New Lifetime High Today: Coty (COTY)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Coty as such a stock due to the following factors:
- COTY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.2 million.
- COTY has traded 4,274 shares today.
- COTY is trading at a new lifetime high.
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More details on COTY:
Coty Inc., together with its subsidiaries, is engaged in the manufacture, marketing, and distribution of women's and men's fragrances, color cosmetics, and skin and body care related products worldwide. The stock currently has a dividend yield of 0.9%. Currently there are 5 analysts that rate Coty a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for Coty has been 1.0 million shares per day over the past 30 days. Coty has a market cap of $1.9 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are up 14.4% year-to-date as of the close of trading on Friday.
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Analysis:
rates Coty as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Personal Products industry. The net income increased by 52.0% when compared to the same quarter one year prior, rising from $82.50 million to $125.40 million.
- Powered by its strong earnings growth of 66.66% and other important driving factors, this stock has surged by 53.58% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although COTY had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- COTY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, COTY INC swung to a loss, reporting -$0.26 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($0.95 versus -$0.26).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Personal Products industry and the overall market, COTY INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has declined marginally to $328.80 million or 4.99% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full Coty Ratings Report.
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