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Coats Group plc (COA.L)

Consumer Cyclical Balanced

Ever wonder who holds your favourite clothes together? Coats Group makes the industrial threads and zippers keeping global fashion stitched.

£0.80
≈ 80p · London-listed shares are usually quoted in pence (GBX) elsewhere; the Almanac shows pounds (£1 = 100p).

Is Coats Group plc a good stock for a UK beginner?

The honest version: There's no rating here and nothing for sale. In its favour: Market leader in a surprisingly crucial niche. Worth weighing: Recent earnings growth has dipped into negative territory. Below, we lay out what it does, what its numbers mean, and the honest risks, so you can decide for yourself.

No rating · no target price · nothing for sale here
Price-10.4%
52-week range+3% past year
£0.80
Low £0.71High £0.98
Where today's price sits versus its past year - context, not a signal.
If you had put £1,000 into Coats Group plc
£896-10%

Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. Past performance is not a guide to the future, and it could just as easily have fallen.

How much has Coats Group plc actually fallen?

−35%

Over the last 2 years of daily prices, Coats Group plc fell as much as −35% from a high to a later low. Drops of this size are a normal part of owning a share - worth knowing in advance, so a dip doesn't come as a shock.

Worst peak-to-trough fall in the daily closing price over the period we hold. Past falls are not a forecast - it can fall further, or recover.

Market cap: The company's total value on the stock market - share price times the number of shares. Big = 'large-cap', small = 'small-cap'.
£1.54B
Avg volume: How many shares change hands on a typical day. Higher means it's easy to buy or exit without moving the price.
3.35M
Day range: The lowest and highest price the shares traded at during the latest day.
£0.78 – £0.82
52-week range: The lowest and highest the shares have traded over the past year - a sense of how wide the swings have been.
£0.71 – £0.98
P/E ratio: Price-to-earnings: the share price divided by yearly profit per share. Lower can mean cheaper; higher often means investors expect fast growth.
20.1
Dividend yield: The yearly dividend as a percentage of the share price - roughly the income you'd earn from dividends alone.
3.1%
Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down.
1.26
How bumpy is it?Beta: How bumpy the share price is versus the whole market. Above 1 swings more than the market; below 1 is calmer. It's about the ride, not whether it goes up or down. 1.26
Calm
Wild
Roughly in step with the market

Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.

Why has it been moving?▲ +4% past week · ▲ +3% past year

Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.

The bull case

Market dominance cements pricing power and sustained high returns.

The bear case

Extended high street downturn permanently dents thread volumes.

What does Coats Group plc do?

Coats Group is the world's leading supplier of industrial thread, making the reliable stitching inside everything from trainers to car airbags. Those vital bits and bobs, sold in bulk to massive clothing and footwear brands all over the globe, are what keep the lights on. Keep a close eye on how well they turn their sales into actual profit, especially when supply chain costs bounce around.

VQGMI
Factor profile

On our factor screen it looks strongest on value and growth, and weakest on momentum.

Value: How cheap the stock looks versus profits, sales and assets (higher = cheaper). 58Quality: How profitable and financially healthy the company is (higher = stronger). 46Growth: How fast revenue and earnings are growing (higher = faster). 54Momentum: How the share price has been trending recently (higher = stronger recent run). 34Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 53
Quick checks
What's strong
  • Market leader in a surprisingly crucial niche
  • Healthy gross margin near 40 percent
  • Solid return on equity indicating efficient management
What to watch
  • Fluctuations in the cost of raw materials used for synthetic threads
  • Broader economic slowdowns dampening consumer appetite for new clothes
  • Currency swings affecting an internationally spread business

What do Coats Group plc's numbers mean?

P/E
20.1
This tells us investors are currently paying £20.10 for every £1 of the company's recent yearly earnings.
Around the middle of the 104 Consumer Cyclical shares we cover
Gross margin
39.4%
For every pound of thread sold, nearly forty pence is left over after paying the direct costs of making it.
Around the middle of the 122 Consumer Cyclical shares we cover
Dividend yield
3.1%
This shows the yearly cash reward paid to shareholders relative to the share price, similar to a steady interest payout.
Higher than most of the 122 Consumer Cyclical shares we cover
Return on equity
22.3%
This measures how efficiently the business uses shareholder money to generate profitable returns.
Around the middle of the 103 Consumer Cyclical shares we cover

Does Coats Group plc pay a dividend?

Yes - Coats Group plc currently pays a dividend of about 3.1% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.

What do the numbers say about Coats Group plc's dividend?

There's no rating here, and we don't judge whether the dividend will continue - that would be advice. Here are the figures income investors usually look at, and what each one means, so you can weigh it up yourself.

Dividend yield3.1%The yearly dividend as a percentage of today's price. A very high figure often means the price has fallen because the market expects a cut, so a big yield is a question to look into, not a prize.
Payout ratio56%The share of profit paid out as dividends. A lower figure leaves headroom; near or above 100% means most or all of the profit is going out as dividends.
Dividend cover1.8×Profit divided by the dividend (the payout ratio the other way up). As a rough convention many income investors like around 2× or more; below 1× means the company paid out more than it earned that year.

Figures are from the latest available data and can be distorted by one-off results. Past payments don't predict future ones, and a dividend can be cut at any time. This lays out the numbers to help you understand them - it is not a view on what will happen.

When does Coats Group plc report earnings, and how did recent quarters go?

Coats Group plc is next scheduled to report on about 2027-03-02 - dates can move, and we don't predict results; this just tells you when to look.

Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.

See who else reports over the next two weeks →

Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.

More in Consumer Cyclical

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What are the scenarios for Coats Group plc?

An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.

£1£1£1today · £1▲ Bull · £1• Base · £1▼ Bear · £1in 1 yearILLUSTRATIVE · NOT A PREDICTION OR PRICE TARGET
Bull
+10% to +20%Stronger demand from clothing brands boosts short-term sales.
Base
+2% to +8%Steady trading matches current fashion market trends.
Bear
-10% to -18%Supply chain hiccups pinch profit margins.

What are the pros and cons of Coats Group plc?

3bull points
6bear points

How many points the write-up makes each way — a balance check, not a score or verdict.

The bull case3
  • Market leader in a surprisingly crucial niche
  • Healthy gross margin: The share of each £1 of sales left after the direct cost of making the product, before other running costs. Higher usually means more pricing power. near 40 percent
  • Solid return on equity: How much profit the company makes for each £1 shareholders have put in. Higher usually means a more efficient business. indicating efficient management
The catch3
  • Recent earnings growth has dipped into negative territory
  • Tied heavily to the ups and downs of the global fashion industry
  • Modest net profit margin leaves little room for error
Key risks3
  • Fluctuations in the cost of raw materials used for synthetic threads
  • Broader economic slowdowns dampening consumer appetite for new clothes
  • Currency swings affecting an internationally spread business
What would flip the thesis

The write-up's own warning lights — if these start happening, the case above changes.

Confidence: medium · data: GBP · flags: none · Charts by TradingView Lightweight Charts™
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Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →

This plain-English summary was auto-generated on 2026-08-02 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.

Figures as of 2026-08-02. Prices may be delayed and numbers can go stale - always double-check before acting.