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Coats Group plc (COA.L)

Consumer Cyclical Out of favour

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

£0.80

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

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

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.

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). 47Growth: How fast revenue and earnings are growing (higher = faster). 54Momentum: How the share price has been trending recently (higher = stronger recent run). 31Income: The dividend income on offer and how sustainable it looks (higher = more/steadier). 52
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
  • Momentum screens low (31/100)
  • 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.
Gross margin
39.4%
For every pound of thread sold, nearly forty pence is left over after paying the direct costs of making it.
Dividend yield
3.1%
This shows the yearly cash reward paid to shareholders relative to the share price, similar to a steady interest payout.
Return on equity
22.3%
This measures how efficiently the business uses shareholder money to generate profitable returns.

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.

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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 near 40 percent
  • Solid return on equity 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 2026-08-01 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 2026-08-01. Prices may be delayed and numbers can go stale - always double-check before acting.