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Market Cap

US$7.5b

Last Updated

2021/05/05 23:11 UTC

Data Sources

Company Financials +

Executive Summary

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

Rewards

Trading at 9.8% below our estimate of its fair value

Earnings are forecast to grow 96.28% per year

Risk Analysis

No risks detected for COTY from our risk checks.


Snowflake Analysis

Moderate growth potential and slightly overvalued.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: COTY's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

-4.4%

COTY

-5.9%

US Personal Products

-1.6%

US Market


1 Year Return

101.0%

COTY

73.3%

US Personal Products

52.8%

US Market

Return vs Industry: COTY exceeded the US Personal Products industry which returned 75.8% over the past year.

Return vs Market: COTY exceeded the US Market which returned 52.4% over the past year.


Shareholder returns

COTYIndustryMarket
7 Day-4.4%-5.9%-1.6%
30 Day8.4%-1.8%1.3%
90 Day42.7%4.8%3.5%
1 Year101.0%101.0%74.4%73.3%55.4%52.8%
3 Year-28.4%-34.5%78.5%71.6%63.5%53.2%
5 Year-56.9%-62.5%113.2%96.7%125.8%100.7%

Long-Term 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

No news available

Valuation

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

9.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: COTY ($9.83) is trading below our estimate of fair value ($10.9)

Significantly Below Fair Value: COTY is trading below fair value, but not by a significant amount.


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 (2.4x) compared to the US Personal Products industry average (3x).


Future Growth

How is Coty forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

96.3%

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%).

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 (6% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: COTY's revenue (6% 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 (4.6%).


Past Performance

How has Coty performed over the past 5 years?

-53.9%

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 53.9% 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 (24.6%).


Return on Equity

High ROE: COTY has a negative Return on Equity (-20.6%), as it is currently unprofitable.


Financial Health

How is Coty's financial position?


Financial Position Analysis

Short Term Liabilities: COTY's short term assets ($2.2B) do not cover its short term liabilities ($3.0B).

Long Term Liabilities: COTY's short term assets ($2.2B) do not cover its long term liabilities ($6.8B).


Debt to Equity History and Analysis

Debt Level: COTY's debt to equity ratio (122%) is considered high.

Reducing Debt: COTY's debt to equity ratio has reduced from 731.2% to 122% 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 more than a year based on its current free cash flow.

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.


Dividend

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

1.26%

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

Sue Nabi (52 yo)

0.67

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

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


Board Members

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: 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$7.538b
  • Shares outstanding: 766.80m
  • Website: https://www.coty.com

Number of Employees


Location

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

Listings


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 Analysis2021/05/05 23:11
End of Day Share Price2021/05/05 00:00
Earnings2020/12/31
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.