Coty (COTY) AI Stock Analysis

• Market Cap: $3.35B
• Dividend Yield: N/A
• Average Volume (3M): 5.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -5.68%
• EPS Growth: -358.36%
• Country: US
• Employees: 11,791
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.12
• Shares Outstanding: 873,857,500
• 10 Day Avg. Volume: 4,716,806
• 30 Day Avg. Volume: 5,505,441
• PEG Ratio: 0.02
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 14.61
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $4.34
• Price Target Upside: 14.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $3.50 ▼(-7.41% Downside)

Coty's overall stock score reflects significant challenges in financial performance and technical analysis. The company's high leverage and negative profitability metrics weigh heavily, while bearish technical indicators further impact the score. Valuation concerns, with a negative P/E ratio, also contribute to the lower score. Despite some positive strategic initiatives highlighted in the earnings call, these are not enough to offset the current financial and market challenges.

Positive Factors

E-commerce Growth

Strong e-commerce growth indicates Coty's ability to adapt to digital trends, enhancing its market reach and consumer engagement, crucial for long-term success.

Focus on Ultra-Luxury Brands

Focusing on ultra-luxury brands strengthens Coty's market position in high-margin segments, potentially driving sustainable revenue growth and brand prestige.

China Market Growth

Significant growth in China highlights Coty's successful market penetration and potential for continued expansion in a key global market.

Negative Factors

Gucci License Expiry

The loss of the Gucci license poses a risk to Coty's revenue and brand portfolio, potentially impacting profitability and market competitiveness.

High Leverage

High leverage limits financial flexibility and increases vulnerability to economic downturns, potentially affecting long-term financial stability.

Challenges in Color Cosmetics

Declining performance in color cosmetics suggests difficulties in maintaining competitiveness and market share, affecting overall revenue growth.

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 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. The high leverage and negative ROE pose risks, but strong gross profit margins and positive cash flow from operations provide some stability.

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: 3.78
• 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 3.78 is below the 20-day moving average (MA) of 4.07, below the 50-day MA of 4.12, and below the 200-day MA of 4.98, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 32.77 is Neutral, neither overbought nor oversold. The STOCH value of 9.26 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
IPAR	68 Neutral	$2.88B	17.92	19.95%	3.59%	3.12%	9.01%
ELF	65 Neutral	$6.71B	69.89	12.97%	―	13.80%	-25.02%
EPC	63 Neutral	$892.11M	14.18	4.12%	3.13%	-2.92%	-43.06%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SPB	62 Neutral	$1.32B	20.31	2.98%	3.40%	-2.78%	-17.38%
EL	61 Neutral	$33.47B	―	-20.73%	1.43%	-6.36%	-554.84%
COTY	45 Neutral	$3.35B	―	-9.98%	―	-5.68%	-358.36%

Coty Corporate Events

Coty Inc. Reports Decline in Quarterly Earnings

Coty Inc. is a global beauty company that manufactures, markets, sells, and distributes branded beauty products, including fragrances, color cosmetics, and skin and body-related products. In its latest earnings report for the quarter ended September 30, 2025, Coty Inc. reported net revenues of $1,577.2 million, a decrease from $1,671.5 million in the same period last year. The company also saw a decline in net income attributable to Coty Inc. to $67.9 million from $82.9 million in the previous year. Despite the decrease in revenues and net income, Coty managed to maintain a gross profit of $1,016.8 million, although it was lower than the $1,094.6 million reported in the prior year. The company continues to focus on its strategic initiatives, including cost reductions and operational efficiencies, as reflected in its restructuring efforts and adjustments in its operating model. Looking ahead, Coty Inc. remains committed to strengthening its market position through innovation and strategic investments, while navigating the challenges of the global beauty industry.

Coty Completes $900 Million Senior Notes Offering

On October 15, 2025, Coty Inc., along with its subsidiaries, completed a private offering of $900 million in senior notes due in 2031, with an interest rate of 5.600%. These notes are senior unsecured obligations and are subject to specific conditions regarding investment grade ratings, which could affect the company’s financial operations and obligations. The issuance was conducted under exemptions from the Securities Act, targeting qualified institutional buyers and non-U.S. persons.

The most recent analyst rating on (COTY) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Coty stock, see the COTY Stock Forecast page.

Coty Announces $900 Million Senior Notes Offering

On October 6, 2025, Coty Inc. announced the pricing of a $900 million private offering of 5.600% senior notes due 2031. The proceeds from this offering will be used to redeem existing senior secured notes due 2026, enhancing Coty’s financial flexibility and potentially impacting its credit ratings and market positioning.

The most recent analyst rating on (COTY) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Coty stock, see the COTY Stock Forecast page.

Coty Launches Private Offering of Senior Notes

On October 2, 2025, Coty Inc. announced the launch of a private offering of senior notes, alongside its subsidiaries HFC Prestige Products, Inc. and HFC Prestige International U.S. LLC. The proceeds from this offering, combined with cash on hand, are intended to redeem all outstanding 5.000% senior secured notes due 2026 and a portion of the 3.875% senior secured notes due 2026. This strategic financial move is aimed at optimizing Coty’s debt structure and potentially improving its financial flexibility.

The most recent analyst rating on (COTY) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Coty stock, see the COTY Stock Forecast page.

Coty Inc’s Earnings Call: Growth Amid Challenges

Coty Inc’s recent earnings call painted a mixed picture for investors, with notable achievements in certain areas being tempered by challenges in others. The company celebrated significant growth in its prestige fragrance segment and EBITDA expansion, alongside a strong performance in digital commerce. However, these positives were overshadowed by difficulties in the U.S. market, revenue declines, and cost pressures, leading to a cautious immediate outlook.

Coty Inc. Faces Financial Risks Amid Global Trade Uncertainties and Tariff Challenges

Coty Inc. faces significant business risks due to potential additional tariffs and trade restrictions imposed by the U.S. and other countries where its products are manufactured or sold. These measures could adversely impact the company’s financial condition by increasing costs for materials and finished products, delaying market entry, and reducing sales. The ongoing uncertainty in international trade relations, including tariffs on goods from the E.U. and China, adds to the volatility in financial markets and could lead to higher consumer prices and diminished demand for Coty’s products. Despite efforts to mitigate these impacts through strategic adjustments, the unpredictability of trade negotiations poses a material risk to the company’s operations.

Coty Inc. Navigates Challenges with Strategic Focus

Coty Inc. is a leading global beauty company, known for its extensive portfolio of iconic brands in fragrance, color cosmetics, and skincare, serving both prestige and mass markets across over 120 countries. In its latest earnings report, Coty Inc. highlighted a challenging fiscal year 2025, with a 4% decline in net revenue and a reported net loss of $381.1 million. Despite these challenges, the company achieved a gross margin expansion and continued to strengthen its position in the fragrance market. Key financial metrics showed a decrease in both prestige and consumer beauty segments, with a reported operating income decline of 56% and an adjusted EBITDA margin of 18.4%. Coty’s strategic focus remains on leveraging its leadership in global fragrances, expanding its presence in profitable beauty categories, and launching new blockbuster products. Looking ahead, Coty anticipates a gradual improvement in sales trends throughout fiscal year 2026, supported by major product launches and organizational changes aimed at enhancing profitability.