Coty Inc Intrinsic Value – COTY INC Reports Fourth Quarter Earnings for FY2023
August 25, 2023
🌥️Earnings Overview
On June 30, 2023, COTY INC ($NYSE:COTY) announced its earnings results for the fourth quarter of FY2023. The company reported total revenue of USD 1351.6 million, a 15.7% increase from the same period a year ago. Additionally, net income rose 111.7%, coming in at USD 32.9 million.
Stock Price
Although the dip in stock price was disheartening for investors, the company’s overall growth since the beginning of the fiscal year has been encouraging. The company also made significant progress in terms of product innovation, launching several new products in the beauty and personal care categories. Additionally, the company has invested heavily in its marketing activities to promote its latest products. Going forward, COTY INC is expected to continue its growth trajectory and further strengthen its market position. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Coty Inc. More…
| Total Revenues | Net Income | Net Margin |
| 5.55k | 495 | 9.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Coty Inc. More…
| Operations | Investing | Financing |
| 625.7 | -118.2 | -469.3 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Coty Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 12.66k | 8.43k | 4.64 |
Key Ratios Snapshot
Some of the financial key ratios for Coty Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.6% | -12.9% | 17.4% |
| FCF Margin | ROE | ROA |
| 7.3% | 15.4% | 4.8% |
Analysis – Coty Inc Intrinsic Value
At GoodWhale, we have conducted an analysis of COTY INC‘s financials. Through our proprietary Valuation Line, we have determined that the intrinsic value of COTY INC share is around $9.0. However, the stock is currently traded at $10.7, representing a 19.4% overvaluation. We believe that this fair price is still slightly overpriced and investors should take caution when considering an investment in this company. More…
Peers
The company’s main competitors are Marico Ltd, Veeko International Holdings Ltd, and MAV Beauty Brands Inc.
– Marico Ltd ($BSE:531642)
Marico Ltd is an Indian consumer goods company. It is one of the largest consumer goods companies in India with a turnover of Rs 13,915 crore in FY20. The company has a diversified product portfolio with brands such as Parachute, Saffola, Hair & Care, Nihar, Set Wet, and Livon. Marico’s products are present in 25 countries and the company has a strong distribution network with over 4 million outlets. Marico’s brands have a strong presence in the mass market as well as the premium segments. The company has a strong focus on innovation and has introduced several new products in the last few years. Marico’s brands are well-known for their quality and the company has a strong focus on customer satisfaction. Marico has a strong commitment to sustainable development and has been awarded the ‘Greenest Company’ in India for three consecutive years.
– Veeko International Holdings Ltd ($SEHK:01173)
Veeko International Holdings Ltd is a Hong Kong-based investment holding company principally engaged in the design, manufacture and sale of leather goods. The Company operates its businesses through three segments. The Manufacturing and Trading of Leather Goods segment is engaged in the manufacturing and trading of leather goods, including leather shoes, belts and small leather goods. The Designing, Manufacturing and Trading of Non-leather Goods segment is engaged in the designing, manufacturing and trading of non-leather goods, such as wallets, bags, key cases and others. The Retail and Franchise Operations segment is engaged in the retailing of leather goods and non-leather products through company-operated stores and franchisees. As of December 31, 2011, the Company had a total of 22 directly operated stores and 5 franchisees.
– MAV Beauty Brands Inc ($TSX:MAV)
Mav Beauty Brands Inc is a Canadian company that manufactures and markets beauty products. The company has a market cap of 16.09M as of 2022 and a return on equity of -55.48%. Mav Beauty Brands Inc’s products include cosmetics, skincare, and haircare products. The company sells its products through its website and through retailers in Canada and the United States.
Summary
COTY INC‘s fourth quarter results of FY2023 were strong, as total revenue rose 15.7% to USD 1351.6 million and net income increased 111.7%. This signals a healthy upward trend for the company and is a positive sign for investors. The company’s strong performance indicates that COTY INC is in a good position to continue to gain market share and generate long-term returns for shareholders. As a result, investors should consider adding COTY INC to their portfolio to take advantage of its strong performance and growth prospects.
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