Coty Inc.

Consumer Discretionary
Package Goods/Cosmetics
www.coty.com

Earnings Score
Moat Score
Safety Score

Market Cap $4.49B
PE 14972
Debt $3.47B
Cash $268.60M
EV $7.70B
FCF $293.50M

Earnings

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Sales & Net Margins

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Earnings	$300.00K
EBIT	$618.50M
ROE	0%
ROA	5%
FCF	$293.50M
Equity	$3.97B
Growth Stability	-646%
PE	14.97K
PEG	-368.17
PB	1.13
P/FCF	15.3
P/S	0.74
Price/Cash	0.06
Debt/Equity	0.88
Debt/FCF	11.83
Net Margins	3%
Gross Margins	65%
Op. Margins	10%
Earnings CAGR	-2%
Sales Growth YoY	-3%
Sales Growth QoQ	-0%
Sales CAGR	4%
FCF CAGR	2%
Equity CAGR	12%
Earnings Stability	-0.16
Earnings Growth YoY	-89%
Earnings Growth QoQ	-74%

Earnings CAGR 5Y	-41%
Sales CAGR 5Y	26%
FCF CAGR 5Y	-5%
Equity CAGR 5Y	5%
Earnings CAGR 3Y	7%
Sales CAGR 3Y	7%
FCF CAGR 3Y	-22%
Equity CAGR 3Y	7%
Market Cap	$4.49B
Revenue	$6.09B
Assets	$11.72B
Total Debt	$3.47B
Cash	$268.60M
Shares Outstanding	869.6M
EV	7.7B
Earnings Score	6%
Moat Score	48%
Safety Score	44%
Final Score	33%
Working Capital	-793.7M
Current Ratio	0.71
Gross Profit	$3.98B
Shares Growth 3y	2%
Equity Growth QoQ	-6%
Equity Growth YoY	-14%

Assets & ROA

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Stockholders Equity & ROE

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Coty is a global beauty company that sells fragrances (58% of fiscal 2021 revenue), color cosmetics (29%), and skin/body care (13%). The firm licenses brands such as Calvin Klein, Hugo Boss, Gucci, Burberry, and Davidoff for its prestige portfolio. Coty's most popular color cosmetic brands are CoverGirl, Max Factor, Rimmel, Sally Hansen, and Kylie. Coty also holds a minority stake in a salon and retail haircare business, including brands Wella, Clairol, OPI, and GHD. Francois Coty founded the firm in 1904 and it remained private until its 2013 IPO. It had focused on prestige fragrances and nail salon brands until the 2016 acquisition of Procter & Gamble's beauty business. This nearly doubled the firm's revenue base, and launched it into mass-channel cosmetics and professional hair care.

SEC Filings

Direct access to Coty Inc. (COTY) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2023
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31
2022
- 10-Q Dec 31
- 10-Q Sep 30
- 10-K Jun 30
- 10-Q Mar 31

Sector Comparison

How does Coty Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Coty Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -2%

Stability -16%

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Coty Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Coty Inc..

Years

Calculation mode

= $3.3B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$294M	$299M	$304M	$310M	$316M	$322M	$327M	$334M	$340M	$346M	$352M	$3.5B
DCF		$272M	$252M	$233M	$216M	$200M	$185M	$171M	$158M	$147M	$136M	$1.4B
Value	$3.3B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	06/2015	06/2016	12/2018	02/2020	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Net Margins	5%	4%	-	-	-21%	-7%	1%	9%	1%	3%
ROA	-	4%	-	-	-7%	-0%	4%	6%	5%	5%
ROE	-	43%	-	-	-31%	-10%	2%	12%	2%	0%

Bad Net Margins (2.99%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	06/2015	06/2016	12/2018	02/2020	06/2020	06/2021	06/2022	06/2023	06/2024	TTM
Debt over FCF	-	12.33	-	-	-26.22	38.02	8.18	10.77	10.6	11.83
Debt over Equity	2.7	11.8	-	-	2.58	1.8	1.35	1.09	0.98	0.88
Growth Stability	-	-	-	-	-646%	-	-	-	90%	-646%

Bad Debt/FCF ratio (11.83)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.88)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-646%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	06/2015	06/2016	12/2018	02/2020	06/2020	06/2021	06/2022	06/2023	06/2024	CAGR 5Y
Revenue YoY growth	-	-1%	-	-	-	-2%	15%	5%	10%	26%
Earnings YoY growth	-	-33%	-	-	-	-70%	-120%	709%	-85%	-41%
Equity YoY growth	-	-63%	-	-	-	-5%	9%	19%	0%	5%
FCF YoY growth	-	-1%	-	-	-	-145%	282%	-27%	-8%	-5%