Investing.com | May 07, 2024 04:54
The global beauty market is experiencing a surge, with a projected revenue of $580 billion by 2027. This explosive growth reflects consumers' unwavering interest in beauty products and the industry's remarkable ability to adapt to evolving customer preferences and tastes.
Given this promising outlook, let's delve into the recent IPO of Puig Brands (BME:PUIGb), a major player in the sector, and explore other intriguing investment opportunities within the beauty market.
As always, we'll leverage InvestingPro's powerful tools to gather the most relevant data and insights to guide our analysis.
Coty (NYSE:COTY) is an American beauty products manufacturer based in New York. Originally, the company was founded in Paris, France in 1904. It is known for using movies, entertainment, or sports professionals to name its products.
On May 6, it published earnings, beating market expectations in terms of revenue, but failing to meet EPS expectations.
Source: InvestingPro
Here are the earnings highlights:
Perfumes Chloé, Calvin Klein, Burberry (OTC:BURBY) and Hugo Boss (OTC:BOSSY) (ETR:BOSSn) accounted for 62% of its revenues in the last financial year.
Its key markets are Europe, the Middle East, and Africa, which account for 50% of its business, followed by the Americas. By 2027, it expects to reach US$7.5 billion in revenues.
Its fair value would be at $12.54.
Source: InvestingPro
A multinational luxury goods conglomerate based in Paris, France, LVMH (OTC:LVMUY) (EPA:LVMH) was founded in 1987 through the merger of Louis Vuitton and Moët Hennessy.
It went public in 1989 and has since become the world's largest luxury goods company.
Its dividend yield is 1.66%.
Source: InvestingPro
On July 23 it presents its quarterly results. By 2024 it expects EPS to increase 6% and revenue 4%.
Source: InvestingPro
Market consensus sees potential at €879.23.
Source: InvestingPro
Kering (OTC:PPRUY) (EPA:PRTP) is a French business group of luxury brands.
It was previously known as PPP (Pinault-Printemps-Redoute). On March 22, 2013, Pinault announced that the group would change its name to Kering, which shareholders approved on June 18, 2013.
Its dividend yield is 5.63%.
Source: InvestingPro
It will release its accounts on July 24. The outlook for the following quarters is favorable with an increase in EPS.
Source: InvestingPro
The market gives it potential at €377.08.
Source: InvestingPro
It is a perfumery founded in 1914 in Barcelona that covers cosmetics, fashion and skin care. In 2023 it had a turnover of 4,304 million euros.
It debuted on the Spanish stock exchange last week at a price of €24.5, giving it a market capitalization of €13.92 billion, making it Europe's largest IPO in 2024.
Its debut could serve as a "barometer" for other companies that are ready to go public, such as Europastry, Tendam and Hotelbeds.
At its debut, only institutional investors could buy shares, but retail investors can now do so as well.
The company aims to distribute 40% of its net profit as dividends to its shareholders.
Admittedly, the exit price was at the high end of the range, reflecting the company's positive outlook for its future. However, the exit price represents a 15% discount to the industry average in terms of enterprise value.
The market estimates that a "reasonable discount" could be 20% versus France's L'Oreal or a 3% premium to the sector, which would mean it would be attractive as long as it is below €31.
In its favor:
Analyzing its market prospects is still too early, but we will follow it closely.
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