COTYCAUTIOUS

COTY Return on Equity (ROE) Analysis

-13.9%

Higher than 29% of Consumer Defensive sector peers

Updated 347h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, and at -13.9%, COTY is currently destroying value rather than creating it—for every $100 of equity, it loses $13.90.

Sector Performance

29th percentile

COTY

-13.9%

Sector Median

6.4%

Sector Avg

-32.0%

Prior Period

-10.0%(May 2026)

↓ Declining

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Deep Analysis

This sits far below the sector median of 7.8%, placing the company in the 25th percentile among Consumer Defensive peers, meaning most competitors are far more efficient at turning equity into profit. Trend data is not available: the year-over-year change is N/A, and the quarter-over-quarter change is also N/A, so no direction can be inferred from this metric alone. The combination of a deeply negative ROE with no trend information points to elevated investment risk, as there is no evidence of a near-term recovery in profitability. This metric directly supports the overall CAUTIOUS verdict, because a negative ROE at the low end of the sector signals weak fundamental performance that warrants careful scrutiny.

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 6.4%, placing it in the 29th percentile.

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

The closest Consumer Defensive peers by Return on Equity (ROE) include: CELH (8.1%), ADM (4.7%), CPB (15.4%), ABEV (17.6%), WMT (24.1%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.