Want to see GB:COA full AI Analyst Report?
Top Page
Coats Group plc
(LSE:COA)
Select Model
Select Model
Rating:74Outperform
Price Target:
87.00 p
▲(7.61% Upside)
Action:Reiterated
Date:07/28/26
The score is driven primarily by strengthened financial performance (notably the 2025 cash flow step-change and balance-sheet de-risking) and a supportive earnings-call outlook with maintained guidance and expected H2 improvement. Valuation is reasonable with a solid dividend yield, but the technical setup remains weak versus key longer-term moving averages, tempering the overall rating.
Positive Factors
Balance sheet de‑risking
A materially stronger capital structure reduces financial vulnerability and raises optionality. Lower leverage and higher equity improve resilience to cyclical textile demand, support continued dividend and M&A optionality, and make the company better able to fund capex and synergy rollout without refinancing risk.
Negative Factors
Higher finance costs from acquisition funding
Elevated interest expense from acquisition funding reduces net income and constrains free cash flow available for reinvestment. If elevated rates persist or leverage reduction stalls, higher finance costs could depress EPS and limit flexibility to accelerate capex or further M&A, affecting long‑term returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet de‑risking
A materially stronger capital structure reduces financial vulnerability and raises optionality. Lower leverage and higher equity improve resilience to cyclical textile demand, support continued dividend and M&A optionality, and make the company better able to fund capex and synergy rollout without refinancing risk.
Read all positive factors
Coats Group plc (COA) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.55B
Dividend Yield3%
Average Volume (3M)3.02M
Price to Earnings (P/E)20.3
Beta (1Y)1.12
Revenue Growth4.98%
EPS Growth-17.37%
CountryUK
Employees19,000
SectorConsumer Cyclical
Sector Strength84
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)0.05
Shares Outstanding1,917,372,400
10 Day Avg. Volume2,850,718
30 Day Avg. Volume3,019,737
Financial Highlights & Ratios
PEG Ratio0.90
Price to Book (P/B)2.75
Price to Sales (P/S)1.36
P/FCF Ratio10.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£120.25Price Target Upside48.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.1
Revenue Forecast (FY)£1.73B
Coats Group plc Business Overview & Revenue Model
Company Description
Coats Group plc, together with its subsidiaries, engages in thread manufacturing, structural components for apparel and footwear, and performance materials worldwide. The company provides threads, yarns, zips, composites, structural components, in...
How the Company Makes Money
Coats makes money primarily by selling manufactured threads and related textile components to business customers across the apparel, footwear and broader textile supply chain, generating revenue from the volume of products shipped and the pricing ...
Coats Group plc Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 11, 2027
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational and strategic performance despite a challenging macro backdrop. Key strengths included market outperformance (1% organic growth against mid-single-digit market declines), maintained near-20% group EBIT margin, identified significant OrthoLite synergies (both cost and material incremental sales synergies), strong cash generation (H1 free cash flow $30m) and increased dividend. Challenges were mainly acquisition-related (OrthoLite short-term revenue softness from capacity constraints), higher interest costs and a modest decline in EPS and some divisional margin pressure driven by strategic investments. Management reiterated unchanged guidance, confidence in H2 improvement and a clear plan to deliver additional cost benefits and revenue synergies.Positive Updates
Organic Revenue Growth and Market Outperformance
Group revenue of $837 million, up 1% on an organic constant exchange rate basis, achieved while apparel and footwear end markets declined by mid-single digits — demonstrating consistent outperformance versus end markets.
Negative Updates
OrthoLite H1 Revenue Weakness and Capacity Constraints
OrthoLite revenue was below H1 2025 on a pro forma basis due to strong prior period comparators, subdued market conditions and temporary capacity challenges at an Indonesia facility that caused a sales shortfall with a customer.
Read all updates
Q2-2026 Updates
Positive
Negative
Organic Revenue Growth and Market Outperformance
Group revenue of $837 million, up 1% on an organic constant exchange rate basis, achieved while apparel and footwear end markets declined by mid-single digits — demonstrating consistent outperformance versus end markets.
Read all positive updates
Company Guidance
Guidance for 2026 was maintained: management expects an H2 improvement in EBIT despite assuming modest end‑market declines, driven by secured pricing, supply stability and around $15m of incremental cost benefits in H2 (including $5m of OrthoLite synergies), with profit "in line with market expectations" and good year‑on‑year earnings growth; working capital is expected to significantly unwind in H2 with working capital running at ~12% of sales for the full year; FY capex remains $40–45m plus $5m for a Coats capacity expansion (production from Q1 2027); OrthoLite synergies remain on track ($5m in 2026, at least $20m by 2028) and $40m+ of incremental annual sales synergies identified by 2030; the group sits with net debt of $842m (pro‑forma leverage 2.3x at H1) and remains fully on track to reduce leverage to ≤2x by year‑end, while delivering strong free cash flow (H1 pre‑dividends $30m) and targeting $1bn cumulative free cash flow over the next five years.Coats Group plc Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.59B | 1.46B | 1.50B | 1.39B | 1.58B | 1.45B |
| Gross Profit | 581.86M | 573.80M | 511.00M | 483.30M | 486.80M | 461.60M |
| EBITDA | 347.09M | 315.50M | 278.20M | 260.40M | 233.30M | 230.40M |
| Net Income | 105.21M | 103.40M | 80.10M | 56.50M | -14.70M | 88.90M |
Balance Sheet | ||||||
| Total Assets | 2.55B | 2.59B | 1.61B | 1.71B | 1.92B | 1.51B |
| Cash, Cash Equivalents and Short-Term Investments | 184.15M | 232.08M | 146.00M | 132.40M | 172.40M | 107.20M |
| Total Debt | 1.11B | 1.14B | 678.50M | 603.30M | 672.20M | 353.30M |
| Total Liabilities | 1.78B | 1.82B | 1.23B | 1.12B | 1.24B | 927.20M |
| Stockholders Equity | 735.30M | 722.76M | 346.10M | 558.10M | 616.50M | 553.00M |
Cash Flow | ||||||
| Free Cash Flow | 190.44M | 198.38M | 68.10M | 92.90M | 62.60M | 97.40M |
| Operating Cash Flow | 221.53M | 231.15M | 95.80M | 123.90M | 96.40M | 128.60M |
| Investing Cash Flow | -593.86M | -580.33M | -61.30M | -20.30M | -319.30M | -30.00M |
| Financing Cash Flow | 390.52M | 435.75M | 3.60M | -147.00M | 295.00M | -57.60M |
Coats Group plc Technical Analysis
Positive
80.85
Price Trends
79.68
Positive
80.42
Positive
81.63
Negative
Market Momentum
-0.30
Positive
51.06
Neutral
46.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:COA, the sentiment is Positive. The current price of 80.85 is below the 20-day moving average (MA) of 81.97, above the 50-day MA of 79.68, and below the 200-day MA of 81.63, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 51.06 is Neutral, neither overbought nor oversold. The STOCH value of 46.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:COA.
Coats Group plc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | £17.51B | 20.18 | 52.86% | 4.10% | 12.80% | 23.60% | |
74 Outperform | £1.55B | 20.32 | 14.43% | 3.00% | 4.98% | -17.37% | |
62 Neutral | £8.03B | 31.51 | 8.86% | 1.08% | 25.02% | -13.12% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
50 Neutral | £3.95B | 192.25 | 2.29% | 5.03% | -1.67% | ― | |
49 Neutral | £334.29M | -2.80 | 415.28% | ― | 16.03% | 70.19% | |
43 Neutral | £504.32M | -2.17 | -155.17% | ― | -15.00% | 21.71% |
* Consumer Cyclical Sector Average
GB:COA
Coats Group plc
81.05
3.72
4.82%
GB:ASC
ASOS plc
421.50
133.00
46.10%
GB:BRBY
Burberry
1,103.50
-168.50
-13.25%
GB:MKS
Marks and Spencer
387.90
39.89
11.46%
GB:NXT
Next plc
15,335.00
3,605.31
30.74%
GB:DEBS
boohoo group Plc
21.25
7.33
52.66%
Coats Group plc Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Coats Group lifts H1 revenue and dividend as it outperforms weakening apparel and footwear markets
Positive
Jul 28, 2026
Coats Group plc, the world’s leading industrial thread and footwear components manufacturer, reported first-half 2026 revenue of $837m, up 1% on an organic constant-currency basis, as it continued to gain market share despite mid-single digi...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsShareholder Meetings
Coats Group wins full shareholder backing at 2026 AGM
Positive
May 20, 2026
Coats Group plc reported that all 21 resolutions at its London annual general meeting on 20 May 2026 were approved by shareholders via poll, with a high turnout representing 87.71% of issued share capital. The resolutions covered receipt of the 20...
Business Operations and StrategyFinancial Disclosures
Coats holds guidance as apparel growth offsets softer footwear demand
Neutral
May 20, 2026
Coats Group plc reported a broadly resilient start to 2026, with group revenue down 1% at constant exchange rates against a strong pre-tariff comparator period, while reported revenue rose, reflecting currency movements. Apparel revenue grew 1% as...
Business Operations and StrategyExecutive/Board Changes
Coats Group Names Tim Cobbold as Chair to Steer Next Phase of Growth
Positive
May 14, 2026
Coats Group plc, a leading Tier 2 supplier of critical components, materials and software to the global apparel and footwear sectors, is positioning itself as an innovation‑driven, sustainability‑focused partner in the supply chain. Th...
Executive/Board Changes
Coats Group strengthens board with appointment of Annette Kelleher as non-executive director
Positive
May 6, 2026
Coats Group plc has appointed Annette Kelleher as a non-executive director with effect from 1 June 2026, reinforcing the board of the FTSE 250 apparel and footwear components supplier. She will also serve on the Nomination and Remuneration Committ...
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.