Coty (COTY) AI Stock Analysis

• Market Cap: $4.37B
• Dividend Yield: N/A
• Average Volume (3M): 8.91M
• Price to Earnings (P/E): 40.1
• Beta (1Y): 0.92
• Revenue Growth: -1.68%
• EPS Growth: -302.11%
• Country: US
• Employees: 11,791
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Household & Personal Products
• EPS (TTM): 0.01
• Shares Outstanding: 872,290,000
• 10 Day Avg. Volume: 7,151,569
• 30 Day Avg. Volume: 8,905,752
• PEG Ratio: <0.01
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.11
• Enterprise Value/Market Cap: 1.88
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 2.13
• Enterprise Value/Ebitda: 2.92
• 1Y Price Target: $6.26
• Price Target Upside: 22.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 58 Neutral
• Price Target: $5.00 ▼(-1.77%Downside)

Coty's overall stock score is driven by mixed financial performance with strong margins but profitability challenges. Technical indicators show consolidation, and valuation is pressured by negative earnings. The earnings call offers strategic positives but faces immediate market pressures.

Positive Factors

Debt Deleveraging

Progress on debt deleverage over the last several years and the potential for value unlock from the sale of its Wella stake contribute to a positive outlook.

Potential Value Unlock

COTY splitting up could unlock meaningful shareholder value.

Valuation

COTY’s valuation looks compelling, with the stock trading at seemingly low multiples compared to its market capitalization.

Negative Factors

Market Dynamics

The challenging macroeconomic backdrop adds uncertainty to the broader operating environment for beauty, especially discretionary products like prestige fragrances.

Sales Performance

Coty has been beaten down and is seeing sales slow and turn negative across both its prestige and consumer portfolio.

Turnaround Plan Execution

There is a modest degree of execution risk in Coty's turnaround plan due to the number of goals the company is trying to accomplish.

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, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops under the Alexander McQueen, Burberry, Bottega Veneta, Calvin Klein, Cavalli, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Joop!, Kylie Jenner, Lacoste, Lancaster, Marc Jacobs, Miu Miu, Nikos, philosophy, Kim Kardashian West, and Tiffany & Co. brands. It also offers mass color cosmetics, fragrance, skin care, and body care products primarily through hypermarkets, supermarkets, drug stores, pharmacies, mid-tier department stores, traditional food and drug retailers, and e-commerce retailers under the Adidas, Beckham, Biocolor, Bozzano, Bourjois, Bruno Banani, CoverGirl, Jovan, Max Factor, Mexx, Monange, Nautica, Paixao, Rimmel, Risque, Sally Hansen, Stetson, and 007 James Bond brands. Coty Inc. also sells its products through third-party distributors to approximately 150 countries and territories. The company was founded in 1904 and is based in New York, New York. Coty Inc. is a subsidiary of Cottage Holdco B.V.

How the Company Makes Money

Coty Inc. generates revenue primarily through the sale of beauty products across its Consumer Beauty and Prestige segments. In the Consumer Beauty segment, the company earns money by selling mass-market products through various retail channels, including drugstores, supermarkets, and e-commerce platforms. The Prestige segment focuses on high-end, luxury beauty products sold in department stores, specialty retailers, and online. Coty's revenue streams are bolstered by strategic partnerships and licensing agreements with fashion and celebrity brands, which allow it to expand its product offerings and enhance brand recognition. Additionally, Coty invests in marketing and innovation to maintain competitive positioning and drive sales growth.

Coty Financial Statement Overview

Summary

Coty's financial performance shows mixed results. Strong gross margins are offset by a significant decline in net income, impacting profitability ratios. The balance sheet indicates a stable equity position and improved leverage. Cash flow generation is positive, though impacted by the net loss. The company faces challenges in revenue growth and profitability, requiring strategic focus to enhance financial stability.

Income Statement

Coty experienced fluctuating revenue growth, with a decline in TTM revenue compared to the previous year. The gross profit margin remained strong at 64.43% TTM, but the net profit margin turned negative at -6.59% due to a substantial net loss. The EBIT and EBITDA margins also decreased, indicating challenges in maintaining operational efficiency.

Balance Sheet

The debt-to-equity ratio improved slightly, reflecting better leverage management, with a ratio of 1.12 TTM. However, the return on equity declined to -10.89% due to negative net income. The equity ratio is healthy at 31.72%, indicating a substantial equity buffer against liabilities.

Cash Flow

The company's free cash flow decreased slightly TTM, with a free cash flow to net income ratio being negative due to the net loss. The operating cash flow to net income ratio was positive at 1.48 TTM, showing cash-generating operations despite the net loss.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	6.00B	6.12B	5.55B	5.30B	4.63B	4.72B
Gross Profit	3.87B	3.94B	3.55B	3.37B	2.77B	2.73B
EBITDA	288.30M	849.10M	964.70M	856.30M	603.60M	-531.70M
Net Income	-396.00M	89.40M	508.20M	259.50M	-67.80M	-1.09B
Balance Sheet
Total Assets	11.47B	12.08B	12.66B	12.12B	13.69B	16.73B
Cash, Cash Equivalents and Short-Term Investments	243.50M	300.80M	246.90M	233.30M	253.50M	308.30M
Total Debt	4.09B	4.26B	4.48B	4.71B	5.69B	8.40B
Total Liabilities	7.55B	7.83B	8.43B	8.56B	9.51B	12.71B
Stockholders Equity	3.64B	3.83B	3.95B	3.30B	3.90B	3.72B
Cash Flow
Free Cash Flow	362.40M	369.40M	402.90M	552.50M	144.80M	-318.30M
Operating Cash Flow	585.90M	614.60M	625.70M	726.60M	318.70M	-50.90M
Investing Cash Flow	-144.80M	-226.20M	-118.20M	269.70M	2.44B	-833.40M
Financing Cash Flow	-456.70M	-336.70M	-469.30M	-1.03B	-2.80B	877.30M

Coty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.09
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COTY, the sentiment is Positive. The current price of 5.09 is above the 20-day moving average (MA) of 4.91, above the 50-day MA of 4.93, and below the 200-day MA of 6.18, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.17 is Neutral, neither overbought nor oversold. The STOCH value of 42.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COTY.

Coty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPAR	82 Outperform	$4.25B	25.70	22.16%	2.91%	10.32%	18.55%
ELF	72 Outperform	$6.58B	60.43	15.97%	―	28.28%	-14.79%
EPC	69 Neutral	$1.27B	15.77	5.53%	2.22%	-2.11%	-28.79%
Sector *	62 Neutral	AU$2.95B	27.93	4.69%	4.92%	2.31%	-33.21%
EL	61 Neutral	$32.02B	147.29	-17.27%	2.64%	-3.70%	-235.59%
COTY	58 Neutral	$4.37B	40.12	-10.58%	―	-1.68%	-302.11%
HELE	44 Neutral	$561.03M	5.74	-23.99%	―	-4.39%	-326.42%

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.

The most recent analyst rating on (COTY) stock is a Hold with a $9.00 price target. To see the full list of analyst forecasts on Coty stock, see the COTY Stock Forecast page.