Coty (COTY) AI Stock Analysis

• Market Cap: $2.68B
• Dividend Yield: N/A
• Average Volume (3M): 6.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• 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: 874,617,700
• 10 Day Avg. Volume: 8,197,988
• 30 Day Avg. Volume: 6,088,930
• 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: $4.53
• Price Target Upside: 48.04% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $3.00 ▼(-1.96% Downside)

Coty's overall stock score reflects significant financial and technical challenges, including declining revenue, high leverage, and bearish technical indicators. However, strategic focus on ultra-luxury brands and positive cash flow trends provide some optimism for future performance.

Positive Factors

Strategic Focus on Ultra-Luxury

Focusing on ultra-luxury brands can enhance Coty's market position in prestige fragrances, driving long-term revenue growth and brand equity.

E-commerce Expansion

Expansion in e-commerce channels supports sustainable growth by increasing market reach and adapting to consumer buying trends.

Wella Divestiture

The Wella divestiture strengthens Coty's balance sheet by reducing debt, allowing for greater focus on core beauty operations.

Negative Factors

High Leverage

High leverage can strain financial flexibility, increasing risk during economic downturns or operational challenges.

Leadership Changes

Leadership changes can create uncertainty and disrupt strategic continuity, potentially impacting long-term execution.

Gucci License Expiry

Losing the Gucci license could impact revenue and profitability, challenging Coty to offset this loss with other brand 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 different segments. The Luxury segment focuses on high-end fragrances and cosmetics, contributing significantly to overall sales, particularly through partnerships with prestigious fashion houses. The Consumer Beauty segment includes mass-market cosmetics and skincare products, which are widely distributed through retail channels such as drugstores and supermarkets. The Professional Beauty segment, which includes salon products, leverages partnerships with hair salons and stylists to drive sales. Additionally, Coty benefits from licensing agreements that allow it to produce and sell products under various brand names. The company's strategic collaborations, such as those with e-commerce platforms and beauty influencers, also play a crucial role in enhancing its market reach and driving revenue growth.

Coty Financial Statement Overview

Summary

Coty's financial performance is mixed, with declining revenue and profitability, high leverage, and negative returns. However, there are positive signs in cash flow with improved free cash flow growth.

Income Statement

Coty's income statement reveals a challenging financial landscape. The company has experienced a decline in revenue growth, with a negative growth rate of -1.6% in the TTM period. Profitability metrics such as the net profit margin and EBIT margin are negative, indicating losses. However, the gross profit margin remains relatively strong at 64.8%, suggesting that the company maintains some efficiency in its core operations. The decline in revenue and profitability is a concern, reflecting potential market challenges or operational inefficiencies.

Balance Sheet

Coty's balance sheet shows a mixed picture. The debt-to-equity ratio is high at 1.15, indicating significant leverage, which could pose financial risks if not managed properly. The return on equity is negative, reflecting recent losses. However, the equity ratio is stable, suggesting that the company maintains a reasonable level of equity relative to its assets. The high leverage and negative ROE are concerns, but the stable equity ratio provides some balance.

Cash Flow

Coty's cash flow statement presents some positive aspects. The free cash flow growth rate is positive at 7.6% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is low, reflecting the company's net losses. However, the free cash flow to net income ratio is relatively strong at 56.4%, suggesting that the company is generating cash despite accounting losses. The positive cash flow growth is a strength, but the low operating cash flow coverage ratio highlights ongoing challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.80B	5.89B	6.12B	5.55B	5.30B	4.63B
Gross Profit	3.74B	3.82B	3.94B	3.55B	3.38B	2.78B
EBITDA	273.00M	949.90M	1.00B	964.90M	856.30M	744.50M
Net Income	-382.90M	-367.90M	89.40M	508.20M	259.50M	-201.30M
Balance Sheet
Total Assets	12.06B	11.91B	12.08B	12.66B	12.12B	13.69B
Cash, Cash Equivalents and Short-Term Investments	264.60M	257.10M	300.80M	246.90M	233.30M	253.50M
Total Debt	4.30B	4.25B	4.12B	4.55B	4.78B	5.80B
Total Liabilities	8.00B	7.95B	7.83B	8.43B	8.56B	9.51B
Stockholders Equity	3.79B	3.69B	3.97B	3.95B	3.30B	3.90B
Cash Flow
Free Cash Flow	298.70M	277.60M	369.40M	402.90M	552.50M	144.80M
Operating Cash Flow	490.40M	492.60M	614.60M	625.70M	726.60M	318.70M
Investing Cash Flow	-104.90M	-128.40M	-226.20M	-118.20M	269.70M	2.44B
Financing Cash Flow	-424.00M	-426.80M	-336.70M	-469.30M	-1.03B	-2.80B

Coty Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.06
• 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 3.06 is below the 20-day moving average (MA) of 3.29, below the 50-day MA of 3.57, and below the 200-day MA of 4.49, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 33.37 is Neutral, neither overbought nor oversold. The STOCH value of 13.19 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	69 Neutral	$2.73B	16.67	19.95%	3.80%	3.12%	9.01%
ELF	68 Neutral	$4.76B	56.53	8.77%	―	13.80%	-25.02%
SPB	64 Neutral	$1.40B	15.55	4.92%	3.15%	-5.21%	1.96%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EPC	58 Neutral	$810.34M	32.68	1.62%	3.51%	-1.34%	-73.59%
EL	56 Neutral	$38.73B	-41.61	-20.73%	1.30%	-6.36%	-554.84%
COTY	49 Neutral	$2.68B	-6.73	-9.96%	―	-5.68%	-358.36%

Coty Corporate Events

Coty Completes Wella Divestiture to Sharpen Core Focus

On December 18, 2025, Coty JV Holding S.à r.l., an indirect subsidiary of Coty Inc., agreed to sell its remaining shareholdings in Rainbow JVCo, which represents Coty’s residual 25.8% stake in professional haircare group Wella, to KKR-managed entities for $750 million in cash plus a non-cash consideration that will give Coty JV a 45% equity interest in the buyer vehicle and rights to a significant share of future Wella exit proceeds. As part of the transaction, Coty JV entered into a new shareholders’ agreement that grants it consent rights on certain corporate actions at the buyer level, board observer rights, and tag-along and drag-along protections, while terminating a prior shareholders’ agreement related to Rainbow JVCo, and Coty expects to record an estimated non-cash impairment charge of approximately $200 million in the quarter ended December 31, 2025. The deal, announced on December 19, 2025, completes Coty’s multi-year program begun in 2020 to monetize and fully divest its Wella stake by the end of calendar 2025, simplifies Coty’s portfolio, and is intended to substantially reduce its financial net leverage through debt repayment using most of the $750 million upfront proceeds, reinforcing its deleveraging strategy and sharpening its strategic focus on core beauty operations.

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.

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.

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.