COTYCOTY
US • —
$2.16
P/E
—
PEG
—
FCF Yield
—
Rev Growth YoY
+9.1% YoY
Gross Margin
63.9%
Health Score
4/10
D/E Ratio
1.16
Confidence
MEDIUM
Business Snapshot
Coty is a global beauty company operating across fragrances, cosmetics, and skincare categories, generating revenue through owned and licensed brand portfolios. The company competes in the mass-market and prestige beauty segments, with a broad distribution spanning drugstores, department stores, and e-commerce channels. Its financial scale suggests a mid-cap enterprise, with revenue growth of 9.1% year-over-year as of the most recent period. A defining characteristic is its heavy debt load relative to equity, which constrains financial flexibility and forces a focus on deleveraging over aggressive reinvestment.
Financial Health
Gross margin stands at 63.9%, indicating the company retains strong pricing power in its product categories, though a prior-year comparison is not available for trend analysis. Net margin of 6.9% is modest, reflecting high operating costs and interest expense that compress profitability...
Risk Assessment
- LIQUIDITY — Current ratio of 0.77x indicates current liabilities exceed current assets, creating near-term solvency risk.
- PROFITABILITY — Return on equity of -15.4% shows the company is destroying shareholder equity, a clear red flag for long-term value creation.
- EARNINGS CREDIBILITY — Out of the last 4 quarters, the company beat estimates 0 times, signalling persistent guidance misses and limited management predictability.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- DATA COMPLETENESS — Core fundamental metrics, including P/E, revenue, and free cash flow, are unavailable, creating a fundamental data vacuum that elevates analysis risk....
Gross margin stands at 63.9%, indicating the company retains strong pricing power in its product categories, though a prior-year comparison is not available for trend analysis. Net margin of 6.9% is modest, reflecting high operating costs and interest expense that compress profitability. Debt/equity of 1.16x is elevated but manageable, while the current ratio of 0.77x signals a stretched liquidity position, with current liabilities exceeding current assets by a meaningful margin. Free cash flow data is unavailable, preventing a direct assessment of cash generation versus burn — a notable gap in evaluating the company's ability to service debt or fund organic growth. Return on equity is deeply negative at -15.4%, suggesting the company has destroyed shareholder equity over the trailing period, which limits any capacity for dividend payments or capital returns.
- LIQUIDITY — Current ratio of 0.77x indicates current liabilities exceed current assets, creating near-term solvency risk. - PROFITABILITY — Return on equity of -15.4% shows the company is destroying shareholder equity, a clear red flag for long-term value creation. - EARNINGS CREDIBILITY — Out of the last 4 quarters, the company beat estimates 0 times, signalling persistent guidance misses and limited management predictability. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - DATA COMPLETENESS — Core fundamental metrics, including P/E, revenue, and free cash flow, are unavailable, creating a fundamental data vacuum that elevates analysis risk.
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