Coty Inc.
Coty Inc. Fundamental Analysis
Coty Inc. (CO3A.DE) shows moderate financial fundamentals with a PE ratio of -14.95, profit margin of -6.25%, and ROE of -9.72%. The company generates $5.9B in annual revenue with strong year-over-year growth of 10.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 7.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CO3A.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakCO3A.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCO3A.DE trades at attractive valuation levels.
Growth Score
ModerateCO3A.DE shows steady but slowing expansion.
Financial Health Score
WeakCO3A.DE carries high financial risk with limited liquidity.
Profitability Score
WeakCO3A.DE struggles to sustain strong margins.
Key Financial Metrics
Is CO3A.DE Expensive or Cheap?
P/E Ratio
CO3A.DE trades at -14.95 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CO3A.DE's PEG of -2.03 indicates potential undervaluation.
Price to Book
The market values Coty Inc. at 1.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.66 times EBITDA. This is generally considered low.
How Well Does CO3A.DE Make Money?
Net Profit Margin
For every $100 in sales, Coty Inc. keeps $-6.25 as profit after all expenses.
Operating Margin
Core operations generate 8.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-9.72 in profit for every $100 of shareholder equity.
ROA
Coty Inc. generates $-3.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Coty Inc. generates limited operating cash flow of $487.89M, signaling weaker underlying cash strength.
Free Cash Flow
Coty Inc. produces free cash flow of $298.17M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.34 in free cash annually.
FCF Yield
CO3A.DE converts 5.47% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-14.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.93
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.77
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.10
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How CO3A.DE Stacks Against Its Sector Peers
| Metric | CO3A.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -14.95 | 22.46 | Better (Cheaper) |
| ROE | -9.72% | 1260.00% | Weak |
| Net Margin | -6.25% | -5313.00% (disorted) | Weak |
| Debt/Equity | 1.24 | 0.84 | Weak (High Leverage) |
| Current Ratio | 0.77 | 2.49 | Weak Liquidity |
| ROA | -3.11% | -193380.00% (disorted) | Weak |
CO3A.DE outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Coty Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-39.23%
Industry Style: Defensive, Dividend, Low Volatility
DecliningEPS CAGR
102.04%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
-17.45%
Industry Style: Defensive, Dividend, Low Volatility
Declining