# Coats Group (COA.LSE)

Canonical: https://gigainvestors.com/s/COA.LSE

Analysis as of: 2026-10-16T07:40:36.435Z. Financial observations: FY2015–FY2025.

Listing currency: GBX. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 84.55 per share; close as of 2026-10-15.

Estimated value: low GBX 47.46 per share, central GBX 52.90 per share, high GBX 60.14 per share. Buy at or below the central value GBX 52.90 per share. Valuation as of 2026-10-16T07:40:36.435Z; scenarios are not confidence intervals.

Expected annual return: 7.0% at the stated quote. About 7.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 1

- Operating margin variation: 0.24×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.11×

- FY2017: 0.11×

- FY2018: 0.10×

- FY2019: 0.14×

- FY2020: 0.09×

- FY2021: 0.12×

- FY2022: 0.11×

- FY2023: 0.13×

- FY2024: 0.13×

- FY2025: 0.20×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 16.6%

- ROIC, second-lowest year: 13.1%

- Typical minus recent gross margin: 0.3 pp

- Typical gross margin (annual median): 35.0%

- Recent gross margin (lower of latest and 3-year median): 34.7%

- Years with nonpositive capital: 1

- Capital spending / revenue: 2.2%

- ROIC including acquisitions, ten-year median: 10.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 21.3%

- FY2017: 22.3%

- FY2018: 20.4%

- FY2019: 26.1%

- FY2020: 13.1%

- FY2021: 15.3%

- FY2022: 11.9%

- FY2023: 13.2%

- FY2024: 17.1%

- FY2025: 16.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.22×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $383M

- Net income, five-year total: $314M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 1.8 pp

- Working capital / revenue, final three-year average: 16.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.02×

- FY2022: 0.81×

- FY2023: 1.36×

- FY2024: 1.32×

- FY2025: 1.18×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 21.3% vs 16.2%

- Per-share earnings: 0.04 to 0.05 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 3.6%

- Ordinary dilution, 5-year annual growth: 6.5%

- Market cap gain: $1.2B

- Cumulative retained earnings: $274M

- Diluted shares, 10-year annual growth: 3.6%

- Diluted shares, 5-year annual growth: 6.5%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 2.2%

- Per-share value change: $0.01

- Per-share value, starting three-year median: $0.04

- Per-share value, ending three-year median: $0.05

- Buybacks concentrated in cheaper years (correlation): 0.43

- Average buyback yield: 0.4%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: $1.2B

- Cumulative net income, 10 years: $616M

- ROIC, first three-year median: 21.3%

- ROIC, last three-year median: 16.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.04

- FY2017: $0.06

- FY2018: $0.03

- FY2019: $0.07

- FY2020: $0.02

- FY2021: $0.06

- FY2022: -$0.01

- FY2023: $0.03

- FY2024: $0.05

- FY2025: $0.05

### accounting: pass

- Sloan accruals: -4.9%

- Receivables to sales index (DSRI): 1.19×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.24×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.90×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 3.3%

- FY2017: 23.5%

- FY2018: -4.8%

- FY2019: -3.7%

- FY2020: -3.2%

- FY2021: -2.6%

- FY2022: -5.8%

- FY2023: -3.9%

- FY2024: -1.0%

- FY2025: -4.9%

## Holders

## Price story

Price needs cash profits to grow 7.6% a year for ten years · sales -2.4%

Story as of 2026-10-16T10:00:11.554Z; price observation 2026-10-15.

Price needs cash profits to grow 7.6% a year for ten years

### Sales · FY2024–2025

sales -2.4%; source https://filings.xbrl.org/2138003SPYWGAITNFY17/2025-12-31/ESEF/GB/0/2138003SPYWGAITNFY17-2025-12-31/reports/2138003SPYWGAITNFY17-2025-12-31-T01.xhtml; observed 2026-03-18.

- FY2016: $1.5B 

- FY2017: $1.5B 

- FY2018: $1.4B 

- FY2019: $1.4B 

- FY2020: $1.2B 

- FY2021: $1.4B 

- FY2022: $1.6B 

- FY2023: $1.4B 

- FY2024: $1.5B 

- FY2025: $1.5B 

### Gross margin · FY2025

gross margin 39.2%; source https://filings.xbrl.org/2138003SPYWGAITNFY17/2025-12-31/ESEF/GB/0/2138003SPYWGAITNFY17-2025-12-31/reports/2138003SPYWGAITNFY17-2025-12-31-T01.xhtml; observed 2026-03-18.

- FY2016: 38.8% 

- FY2017: 38.2% 

- FY2018: 35.9% 

- FY2019: 35.4% 

- FY2020: 30.2% 

- FY2021: 31.9% 

- FY2022: 30.7% 

- FY2023: 34.7% 

- FY2024: 34.0% 

- FY2025: 39.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in textile manufacturing; annual sales are USD 1.5 billion.

- Source: https://filings.xbrl.org/2138003SPYWGAITNFY17/2025-12-31/ESEF/GB/0/2138003SPYWGAITNFY17-2025-12-31/reports/2138003SPYWGAITNFY17-2025-12-31-T01.xhtml (filed 2026-03-18); FY2025: revenue 1464900000; grossProfit 573800000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); COA.LSE: Coats Group plc engages in the provision of essential materials, components, and software solutions for the apparel and footwear industries in Europe, the Middle East, Africa, the Americas, and Asia. The company operates through two divisions Apparel and Footwear. It provides industrial sewing threads for children's wear, denim, intimate and underwear, ladieswear, leather wear, menswear, sports and activewear, and workwear and uniforms applications, as well as offers supply chain components, services, and software. The company also offers engineered products comprising structural components, threads, and insoles for athleisure, performance, fashion, and sports footwear markets. In addition, it provides engineered solutions for industrial customers, including performance threads for various applications; and safety materials and fabrics, and composite products for telecom and energy applications. The company was formerly known as Guinness Peat Group plc and changed its name to Coats Group plc in February 2015. Coats Group plc was founded in 1755 and is based in London, the United Kingdom.

### Why customers stay

Margins ranged from 34% to 39.2% during 2023–25; it earns 16.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2023: grossProfit / revenue = 34.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2024: grossProfit / revenue = 34%.

- Source: https://filings.xbrl.org/2138003SPYWGAITNFY17/2025-12-31/ESEF/GB/0/2138003SPYWGAITNFY17-2025-12-31/reports/2138003SPYWGAITNFY17-2025-12-31-T01.xhtml (filed 2026-03-18); FY2025: grossProfit / revenue = 39.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); 10-year return on capital observations [[2016,0.21346401028277634],[2017,0.22312343794355174],[2018,0.20426190984832301],[2019,0.2611240419429163],[2020,0.13145351118085524],[2021,0.15307448029859594],[2022,0.1186466317063332],[2023,0.13246206667405028],[2024,0.17128725929833816],[2025,0.16161597506090003]]; median 0.1664516171796191. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 9.2 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2016: growth capex 0; upkeep 40100000; owner earnings 59900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2017: growth capex 8100000; upkeep 42000000; owner earnings 80800000. Growth capex / owner earnings = 0.10024752475247525.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2018: growth capex 0; upkeep 47600000; owner earnings 28000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2019: growth capex 0; upkeep 44300000; owner earnings 91500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2020: growth capex 0; upkeep 15400000; owner earnings 53800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2021: growth capex 0; upkeep 31200000; owner earnings 90600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2023: growth capex 0; upkeep 31000000; owner earnings 76840000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); FY2024: growth capex 0; upkeep 27700000; owner earnings 105360000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/2138003SPYWGAITNFY17/2025-12-31/ESEF/GB/0/2138003SPYWGAITNFY17-2025-12-31/reports/2138003SPYWGAITNFY17-2025-12-31-T01.xhtml (filed 2026-03-18); FY2025: growth capex 0; upkeep 32773465; owner earnings 122246535. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); Dividend observations: [[2016,17600000],[2017,17600000],[2018,21100000],[2019,24100000],[2020,200000],[2021,27400000],[2022,33000000],[2023,40300000],[2024,46200000],[2025,54724543]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/2138003SPYWGAITNFY17/2025-12-31/ESEF/GB/0/2138003SPYWGAITNFY17-2025-12-31/reports/2138003SPYWGAITNFY17-2025-12-31-T01.xhtml (filed 2026-03-18); FY2025: cash repurchases 9188821 USD.

### Are managers owners

Insiders own 1.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); COA.LSE SharesStats.PercentInsiders = 1.098 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 7.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-18); Ten-year compound average after fade. Initial solved rate 0.09595617768698472. Price 84.55; FX 75.34943299551671; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.03361416571181651 → FY2025 0.06124895034611022. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 37.50 per share

- 2016-11: GBX 38.00 per share

- 2016-12: GBX 54.50 per share

- 2017-01: GBX 57.00 per share

- 2017-02: GBX 55.75 per share

- 2017-03: GBX 58.00 per share

- 2017-04: GBX 64.25 per share

- 2017-05: GBX 74.50 per share

- 2017-06: GBX 78.00 per share

- 2017-07: GBX 79.30 per share

- 2017-08: GBX 79.00 per share

- 2017-09: GBX 78.20 per share

- 2017-10: GBX 85.55 per share

- 2017-11: GBX 82.00 per share

- 2017-12: GBX 89.15 per share

- 2018-01: GBX 78.50 per share

- 2018-02: GBX 82.10 per share

- 2018-03: GBX 76.60 per share

- 2018-04: GBX 79.10 per share

- 2018-05: GBX 80.80 per share

- 2018-06: GBX 77.70 per share

- 2018-07: GBX 83.00 per share

- 2018-08: GBX 83.40 per share

- 2018-09: GBX 82.40 per share

- 2018-10: GBX 80.50 per share

- 2018-11: GBX 81.30 per share

- 2018-12: GBX 81.50 per share

- 2019-01: GBX 87.70 per share

- 2019-02: GBX 88.60 per share

- 2019-03: GBX 79.10 per share

- 2019-04: GBX 86.40 per share

- 2019-05: GBX 77.70 per share

- 2019-06: GBX 81.95 per share

- 2019-07: GBX 79.75 per share

- 2019-08: GBX 73.15 per share

- 2019-09: GBX 74.35 per share

- 2019-10: GBX 71.30 per share

- 2019-11: GBX 72.15 per share

- 2019-12: GBX 74.60 per share

- 2020-01: GBX 75.70 per share

- 2020-02: GBX 59.40 per share

- 2020-03: GBX 42.48 per share

- 2020-04: GBX 46.00 per share

- 2020-05: GBX 53.90 per share

- 2020-06: GBX 56.00 per share

- 2020-07: GBX 56.70 per share

- 2020-08: GBX 55.20 per share

- 2020-09: GBX 55.90 per share

- 2020-10: GBX 56.80 per share

- 2020-11: GBX 65.40 per share

- 2020-12: GBX 67.30 per share

- 2021-01: GBX 61.50 per share

- 2021-02: GBX 62.20 per share

- 2021-03: GBX 56.90 per share

- 2021-04: GBX 58.40 per share

- 2021-05: GBX 66.20 per share

- 2021-06: GBX 68.10 per share

- 2021-07: GBX 70.10 per share

- 2021-08: GBX 76.30 per share

- 2021-09: GBX 67.40 per share

- 2021-10: GBX 64.40 per share

- 2021-11: GBX 61.40 per share

- 2021-12: GBX 69.20 per share

- 2022-01: GBX 65.30 per share

- 2022-02: GBX 61.30 per share

- 2022-03: GBX 76.70 per share

- 2022-04: GBX 71.00 per share

- 2022-05: GBX 69.50 per share

- 2022-06: GBX 62.30 per share

- 2022-07: GBX 73.90 per share

- 2022-08: GBX 60.10 per share

- 2022-09: GBX 50.90 per share

- 2022-10: GBX 60.50 per share

- 2022-11: GBX 66.50 per share

- 2022-12: GBX 66.20 per share

- 2023-01: GBX 72.70 per share

- 2023-02: GBX 73.20 per share

- 2023-03: GBX 73.70 per share

- 2023-04: GBX 78.20 per share

- 2023-05: GBX 69.40 per share

- 2023-06: GBX 69.60 per share

- 2023-07: GBX 70.00 per share

- 2023-08: GBX 76.70 per share

- 2023-09: GBX 73.30 per share

- 2023-10: GBX 67.60 per share

- 2023-11: GBX 66.00 per share

- 2023-12: GBX 77.40 per share

- 2024-01: GBX 71.60 per share

- 2024-02: GBX 68.00 per share

- 2024-03: GBX 81.10 per share

- 2024-04: GBX 81.50 per share

- 2024-05: GBX 85.70 per share

- 2024-06: GBX 79.20 per share

- 2024-07: GBX 89.50 per share

- 2024-08: GBX 98.40 per share

- 2024-09: GBX 100.40 per share

- 2024-10: GBX 94.80 per share

- 2024-11: GBX 96.30 per share

- 2024-12: GBX 94.40 per share

- 2025-01: GBX 96.00 per share

- 2025-02: GBX 87.30 per share

- 2025-03: GBX 79.00 per share

- 2025-04: GBX 72.40 per share

- 2025-05: GBX 78.80 per share

- 2025-06: GBX 79.50 per share

- 2025-07: GBX 74.00 per share

- 2025-08: GBX 76.70 per share

- 2025-09: GBX 83.30 per share

- 2025-10: GBX 81.80 per share

- 2025-11: GBX 80.80 per share

- 2025-12: GBX 84.50 per share

- 2026-01: GBX 85.10 per share

- 2026-02: GBX 93.30 per share

- 2026-03: GBX 80.20 per share

- 2026-04: GBX 83.10 per share

- 2026-05: GBX 81.70 per share

- 2026-06: GBX 77.95 per share

- 2026-07: GBX 80.20 per share

- 2026-08: GBX 81.20 per share

- 2026-09: GBX 82.50 per share

- 2026-10: GBX 84.55 per share

## Annual estimated value (GBX per share)

- FY2019: low GBX 39.77 per share, central GBX 44.19 per share, high GBX 50.08 per share

- FY2020: low GBX 32.92 per share, central GBX 37.11 per share, high GBX 42.69 per share

- FY2021: low GBX 47.40 per share, central GBX 53.39 per share, high GBX 61.35 per share

- FY2022: low GBX 44.70 per share, central GBX 49.94 per share, high GBX 56.92 per share

- FY2023: low GBX 43.89 per share, central GBX 49.27 per share, high GBX 56.43 per share

- FY2024: low GBX 47.31 per share, central GBX 53.10 per share, high GBX 60.79 per share

- FY2025: low GBX 45.51 per share, central GBX 50.73 per share, high GBX 57.68 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:46:19.187Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/2138003SPYWGAITNFY17/2025-12-31/ESEF/GB/0/2138003SPYWGAITNFY17-2025-12-31/reports/2138003SPYWGAITNFY17-2025-12-31-T01.xhtml); period 2025-12-31, filed 2026-03-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations