Coty Inc. Class A Common Stock (COTY)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable competitive advantages and consistent earning power. Coty owns recognizable beauty brands, but its financial record is not that of a stable compounder. In fiscal 2024, the year ended 2024-06-30, Coty earned $89.4M, or $0.09 per diluted share. By fiscal 2025, the year ended 2025-06-30, it lost $367.9M, or $0.44 per share. In fiscal 2026, the year ended 2026-06-30, the loss widened to $604.8M, or $0.70 per share, on revenue of $5.8B. Revenue slipped from $6.1B in fiscal 2024 to $5.9B in fiscal 2025 and $5.8B in fiscal 2026. Yet trailing free cash flow was $348.2M, a 13.4% FCF yield on the $2.6B market cap—FairStock calculations. That is a genuine positive, but weak profits, ROCE of 1.75%, negative Altman Z-Score of -0.54, and debt-to-equity of 0.98 argue the balance sheet and returns are fragile. The Piotroski F-Score of 5/9 is mediocre. At the close on 2026-10-13, the price was $2.95, with FairStock P/B of 0.87 and P/E of -4.21. A below-book price can attract a Graham-style investor, but negative earnings and an EV/EBITDA of 79.19 mean the cheapness depends on a turnaround that has not yet shown up in reported profits. The Lynch category is TURNAROUND: loss in the latest year after earlier profits. I would want evidence that losses are shrinking and cash flow is durable before calling this a margin of safety.

In plain English: Coty makes and sells beauty products such as fragrances, cosmetics, and skin care under brands including Calvin Klein and Burberry. The company is losing money: it lost money in fiscal 2026, after a loss in fiscal 2025 and a small profit in fiscal 2024. The stock looks inexpensive compared with its cash flow and the value of its assets after debts, but the losses and debt make the business look weak rather than strong.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer