Coty

COTY

Household & Personal Products · Consumer Defensive

Price

$2.61

+0.12 (+4.82%)

Market Cap

$2.30B

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Share count rising — dilution

+14.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 764.8M (2021) → 872.1M (2025)

Coty Inc. makes beauty products — things like perfume, makeup, and skincare. It owns well-known brands including CoverGirl, Rimmel, and Hugo Boss fragrances, and it also licenses names like Gucci and Burberry to make high-end perfumes. The company sells to everyday shoppers through drugstores and mass retailers, as well as to luxury buyers through department stores and specialty shops.

Coty earns money by selling these products directly to retailers and through its own channels in over 125 countries, making it one of the larger beauty companies in the world. Its main competitive edge comes from its portfolio of licensed luxury fragrance brands, though those licenses must be renewed and can be lost. The company carries a significant amount of debt from past acquisitions, which limits its financial flexibility, and rebuilding profit margins while managing that debt load is the central challenge facing the business going forward.

Winston Score History

Politician Trades

1 trades / 12mo

1 Congressional buy and 0 sells on COTY in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-1.3% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+0.0% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$123M/ year

→ Flat (-3% vs prior year)

2.1% of revenue

In line with sector average (2%)

Steady R&D investment year-over-year

Insider Activity

57.3%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~3 months

$270M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Coty has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

56.0%

Premium pricing power — 56.0% gross margin

Operating Margin

-0.7%

Losing money on operations — -0.7%

ROCE

-0.1%

Weak — -0.1% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-8.1%

Shrinking sales (-8.1% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

2.4%

Thin free cash flow (2.4%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

1.09

Elevated debt (1.09)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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