COTYNEUTRAL

Return on Equity (ROE)

-13.9%

Higher than 25% of Consumer Defensive sector peers

Updated 168h ago

Sector Performance

25th percentile

COTY

-13.9%

Sector Median

8.1%

Sector Avg

-20.9%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' equity; Coty's current ROE of -13.9% means it is losing money relative to the equity invested.

This is far below the sector median of 6.2%, placing Coty in the 27th percentile among Consumer Defensive peers. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of -39.0% from the prior quarter's -10.0%. The combination of a negative ROE and a worsening trend indicates elevated financial risk, as profitability is deteriorating and shareholders are seeing their capital eroded. This metric contradicts a positive investment case and directly supports the overall NEUTRAL verdict by underscoring a fundamental weakness that tempers any optimistic outlook.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about COTY?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does COTY's Return on Equity (ROE) compare to its sector?

COTY's Return on Equity (ROE) of -13.9% compares to a Consumer Defensive sector median of 8.1%, placing it in the 25th percentile.

Who are COTY's closest peers by Return on Equity (ROE)?

The closest Consumer Defensive peers by Return on Equity (ROE) include: KDP (8.1%), CELH (8.1%), BUD (7.8%), ADM (4.7%), CPB (15.4%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.