📊 COTY Key Takeaways
Investment Thesis
Coty demonstrates deteriorating operational performance with declining revenue (-3.7% YoY) and negative net income despite maintaining strong gross margins (64.1%). The company's weak liquidity position (0.79x current ratio), elevated leverage (0.85x debt/equity with $3.0B long-term debt), and thin interest coverage (1.8x) create significant financial distress risk that outweighs the positive free cash flow generation.
COTY Strengths
- Strong gross margin of 64.1% indicates pricing power and operational efficiency in production
- Solid free cash flow generation of $524.3M (16.1% FCF margin) provides debt servicing capability
- Operating cash flow of $624.9M exceeds net income by a substantial margin, suggesting earnings quality issues rather than cash generation problems
COTY Risks
- Negative net income of -$55.7M and declining revenue trend (-3.7% YoY) indicate structural profitability challenges in core business
- Weak liquidity metrics (0.79x current ratio, 0.52x quick ratio) with $436.7M cash against $3.0B long-term debt creates refinancing risk
- Deteriorating return metrics (ROE: -1.6%, ROA: -0.5%) and compressed operating margin (10.2%) demonstrate value destruction for shareholders
Key Metrics to Watch
- Revenue growth trajectory and comparable sales trends to confirm if decline stabilizes or accelerates
- Net margin recovery path and the underlying drivers of net losses despite positive operating income
- Debt reduction progress and free cash flow allocation to deleveraging versus shareholder returns
COTY Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
COTY Profitability Ratios
COTY vs Energy Sector
How COTY INC. compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
COTY Balance Sheet & Liquidity
COTY 5-Year Financial Trend
5-Year Trend Summary: COTY INC.'s revenue has remained relatively flat over the 5-year period, with a 3% decline. The most recent EPS of $0.57 reflects profitable operations.
COTY Growth Metrics (YoY)
COTY Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $1.7B | $23.7M | $0.02 |
| Q1 2026 | $1.6B | $67.9M | $0.07 |
| Q3 2025 | $1.3B | $3.8M | $0.00 |
| Q2 2025 | $1.7B | $23.7M | $0.02 |
| Q1 2025 | $1.6B | $1.6M | $0.00 |
| Q3 2024 | $1.3B | $3.8M | $0.00 |
| Q2 2024 | $1.5B | $180.9M | $0.20 |
| Q1 2024 | $1.4B | $1.6M | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
COTY Capital Allocation
COTY SEC Filings
Access official SEC EDGAR filings for COTY INC. (CIK: 0001024305)
📋 Recent SEC Filings
❓ Frequently Asked Questions about COTY
What is the AI rating for COTY?
COTY INC. (COTY) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are COTY's key strengths?
Strong gross margin of 64.1% indicates pricing power and operational efficiency in production. Solid free cash flow generation of $524.3M (16.1% FCF margin) provides debt servicing capability.
What are the risks of investing in COTY?
Negative net income of -$55.7M and declining revenue trend (-3.7% YoY) indicate structural profitability challenges in core business. Weak liquidity metrics (0.79x current ratio, 0.52x quick ratio) with $436.7M cash against $3.0B long-term debt creates refinancing risk.
What is COTY's revenue and growth?
COTY INC. reported revenue of $3.3B.
Does COTY pay dividends?
COTY INC. pays dividends, with $6.6M distributed to shareholders in the trailing twelve months.
Where can I find COTY SEC filings?
Official SEC filings for COTY INC. (CIK: 0001024305) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is COTY's EPS?
COTY INC. has a diluted EPS of $-0.07.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.