ScoreWhy is Coty, Inc. ?
1
Poor Management Efficiency with a low ROCE of 4.92%
- The company has been able to generate a Return on Capital Employed (avg) of 4.92% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of -1.56% and Operating profit at 99.24% over the last 5 years
- OPERATING CASH FLOW(Y) Lowest at USD 492.6 MM
- PRE-TAX PROFIT(Q) At USD -29.1 MM has Fallen at -493.24%
- NET PROFIT(Q) At USD -24.4 MM has Fallen at -236.31%
3
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -56.17%, its profits have fallen by -15.9%
4
Below par performance in long term as well as near term
- Along with generating -56.17% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Coty, Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Coty, Inc.
-59.29%
-1.30
50.95%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.65%
EBIT Growth (5y)
25.76%
EBIT to Interest (avg)
1.49
Debt to EBITDA (avg)
6.78
Net Debt to Equity (avg)
1.07
Sales to Capital Employed (avg)
0.77
Tax Ratio
0.58%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
44.71%
ROCE (avg)
4.92%
ROE (avg)
6.70%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.54
EV to EBIT
11.93
EV to EBITDA
5.64
EV to Capital Employed
0.74
EV to Sales
0.80
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
6.20%
ROE (Latest)
-0.31%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bullish
Bearish
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
INVENTORY TURNOVER RATIO(HY)
Highest at 3.13 times
NET PROFIT(Q)
At USD -7.2 MM has Grown at 85.74%
-16What is not working for the Company
NET PROFIT(HY)
At USD -49.6 MM has Grown at -171.38%
INTEREST(HY)
At USD 109.6 MM has Grown at 58.15%
OPERATING CASH FLOW(Y)
Lowest at USD 505 MM
ROCE(HY)
Lowest at -16.17%
RAW MATERIAL COST(Y)
Grown by 7.48% (YoY
Here's what is working for Coty, Inc.
Net Profit
At USD -7.2 MM has Grown at 85.74%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Inventory Turnover Ratio
Highest at 3.13 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Coty, Inc.
Interest
At USD 109.6 MM has Grown at 58.15%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Cash Flow
Lowest at USD 505 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Raw Material Cost
Grown by 7.48% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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