Coty (0I4A) AI Stock Analysis

Coty

(LSE:0I4A)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Revenue Growth and Gross MarginsCoty has expanded its revenue base while maintaining consistently strong gross margins, indicating meaningful brand and product economics. If the company can stabilize profitability, this scale and margin profile should support continued investment in marketing, innovation, and distribution over the next several quarters.

Negative Factors

Return to Significant Net LossesThe return to substantial losses despite revenue growth shows that Coty’s operating model is not currently converting scale into durable shareholder earnings. Persistent losses could weaken equity over time, constrain investment choices, and make the company more dependent on successful restructuring and portfolio execution.

Coty (0I4A) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: $2.99B
Dividend Yield: ―
Average Volume (3M): 9,119
Price to Earnings (P/E): -4.9
Beta (1Y): 0.82
Revenue Growth: -1.46%
EPS Growth: -60.87%
Country: UK
Employees: 11,335
Sector: Consumer Defensive
Sector Strength: 62
Industry: Household & Personal Products

Coty Business Overview & Revenue Model

Company Description

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...

Coty Earnings Call Summary

Earnings Call Date:Aug 18, 2026(Q4-2026)|% Change Since:15.79%|Next Earnings Date:Nov 03, 2026

Earnings Call SentimentNeutral

The call conveyed cautious optimism: clear operational actions and early wins (notably in U.S. consumer, Brazil and Travel Retail), SKU rationalization, lowered CapEx and identified financial mitigants (tariff refund potential and Kering compensation) provide constructive upside. However, the company faces material near-term challenges — sell-out trailing the category, inventory/obsolescence pressures, the upcoming Gucci departure (low double-digit % of sales) and slower implementation in Europe — which require significant restructuring and create execution and timing risk. Management presented a balanced, pragmatic plan but significant uncertainties remain for FY27.

Positive Updates

U.S. Consumer Turnaround - CoverGirl & Sally Hansen

Focused advertising and concentrated investment in core franchises drove meaningful sell-out improvement in the U.S.; Sally Hansen is now growing ahead of the market in value and CoverGirl has substantially reduced its gap versus the category through focused TV and innovation (e.g., Insta-Dri).

Negative Updates

Sell-Out Trailing the Category

Sell-out has been trailing the category for the last couple of quarters, leading to lower sell-in, excess inventory, returns and obsolescence that contributed to EBITDA pressure; management expects a transition year (FY27) and cannot precisely predict how quickly sell-out will close the gap.

Company Guidance

Coty framed fiscal 2027 as a transition year (Q1 guidance only) and said it is targeting FY‑27 EBITDA and free cash flow “close to” fiscal 2026 levels, while implementing measures to drive sell‑out and market‑share (now a key KPI tied into FY‑27 incentives); specific metrics cited include $20–30 million of oil‑related costs assumed at $90–$100/bbl, a potential $30 million tariff refund as upside, a planned ~20% SKU reduction on shelves (timed with spring/fall resets), lower CapEx, and a Consumer Beauty strategic review targeted for completion by calendar 2026 — with the goal of returning the underlying portfolio (ex‑Gucci, which represented a low‑double‑digit % of sales) to growth in FY‑28 alongside restructuring/productivity savings.

Coty Risk Analysis

Coty disclosed 48 risk factors in its most recent earnings report. Coty reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks

1.Potential divestitures, and any retained liabilities from such sold business, could negatively impact our business and financial results.Q2, 2026

2.Evolving supply chain diligence, sourcing, packaging and product-related requirements could increase our costs, restrict sales of our products or adversely affect our reputation.Q2, 2026

3.Volatility in the cost or availability of raw materials, packaging, transportation and other inputs, or disruptions involving our suppliers, could adversely affect our business.Q2, 2026

Coty Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

GB:0I4A against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPAR	74Outperform	$3.73B	22.25	19.15%	2.75%	2.93%	4.24%
ELF	65Neutral	$6.59B	111.54	5.18%	―	31.23%	-42.14%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EL	58Neutral	$39.58B	214.18	4.63%	1.28%	5.51%	―
ODD	43Neutral	$999.52M	72.23	4.60%	―	-9.68%	-84.42%

* Consumer Defensive Sector Average

Performance Comparison

GB:0I4A and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:0I4A	Coty Inc	3.34	-0.56	-14.38%
EL	Estée Lauder	109.23	17.29	18.80%
IPAR	Inter Parfums	116.37	28.77	32.83%
ELF	e.l.f. Beauty, Inc.	111.69	-9.25	-7.65%
ODD	ODDITY Tech Ltd. Class A	21.67	-22.21	-50.62%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Coty AI Stock Analysis