?


Financial Position Analysis

Coty's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Coty's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Coty's level of debt (152.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (344% vs 152.7% today).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.4x debt.


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.

Whilst loss making Coty has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Coty has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 54.9% per year.


Next Steps

Dividend

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

4.38%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Coty's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).

Coty's dividend is above the markets top 25% of dividend payers in United States of America (3.67%).

Whilst dividend payments have been stable, Coty has been paying a dividend for less than 10 years.

Dividend payments have increased, but Coty only paid a dividend in the past 6 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

What is the CEO of Coty's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Pierre Laubies 0

0.8yrs

Tenure

0

Mr. Pierre Laubies has been the Chief Executive Officer and Director of Coty Inc. since November 12, 2018 and also serves as its President of Consumer Beauty. Mr. Laubies served as the Chief Executive Offi ...


Management Age and Tenure

1.4yrs

Average Tenure

52yo

Average Age

The average tenure for the Coty management team is less than 2 years, this suggests a new team.


Board Age and Tenure

2.4yrs

Average Tenure

67yo

Average Age

The average tenure for the Coty board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Coty individual insiders in the past 3 months.


Recent Insider Transactions

BuyUS$2,059,26009 Sep 19
Fiona Hughes
EntityIndividual
Shares210,000
Max PriceUS$9.81
BuyUS$2,499,95204 Sep 19
Pierre Laubies
EntityIndividual
Role
Chief Executive Officer
CEO, Director & President of Consumer Beauty
Shares262,000
Max PriceUS$9.54
BuyUS$325,96204 Sep 19
Robert Singer
EntityIndividual
Role
Member of the Board of Directors
Director
Shares35,000
Max PriceUS$9.49
BuyUS$476,38004 Sep 19
Olivier Goudet
EntityIndividual
Role
Member of the Board of Directors
Director
Shares50,000
Max PriceUS$9.53
BuyUS$9,979,69504 Sep 19
HFS S.a.r.l.
EntityCompany
Shares1,051,507
Max PriceUS$9.49
BuyUS$12,402,01931 May 19
HFS S.a.r.l.
EntityCompany
Shares959,760
Max PriceUS$12.92
BuyUS$4,033,30630 May 19
HFS S.a.r.l.
EntityCompany
Shares309,222
Max PriceUS$13.04
BuyUS$1,202,20017 May 19
Giovanni Pieraccioni
EntityIndividual
Shares93,100
Max PriceUS$12.91
BuyUS$1,688,06416 May 19
Peter Harf
EntityIndividual
Role
Chairman of the Board
Chairman
Shares140,000
Max PriceUS$12.06
BuyUS$3,616,18416 May 19
HFS S.a.r.l.
EntityCompany
Shares299,668
Max PriceUS$12.07
BuyUS$5,194,96314 May 19
Luc Volatier
EntityIndividual
Shares451,263
Max PriceUS$11.83
BuyUS$1,782,73214 May 19
Pierre-André Terisse
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares152,000
Max PriceUS$11.73
BuyUS$7,542,32714 May 19
Pierre Laubies
EntityIndividual
Role
Chief Executive Officer
CEO, Director & President of Consumer Beauty
Shares648,228
Max PriceUS$11.64
BuyUS$54,155,96814 May 19
HFS S.a.r.l.
EntityCompany
Shares4,646,301
Max PriceUS$11.67
BuyUS$337,56014 May 19
Peter Harf
EntityIndividual
Role
Chairman of the Board
Chairman
Shares29,000
Max PriceUS$11.64
BuyUS$533,59714 May 19
Olivier Goudet
EntityIndividual
Role
Member of the Board of Directors
Director
Shares45,000
Max PriceUS$11.86
BuyUS$1,747,500,00001 May 19
JAB Holdings B.V.
EntityCompany
Shares150,000,000
Max PriceUS$11.65
BuyUS$373,28916 Nov 18
Robert Singer
EntityIndividual
Role
Member of the Board of Directors
Director
Shares45,000
Max PriceUS$8.30
BuyUS$20,053,01716 Nov 18
Pierre Laubies
EntityIndividual
Role
Chief Executive Officer
CEO, Director & President of Consumer Beauty
Shares2,308,447
Max PriceUS$8.69

Ownership Breakdown


Management Team

  • Pierre Laubies

    CEO, Director & President of Consumer Beauty

    • Tenure: 0.8yrs
  • Greerson McMullen (56yo)

    Chief Legal Officer

    • Tenure: 2.9yrs
    • Compensation: US$5.21m
  • Edgar Huber (57yo)

    President of Luxury

    • Tenure: 2.9yrs
    • Compensation: US$4.32m
  • Simona Cattaneo

    Chief Marketing Officer

    • Tenure: 0yrs
  • Olga Levinzon

    Vice President of Investor Relations

    • Tenure: 0.3yrs
  • Peggy Elsrode

    Senior Vice President of North America Luxury

    • Tenure: 5.1yrs
  • Sylvie Moreau (48yo)

    President of Professional Beauty

    • Tenure: 0yrs
  • Daniel Ramos (46yo)

    Chief Scientific Officer and Executive VP of R&D

    • Tenure: 2yrs
    • Compensation: US$4.95m
  • Pierre-André Terisse

    Chief Financial Officer

    • Tenure: 0.7yrs
  • Sophie Hanrot

    Chief Human Resources Officer

    • Tenure: 0.2yrs

Board Members

  • Bob Singer (67yo)

    Director

    • Tenure: 9.7yrs
    • Compensation: US$298.20k
  • Peter Harf (73yo)

    Chairman

    • Tenure: 0.8yrs
    • Compensation: US$268.20k
  • Joachim Faber (69yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$268.20k
  • Erhard Schoewel (70yo)

    Lead Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$298.20k
  • Pierre Laubies

    CEO, Director & President of Consumer Beauty

    • Tenure: 0.8yrs
  • Sabine Chalmers (54yo)

    Director

    • Tenure: 2.4yrs
    • Compensation: US$302.75k
  • Paul Michaels (67yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$268.20k
  • Anna-lena Kamenetzky-wetzel

    Director

    • Tenure: 0.7yrs
  • Olivier Goudet (54yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$268.20k

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$7.964b
  • Shares outstanding: 754.20m
  • 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
0I4ALSE (London Stock Exchange)YesClass A Common StockGBUSDJun 2013
COTY34BOVESPA (Bolsa de Valores de Sao Paulo)BDR REPR 1/2 COM 'CLASS A' USD0.01BRBRLJul 2015

Biography

Coty Inc., together with its subsidiaries, manufactures, markets, distributes, and sells beauty products worldwide. The company operates in three segments: Luxury, Consumer Beauty, and Professional Beauty. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 01:06
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.