# COATS GROUP PLC (COA.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Consumer Cyclical / Textiles, Apparel & Luxury Goods. Price 81p, market value 1.6 billionp.

## Valuation
- **P/E (trailing): 20.4×** (5-yr avg 1618.5×, 3-yr avg 1858.2×). COATS GROUP PLC trades at 20.4× trailing earnings, well below its own five-year average of 1618.5×: cheap by its own standards. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 9.7×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.51**. A PEG of 0.51 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.7×**. Each dollar of revenue is priced at 0.7×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.9×**. The shares trade at 2.9× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 5.1×**. Enterprise value is 5.1× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 12.4%** (5-yr avg 0.1%). Free cash flow equals 12.4% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.9%**. The inverse of the P/E: 4.9% of the price is earned each year.

## Profitability
- **Gross margin: 36.0%**. COATS GROUP PLC keeps 36.0% of revenue after the direct cost of what it sells.
- **Operating margin: 14.9%**. 14.9% of revenue is left after running the business.
- **Net margin: 7.1%**. 7.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 14.3%**. 14.3% on shareholders' equity is solid.
- **Return on invested capital: 17.2%**. Return on all capital, debt included, is 17.2%: comfortably above what that capital costs.
- **Return on assets: 7.1%**. Each dollar of assets produces 7.1% of profit.

## Growth
- **Revenue growth (1 yr): -2.4%** (3-yr -2.6%/yr, 5-yr 4.7%/yr). Revenue fell 2.4% over the last year, against 4.7% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 19.1%** (3-yr 7.0%/yr, 5-yr 26.5%/yr). Earnings per share rose 19.1%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 46.9%/yr**. Free cash flow has compounded at 46.9% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 1.58**. Debt is 1.58 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 1.5×**. It would take 1.5 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 5.8×**. Operating profit covers interest 5.8× over, a safe margin.
- **Current ratio: 1.56** (quick 1.20). Current assets cover the next year's liabilities 1.56 times.
- **Altman Z-score: 1.98**. A Z-score of 1.98 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.06%** (0p per share, trailing). COATS GROUP PLC yields 3.06%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 53%** (38% of free cash flow). 53% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Shareholder yield: 3.9%**. Dividends plus net buybacks return 3.9% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (5 analysts). 5 analysts cover COATS GROUP PLC; the consensus is strong_buy, with an average price target of 121p (+49% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 5.1%** (YTD -4.2%, 3-mo 2.9%). The shares are up 5.1% over twelve months including dividends.
- **From 52-week high: -17.0%** (11.3% above the low). Trading 17% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 51**. An RSI of 51 is neutral.
- **Beta (1 yr): 0.96** (volatility 28%). Beta of 0.96 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=COA.L · Page: https://foliofundamentals.com/stocks/coa.l

Not investment advice.