Coty (Brazil) Buy Hold or Sell Recommendation
| COTY34 Stock | BRL 17.30 0.28 1.65% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Coty Inc is 'Strong Sell'. Macroaxis provides Coty buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Coty positions.
Check out Coty Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Coty and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Coty Inc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Coty |
Execute Coty Buy or Sell Advice
The Coty recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Coty Inc. Macroaxis does not own or have any residual interests in Coty Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Coty's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Coty Trading Alerts and Improvement Suggestions
| Coty Inc generated a negative expected return over the last 90 days | |
| Coty Inc has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| Coty Inc has accumulated 4.41 B in total debt with debt to equity ratio (D/E) of 96.6, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Coty Inc has a current ratio of 0.93, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Coty until it has trouble settling it off, either with new capital or with free cash flow. So, Coty's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Coty Inc sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Coty to invest in growth at high rates of return. When we think about Coty's use of debt, we should always consider it together with cash and equity. |
Coty Returns Distribution Density
The distribution of Coty's historical returns is an attempt to chart the uncertainty of Coty's future price movements. The chart of the probability distribution of Coty daily returns describes the distribution of returns around its average expected value. We use Coty Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Coty returns is essential to provide solid investment advice for Coty.
| Mean Return | -0.42 | Value At Risk | -4.97 | Potential Upside | 3.56 | Standard Deviation | 2.34 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Coty historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Coty Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Coty or Consumer Defensive sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Coty's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Coty stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.45 | |
β | Beta against Dow Jones | -0.18 | |
σ | Overall volatility | 2.37 | |
Ir | Information ratio | -0.14 |
Coty Volatility Alert
Coty Inc exhibits very low volatility with skewness of -0.38 and kurtosis of 3.73. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Coty's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Coty's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Coty Fundamentals Vs Peers
Comparing Coty's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Coty's direct or indirect competition across all of the common fundamentals between Coty and the related equities. This way, we can detect undervalued stocks with similar characteristics as Coty or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Coty's fundamental indicators could also be used in its relative valuation, which is a method of valuing Coty by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Coty to competition |
| Fundamentals | Coty | Peer Average |
| Return On Equity | 0.0381 | -0.31 |
| Return On Asset | 0.0204 | -0.14 |
| Profit Margin | 0.03 % | (1.27) % |
| Operating Margin | 0.08 % | (5.51) % |
| Current Valuation | 61.08 B | 16.62 B |
| Shares Outstanding | 1.71 B | 571.82 M |
| Price To Book | 2.29 X | 9.51 X |
| Price To Sales | 6.94 X | 11.42 X |
| Revenue | 5.3 B | 9.43 B |
| Gross Profit | 3.38 B | 27.38 B |
| EBITDA | 1.18 B | 3.9 B |
| Net Income | 259.5 M | 570.98 M |
| Cash And Equivalents | 384.1 M | 2.7 B |
| Cash Per Share | 0.51 X | 5.01 X |
| Total Debt | 4.41 B | 5.32 B |
| Debt To Equity | 96.60 % | 48.70 % |
| Current Ratio | 0.95 X | 2.16 X |
| Book Value Per Share | 4.14 X | 1.93 K |
| Cash Flow From Operations | 726.6 M | 971.22 M |
| Earnings Per Share | 0.34 X | 3.12 X |
| Price To Earnings To Growth | 0.76 X | 4.89 X |
| Number Of Employees | 11.01 K | 18.84 K |
| Beta | 1.87 | -0.15 |
| Market Capitalization | 50.18 B | 19.03 B |
| Total Asset | 12.12 B | 29.47 B |
| Z Score | 6.6 | 8.72 |
| Net Asset | 12.12 B |
Coty Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Coty . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Daily Balance Of Power | 9.2 T | |||
| Rate Of Daily Change | 1.02 | |||
| Day Median Price | 17.3 | |||
| Day Typical Price | 17.3 | |||
| Price Action Indicator | 0.14 | |||
| Period Momentum Indicator | 0.28 | |||
| Relative Strength Index | 36.3 |
About Coty Buy or Sell Advice
When is the right time to buy or sell Coty Inc? Buying financial instruments such as Coty Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Additional Information and Resources on Investing in Coty Stock
When determining whether Coty Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Coty's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Coty Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Coty Inc Stock:Check out Coty Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the CEOs Directory module to screen CEOs from public companies around the world.