# Coty (COTY.US)

Canonical: https://gigainvestors.com/s/COTY

Analysis as of: 2026-10-16T07:27:40.052Z. Financial observations: FY2010–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

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

Share price: $3.19 per share; close as of 2026-10-15.

Estimated value: low $3.19 per share, central $3.62 per share, high $4.20 per share. Buy at or below the central value $3.62 per share. Valuation as of 2026-10-16T07:27:40.052Z; scenarios are not confidence intervals.

Expected annual return: 11.0% at the stated quote. About 11.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 7

- Operating margin variation: 128.93×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.06×

- FY2018: 0.02×

- FY2019: 0.05×

- FY2020: -0.26×

- FY2021: -0.01×

- FY2022: 0.05×

- FY2023: 0.10×

- FY2024: 0.09×

- FY2025: 0.04×

- FY2026: -0.01×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 2.8%

- ROIC, second-lowest year: -4.7%

- Typical minus recent gross margin: -0.6 pp

- Typical gross margin (annual median): 62.3%

- Recent gross margin (lower of latest and 3-year median): 62.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.0%

- ROIC including acquisitions, ten-year median: -0.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: -4.7%

- FY2018: 1.5%

- FY2019: 4.0%

- FY2020: -12.4%

- FY2021: -0.9%

- FY2022: 4.1%

- FY2023: 9.8%

- FY2024: 9.5%

- FY2025: 5.5%

- FY2026: -2.6%

### economics: fail

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $1.1B

- Net income, five-year total: -$116M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -2.1 pp

- Working capital / revenue, change between three-year averages: -16.5 pp

- Working capital / revenue, final three-year average: -8.6%

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: $602M

- FY2023: $712M

- FY2024: $265M

- FY2025: -$163M

- FY2026: -$312M

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 1.5% vs 5.5%

- Per-share earnings: -0.23 to -0.42 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- 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: 1.5%

- Ordinary dilution, 5-year annual growth: 2.8%

- Market cap gain: -$10B

- Cumulative retained earnings: -$5.4B

- Diluted shares, 10-year annual growth: 1.5%

- Diluted shares, 5-year annual growth: 2.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: -$0.20

- Per-share value, starting three-year median: -$0.23

- Per-share value, ending three-year median: -$0.42

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 0.2%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Acquisition spending: $13B

- Cumulative net income, 10 years: -$5.7B

- ROIC, first three-year median: 1.5%

- ROIC, last three-year median: 5.5%

Chart: Earnings per share; fiscal year observations.

- FY2017: -$0.66

- FY2018: -$0.23

- FY2019: -$5.02

- FY2020: -$1.33

- FY2021: -$0.26

- FY2022: $0.31

- FY2023: $0.57

- FY2024: $0.10

- FY2025: -$0.42

- FY2026: -$0.69

### accounting: pass

- Sloan accruals: -11.2%

- Receivables to sales index (DSRI): 0.81×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 8.6%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 2.20×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -5.2%

- FY2018: -2.6%

- FY2019: -25.0%

- FY2020: -5.7%

- FY2021: -3.8%

- FY2022: -3.9%

- FY2023: -0.9%

- FY2024: -4.3%

- FY2025: -7.2%

- FY2026: -11.2%

## Holders

- [Bill Miller](https://gigainvestors.com/LMM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Lee Ainslie](https://gigainvestors.com/mc): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 75% since Feb 2024 · "Coty Sees Weak Quarterly Profit, Withholds Annual Forecasts in “Transition Year”" (finance.yahoo.com, Aug 2026) · sales -1.5%

Story as of 2026-10-16T09:58:33.380Z; price observation 2026-10-15.

Price needs cash profits to shrink 0.7% a year for ten years

- 2025-08-20: Coty forecasts fall in current-quarter sales as US consumer caution persists ([finance.yahoo.com](https://finance.yahoo.com/news/coty-edges-past-quarterly-revenue-203940546.html))

- 2025-11-05: Coty Sees Sales Slip in Q1 as Gucci License Loss Looms ([finance.yahoo.com](https://finance.yahoo.com/news/coty-sees-sales-slip-q1-214744295.html))

- 2026-02-05: Coty Swings to Second-Quarter Loss, Withdraws Fiscal-Year Guidance ([finance.yahoo.com](https://finance.yahoo.com/m/d8edf132-b3e1-3aca-bfab-817637c93042/coty-swings-to-second-quarter.html))

- 2026-03-06: Coty Faces Slower Beauty Demand: What It Means for FY26 Sales ([finance.yahoo.com](https://finance.yahoo.com/news/coty-faces-slower-beauty-demand-150600852.html))

- 2026-05-06: Coty Loss Widens in Q3, Consumer Beauty Revenues Decline 4% ([finance.yahoo.com](https://finance.yahoo.com/news/coty-loss-widens-q3-consumer-164100988.html))

- 2026-07-08: Coty Secures $400 Million as Gucci Beauty License Ends Early ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/coty-secures-400-million-gucci-161937590.html))

### Sales · FY2025–2026

sales -1.5%; source https://www.sec.gov/Archives/edgar/data/1024305/000102430526000048/coty-20260630.htm; observed 2026-08-20.

- FY2017: $7.7B 

- FY2018: $9.4B 

- FY2019: $8.6B 

- FY2020: $4.7B 

- FY2021: $4.6B 

- FY2022: $5.3B 

- FY2023: $5.6B 

- FY2024: $6.1B 

- FY2025: $5.9B 

- FY2026: $5.8B 

### Gross margin · FY2026

gross margin 62.9%; source https://www.sec.gov/Archives/edgar/data/1024305/000102430526000048/coty-20260630.htm; observed 2026-08-20.

- FY2017: 60.4% 

- FY2018: 61.6% 

- FY2019: 61.8% 

- FY2020: 58.1% 

- FY2021: 60.0% 

- FY2022: 63.7% 

- FY2023: 63.9% 

- FY2024: 64.4% 

- FY2025: 64.8% 

- FY2026: 62.9% 

## Owner memo

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

### How it makes money

Operates in household & personal products; annual sales are USD 5.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1024305/000102430526000048/coty-20260630.htm (filed 2026-08-20); FY2026: revenue 5806600000; grossProfit 3652000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); COTY.US: Coty Inc., together with its subsidiaries, manufactures, markets, distributes, and sells branded beauty products in the United States and internationally. It operates through two segments: Prestige and Consumer Beauty. The company provides fragrances, color cosmetics, and skin and body care products. It offers prestige products through prestige retailers, including perfumeries, department stores, e-retailers, direct-to-consumer websites, and duty-free shops under Burberry, Calvin Klein, Chloe, Davidoff, Escada, Etro, Gucci, Hugo Boss, Infiniment Coty Paris, Jil Sander, Joop!, Kylie Cosmetics by Kylie Jenner, Lancaster, Marc Jacobs, Orveda, philosophy, and Tiffany & Co. brands. The company provides beauty products through hypermarkets, supermarkets, drug stores, pharmacies, mid-tier department stores, traditional food and drug retailers, and e-commerce retailers under the Adidas, David Beckham, Bozzano, Bourjois, Bruno Banani, CoverGirl, Jovan, LeGer by Lena Gercke, Max Factor, Mexx, Monange, Nautica, Paixao, Rimmel, Risque, Vera Wang, and Sally Hansen brands. It also sells its products through third-party distributors. Coty Inc. was founded in 1904 and is headquartered in New York, New York. Coty Inc. operates as a subsidiary of JAB Beauty B.V.

### Why customers stay

Margins ranged from 62.9% to 64.8% during 2024–26; it earns 2.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-20); FY2024: grossProfit / revenue = 64.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-20); FY2025: grossProfit / revenue = 64.8%.

- Source: https://www.sec.gov/Archives/edgar/data/1024305/000102430526000048/coty-20260630.htm (filed 2026-08-20); FY2026: grossProfit / revenue = 62.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-20); 10-year return on capital observations [[2017,-0.04698445905558876],[2018,0.015076478666477246],[2019,0.040166206059353775],[2020,-0.1236922745748547],[2021,-0.008959884250075845],[2022,0.04133057065934646],[2023,0.09783282210762194],[2024,0.09496646088885326],[2025,0.054912356570374216],[2026,-0.02636352469085251]]; median 0.02762134236291551. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-20); FY2018: growth capex 0; upkeep 446400000; owner earnings 121800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-20); FY2021: growth capex 0; upkeep 173900000; owner earnings 210100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-20); FY2022: growth capex 0; upkeep 174100000; owner earnings 601800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-20); FY2023: growth capex 0; upkeep 222800000; owner earnings 712100000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-20); FY2024: growth capex 0; upkeep 245200000; owner earnings 265300000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-20); Dividend observations: [[2017,372600000],[2018,375800000],[2019,346200000],[2020,196900000],[2021,25700000],[2022,57200000],[2023,13700000],[2024,13400000],[2025,13300000],[2026,13200000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 54.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); COTY.US SharesStats.PercentInsiders = 54.771 percentage points; cache date 2026-10-15.

### What the price says

The price assumes cash profits shrink 0.7% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-08-20); Ten-year compound average after fade. Initial solved rate -0.023118938370195907. Price 3.19; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.31738437001594894 → FY2026 -0.35582402552997494. Closing-price date 2026-10-15.

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

- 2016-10: $22.99 per share

- 2016-11: $18.71 per share

- 2016-12: $18.31 per share

- 2017-01: $19.20 per share

- 2017-02: $18.78 per share

- 2017-03: $18.13 per share

- 2017-04: $17.85 per share

- 2017-05: $18.94 per share

- 2017-06: $18.76 per share

- 2017-07: $20.48 per share

- 2017-08: $16.58 per share

- 2017-09: $16.53 per share

- 2017-10: $15.40 per share

- 2017-11: $17.23 per share

- 2017-12: $19.89 per share

- 2018-01: $19.61 per share

- 2018-02: $19.32 per share

- 2018-03: $18.30 per share

- 2018-04: $17.35 per share

- 2018-05: $13.25 per share

- 2018-06: $14.10 per share

- 2018-07: $13.41 per share

- 2018-08: $12.36 per share

- 2018-09: $12.56 per share

- 2018-10: $10.55 per share

- 2018-11: $8.34 per share

- 2018-12: $6.56 per share

- 2019-01: $7.76 per share

- 2019-02: $11.00 per share

- 2019-03: $11.50 per share

- 2019-04: $10.82 per share

- 2019-05: $12.34 per share

- 2019-06: $13.40 per share

- 2019-07: $10.91 per share

- 2019-08: $9.55 per share

- 2019-09: $10.51 per share

- 2019-10: $11.69 per share

- 2019-11: $11.54 per share

- 2019-12: $11.25 per share

- 2020-01: $10.26 per share

- 2020-02: $9.23 per share

- 2020-03: $5.16 per share

- 2020-04: $5.45 per share

- 2020-05: $3.63 per share

- 2020-06: $4.47 per share

- 2020-07: $3.71 per share

- 2020-08: $3.58 per share

- 2020-09: $2.70 per share

- 2020-10: $2.90 per share

- 2020-11: $7.19 per share

- 2020-12: $7.02 per share

- 2021-01: $6.37 per share

- 2021-02: $7.67 per share

- 2021-03: $9.01 per share

- 2021-04: $10.01 per share

- 2021-05: $8.91 per share

- 2021-06: $9.34 per share

- 2021-07: $8.73 per share

- 2021-08: $9.77 per share

- 2021-09: $7.86 per share

- 2021-10: $8.48 per share

- 2021-11: $9.73 per share

- 2021-12: $10.50 per share

- 2022-01: $8.48 per share

- 2022-02: $9.17 per share

- 2022-03: $8.99 per share

- 2022-04: $8.11 per share

- 2022-05: $7.09 per share

- 2022-06: $8.01 per share

- 2022-07: $7.32 per share

- 2022-08: $7.51 per share

- 2022-09: $6.32 per share

- 2022-10: $6.71 per share

- 2022-11: $7.87 per share

- 2022-12: $8.56 per share

- 2023-01: $9.96 per share

- 2023-02: $11.30 per share

- 2023-03: $12.06 per share

- 2023-04: $11.87 per share

- 2023-05: $10.84 per share

- 2023-06: $12.29 per share

- 2023-07: $12.04 per share

- 2023-08: $11.56 per share

- 2023-09: $10.97 per share

- 2023-10: $9.37 per share

- 2023-11: $11.40 per share

- 2023-12: $12.42 per share

- 2024-01: $12.08 per share

- 2024-02: $12.56 per share

- 2024-03: $11.96 per share

- 2024-04: $11.44 per share

- 2024-05: $10.36 per share

- 2024-06: $10.02 per share

- 2024-07: $9.95 per share

- 2024-08: $9.38 per share

- 2024-09: $9.39 per share

- 2024-10: $7.44 per share

- 2024-11: $7.39 per share

- 2024-12: $6.96 per share

- 2025-01: $7.33 per share

- 2025-02: $5.69 per share

- 2025-03: $5.47 per share

- 2025-04: $5.05 per share

- 2025-05: $4.93 per share

- 2025-06: $4.65 per share

- 2025-07: $4.85 per share

- 2025-08: $4.28 per share

- 2025-09: $4.04 per share

- 2025-10: $3.97 per share

- 2025-11: $3.32 per share

- 2025-12: $3.08 per share

- 2026-01: $3.17 per share

- 2026-02: $2.51 per share

- 2026-03: $2.01 per share

- 2026-04: $2.46 per share

- 2026-05: $2.13 per share

- 2026-06: $2.16 per share

- 2026-07: $2.75 per share

- 2026-08: $2.85 per share

- 2026-09: $2.61 per share

- 2026-10: $3.19 per share

## Annual estimated value (USD per share)

- FY2017: low $7.13 per share, central $8.04 per share, high $9.24 per share

- FY2018: low $1.97 per share, central $2.21 per share, high $2.54 per share

- FY2019: low $1.85 per share, central $2.08 per share, high $2.38 per share

- FY2022: low $1.05 per share, central $1.18 per share, high $1.34 per share

- FY2023: low $3.26 per share, central $3.69 per share, high $4.26 per share

- FY2024: low $3.64 per share, central $4.11 per share, high $4.74 per share

- FY2025: low $3.52 per share, central $3.98 per share, high $4.59 per share

- FY2026: low $3.21 per share, central $3.64 per share, high $4.21 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

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1024305/000102430526000048/coty-20260630.htm); period 2026-06-30, filed 2026-08-20.

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

- [Bill Miller](https://gigainvestors.com/LMM): 3,917,705 COTY shares; USD 8,462,000 reported position value; 2% of portfolio; new; quarter 2026 Q2.
- [Lee Ainslie](https://gigainvestors.com/mc): 1,005,317 COTY shares; USD 2,171,000 reported position value; 0.02% of portfolio; reduce; quarter 2026 Q2.

# COTY — Coty Inc.

Held by 2 investors · USD 10,633,000 total · 2026 Q2 · reported price USD 2.16 (split-adjusted).
Page: https://gigainvestors.com/s/COTY

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Bill Miller (https://gigainvestors.com/LMM) | USD 8,462,000 | 2.0% | new |
| Lee Ainslie (https://gigainvestors.com/mc) | USD 2,171,000 | <0.1% | reduce -20.33% |

## Total held by quarter

- 2018 Q4: USD 1,641,312 · 1 holder · USD 6.56
- 2019 Q1: USD 0 · 0 holders
- 2019 Q2: USD 0 · 0 holders
- 2019 Q3: USD 0 · 0 holders
- 2019 Q4: USD 0 · 0 holders
- 2020 Q1: USD 0 · 0 holders
- 2020 Q2: USD 0 · 0 holders
- 2020 Q3: USD 0 · 0 holders
- 2020 Q4: USD 0 · 0 holders
- 2021 Q1: USD 110,008 · 1 holder · USD 9.02
- 2021 Q2: USD 105,047 · 1 holder · USD 9.38
- 2021 Q3: USD 0 · 0 holders
- 2021 Q4: USD 0 · 0 holders
- 2022 Q1: USD 0 · 0 holders
- 2022 Q2: USD 0 · 0 holders
- 2022 Q3: USD 199,003 · 1 holder · USD 6.33
- 2022 Q4: USD 0 · 0 holders
- 2023 Q1: USD 0 · 0 holders
- 2023 Q2: USD 0 · 0 holders
- 2023 Q3: USD 0 · 0 holders
- 2023 Q4: USD 0 · 0 holders
- 2024 Q1: USD 0 · 0 holders
- 2024 Q2: USD 0 · 0 holders
- 2024 Q3: USD 0 · 0 holders
- 2024 Q4: USD 0 · 0 holders
- 2025 Q1: USD 0 · 0 holders
- 2025 Q2: USD 0 · 0 holders
- 2025 Q3: USD 0 · 0 holders
- 2025 Q4: USD 0 · 0 holders
- 2026 Q1: USD 2,536,284 · 1 holder · USD 2.01
- 2026 Q2: USD 10,633,000 · 2 holders · USD 2.16