olivLaw · European equity research
Coats Group plc COA.L
United Kingdom · London Stock Exchange · ISIN GB00B4YZN328 · Vertical: Listed companies from United Kingdom
Coats Group is a global maker of sewing thread and components for footwear and apparel, holding a leading position in premium thread. The company completed the acquisition of OrthoLite, the global leader in premium insoles, in October 2025, which changed its financial profile and divisional structure. The figures below come only from its 2025 annual report.
At the close of 05 Nov 2026, Coats Group plc (COA.L) stock was 0.84 GBP (−1.63% on the day), with beta 0.70, 52-week range 0.75–0.95 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 54.8
- neutral
- Bollinger (20, 2)
- 0.82 – 0.87
- in the upper half of the band · %B 0.54 · band width 5.6%
- SMA 50 / 200
- 0.82 / 0.83
- mixed trend
- MACD (12, 26, 9)
- 0.01 / 0.01
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +4.0% | −0.6% | +4.7 pp | — |
| 3 months | −1.3% | −4.2% | +2.9 pp | — |
| 6 months | −0.1% | +4.3% | −4.4 pp | — |
| Year to date | −0.2% | +7.5% | −7.7 pp | — |
| 1 year | +3.9% | +9.9% | −6.0 pp | +5.8% |
| 3 years | +21.7% | +49.8% | −28.1 pp | +26.3% |
| 5 years | +23.1% | +42.8% | −19.7 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
the price (USD) and the reports are in different currencies
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 1.4 bn | 1.4 bn | 1.5 bn |
| Revenue YoY | unavailable | +2.8% | +2.2% |
| Net income | 56.5 m | 80.1 m | 103.4 m |
| Net income YoY | unavailable | +41.8% | +29.1% |
| Diluted EPS | 0.03 | 0.05 | 0.06 |
| Diluted EPS YoY | unavailable | +41.7% | +19.1% |
| net % | 4.1% | 5.6% | 7.1% |
| Free cash flow | unavailable | unavailable | unavailable |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 232.0 m USD
- Financial debt
- 1.0 bn USD
- Net debt
- 814.2 m USD
- Equity
- 763.3 m USD
- Total assets
- 2.6 bn USD
- Debt / equity
- 1.37x
- Current ratio
- 1.56x
- ROE
- 18.1%
- ROA
- 4.9%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 1.4 bn | 1.4 bn | 1.5 bn | esef· 18 Mar 2026verified |
| Cost of revenue | 929.1 m | 905.0 m | 891.1 m | esef· 18 Mar 2026verified |
| Gross profit | 465.1 m | 528.0 m | 573.8 m | esef· 18 Mar 2026verified |
| Operating income | 184.0 m | 224.5 m | 241.4 m | esef· 18 Mar 2026verified |
| Interest expense | 33.9 m | 31.5 m | 52.1 m | esef· 18 Mar 2026verified |
| Pre-tax income | 155.8 m | 198.0 m | 201.6 m | esef· 18 Mar 2026verified |
| Income tax | 55.0 m | 71.5 m | 64.9 m | esef· 18 Mar 2026verified |
| Net income | 56.5 m | 80.1 m | 103.4 m | esef· 18 Mar 2026verified |
| Diluted EPS | 0.03 | 0.05 | 0.06 | esef· 18 Mar 2026verified |
Balance sheet · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 132.4 m | 146.0 m | 232.0 m | esef· 18 Mar 2026verified |
| Receivables | 292.0 m | 292.2 m | 336.3 m | esef· 18 Mar 2026verified |
| Inventories | 173.5 m | 176.1 m | 173.5 m | esef· 18 Mar 2026verified |
| Current assets | 600.5 m | 616.4 m | 743.7 m | esef· 18 Mar 2026verified |
| Property, plant & equipment, net | 243.2 m | 226.3 m | 248.7 m | esef· 18 Mar 2026verified |
| Goodwill | 126.1 m | 120.4 m | 372.9 m | esef· 18 Mar 2026verified |
| Intangibles (excl. goodwill) | 470.7 m | 443.5 m | 1.0 bn | esef· 18 Mar 2026verified |
| Total assets | 1.7 bn | 1.6 bn | 2.6 bn | esef· 18 Mar 2026verified |
| Long-term debt | 372.2 m | 595.1 m | 1.0 bn | esef· 18 Mar 2026verified |
| Current liabilities | 518.5 m | 399.9 m | 475.8 m | esef· 18 Mar 2026verified |
| Total liabilities | 1.1 bn | 1.2 bn | 1.8 bn | esef· 18 Mar 2026verified |
| Equity | 589.4 m | 378.6 m | 763.3 m | esef· 18 Mar 2026verified |
| Shares outstanding at year end | 1.6 bn | 1.6 bn | 1.7 bn | esef· 18 Mar 2026derived |
Cash flow · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 123.9 m | 95.8 m | 224.7 m | esef· 18 Mar 2026verified |
| Investing cash flow | -20.3 m | -61.3 m | -566.7 m | esef· 18 Mar 2026verified |
| Financing cash flow | -147.0 m | 3.6 m | 426.8 m | esef· 18 Mar 2026verified |
| Share repurchases | 10.1 m | 8.7 m | 9.0 m | esef· 18 Mar 2026verified |
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 4 of at least 6
- score weight coverage: 27.1% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Price and reporting are in different currencies; market indicators are unavailable.
Key indicators
Coverage and freshness
Score by group
27% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 0.66 – 1.02 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E0.66 – 1.02 (Mid 0.85)17 companies used · median multiple 14.4x · quartiles 11.3x – 17.4x0EV1.L, ABDN.L, ABF.L, AIRE.L, AJB.L, ALFA.L, AMIF.L, APTD.L, ASHM.L, AUTO.L, BAB.L, BAG.L, BATS.L, BBY.L, BCG.L, BKG.L, BME.L
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 4 of at least 6; score weight coverage: 27.1% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 13.6% | 50 (vs peers) | 38% |
| Net margin · Quality | 7.1% | 43 (vs peers) | 23% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 4.6x | 48 (on a fixed band) | 23% |
| Current ratio · Balance sheet | 1.6x | 64 (on a fixed band) | 15% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet54/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality47/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
COATS GROUP PLC (COA.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 1.5 bn USD in 2025; YoY growth 2.2%; net margin 7.1%; ROE 19.4%.
The estimated value range is 0.66–1.02 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 4 of at least 6; score weight coverage: 27.1% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
What contradicts it
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
Not assessed (insufficient data or a ratio without meaning): FCF conversion, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
| AEP.LAnglo-Eastern Plantations PLC | — | — | 16.1% | 19.5% | +25.0% | +5% / +113% |
1- and 3-year price returns: for COA.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Coats Group is a global maker of sewing thread and components for footwear and apparel, holding a leading position in premium thread. The company completed the acquisition of OrthoLite, the global leader in premium insoles, in October 2025, which changed its financial profile and divisional structure. The figures below come only from its 2025 annual report 1.
SWOT
Strengths
- Global leader in premium sewing thread, backed by a production network spread across several continents 1.
- Rising operating margins and strong cash conversion, supported by low capital intensity 1.
- Leading position in premium insoles through the OrthoLite acquisition, with potential for cross-selling across the existing portfolio 1.
Weaknesses
- Borrowing rose after the OrthoLite acquisition, and leverage remains above the level management wants for now 1.
- Organic revenue growth was flat in 2025, and adjusted return on capital employed declined after the acquisition 1.
- The larger number of shares after the capital raise limited earnings per share growth in 2025 1.
Opportunities
- Integrating OrthoLite could generate cost synergies and margin gains, according to the company's estimates 1.
- Technology penetration in the premium insole segment could support faster growth than the wider footwear market 1.
- Near-shoring and sourcing shifts could bring new customers to the group's global footprint 1.
Threats
- Macroeconomic uncertainty and weak consumer confidence could reduce demand in apparel and footwear 1.
- The Middle East conflict could affect demand and supply chains, and its impact is still being assessed by the company 1.
- Price pressure and rapid industry change, including from AI and e-commerce, could erode margins 1.
Risks
- Debt after the acquisitionmedium
Financial leverage rose after OrthoLite was financed, and reducing it depends on the group's cash generation 1.
- Integration riskmedium
Integrating OrthoLite and reorganising into two divisions could disrupt day-to-day execution if synergies are delayed 1.
- Volatile demand in end marketshigh
Macroeconomic uncertainty could reduce customer volumes in apparel and footwear in the short term 1.
- Supply chain and geopoliticsmedium
The Middle East conflict and tariffs could change freight flows and costs, and the impact is still under assessment 1.
- Dilution for shareholderslow
The capital raise could weigh on earnings per share in the short term, because the number of shares rose significantly 1.
Investment thesis
What would need to be true (bull case)
- If the OrthoLite integration follows plan, the group could accelerate growth in premium insoles and strengthen operating margins 1.
- Solid cash conversion and low capital intensity could allow leverage to fall in the coming years, as management expects 1.
- Its leading position in premium thread and its global footprint could support share gains if sourcing shifts favour resilient suppliers 1.
What would break the thesis
- If demand in apparel and footwear remains weak, organic growth could fall short of the current management estimates 1.
- Higher borrowing and dilution from the capital raise could limit per-share results in the period ahead 1.
- If OrthoLite synergies prove weaker than expected, return on capital employed could stay below its pre-acquisition levels 1.
What to watch
- Progress of leverage towards the level below 2x that management has guided to2026
- Delivery of cost synergies and operating margin gains after the OrthoLite integration2026
- First reporting on the new Apparel and Footwear divisional structure2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Coats Group plc operates as a Tier 2 supplier to the apparel and footwear industries, offering sewing thread, structural components, performance threads and engineered solutions 1. The group operates in over 50 countries across six continents, and its global manufacturing platform lets it deliver quickly to brand customers 1. From 1 January 2026 the business is organised into two divisions, Apparel and Footwear, following the OrthoLite acquisition and the exit from the non-core US Yarns business 1.
The group's strategy aims at profitable sales growth, both organic and inorganic, in attractive markets, with a focus on sustainability, innovation and digital platforms 1. Management describes its ambition as becoming a premium industrial company defined by through-the-cycle growth, high margins and strong cash conversion 1. Acquisitions are an explicit part of the strategy, and the board receives regular updates on the M&A pipeline 1.
The OrthoLite acquisition, completed on 29 October 2025, was partly funded by a capital raise that brought in approximately 246 million pounds sterling in gross proceeds, according to the report 1. The company expects OrthoLite to significantly outperform the underlying footwear market based on technology penetration and new business wins 1.
Segments
Apparel
The Apparel division includes the Personal Protection and Performance Threads businesses, representing about 80% of the former Performance Materials segment, and is led by the division head 1. Apparel focuses on premium sewing thread for apparel brands and manufacturers, together with related services and software 1.
Footwear
The Footwear division, enlarged after the OrthoLite acquisition, covers structural components, threads and insoles for athleisure, performance, fashion and sports markets, and includes the Telecom & Energy business, which represents about 20% of the former Performance Materials 1. OrthoLite, the global leader in premium insoles, is the division's main new contribution 1.
Market context
Management assumes that core apparel and footwear end markets will remain uncertain in 2026, with easier comparatives as the year progresses 1. Organic revenue was flat in 2025 while the company estimates its core end markets declined by low to mid single digits 1. The company notes that sourcing shifts, tariffs and digital acceleration are reshaping customers' supply chains 1.
The group says it expects organic growth in 2026 even under uncertain market conditions, while monitoring the potential impact of the Middle East conflict on demand and supply chains 1. For 2026 management also anticipates modest organic operating margin improvement and another strong year of free cash flow 1.
Trends
- Macroeconomic uncertainty and weak consumer sentimentheadwind
A volatile environment and weak consumer confidence weigh on apparel and footwear demand, although the group says it continues to outperform its end markets 1. If uncertainty persists, pressure on volumes could continue.
- Near-shoring and diversification of sourcingtailwind
Tariffs are pushing some near-shoring and multi-country diversification, and Coats' global footprint may help customers build resilient supply chains 1.
- AI, automation and faster e-commercemixed
AI and new e-commerce behaviours are compressing fashion cycles and changing consumer expectations, which could create demand for faster digital solutions but also cost pressure 1.
- Sustainability pressure from brandsmixed
Brands are pressing for lower-impact materials, supply chain transparency and progress on Scope 3 emissions without added cost or time 1. Coats aims to deliver sustainability at scale, which could become a competitive advantage if demand intensifies.
Competitive position
The 2025 annual report does not name competitors in the supplied sources, so the competitive analysis is limited to how the company positions itself 1. Coats describes itself as the global leader in premium sewing thread and, through OrthoLite, the global leader in premium insoles 1.
The company's stated advantage rests on global scale, technology expertise and infrastructure that enable fast and precise delivery to customers, along with its own brands and technology platforms 1. The sources do not give competitors' market shares, so direct comparisons cannot be drawn from the report 1.
- Competitors named in sources
The annual report names no direct competitors, so none can be identified from the supplied sources.
- Other premium insole and footwear component suppliers
The premium insole segment is described as led by OrthoLite, but the sources name no other players in this category.
- Regional industrial thread producers
The sources mention Coats' global footprint but identify no named regional competitors.
- Technical solution providers for telecom and energy
The Telecom & Energy business appears within the Footwear division, but the sources name no specific competitors in that field.
News & filings
In the press
- Nanoparticle properties shape protein coats that guide cell entry and immune evasionPhys.org · 29 Oct 2026 · EN
- Who needs winter coats when it's still hot? Climate change is upending the fashion industryCNA (Channel NewsAsia) · 08 Oct 2026 · EN
- Sikorski’s NATO drill remarks require opinion from "people in white coats" — MFATASS (RU, EN) · 15 Sept 2026 · EN
- From camel coats to guochao: Max Mara woos China’s luxury brand consumersThe Guardian World · 16 Jun 2026 · RO
Annual reports (ESEF)
- Annual report 202518 Mar 2026
- Annual report 202418 Mar 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Coats Group plc · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.