Coty (COTY)
NYSE:COTY
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Coty
(NYSE:COTY)
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Rating:50Neutral
Price Target:
$2.00
▼(-2.44% Downside)
Action:ReiteratedDate:03/19/26
Overall score reflects a company with strong revenue growth and solid free cash flow, but weighed down by a sharp swing to net losses and elevated leverage. Technical indicators are notably bearish with the stock below key moving averages. The earnings outlook remains challenged near-term (Q3 sales decline and margin pressure), partially offset by clear operational initiatives and positive corporate actions (deleveraging via Wella proceeds and board refresh).
Positive Factors
Cash generation / Free cash flow
Consistent positive operating and free cash flow provides durable funding for debt service, targeted reinvestment and restructuring. Strong FCF supports Coty’s ability to repair leverage, fund SKU rationalization and AI/productivity investments without relying on equity issuance.
Negative Factors
Profitability deterioration
A large reported net loss and negative ROE reflect persistent profitability issues that can impair retained earnings and reinvestment capacity. If accounting losses persist, they could constrain management options, reduce stakeholder confidence and extend the timeline to normalized returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation / Free cash flow
Consistent positive operating and free cash flow provides durable funding for debt service, targeted reinvestment and restructuring. Strong FCF supports Coty’s ability to repair leverage, fund SKU rationalization and AI/productivity investments without relying on equity issuance.
Read all positive factors
Coty (COTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.80B
Dividend YieldN/A
Average Volume (3M)7.53M
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth-5.68%
EPS Growth-358.36%
CountryUS
Employees11,791
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.14
Shares Outstanding880,006,350
10 Day Avg. Volume8,687,123
30 Day Avg. Volume7,525,250
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.10
Price to Sales (P/S)0.69
P/FCF Ratio14.61
Enterprise Value/Market Cap2.76
Enterprise Value/Revenue0.86
Enterprise Value/Gross Profit1.37
Enterprise Value/Ebitda70.22
Forecast
1Y Price Target
$3.48Price Target Upside69.76% Upside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)0.29
Revenue Forecast (FY)$5.79B
Coty Business Overview & Revenue Model
Company Description
Coty Inc., together with its subsidiaries, engages in the manufacture, marketing, distribution, and sale of beauty products worldwide. The company provides prestige fragrances, skin care, and color cosmetics products through prestige retailers, in...
How the Company Makes Money
Coty primarily makes money by selling beauty and personal care products to retailers, distributors, and e-commerce partners (and, in some cases, directly to consumers online). Its revenue is largely product-sales driven and is typically organized ...
Coty Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Coty is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Coty is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyCoty Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Neutral
The call presented a mix of tangible near‑term challenges and concrete remediation plans. Near‑term results are pressured—mid‑single‑digit Q3 revenue decline, Q2 gross margin weakness driven by promotions, FX and tariffs, and Consumer Beauty underperformance with recovery targeted for fiscal 2027. Offsetting strengths include strong e‑commerce momentum (Amazon +30% in 6 months), successful innovations (e.g., Boss Bottled Beyond), productivity opportunities from AI (70%–80% asset cost reduction potential), and a clear pipeline of new licensed product initiatives. Management emphasized discipline, SKU rationalization, data/AI investments and channel focus to drive sell‑out and margin recovery over time.Positive Updates
E‑commerce and New Channel Momentum
Prestige sales on Amazon have grown ~30% over the last 6 months; a July Marc Jacobs launch on Amazon is driving double‑digit growth. Activity in TikTok Shop (e.g., Rimmel in the U.K.) is generating marketing halo effects that boost brick‑and‑mortar performance.
Negative Updates
Consumer Beauty Underperformance and Sell‑out Weakness
Consumer Beauty has materially underperformed corporate averages; several core color cosmetics franchises were declining in the high single digits and have only moved to low‑ to mid‑single‑digit declines after early initiatives. Management expects Consumer Beauty improvements primarily in fiscal 2027.
Read all updates
Q2-2026 Updates
Positive
Negative
E‑commerce and New Channel Momentum
Prestige sales on Amazon have grown ~30% over the last 6 months; a July Marc Jacobs launch on Amazon is driving double‑digit growth. Activity in TikTok Shop (e.g., Rimmel in the U.K.) is generating marketing halo effects that boost brick‑and‑mortar performance.
Read all positive updates
Company Guidance
Coty guided to a mid-single-digit sales decline in Q3 driven mainly by Consumer Beauty, warned of continued gross‑margin pressure into Q3 with a sequential recovery expected in Q4 and a clearer profit recovery by fiscal 2027, and cited specific metrics and headwinds including $8M of tariffs in Q2 (expected to be below $40M for the full year), promotional/markdown pressure that weighed on Q2 gross margins, stronger Amazon performance (Prestige sales up ~30% over the last six months; a Marc Jacobs Amazon launch delivering double‑digit growth), innovation wins like Boss Bottled Beyond (already ~90 basis points U.S. share), SKU declines on key franchises moving from high single‑digit drops to low‑/mid‑single digits, experiments cutting asset‑creation costs by ~70–80%, many brands with >$0.5B potential, and the Gucci license exit in June 2028 — all framed by an objective to prioritize sell‑out, streamline SKUs and reinvest savings to drive market‑share and margin improvement.Coty Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
50
Neutral
Cash Flow
68
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.81B | 5.89B | 6.12B | 5.55B | 5.30B | 4.63B |
| Gross Profit | 3.63B | 3.82B | 3.94B | 3.55B | 3.38B | 2.78B |
| EBITDA | 70.80M | 949.90M | 1.00B | 964.90M | 856.30M | 744.50M |
| Net Income | -530.20M | -367.90M | 89.40M | 508.20M | 259.50M | -201.30M |
Balance Sheet | ||||||
| Total Assets | 11.08B | 11.91B | 12.08B | 12.66B | 12.12B | 13.69B |
| Cash, Cash Equivalents and Short-Term Investments | 448.00M | 257.10M | 300.80M | 246.90M | 233.30M | 253.50M |
| Total Debt | 3.62B | 4.25B | 4.12B | 4.55B | 4.78B | 5.80B |
| Total Liabilities | 7.27B | 7.95B | 7.83B | 8.43B | 8.56B | 9.51B |
| Stockholders Equity | 3.53B | 3.69B | 3.97B | 3.95B | 3.30B | 3.90B |
Cash Flow | ||||||
| Free Cash Flow | 393.80M | 277.60M | 369.40M | 402.90M | 552.50M | 144.80M |
| Operating Cash Flow | 585.60M | 492.60M | 614.60M | 625.70M | 726.60M | 318.70M |
| Investing Cash Flow | 638.50M | -128.40M | -226.20M | -118.20M | 269.70M | 2.44B |
| Financing Cash Flow | -1.07B | -426.80M | -336.70M | -469.30M | -1.03B | -2.80B |
Coty Technical Analysis
Negative
2.05
Price Trends
2.54
Negative
2.90
Negative
3.68
Negative
Market Momentum
-0.15
Negative
29.08
Positive
28.83
Neutral
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 2.05 is below the 20-day moving average (MA) of 2.15, below the 50-day MA of 2.54, and below the 200-day MA of 3.68, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 29.08 is Positive, neither overbought nor oversold. The STOCH value of 28.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for COTY.
Coty Risk Analysis
Coty disclosed 44 risk factors in its most recent earnings report. Coty reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Coty Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.91B | 16.17 | 19.93% | 3.80% | 3.12% | 9.01% | |
68 Neutral | $1.71B | 12.42 | 5.52% | 3.15% | -5.21% | 1.96% | |
64 Neutral | $3.61B | 28.63 | 10.75% | ― | 13.80% | -25.02% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
52 Neutral | $980.11M | -3.02 | -2.50% | 3.51% | -1.34% | -73.59% | |
50 Neutral | $1.80B | -5.46 | -14.49% | ― | -5.68% | -358.36% | |
47 Neutral | $25.00B | 58.52 | -4.41% | 1.30% | -6.36% | -554.84% |
* Consumer Defensive Sector Average
COTY
Coty
2.05
-2.85
-58.16%
EL
The Estée Lauder Companies
69.12
17.00
32.62%
IPAR
Inter Parfums
90.61
-9.40
-9.40%
SPB
Spectrum Brands Holdings
73.72
14.65
24.80%
EPC
Edgewell Personal Care
20.98
-6.25
-22.94%
ELF
e.l.f. Beauty
61.16
7.28
13.51%
Coty Corporate Events
Business Operations and StrategyExecutive/Board Changes
Coty Refreshes Board with New Independent Directors
Positive
Mar 18, 2026
Coty announced a major refresh of its Board of Directors on March 18, 2026, appointing five new independent directors with extensive experience in global beauty, luxury, consumer brands, and finance. The new directors – Carsten Fischer, Alia...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.