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Coats Group plc (COA) AI Stock Analysis
Coats Group plc
(LSE:COA)
The score is driven primarily by strengthened financial performance (notably improved cash generation and a significantly de-levered balance sheet) and a supportive technical setup with price above major moving averages. This is tempered by only fair valuation (P/E ~20.6) and earnings-call risks tied to acquisition-related finance costs and some near-term operational headwinds, despite maintained guidance and synergy upside.
Coats Group plc (COA) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 1.61B
- Dividend Yield
- 2.95%
- Average Volume (3M)
- 2.73M
- Price to Earnings (P/E)
- 20.9
- Beta (1Y)
- 1.12
- Revenue Growth
- 4.98%
- EPS Growth
- -17.37%
- Country
- UK
- Employees
- 19,000
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Manufacturing - Textiles
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, insol...
How the Company Makes Money
Coats makes money primarily by selling industrial threads and related textile components to manufacturers and brands, with revenue recognized from the supply of these products through its global manufacturing and distribution network. Its key revenue...
Coats Group plc Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Financial statements indicate meaningful improvement: rising net income (2023–2025), a sharp step-up in operating and free cash flow in 2025, and a major de-leveraging with higher equity. Key risk is historical volatility (including a 2022 loss) and uneven revenue growth, so sustainability of the latest improvement remains the main watch-out.
Income Statement
74PositiveBalance Sheet
78PositiveCash Flow
81Very 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 | 335.62M | 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
Price Trends
Market Momentum
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 84.30 is above the 20-day moving average (MA) of 83.00, above the 50-day MA of 80.75, and above the 200-day MA of 81.24, indicating a bullish trend. The MACD of 0.85 indicates Positive momentum. The RSI at 60.28 is Neutral, neither overbought nor oversold. The STOCH value of 62.48 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
Overall Rating
GB:NXT80Outperform- GB:COA74Outperform
GB:MKS62Neutral
GB:ASC52.9Neutral
GB:BRBY50Neutral
GB:DEBS48Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:NXT | 80Outperform | GBP 17.53B | 19.19 | 58.63% | 4.09% | 12.52% | 19.24% |
| GB:COA | 74Outperform | GBP 1.61B | 20.94 | 14.43% | 2.95% | 4.98% | -17.37% |
| GB:MKS | 62Neutral | GBP 8.52B | 33.47 | 8.86% | 1.02% | 25.02% | -13.12% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| GB:ASC | 53Neutral | GBP 514.49M | -2.22 | -155.17% | ― | -15.00% | 21.71% |
| GB:BRBY | 50Neutral | GBP 3.80B | 183.45 | 2.29% | ― | -1.67% | ― |
| GB:DEBS | 48Neutral | GBP 390.77M | -5.27 | 183.74% | ― | 120.30% | 66.52% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:COA | Coats Group | 84.30 | 5.63 | 7.16% | |
| GB:ASC | ASOS plc | 430.00 | 194.50 | 82.59% | |
| GB:BRBY | Burberry Group plc | 1053.00 | -162.00 | -13.33% | |
| GB:MKS | Marks And Spencer (Uk) | 412.00 | 28.01 | 7.29% | |
| GB:NXT | Next Plc | 15355.00 | 1669.57 | 12.20% | |
| GB:DEBS | boohoo group Plc | 25.50 | 13.50 | 112.50% |
Coats Group plc Corporate Events
Coats Group Announces Board Departure and Committee Leadership Changes
NeutralCoats Group plc, a leading industrial thread and footwear components maker serving the apparel and footwear supply chain, leverages more than 250 years of expertise to deliver materials, components, and software that support customer growth and compe...
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.
Date of analysis: Oct 29, 2026