Coty (COTY) AI Stock Analysis

• Market Cap: $3.45B
• Dividend Yield: N/A
• Average Volume (3M): 11.10M
• Price to Earnings (P/E): 40.1
• Beta (1Y): 0.97
• Revenue Growth: -3.68%
• EPS Growth: -631.67%
• Country: US
• Employees: 11,791
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): -0.05
• Shares Outstanding: 872,295,000
• 10 Day Avg. Volume: 6,456,452
• 30 Day Avg. Volume: 11,099,479
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.44
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 2.21
• Enterprise Value/Ebitda: 27.94
• 1Y Price Target: $4.79
• Price Target Upside: 21.88% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 47 Neutral
• Price Target: $4.00 ▲(1.78% Upside)

Coty's overall stock score reflects significant financial and technical challenges, including declining revenue and profitability, high leverage, and bearish technical indicators. While there are strengths in prestige fragrance growth and operational cash flow, these are offset by valuation concerns and market challenges.

Positive Factors

Prestige Fragrance Growth

The strong growth in the prestige fragrance segment indicates a solid market position and potential for continued revenue expansion, enhancing Coty's competitive edge in a lucrative market.

EBITDA Growth and Margin Expansion

Sustained EBITDA growth and margin expansion reflect operational efficiency and financial health, providing Coty with greater flexibility for strategic investments and debt reduction.

Debt Rating Improvements

Improved debt ratings enhance Coty's creditworthiness, reducing borrowing costs and increasing financial stability, which supports long-term growth initiatives.

Negative Factors

U.S. Market Challenges

Loss of market share in the U.S. indicates competitive pressures and potential revenue headwinds, challenging Coty's ability to maintain its market position.

Q4 Revenue Decline

The decline in revenue highlights ongoing challenges in sales performance, which could impact profitability and limit growth prospects if not addressed.

Tariff and Cost Pressures

Tariff and cost pressures could erode margins, affecting profitability and requiring strategic adjustments to mitigate financial impact.

Coty Business Overview & Revenue Model

Company Description

Coty Inc. is a global beauty company specializing in cosmetics, skincare, fragrances, and hair color. Founded in 1904 and headquartered in New York City, Coty operates through various segments including Luxury, Professional, and Consumer Beauty. The company is renowned for its diverse portfolio of brands, which includes well-known names such as CoverGirl, Clairol, Calvin Klein fragrances, and many others. Coty aims to innovate and enhance beauty experiences for consumers worldwide through quality products and strategic brand collaborations.

How the Company Makes Money

Coty generates revenue primarily through the sale of beauty products across its three main segments: Luxury, Professional, and Consumer Beauty. The Luxury segment includes high-end fragrances and cosmetics, often associated with designer brands. The Professional segment focuses on hair color and styling products sold through salons, while the Consumer Beauty segment encompasses mass-market cosmetics and fragrances. Coty's revenue model is driven by product sales through various distribution channels, including retail stores, e-commerce platforms, and professional salons. Additionally, Coty benefits from strategic partnerships with celebrities and fashion houses, which enhance brand visibility and attract diverse consumer demographics. The company's focus on innovation and product development also plays a crucial role in maintaining a competitive edge in the beauty industry.

Coty Financial Statement Overview

Summary

Coty's financial performance is mixed, with declining revenue growth and profitability margins, high leverage, but strong gross profit margins and cash flow generation from operations. Strategic improvements are needed to enhance growth and profitability while managing leverage.

Income Statement

Coty's income statement reveals a mixed performance. The company has experienced a decline in revenue growth, with a negative growth rate of -1.85% in the most recent year. Profitability metrics such as the net profit margin and EBIT margin have also deteriorated, with the net profit margin turning negative at -6.24%. However, the gross profit margin remains relatively strong at 64.84%, indicating efficient cost management. The declining revenue and profitability margins suggest challenges in maintaining growth and profitability.

Balance Sheet

The balance sheet shows a moderate financial position. The debt-to-equity ratio is relatively high at 1.15, indicating significant leverage, which could pose risks in a volatile market. Return on equity has turned negative, reflecting recent losses. However, the equity ratio remains stable, suggesting a balanced asset structure. The high leverage and negative ROE highlight potential risks, but the stable equity ratio provides some stability.

Cash Flow

Coty's cash flow statement indicates some challenges but also strengths. The free cash flow growth rate is negative, reflecting a decline in free cash flow generation. However, the operating cash flow to net income ratio is positive, suggesting that the company is generating cash from operations despite net losses. The free cash flow to net income ratio is also positive, indicating some efficiency in cash utilization. The mixed cash flow performance highlights both operational strengths and areas for improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.89B	5.89B	6.12B	5.55B	5.30B	4.63B
Gross Profit	3.82B	3.82B	3.94B	3.55B	3.37B	2.77B
EBITDA	302.20M	302.20M	849.10M	964.70M	856.30M	603.60M
Net Income	-367.90M	-367.90M	89.40M	508.20M	259.50M	-67.80M
Balance Sheet
Total Assets	11.91B	11.91B	12.08B	12.66B	12.12B	13.69B
Cash, Cash Equivalents and Short-Term Investments	257.10M	257.10M	300.80M	246.90M	233.30M	253.50M
Total Debt	4.25B	4.25B	4.26B	4.48B	4.71B	5.69B
Total Liabilities	7.95B	7.95B	7.83B	8.43B	8.56B	9.51B
Stockholders Equity	3.69B	3.69B	3.83B	3.95B	3.30B	3.90B
Cash Flow
Free Cash Flow	277.60M	277.60M	369.40M	402.90M	552.50M	144.80M
Operating Cash Flow	492.60M	492.60M	614.60M	625.70M	726.60M	318.70M
Investing Cash Flow	-128.40M	-128.40M	-226.20M	-118.20M	269.70M	2.44B
Financing Cash Flow	-426.80M	-426.80M	-336.70M	-469.30M	-1.03B	-2.80B

Coty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COTY, the sentiment is Negative. The current price of 3.93 is below the 20-day moving average (MA) of 4.19, below the 50-day MA of 4.52, and below the 200-day MA of 5.44, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 37.04 is Neutral, neither overbought nor oversold. The STOCH value of 3.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COTY.

Coty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELF	77 Outperform	7.36B	76.97	14.40%	―	18.61%	-21.36%
IPAR	65 Neutral	3.25B	19.98	27.41%	3.11%	7.04%	13.52%
EPC	58 Neutral	917.20M	14.34	4.13%	3.04%	-2.92%	-43.06%
SPB	57 Neutral	1.30B	19.49	3.85%	3.51%	-2.78%	-17.38%
EL	50 Neutral	31.19B	-27.54	-29.31%	1.62%	-8.14%	-389.12%
COTY	47 Neutral	$3.45B	40.12	-9.98%	―	-3.68%	-631.67%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Coty Corporate Events

Coty Appoints Beatrice Ballini as Lead Director

On July 14, 2025, Johannes Huth resigned from his roles as director and Vice Chair of Coty Inc.’s Board of Directors after five years, with no disagreements cited regarding company operations. Subsequently, on July 16, 2025, Beatrice Ballini was appointed as the new Lead Independent Director, having been a board member since 2019 and chairing the Remuneration and Nomination Committee.