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Coats Group plc (GB:COA)
LSE:COA
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Coats Group plc (COA) AI Stock Analysis

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GB:COA

Coats Group plc

(LSE:COA)

Rating:69Neutral
Price Target:
85.00p
▲(10.39% Upside)
Coats Group plc's overall stock score is driven by solid financial performance and fair valuation. The high leverage and moderate net profit margin are areas of concern, while technical indicators suggest potential for a price pullback. The absence of earnings call data and corporate events limits additional insights.
Positive Factors
Acquisition Strategy
Coats has announced the significant acquisition of OrthoLite for US$770m, expanding its Footwear Component business into the premium insole market.
Earnings Growth Potential
Coats Group's new medium-term financial targets indicate a more resilient earnings growth profile than historically, offering further re-rating potential.
Financial Performance
Coats has delivered OCC revenue growth of 4% over the first four months of the year, with underlying margins improving and expectations to deliver margins in 1H EBITA consistent with the raised guidance range of 19%-21%.
Negative Factors
Industry Growth Outlook
The lower multiple can be attributed to a more uncertain near-term growth outlook for the industry.
Share Price Reaction
A lacklustre share price reaction to today's new financial targets is disappointing.
Tariff Challenges
The group's Southeast Asian manufacturing footprint is currently facing high levels of tariffs.

Coats Group plc (COA) vs. iShares MSCI United Kingdom ETF (EWC)

Coats Group plc Business Overview & Revenue Model

Company DescriptionCoats Group plc (COA) is a global leader in the development and manufacture of industrial thread and performance materials. Founded in 1755, the company operates primarily in the textile and apparel sectors, providing a wide range of products including sewing threads, zippers, and innovative materials for various industries such as automotive, footwear, and personal protective equipment. With a commitment to sustainability and innovation, Coats Group offers tailored solutions to its customers, enhancing their production processes and product offerings.
How the Company Makes MoneyCoats Group generates revenue primarily through the sale of its industrial thread and performance materials. The company operates through two main divisions: Apparel & Footwear and Advanced Materials. In the Apparel & Footwear segment, Coats supplies sewing threads, zips, and related products to clothing and footwear manufacturers, while the Advanced Materials division focuses on providing high-performance materials for industries like automotive and personal protection. Key revenue streams include direct sales to manufacturers, long-term supply contracts, and partnerships with major brands in the textile industry. Additionally, Coats Group benefits from economies of scale and operational efficiencies, allowing for competitive pricing and increased market share. Strategic partnerships with global brands and a focus on innovation in product development further contribute to the company's earnings.

Coats Group plc Financial Statement Overview

Summary
Coats Group plc shows solid financial performance with strong revenue growth and healthy operating margins. However, the company has a high debt-to-equity ratio, posing potential risks. Cash flow metrics indicate some pressure on free cash flow generation, though operating cash flow remains strong relative to net income.
Income Statement
78
Positive
Coats Group plc has demonstrated consistent revenue growth with a recent increase of 7.66% from 2023 to 2024. The gross profit margin is solid at 34.04%, indicating strong pricing power and cost control. However, the net profit margin is moderate at 5.34%, suggesting room for improvement in operating efficiency. EBIT and EBITDA margins of 13.31% and 18.54% respectively show healthy operational performance.
Balance Sheet
65
Positive
The company has a relatively high debt-to-equity ratio of 1.96, indicating significant leverage. Stockholders' equity decreased over the past year, affecting the equity ratio, which stands at 21.49%. Return on equity is moderate at 23.14%, suggesting efficient use of equity in generating profits, despite the high leverage.
Cash Flow
72
Positive
Free cash flow decreased by 26.71% from 2023 to 2024, indicating potential cash flow management issues. However, the operating cash flow to net income ratio is robust at 1.20, suggesting good cash generation relative to profit. The free cash flow to net income ratio of 0.85 further supports the company's ability to generate cash relative to its earnings.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.50B1.39B1.58B1.45B1.16B
Gross Profit511.00M483.30M486.80M461.60M351.80M
EBITDA278.20M260.40M233.30M230.40M155.40M
Net Income80.10M56.50M-14.70M88.90M26.40M
Balance Sheet
Total Assets1.61B1.71B1.92B1.51B1.21B
Cash, Cash Equivalents and Short-Term Investments146.00M132.40M172.40M107.20M72.00M
Total Debt678.50M603.30M672.20M353.30M318.50M
Total Liabilities1.23B1.12B1.23B927.20M893.30M
Stockholders Equity346.10M558.10M616.50M553.00M290.50M
Cash Flow
Free Cash Flow68.10M92.90M62.60M97.40M50.20M
Operating Cash Flow95.80M123.90M96.40M128.60M65.60M
Investing Cash Flow-61.30M-20.30M-319.30M-30.00M-48.30M
Financing Cash Flow3.60M-147.00M295.00M-57.60M-99.20M

Coats Group plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price77.00
Price Trends
50DMA
76.58
Positive
100DMA
75.52
Positive
200DMA
82.02
Negative
Market Momentum
MACD
0.19
Negative
RSI
57.64
Neutral
STOCH
87.23
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:COA, the sentiment is Positive. The current price of 77 is above the 20-day moving average (MA) of 74.29, above the 50-day MA of 76.58, and below the 200-day MA of 82.02, indicating a neutral trend. The MACD of 0.19 indicates Negative momentum. The RSI at 57.64 is Neutral, neither overbought nor oversold. The STOCH value of 87.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:COA.

Coats Group plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£2.04B29.552.27%6.04%-66.96%
72
Outperform
£3.53B10.1910.73%6.73%0.90%-4.04%
69
Neutral
£1.49B15.7218.19%3.06%0.47%-14.06%
68
Neutral
£3.54B14.087.44%5.02%16.74%-0.16%
61
Neutral
$17.75B12.56-5.49%3.02%1.43%-14.12%
61
Neutral
£2.84B20.004.22%2.45%-11.63%-31.81%
57
Neutral
£5.29B36.231.81%4.67%4.78%-53.59%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:COA
Coats Group plc
77.00
-18.46
-19.34%
GB:BTRW
Barratt Redrow
370.10
-113.54
-23.48%
GB:BWY
Bellway
2,372.00
-591.41
-19.96%
GB:BKG
The Berkeley Group Holdings
3,630.00
-1,284.65
-26.14%
GB:VTY
Vistry Group
626.00
-719.00
-53.46%
GB:PSN
Persimmon
1,093.50
-476.16
-30.34%

Coats Group plc Corporate Events

Regulatory Filings and Compliance
Coats Group Updates Total Voting Rights
Neutral
Jul 31, 2025

Coats Group plc announced that its total issued share capital as of 31 July 2025 consists of 1,917,372,461 ordinary shares, each with one voting right. This update is in line with the company’s compliance with the FCA’s Disclosure and Transparency Rules, providing shareholders with the necessary information to assess their interests in the company.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Coats Group Expands Footwear Business with OrthoLite Acquisition
Positive
Jul 29, 2025

Coats Group plc has announced its acquisition of OrthoLite Holding LLC, a leader in premium insoles, for $770 million. This strategic move is expected to enhance Coats’ position in the footwear industry by integrating OrthoLite’s high-growth, high-margin business, and is projected to deliver significant cost synergies and financial benefits, including enhanced EBIT margins and EPS accretion from the first year.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Coats Group PLC Announces Change in Voting Rights
Neutral
Jul 23, 2025

Coats Group PLC, a UK-based company, has announced a change in the breakdown of its voting rights, with BlackRock, Inc. now holding below 5% of the voting rights. This update, effective from July 21, 2025, reflects a decrease from a previous position of 5.33%. The change in voting rights could impact the company’s shareholder dynamics and influence its decision-making processes.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Norges Bank Acquires Major Stake in Coats Group PLC
Positive
Jul 22, 2025

Norges Bank has acquired a significant voting stake in Coats Group PLC, crossing the 3.6288% threshold of voting rights as of July 17, 2025. This acquisition reflects a strategic interest in Coats Group, potentially impacting the company’s governance and future decisions, as well as indicating confidence in its market position.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Coats Group plc Directors Invest in New Share Placing
Positive
Jul 21, 2025

Coats Group plc announced a non-pre-emptive placing of new ordinary shares, with directors and key management personnel subscribing to a total of 762,985 shares at 77.0 pence per share. This move is part of the company’s strategy to strengthen its capital base and support future growth initiatives, reflecting confidence from the management and aligning interests with shareholders.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Regulatory Filings and Compliance
Coats Group plc Announces Change in Major Holdings
Neutral
Jul 21, 2025

Coats Group plc has announced a change in its major holdings, with FIL Limited acquiring or disposing of voting rights and financial instruments. The transaction, which crossed the threshold on July 17, 2025, resulted in FIL Limited holding 9.9098% of voting rights in Coats Group plc. This adjustment in holdings reflects a slight decrease from the previous position and may influence the company’s shareholder dynamics and decision-making processes.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
BlackRock Increases Stake in Coats Group PLC
Neutral
Jul 21, 2025

Coats Group PLC, a UK-based company, has announced a change in the voting rights held by BlackRock, Inc., a major shareholder. As of July 17, 2025, BlackRock’s total voting rights in Coats Group have increased to 5.33% from a previous 5.14%, indicating a slight shift in shareholder influence. This adjustment reflects BlackRock’s strategic positioning and could impact Coats Group’s governance and decision-making processes.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Private Placements and FinancingM&A Transactions
Coats Group Secures £246 Million in Capital Raise for Strategic Acquisition
Positive
Jul 17, 2025

Coats Group plc successfully completed a capital raise, generating approximately £246 million to partly fund its acquisition of OrthoLite Holdings LLC. This move, supported by existing shareholders, involves issuing new ordinary shares and is expected to enhance Coats’ market position and operational capabilities.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Private Placements and FinancingM&A Transactions
Coats Group Announces Retail Offer to Fund OrthoLite Acquisition
Positive
Jul 16, 2025

Coats Group plc has announced a retail offer of new Ordinary Shares through the RetailBook platform to fund the acquisition of OrthoLite Holdings LLC, valued at $770 million. This strategic move is expected to enhance Coats’ position in the footwear industry by expanding into the high-growth premium insole market, with the retail offer available to both existing shareholders and new investors in the UK.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Coats Group Reports Strong H1 2025 Results and Strategic Expansion
Positive
Jul 16, 2025

Coats Group plc reported strong financial performance for the first half of 2025, with significant strategic moves including the acquisition of OrthoLite Holdings LLC and the divestiture of its US Yarns business. The acquisition of OrthoLite, valued at $770 million, positions Coats as a ‘super tier 2’ supplier in the high-growth insole segment, enhancing its footwear components portfolio. The company’s revenue from 100% recycled thread products increased by 73%, and sales in organic adjacencies rose by 30%, supporting top-line growth. Despite market uncertainties, Coats remains confident in its growth and margin potential, underpinned by market share gains and strong operating margins.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Coats Group Announces £250 Million Capital Raise for OrthoLite Acquisition
Positive
Jul 16, 2025

Coats Group plc has announced a proposed capital raise of approximately £250 million through an equity placing, retail offer, and director subscription. The funds will be used to partially finance the acquisition of OrthoLite Holdings LLC, a leader in premium insoles, for $770 million. This acquisition is part of Coats’ strategy to expand its footwear component business and create a ‘super tier 2′ supplier. The capital raise and acquisition are expected to enhance Coats’ market position and are supported by consultations with major shareholders, indicating confidence in the strategic move.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Coats Group Launches Retail Offer to Fund OrthoLite Acquisition
Positive
Jul 16, 2025

Coats Group plc has announced a retail offer using the RetailBook platform to issue new Ordinary Shares as part of a capital raise aimed at funding the acquisition of OrthoLite Holdings LLC. This acquisition, valued at $770 million, is set to enhance Coats’ position in the footwear components market by expanding into the high-growth premium insole segment. The retail offer is open to both existing shareholders and new investors, with the proceeds being used alongside new debt facilities to fund the acquisition. This strategic move is expected to strengthen Coats’ market presence and provide growth opportunities in the footwear industry.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Coats Group Expands Footwear Division with OrthoLite Acquisition
Positive
Jul 16, 2025

Coats Group plc has announced the acquisition of OrthoLite Holdings LLC for $770 million, aiming to accelerate its growth strategy in the footwear industry. This acquisition is expected to enhance Coats’ market position by integrating OrthoLite’s premium insole technology and leveraging synergies to improve financial performance, with significant cost savings and growth opportunities anticipated by 2028.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Business Operations and Strategy
Coats Group plc Announces Change in Major Holdings
Neutral
Jun 27, 2025

Coats Group plc has announced a change in major holdings, with FIL Limited acquiring a significant increase in voting rights, now holding over 10% of the total. This acquisition indicates a strengthened influence of FIL Limited within the company, potentially impacting future strategic decisions and shareholder dynamics.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Executive/Board Changes
Coats Group Appoints Wu Gang as Non-Executive Director
Positive
Jun 24, 2025

Coats Group plc has announced the appointment of Wu Gang as a Non-Executive Director, effective 1 July 2025. Wu Gang brings nearly 30 years of investment banking experience across Asia and Europe, having held significant roles at CITIC CLSA, ICBC International, Merrill Lynch, HSBC, and Goldman Sachs. His expertise in strategic and financial advisory is expected to strengthen Coats’ Board, enhancing its strategic direction and international reach.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Other
Coats Group CEO Purchases Significant Shareholding
Positive
Jun 4, 2025

Coats Group plc announced a transaction involving the purchase of 150,000 ordinary shares by its CEO and Executive Director, David Paja. This transaction, conducted on the London Stock Exchange, reflects a significant investment in the company by its leadership, potentially signaling confidence in the company’s future performance and stability.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Business Operations and Strategy
Coats Group CFO Acquires Shares, Signaling Confidence in Future Performance
Positive
May 23, 2025

Coats Group plc announced a transaction involving the purchase of ordinary shares by Hannah Nichols, the Chief Financial Officer and Executive Director. The transaction, which took place on the London Stock Exchange, involved the acquisition of 26,092 shares at a price of £0.762645 per share, amounting to a total of £19,898.93. This move reflects the company’s ongoing strategic decisions and may indicate confidence in its future performance.

The most recent analyst rating on (GB:COA) stock is a Buy with a £110.00 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Coats Group plc Successfully Passes All AGM Resolutions
Positive
May 21, 2025

Coats Group plc announced the successful passing of all resolutions at its Annual General Meeting held in London on 21 May 2025, with significant shareholder participation representing 86% of the issued share capital. The resolutions, which included ordinary and special resolutions, reflect the company’s strategic initiatives and governance practices, potentially impacting its operational and market positioning positively.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Coats Group Reports Revenue Growth and Strategic Exit from US Yarns
Positive
May 21, 2025

Coats Group plc reported a 4% increase in revenue for the first four months of 2025, driven by strong growth in its Apparel and Footwear segments. The company is exiting its low-margin US Yarns business to improve portfolio quality and margins, expecting net cash proceeds of $16 million from the sale. Despite uncertainties from US-led trade tariffs, Coats maintains a positive outlook for the year, with expectations of strong free cash flow and continued investment in growth initiatives.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Coats Group Reports Revenue Growth and Strategic Exit from US Yarns Business
Positive
May 21, 2025

Coats Group plc reported a 4% revenue increase for the first four months of 2025, driven by strong growth in its Apparel and Footwear segments. The company is exiting its low-margin US Yarns business to improve its portfolio quality and margins. Despite uncertainties from US-led trade tariffs, Coats remains confident in its resilient business model and expects strong cash flow generation and continued growth. The company is actively seeking acquisition opportunities to strengthen its portfolio further.

The most recent analyst rating on (GB:COA) stock is a Hold with a £0.80 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

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.Date of analysis: Aug 23, 2025