Manufactures prestige fragrances, skin care, and color cosmetics. Offers mass color cosmetics, fragrance, skin care, and body care products. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
The company closed last year at a loss: costs ran above sales. The picture changes only if spending is reined in.
Before the clock runs out, either sales must climb sharply or new money must come in. This is the most critical line in the whole picture.
Executives buying with their own money is usually read as confidence in the company’s future.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly below the class average.
Clearly below the class average.
Clearly below the class average.
Clearly below the class average.
Clearly above the class average — a step short of the very top.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
Growth: Sales growth trails the sector average.
An investor who bought at the very peak is down 80% today. The business is the same; what changed most is the price — and the expectations — the market pins on it.
Over the last 12 months, company executives reported 41 buys and 24 sells. Management buying with its own money is usually read as a good sign.
A loss of $604.8M against $5.8B in annual sales. And on top of that, sales fell from the year before.
At the current pace of spending, the cash lasts less than a year. After that, the company needs to find new money.
On our five-subject report card, COTY sits behind the class. A low grade doesn’t mean “doomed” — it means “big claim, small proof.”
The takeaway: COTY’s sales are going backwards, and it closed last year at a loss. The road back runs through both.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.