Coats Group plc (COA) AI Stock Analysis

• Market Cap: £1.54B
• Dividend Yield: 3.02%
• Average Volume (3M): 3.81M
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.28
• Revenue Growth: 0.47%
• EPS Growth: -14.06%
• Country: UK
• Employees: 16,042
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.03
• Shares Outstanding: 1,917,372,400
• 10 Day Avg. Volume: 3,003,632
• 30 Day Avg. Volume: 3,812,491
• PEG Ratio: -8.67
• Price to Book (P/B): 5.48
• Price to Sales (P/S): 1.26
• P/FCF Ratio: 27.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £130.00
• Price Target Upside: 64.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: 87.00p ▲(9.85% Upside)

Coats Group plc exhibits solid financial performance with strong revenue growth and healthy operating margins, though high leverage and moderate net profit margin are concerns. Technical indicators suggest neutral to mild bullish momentum, while valuation metrics indicate the stock is fairly valued with an attractive dividend yield. These factors collectively contribute to a balanced stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business stability and expansion potential.

Operational Efficiency

A solid gross profit margin reflects effective cost management and pricing strategies, supporting sustainable profitability and competitive positioning.

Cash Generation

Strong cash generation relative to profit ensures liquidity and financial flexibility, enabling reinvestment in growth opportunities and debt management.

Negative Factors

High Leverage

High leverage can increase financial risk and limit strategic options, potentially impacting long-term financial health and investment capacity.

Free Cash Flow Decline

A decline in free cash flow may signal challenges in cash management, affecting the company's ability to fund operations and growth without external financing.

Moderate Net Profit Margin

A moderate net profit margin suggests limited efficiency in converting revenue into profit, which could constrain profitability improvements and shareholder returns.

Coats Group plc Business Overview & Revenue Model

Company Description

Coats 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 Money

Coats 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 high leverage and moderate net profit margin indicate areas for improvement. Cash flow metrics suggest some pressure on free cash flow generation, though operating cash flow remains strong relative to net income.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.47B	1.50B	1.39B	1.58B	1.45B	1.16B
Gross Profit	515.70M	511.00M	483.30M	486.80M	461.60M	351.80M
EBITDA	281.60M	278.20M	260.40M	233.30M	230.40M	155.40M
Net Income	78.90M	80.10M	56.50M	-14.70M	88.90M	26.40M
Balance Sheet
Total Assets	1.65B	1.61B	1.71B	1.92B	1.51B	1.21B
Cash, Cash Equivalents and Short-Term Investments	168.50M	146.00M	132.40M	172.40M	107.20M	72.00M
Total Debt	669.70M	678.50M	603.30M	672.20M	353.30M	318.50M
Total Liabilities	1.24B	1.23B	1.12B	1.24B	927.20M	893.30M
Stockholders Equity	376.20M	346.10M	558.10M	616.50M	553.00M	290.50M
Cash Flow
Free Cash Flow	69.10M	68.10M	92.90M	62.60M	97.40M	50.20M
Operating Cash Flow	97.90M	95.80M	123.90M	96.40M	128.60M	65.60M
Investing Cash Flow	-51.10M	-61.30M	-20.30M	-319.30M	-30.00M	-48.30M
Financing Cash Flow	-7.10M	3.60M	-147.00M	295.00M	-57.60M	-99.20M

Coats Group plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 79.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:COA, the sentiment is Negative. The current price of 79.2 is below the 20-day moving average (MA) of 81.28, below the 50-day MA of 80.48, and above the 200-day MA of 78.53, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 15.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:COA.

Coats Group plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKG	78 Outperform	£3.80B	10.69	10.73%	6.26%	0.90%	-4.04%
PSN	74 Outperform	£3.88B	15.09	7.44%	4.98%	16.74%	-0.16%
COA	69 Neutral	£1.54B	16.20	18.19%	3.02%	0.47%	-14.06%
BTRW	66 Neutral	£5.27B	27.39	2.80%	4.67%	33.83%	15.11%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BWY	60 Neutral	£3.13B	19.99	4.49%	2.23%	16.91%	20.93%
VTY	60 Neutral	£2.02B	-207.50	-0.31%	―	-0.57%	-104.08%

Coats Group plc Corporate Events

Coats Group CEO Acquires Significant Shareholding

Coats Group plc has announced a significant transaction involving its Chief Executive Officer and Executive Director, David Paja, who has purchased 250,000 ordinary shares of the company at a price of £0.7813198 per share. This transaction, conducted on the London Stock Exchange, reflects a total investment of £195,329.95, indicating a strong vote of confidence in the company’s future prospects by its leadership.

The most recent analyst rating on (GB:COA) stock is a Hold with a £87.00 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Coats Group Announces Leadership Changes and Sustainability Focus

Coats Group plc announced key changes in its leadership team, with Srinivas Phatak being appointed as Chief Financial Officer and Executive Director of Unilever PLC, and Hannah Nichols joining the Coats Sustainability Committee. These changes reflect Coats’ ongoing commitment to sustainability and strategic leadership, potentially impacting its industry positioning and stakeholder engagement.

The most recent analyst rating on (GB:COA) stock is a Buy with a £130.00 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Coats Group CEO Acquires Significant Shareholding

Coats Group plc announced a significant transaction involving its CEO, David Paja, who purchased 200,000 ordinary shares of the company at a price of £0.8087195 per share, totaling £161,743.90. This transaction, conducted on the London Stock Exchange, underscores a potential vote of confidence in the company’s future prospects by its top executive, possibly influencing investor perceptions and market positioning.

The most recent analyst rating on (GB:COA) stock is a Buy with a £85.00 price target. To see the full list of analyst forecasts on Coats Group plc stock, see the GB:COA Stock Forecast page.

Coats Group Updates Total Voting Rights

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.

Coats Group Expands Footwear Business with OrthoLite Acquisition

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.