Does COTY INC. have an economic moat?

Based on its FY2025 SEC filings, the Moat Index scores COTY INC. (COTY) 34.5 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 99, returns on capital 0, balance-sheet safety 0, capital discipline 24.

Is COTY stock trading below its intrinsic value?

Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $3.38 per share versus a recent price of $2.61 — 23% below value. This is an educational estimate computed from primary SEC filings, not investment advice.

How has COTY's Moat Score changed over time?

The record logs 3 readings since Jul 17, 2026; the latest reads 34.5 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

The Moat Index

COTY INC.

COTY · Materials · $2.3B mkt cap · FY2025 filings · No moat ·

Doesn't clear the bar

No moat

The four filters

Pricing power99

Median gross margin 60.3% over 10y, very stable.

Returns on capital0

Median ROIC 0.8%, above the 9% hurdle in 0% of years.

Balance-sheet safety0

Net debt/EBITDA 5.6x, interest coverage 1x.

Capital discipline24

Owner earnings trend unclear, share count growing (dilution).

Margin of safety

Above valueOn sale

23% below value

Owner earnings (normalized): $265.3M
Est. intrinsic value / share: $3.38
Recent price: $2.61
Discount to value: 23% below value

Conservative model: 9% discount rate, 0% assumed growth (capped at 4%), maintenance capex ≈ min(capex, D&A).

15 years of fundamentals

The business, in plain English

COTY INC. booked $5.9B of revenue in FY2025 in the Materials sector and kept 64.8% of it as gross profit — a high-margin business by that measure. After every other cost, −6.2% of each revenue dollar reached the bottom line.

Across the filed record, revenue grew from $4.6B (FY2012) to $5.9B (FY2025) — about 1.9% a year compounded over 13 years.

It earned 2.6% on invested capital in FY2025, with a median of 2.1% across 13 filed years. The Returns on Capital filter above scores it 0/100.

The balance sheet carried $4.0B of total debt in FY2025. Balance-Sheet Safety scores it 0/100.

The share count rose 127.9% between FY2013 and FY2025 — existing owners have been diluted over the record. Capital Discipline scores it 24/100.

Put together: Pricing Power is the strongest of the four filters (99/100) and Returns on Capital the weakest (0/100), which is how COTY lands at 35/100 — a None moat.

This breakdown is generated from the filed numbers and sub-scores above — no outside narrative, no estimates. Where a filing doesn’t disclose an input, the sentence that would need it is omitted instead of guessed.

RevenueSales, as filed$5.9B FY2025

Gross marginRevenue kept after cost of goods64.8% FY2025

Return on invested capitalOperating profit on the capital employed2.6% FY2025

Owner earningsCash an owner could take out−$162.9M FY2025

Gaps in a line mean that item isn’t in COTY’s filings for that year — the series is never interpolated or estimated. The Table view lists every filed value, including operating and net margins, total debt, and share count.

Moat Score history

Moat Score over timeLast scored reading of each day, on the 0–100 scale34.5 / 100

Score history begins Jul 17, 2026 — the record builds from here and can’t be backfilled.

Tier changesSame-methodology crossings of the Wide / Narrow / Shallow bars

None yet — COTY has read No moat for every logged capture since Jul 17, 2026.

Scores are logged append-only and never overwritten — this record can’t be backfilled, which is exactly why it’s worth keeping.

Materials context

#128 of 214 scored Materials companies, ranked by Moat Score.

Nearest peers by Moat Score

#126CLF CLEVELAND-CLIFFS INC.34.8 out of 100, No moatNo moat
#127RES RPC, INC.34.7 out of 100, No moatNo moat
#129RITE MINERALRITE CORPORATION34.4 out of 100, No moatNo moat
#130GPK Graphic Packaging Holding Co34.1 out of 100, No moatNo moat

Compare COTY with its nearest peers →All Materials companies on the Index →

Common questions about COTY

Does COTY INC. have an economic moat?: Based on its FY2025 SEC filings, the Moat Index scores COTY INC. (COTY) 34.5 out of 100 — below the Shallow-moat bar, so no moat. The four filters behind that score (each 0–100): pricing power 99, returns on capital 0, balance-sheet safety 0, capital discipline 24.
Is COTY stock trading below its intrinsic value?: Against a deliberately conservative owner-earnings model (9% discount rate, 0% assumed growth, capped at 4%), estimated intrinsic value is $3.38 per share versus a recent price of $2.61 — 23% below value. This is an educational estimate computed from primary SEC filings, not investment advice.
How has COTY's Moat Score changed over time?: The record logs 3 readings since Jul 17, 2026; the latest reads 34.5 out of 100 (no moat). No tier changes on record yet. The history is append-only — readings are only ever added, never rewritten.

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Scored from primary SEC filings via the public methodology. Educational only — not a recommendation to buy or sell COTY. See the disclaimer.