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.


Snowflake Analysis

Adequate balance sheet and fair value.


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

6.5%

COTY

5.1%

US Personal Products

4.0%

US Market


1 Year Return

-61.5%

COTY

-5.0%

US Personal Products

4.9%

US Market

Return vs Industry: COTY underperformed the US Personal Products industry which returned -5% over the past year.

Return vs Market: COTY underperformed the US Market which returned 4.9% over the past year.


Shareholder returns

COTYIndustryMarket
7 Day6.5%5.1%4.0%
30 Day-12.4%-3.2%1.3%
90 Day-11.0%26.0%29.5%
1 Year-60.1%-61.5%-3.9%-5.0%7.2%4.9%
3 Year-73.6%-76.3%42.7%35.7%36.1%27.2%
5 Year-82.0%-84.5%36.8%25.4%65.3%46.9%

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?

27.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: COTY ($4.45) is trading below our estimate of fair value ($6.09)

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 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 (2.8x).


Next Steps

Future Growth

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

54.3%

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 is expected to decline over the next 3 years (-2% per year).

High Growth Revenue: COTY's revenue is forecast to decline over the next 3 years (-2% 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 (8.1%).


Next Steps

Past Performance

How has Coty performed over the past 5 years?

-77.9%

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 -77.9% 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 (17.5%).


Return on Equity

High ROE: COTY has a negative Return on Equity (-74.49%), 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 ($3.7B) exceed its short term liabilities ($3.1B).

Long Term Liabilities: COTY's short term assets ($3.7B) do not cover its long term liabilities ($11.2B).


Debt to Equity History and Analysis

Debt Level: COTY's debt to equity ratio (230.5%) is considered high.

Reducing Debt: COTY's debt to equity ratio has reduced from 571.3% to 230.5% 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: Whilst unprofitable COTY has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: COTY is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 14.1% per year.


Next Steps

Dividend

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

2.41%

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?

1.4yrs

Average management tenure


CEO

Peter Harf (74yo)

0.50

Tenure

US$487,205

Compensation

Mr. Peter Harf serves as Non-Executive Director at JDE Peet's B.V. since June 2020. He has been Chief Executive Officer at Coty Inc. since 2020. Mr. Harf has been a Director of Interbrew S.A. since 2002 an ...


Leadership Team

NamePositionTenureCompensationOwnership
Peter Harf
Chairman & CEO0.50yrUS$487.21k1.62% $54.8m
Pierre-André Terisse
CFO & COO1.42yrsUS$3.75m0.020% $676.4k
Edgar Huber
Chief Commercial Officer3.75yrsUS$8.68m0.025% $837.1k
Ayesha Zafar
Senior VP & Group Controller4.17yrsUS$1.44m0.0034% $115.8k
Olga Levinzon
Vice President of Investor Relations1.08yrsno datano data
Kristin Blazewicz
Chief Legal Officer0.33yrno datano data
Anne Jaeckin
Chief Human Resources Officer0.50yrno datano data
Peggy Elsrode
Senior Vice President of North America Luxury5.92yrsno datano data
Sean Foster
Global Senior Vice President of eCommerce3.25yrsno datano data
Simon Worraker
Senior Vice President of Global Trade Marketing & In-Store Excellence - Coty Consumer Beautyno datano datano data

1.4yrs

Average Tenure

60.5yo

Average Age

Experienced Management: COTY's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Peter Harf
Chairman & CEO0.50yrUS$487.21k1.62% $54.8m
Robert Singer
Lead Independent Director0.50yrUS$317.10k0.037% $1.3m
Erhard Schoewel
Independent Director14.5yrsUS$317.10k0.051% $1.7m
Beatrice Ballini
Independent Director0.83yrno datano data
Sabine Chalmers
Independent Director3.25yrsUS$287.10kno data
Paul Michaels
Independent Director5.08yrsUS$187.10k0.000090% $3.1k
Isabelle Parize
Independent Non-Executive Director0.42yrno datano data
Olivier Goudet
Independent Director7.17yrsUS$187.10k0.017% $574.6k
Joachim Creus
Independent Director0.67yrno datano data
Justine Tan
Non-Executive Director0.42yrno datano data

1.3yrs

Average Tenure

62yo

Average Age

Experienced Board: COTY's board of directors are not considered experienced ( 1.3 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: 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.


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$3.396b
  • Shares outstanding: 763.10m
  • 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 operates in three segments: Luxury, Consumer Beauty, and Professional Beauty. The Luxury segment offers prestige fragrances, and skincare and cosmetics products through various retailers, including perfumeries, department stores, and e-retailers and duty-free shops under the Alexander McQueen, Balenciaga, Burberry, Bottega Veneta, Calvin Klein, Cavalli, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Lacoste, Lancaster, Marc Jacobs, Miu Miu, philosophy, Stella McCartney, and Tiffany & Co. brands. The Consumer Beauty segment offers color cosmetics, retail hair coloring and styling products, mass fragrance, and body care and mass skin care products primarily through hypermarkets, supermarkets, drug stores, pharmacies, mid-tier department stores, traditional food and drug retailers, and e-commerce retailers. It provides its products under the Adidas, Beckham, Beyonce, Biocolor, Bozzano, Bourjois, Bruno Banani, Clairol, CoverGirl, Enrique, Jovan, Nautica, Max Factor, Mexx, Monange, Paixao, Rimmel, Risque, Sally Hansen, Stetson, Wella, Younique, and 007 James Bond brands. The Professional Beauty segment offers hair and nail care products to nail and hair salons, nail and hair professionals, and professional stores through direct sales forces and e-commerce platforms under the Clairol Professional, ghd, Kadus Professional, Londa Professional, Nioxin, O P I, Sassoon Professional, Sebastian, System Professional, and Wella Professionals brands. The company also sells its products to third-party distributors. It sells its products to approximately 150 countries. The company was founded in 1904 and is based in New York, New York. Coty Inc. operates as a subsidiary of Cottage Holdco B.V. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/05 23:49
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
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.