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Coats Group PLC (COA) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 1.4B GBX

CG Coats Group PLC COA · LSE
Price£0.8045
Fair Value£0.6300
Upside-21.7%
Quality47/100
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Strengths

Moderate debt · generates free cash flow

Risks

!Trades 22% ABOVE our fair value of £0.6300
!Mixed Growth
!Thin margins · 7.1% net margin
!Mixed vs. peers (7/15)
Mixed Growth
Thin margins · 7.1% net margin
Moderate debt · generates free cash flow
4.30% dividend yield
Mixed vs. peers (7/15)
Moderate moat 61/100
Evidence: High Range £0.3400 – £1.00 Share as image

Fair value as of: Aug 20, 2026

From 26 valuation models · updated yesterday

Fair value updated Aug 20, 2026, revised from £0.8500 to £0.6300 (−25.9%) since Aug 13, 2026. Share price +5.0% over the past month.

Below-average quality, and screening another 22% overvalued on our models.

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What matters now

  • The model range is unusually wide (£0.3400 to £1.00). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (47/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

£0.9829 £0.4559 Fair Value £0.6300 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 20, 2026.

How to read this chart

60‑month range £0.4559 – £0.9829 · fair‑value band £0.3400 – £1.00 · the £0.8045 price screens above the £0.6300 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 20, 2026.

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Analysis

Coats Group PLC (COA) currently trades at £0.8045, while our model-based Fair Value estimate is £0.6300, implying the stock looks roughly 21.7% overvalued today. The Quality Score stands at 47/100 (below-average quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Coats Group PLC generated revenue of £1.5B at a net margin of 7.1%. Revenue grew 4.2% year over year. It earns a return on equity of 23.9%. Net debt stands at £908M. Fundamentals as of Aug 20, 2026

Our scenario range runs from £0.3400 (bear case) to £1.00 (bull case); at £0.8045, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Consumer Cyclical peers we cover trades at -7% fair-value upside, at -22%, COA screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF £0.5800 £1.06 £1.70 80
Residual Income £0.3500 £0.4200 £0.7600 76
Rev-Margin DCF £0.3500 £0.7600 £1.26 74
All 26 models by family
DCF Models
FCF DCF £0.5800 £1.09 £1.80 38
Owner Earnings £0.3000 £0.6700 £1.18 31
5Y Revenue Exit £0.3500 £0.7600 £1.27 39
5Y EBITDA Exit £0.9000 £1.82 £2.91 41
5Y P/E Exit £0.4600 £0.9700 £1.51 38
10Y Revenue Exit £0.4200 £0.7900 £1.30 36
10Y EBITDA Exit £0.7600 £1.48 £2.48 37
10Y P/E Exit £0.5000 £0.9300 £1.48 35
Earnings-Based
Graham-Dodd £0.3700 £1.34 £1.80 54
Lynch FV £0.3100 £0.4500 £0.5800 50
PEG = 1.0 £0.3100 £0.4500 £0.5800 46
EPV £0.5300 £0.6700 £0.7700 59
Dividend Discount
Gordon GGM £0.2200 £0.4000 £0.5500 70
DDM Multi-Stage £0.2200 £0.3700 £0.4300 61
Multiples
P/E Multiple £0.9100 £1.21 £1.52 63
P/S Multiple £0.7000 £0.9400 £1.17 58
P/B Multiple £0.7000 £0.9400 £1.17 55
EV/EBIT £1.66 £2.36 £3.05 53
EV/EBITDA £1.30 £1.87 £2.44 54
EV/Revenue £0.2300 £0.5100 £0.7900 43
Asset-Based
NCAV (Graham) £0.1900 £0.2500 £0.3800 50
Growth DCF
Growth DCF £0.5800 £1.06 £1.70 80
Rev-Margin DCF £0.3500 £0.7600 £1.26 74
Economic Profit
Residual Income £0.3500 £0.4200 £0.7600 76
ROIC Compounder £0.5700 £0.8100 £1.08 72
Growth Earnings
Growth-Adj P/E £0.6200 £0.8900 £1.15 68

Widest divergence: Multiples (£0.9400) versus Asset-Based (£0.2500). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 1.5B GBX
Revenue growth (YoY) +4.2%
Net margin 7.1%
Return on equity 23.9%
Free cash flow 198M GBX FY2025
P/E ratio 16.1
More key figures
Operating margin 17.4%
EPS (TTM) £0.0500
Dividend yield 4.1%
EPS growth (YoY) +92.4%
Net debt 908M GBX FY2025

Figures from reported company fundamentals · as of Aug 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 47 · Market factors (momentum, volatility) 45

Profitability 42
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 76
Earnings quality: real cash, not paper profit
Fin. Strength 34
Balance sheet, leverage, solvency risk
Investment 73
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 43
Distance to the 52-week high (market factor)
Net Issuance 16
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Coats Group plc engages in the provision of essential materials, components, and software solutions for the apparel and footwear industries in Europe, the Middle East, Africa, the Americas, and Asia. The company operates through two divisions Apparel and Footwear.

Full company description

Coats Group plc engages in the provision of essential materials, components, and software solutions for the apparel and footwear industries in Europe, the Middle East, Africa, the Americas, and Asia. The company operates through two divisions Apparel and Footwear. It provides industrial sewing threads for children's wear, denim, intimate and underwear, ladieswear, leather wear, menswear, sports and activewear, and workwear and uniforms applications, as well as offers supply chain components, services, and software. The company also offers engineered products comprising structural components, threads, and insoles for athleisure, performance, fashion, and sports footwear markets. In addition, it provides engineered solutions for industrial customers, including performance threads for various applications; and safety materials and fabrics, and composite products for telecom and energy applications. The company was formerly known as Guinness Peat Group plc and changed its name to Coats Group plc in February 2015. Coats Group plc was founded in 1755 and is based in London, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Coats Group PLC reported revenue of £1.5B in FY2025 versus £1.4B in FY2021, a compound +0.8%/yr. Reported net income was £106M in FY2025, compounding +4.4%/yr from FY2021.

Growth Quality 68/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£1.5B
Latest YoY
−0.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.9%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.2%
Avg. growth/yr (39Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.8%
Revenue +0.8%/yr
FY21 £1.4B
FY22 £1.6B
FY23 £1.4B
FY24 £1.5B
FY25 £1.5B
Net income +4.4%/yr
FY21 £88.9M
FY22 −£14.7M
FY23 £56.5M
FY24 £80.1M
FY25 £106M
Character of growth · EPS growth decomposed (2014-2025) +7.1 % p.a.
Revenue per share −2.3 pp

of which total revenue −0.5 pp · buybacks/dilution −1.9 pp

EBIT margin +7.2 pp
Tax rate +2.4 pp
Residual (interest, one-offs) −0.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

COA screens 22% overvalued. Compare with Shenzhou International Group →

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Cite: Fair Value Calculator (2026). "Coats Group PLC Fair Value". https://www.fairvalue-calculator.com/stock/COA

Peer Group

Textile Manufacturing · 321 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 47 · Below median
Fair Value upside −22% · Below median
Return on equity (TTM) 24% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 7% · Top 25%
Operating margin (TTM) 17% · Top 25%
Revenue growth 4% · Above median
Dividend yield (TTM) 4.1% · Top 25%
Debt / equity 1.45× · Higher than 75% of peers

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/E (TTM) 16.1× · Cheaper than median
P/B 2.70× · Pricier than 75% of peers
P/S (TTM) 1.33× · Pricier than median
P/FCF 9.8× · Pricier than 75% of peers
EV/EBITDA 8.9× · Pricier than median
PEG 1.17× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE4 · sector 11
FUTURE21 · sector 0
PAST96 · sector 15
HEALTH28 · sector 95
DIVIDEND82 · sector 34

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Textile Manufacturing stocks, each showing price versus our Fair Value estimate (as of Aug 20, 2026).

Stock Price Fair Value vs Fair Value
Shenzhou International Group 2313 HK$42.10 HK$68.24 +62%
Tongkun Group 601233 ¥22.67 ¥14.53 -36%
Inner Mongolia ERDOS Resources Co 600295 ¥12.79 ¥14.35 +12%
Far Eastern New Century Corporation 1402 27.55 TWD 25.64 TWD -7%
K.P.R. Mill Limited KPRMILL ₹1,124 ₹467.49 -58%
Vardhman Textiles Limited VTL ₹591.90 ₹437.53 -26%
Isiklar Enerji ve Yapi Holding IEYHO 174.20 TRY 324.31 TRY +86%
Ruentex Industries Ltd 2915 54.10 TWD 133.24 TWD +146%
Welspun Living Limited WELSPUNLIV ₹165.23 ₹47.77 -71%
Arvind Limited ARVIND ₹571.85 ₹322.41 -44%

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Frequently asked questions

Is Coats Group PLC (COA) overvalued or undervalued?
As of Aug 20, 2026, our model estimates a fair value of £0.6300 versus a price of £0.8045, about −22% (overvalued).
What is the fair value of COA?
Our model-based fair value for Coats Group PLC is £0.6300 (as of Aug 20, 2026), built from audited fundamentals. The current price: £0.8045.
What is the quality score of COA?
Coats Group PLC has a Quality Score of 47/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Coats Group PLC (COA)?
Coats Group PLC reported trailing-twelve-month revenue of about £1.5B (latest available figure, as of Aug 20, 2026).
What is the net profit margin of COA?
The net profit margin of Coats Group PLC is about 7.1%, meaning it keeps roughly 7.1% of revenue as net income. Based on the latest reported figures.
Does Coats Group PLC pay a dividend?
Coats Group PLC currently shows a dividend yield of about 4.14% relative to its recent price (as of Aug 20, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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