Coats Group plc
Coats Group plc Fundamental Analysis
Coats Group plc (CGGGF) shows weak financial fundamentals with a PE ratio of 19.71, profit margin of 7.05%, and ROE of 18.85%. The company generates $1.4B in annual revenue with weak year-over-year growth of -0.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CGGGF's fundamental strength across five key dimensions:
Efficiency Score
WeakCGGGF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCGGGF trades at attractive valuation levels.
Growth Score
ModerateCGGGF shows steady but slowing expansion.
Financial Health Score
ModerateCGGGF shows balanced financial health with some risks.
Profitability Score
ModerateCGGGF maintains healthy but balanced margins.
Key Financial Metrics
Is CGGGF Expensive or Cheap?
P/E Ratio
CGGGF trades at 19.71 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CGGGF's PEG of -3.32 indicates potential undervaluation.
Price to Book
The market values Coats Group plc at 2.82 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.50 times EBITDA. This is generally considered low.
How Well Does CGGGF Make Money?
Net Profit Margin
For every $100 in sales, Coats Group plc keeps $7.05 as profit after all expenses.
Operating Margin
Core operations generate 16.47 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.85 in profit for every $100 of shareholder equity.
ROA
Coats Group plc generates $4.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Coats Group plc produces operating cash flow of $217.08M, showing steady but balanced cash generation.
Free Cash Flow
Coats Group plc generates strong free cash flow of $186.36M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.10 in free cash annually.
FCF Yield
CGGGF converts 9.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.82
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.56
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How CGGGF Stacks Against Its Sector Peers
| Metric | CGGGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.71 | 23.93 | Better (Cheaper) |
| ROE | 18.85% | 1142.00% | Weak |
| Net Margin | 7.05% | -588.00% (disorted) | Weak |
| Debt/Equity | 1.58 | 0.85 | Weak (High Leverage) |
| Current Ratio | 1.56 | 2.64 | Neutral |
| ROA | 4.00% | -8097.00% (disorted) | Weak |
CGGGF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Coats Group plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
6.90%
Industry Style: Cyclical, Growth, Discretionary
GrowingEPS CAGR
232.50%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
192.98%
Industry Style: Cyclical, Growth, Discretionary
High Growth