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Coty COTY

Coty scores weak on business quality (3.1 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$2.85Oct 10, 2026
Business qualityWeak
Next earningsNov 3, 2026
Insiders, 90 daysQuiet

Why it matters

  1. What Coty does

    Coty sells fragrances, cosmetics, and skincare products globally, relying on retail partners and distributors to reach consumers. Retailers and end-users pay for prestige and mass-market beauty brands that drive its top-line revenue.

  2. What it does best

    Coty commands a gross margin of 62.9%, landing it in the top decile of its sector. This reflects strong pricing power in prestige fragrances compared to peers like BRBR at 28.6%.

  3. The main risk

    With interest coverage at a thin 1.6x, earnings can barely cover debt servicing costs. Any further margin contraction risks triggering a severe liquidity squeeze.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityWeak

Operating margin sits at 5.2% while net margin is negative 10.6%, leading to a weak -18.3% ROE. Profitability fails to expand cleanly on current revenue scale.

MoatFair

The brand portfolio secures consumer loyalty and retail shelf space, supported by a top-decile gross margin rank. Rivals struggle to easily replicate its licensed prestige fragrance ecosystem.

GrowthSlow

Revenue fell 1.5% to $5.8B over the latest period, continuing a multi-year downward trend from $6.1B in 2024. The top-line contraction is actively worsening.

Financial healthWeak

Total debt sits at $3.2B against $176M in cash, leaving net debt at $3.0B. Free cash flow reached $348M, showing the business remains cash generative despite broader strains.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

No open market buys or unplanned sales by executives or directors.

Our sealed record on COTY

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is COTY a good business?

Coty scores weak on the Cluenex quality check (3.1 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health weak.

Are insiders buying COTY?

In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.

When does COTY report earnings?

Nov 3, 2026.

For members

See COTY today

  • Today's verdict on COTY, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Coty (COTY)”, https://cluenex.com/stocks/coty/, data as of Oct 10, 2026.