Coty Inc. Class A
Find Ratings ReportsCOTY INC's gross profit margin for the second quarter of its fiscal year 2024 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. COTY INC has very weak liquidity. Currently, the Quick Ratio is 0.35 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 24.31% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q2 FY24 | Q2 FY23 |
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Net Sales ($mil) | 1727.6 | 1523.6 |
EBITDA ($mil) | 346.1 | 300.2 |
EBIT ($mil) | 240.7 | 196.4 |
Net Income ($mil) | 180.9 | 238.3 |
Balance Sheet | Q2 FY24 | Q2 FY23 |
---|---|---|
Cash & Equiv. ($mil) | 483.5 | 312.3 |
Total Assets ($mil) | 13015.7 | 12454.6 |
Total Debt ($mil) | 4004.9 | 4408.3 |
Equity ($mil) | 4567.2 | 3673.8 |
Profitability | Q2 FY24 | Q2 FY23 |
---|---|---|
Gross Profit Margin | 68.37 | 69.21 |
EBITDA Margin | 20.03 | 19.7 |
Operating Margin | 13.93 | 12.89 |
Sales Turnover | 0.46 | 0.42 |
Return on Assets | 2.48 | 1.11 |
Return on Equity | 6.8 | 3.37 |
Debt | Q2 FY24 | Q2 FY23 |
---|---|---|
Current Ratio | 0.85 | 0.65 |
Debt/Capital | 0.47 | 0.55 |
Interest Expense | 61.7 | 65.0 |
Interest Coverage | 3.9 | 3.02 |
Share Data | Q2 FY24 | Q2 FY23 |
---|---|---|
Shares outstanding (mil) | 895.1 | 852.5 |
Div / share | 0.0 | 0.0 |
EPS | 0.2 | 0.27 |
Book value / share | 5.1 | 4.31 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 3988109.0 | 5750727.0 |
BUY. This stock's P/E ratio indicates a significant discount compared to an average of 85.83 for the Chemical Manufacturing subsector and a premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 2.42 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 19.07. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, COTY INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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COTY 35.23 | Peers 85.83 | COTY 18.80 | Peers 38.76 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. COTY is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. COTY is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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COTY 21.63 | Peers 18.08 | COTY NM | Peers 1.16 | |||||||||||||||||||||
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations. COTY is trading at a significant premium to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. COTY's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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COTY 2.42 | Peers 19.07 | COTY 150.00 | Peers 12.58 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. COTY is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. COTY is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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COTY 1.84 | Peers 84.44 | COTY 14.07 | Peers 42.35 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. COTY is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. COTY significantly trails its peers on the basis of sales growth. |
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