Coty Inc. (COTY) AI Stock Analysis

Coty Inc. is a global beauty manufacturer and distributor founded in 1904 and based in New York, New York. The business operates two core divisions: Prestige and Consumer Beauty. The Prestige segment sells prestige fragrances, color cosmetics, and skincare products through perfumeries, department stores, e-retailers, direct-to-consumer websites, and travel retail, with brands including Burberry, Gucci, Calvin Klein, Marc Jacobs, and Tiffany & Co. The Consumer Beauty segment provides mass-market cosmetics and personal care products through supermarkets, hypermarkets, pharmacies, drug stores, and e-commerce platforms. Key brands in this segment include CoverGirl, Max Factor, Rimmel, Sally Hansen, and Adidas, distributed across approximately 120 countries and territories.

Coty generated a 5-year revenue CAGR of 4.6% between FY2021 and FY2026. Revenue rose from $5.30B in FY2022 and $5.55B in FY2023 to a high of $6.12B in FY2024, before falling 3.7% in FY2025 to $5.89B and 1.5% in FY2026 to $5.81B. Operating margin contracted from 9.8% in FY2023 to 4.1% in FY2025, turning negative to -1.4% in FY2026. Net income followed a downward trajectory from $508.2M in FY2023 to -$367.9M in FY2025 and -$604.8M in FY2026. For the latest quarter ended June 30, 2026, quarterly revenue grew 1.3% year-over-year, while quarterly earnings dropped 22.2%.

As of June 30, 2026, Coty held $188.9M in cash and short-term investments against $3.44B in total debt, resulting in net debt of $3.25B. Shareholders' equity was $2.99B, producing a debt-to-equity ratio of 1.15, while the current ratio stood at 0.75. Coty delivered $537.8M in operating cash flow and $348.2M in free cash flow in FY2026. Cash deployment included $189.6M in capital expenditures and $13.2M in dividends paid, while share count rose 4.5% over 5 years.

Coty trades at a forward P/E of 7.9x, which is below the 14.3x median of its US-listed Consumer Defensive peers. Its price-to-sales ratio of 0.5x is lower than the peer median of 0.7x, and its price-to-book ratio is 0.8x. However, its EV to EBITDA multiple is elevated at 99.4x compared to the peer median of 11.7x. Over the 1-year period, Coty shares declined 22.9%, trailing the 16.8% gain of the S&P 500. Over 5 years, the stock fell 59.1% while the S&P 500 rose 83.0%.

Consensus ratings include 0 Strong Buy, 0 Buy, 15 Hold, 2 Sell, and 0 Strong Sell recommendations. The mean price target is $2.66, which is 16.9% below the last close of $3.20. For the fiscal year ending June 30, 2027, analysts project EPS of $0.33, up 56.1%, on revenue of $5.70B. Coty recorded 0 EPS beats over the last 4 quarters. The next earnings date is November 4, 2026.

This page is an AI-written research summary of Coty Inc. (COTY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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