Coty Inc.

Valuation Analysis

About the Company

Coty Inc., together with its subsidiaries, manufactures, markets, distributes, and sells branded beauty products worldwide. It operates through two segments: the Prestige and Consumer Beauty. The company provides fragrance, color cosmetics, and skin and body care products. It offers prestige products through prestige retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops under the Burberry, Calvin Klein, Chloe, Davidoff, Escada, Etro, Gucci, Hugo Boss, Infiniment Coty Paris, Jil Sander, Joop!, Kylie Cosmetics by Kylie Jenner, Lancaster, Marc Jacobs, Orveda, philosophy, and Tiffany & Co. brands. The company provides beauty products through hypermarkets, supermarkets, drug stores, pharmacies, mid-tier department stores, traditional

Coty Inc. Stock at a Glance

Coty Inc. (COTY) is currently trading at $2.07 with a market capitalization of $1.8B. The 52-week range spans from $1.84 to $5.34; the current price is 61.2% below the yearly high. Year-over-year revenue growth stands at -1.3%.

💰 Dividend

Coty Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

15 analysts rate Coty Inc. (COTY) on consensus: Hold. The average price target is $3.17, implying +53.35% from the current price. Analyst price targets range from $1.50 to $8.00.

Coty Inc.: The Investment Case in Detail

Coty Inc. (COTY) operates in the Consumer Defensive — specifically Household & Personal Products — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

With a gross margin near 63.2%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns.

The Bear Case

Revenue is contracting at -1.3% year-over-year — until that trend reverses, valuation is exposed to further downgrades. Net margins remain negative, meaning every euro of revenue is still producing losses — the path to profitability is the central question for shareholders. Short interest sits at 11.48% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

With a PEG ratio of 0.18, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 6.65x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The price sits in the lower quartile of the 52-week range — value hunters often start scaling in around this zone if fundamentals hold.
• The analyst consensus price target implies 53.35% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price is below both the 50- and 200-day moving averages, with 50d below 200d — a bearish picture (death-cross alignment).

Risk Profile

The data points to market-like volatility, elevated short interest (11.48%).

Trading Data

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