LRLCF - Coty: A Stock For The Bravest

• A strong M&A strategy alongside massive dividend increases has increased payout ratios well above 100% in the past.
• The coronavirus pandemic crisis has caused massive pain to sales and EBITDA margins in the worst time possible.
• A reduction of ~$410 million per year in dividend and interest expenses will allow the company to be profitable again, but forget about the dividend for the medium term.
• The company is finally investing in growth and not just in net revenue increases, and should be profitable again during 2021.
• This stock is only for the brave ones, although in reality a successful turnaround, albeit slow, is most likely.

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