New Lifetime High Reached By 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 Coty ( COTY) 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 $102.7 million.
  • COTY has traded 71,682 shares today.
  • COTY is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in COTY with the Ticky from Trade-Ideas. See the FREE profile for COTY NOW at Trade-Ideas

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 0.6%. COTY has a PE ratio of 61. Currently there are 5 analysts that rate Coty a buy, 1 analyst rates it a sell, and 5 rate it a hold.

The average volume for Coty has been 1.4 million shares per day over the past 30 days. Coty has a market cap of $3.2 billion and is part of the consumer goods sector and consumer non-durables industry. Shares are up 57.1% year-to-date as of the close of trading on Monday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Coty as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including premium valuation and generally higher debt management risk.

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 129.8% when compared to the same quarter one year prior, rising from -$253.30 million to $75.50 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Personal Products industry and the overall market, COTY INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 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 ($0.98 versus -$0.26).
  • The debt-to-equity ratio is very high at 7.13 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, COTY's quick ratio is somewhat strong at 1.37, demonstrating the ability to handle short-term liquidity needs.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Stocks Tumble as Trump Comments Lead to Worries Over China Trade Talks

Stocks Tumble as Trump Comments Lead to Worries Over China Trade Talks

Tiffany & Co. Sees a Strong Market in Asia

Tiffany & Co. Sees a Strong Market in Asia

Imagining the Stock Market in 10 Years

Imagining the Stock Market in 10 Years

Video: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Video: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Red Robin Slumps After Earnings Miss

Red Robin Slumps After Earnings Miss