📊 COTY Key Takeaways
Is Coty Inc.. (COTY) a Good Investment?
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 shows a mixed fundamental profile: strong gross margins and solid free cash flow generation support the business, but declining revenue and a return to net losses weaken the earnings picture. The company appears operationally resilient at the gross profit and cash flow level, yet tight liquidity and weak interest coverage limit financial flexibility and raise execution risk if growth does not recover.
Why Buy Coty Inc.. Stock? COTY 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
- Operating cash flow of $624.9M exceeds net income by a substantial margin, suggesting earnings quality issues rather than cash generation problems
- High gross margin of 64.1% indicates strong brand economics and pricing power
- Operating cash flow of $624.9M and free cash flow of $524.3M provide meaningful internal funding capacity
- Moderate debt/equity of 0.85x and a sizable equity base support balance sheet stability despite earnings pressure
COTY Stock Risks: Coty Inc.. Investment 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
- Revenue declined 3.7% year over year, signaling weak top-line momentum
- Net income remained negative and diluted EPS deteriorated sharply, reflecting poor earnings quality
- Current ratio of 0.79x, quick ratio of 0.52x, and interest coverage of 1.8x point to constrained liquidity and debt-servicing headroom
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
- Revenue growth and operating margin progression
- Interest coverage and free cash flow sustainability
Coty Inc.. (COTY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
COTY Profit Margin, ROE & Profitability Analysis
COTY vs Consumer Sector: How Coty Inc.. Compares
How Coty Inc.. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Coty Inc.. Stock Overvalued? COTY Valuation Analysis 2026
Based on fundamental analysis, Coty Inc.. shows some fundamental concerns relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Coty Inc.. Balance Sheet: COTY Debt, Cash & Liquidity
COTY Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
COTY Quarterly Earnings & 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 Inc.. Dividends, Buybacks & Capital Allocation
COTY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Coty Inc.. (CIK: 0001024305)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 10, 2026 | 4 | xslF345X06/wk-form4_1775856437.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775256392.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775256314.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775256237.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775256128.xml | View → |
❓ Frequently Asked Questions about COTY
What is the AI rating for COTY?
Coty Inc.. (COTY) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are COTY's key strengths?
Claude: 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. ChatGPT: High gross margin of 64.1% indicates strong brand economics and pricing power. Operating cash flow of $624.9M and free cash flow of $524.3M provide meaningful internal funding capacity.
What are the risks of investing in COTY?
Claude: 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. ChatGPT: Revenue declined 3.7% year over year, signaling weak top-line momentum. Net income remained negative and diluted EPS deteriorated sharply, reflecting poor earnings quality.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is COTY a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Coty Inc.. has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is COTY stock overvalued or undervalued?
Valuation metrics for COTY: ROE of -1.6% (sector avg: 18%), net margin of -1.7% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
Should I buy COTY stock in 2026?
Our dual AI analysis gives Coty Inc.. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is COTY's free cash flow?
Coty Inc..'s operating cash flow is $624.9M, with capital expenditures of $100.6M. FCF margin is 16.1%.
How does COTY compare to other Consumer stocks?
Vs Consumer sector averages: Net margin -1.7% (avg: 8%), ROE -1.6% (avg: 18%), current ratio 0.79 (avg: 1.5).