COLGATE-PALMOLIVE CO (CL) Stock Fundamental Analysis
USA - NYSE:CL - US1941621039 - Common Stock
79.01 USD
-0.93 (-1.16%)
79.1 USD
+0.09 (+0.11%)
CL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. While CL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CL was profitable.
CL had a positive operating cash flow in the past year.
In the past 5 years CL has always been profitable.
CL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CL has a better Return On Assets (16.65%) than 91.67% of its industry peers.
CL has a Return On Equity of 414.39%. This is amongst the best in the industry. CL outperforms 100.00% of its industry peers.
CL has a Return On Invested Capital of 30.18%. This is amongst the best in the industry. CL outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CL is significantly above the industry average of 15.56%.
The 3 year average ROIC (26.58%) for CL is below the current ROIC(30.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.65% | ||
| ROE | 414.39% | ||
| ROIC | 30.18% |
ROA(3y)14.46%
ROA(5y)14.94%
ROE(3y)728.51%
ROE(5y)580.79%
ROIC(3y)26.58%
ROIC(5y)26.1%
1.3 Margins
CL has a Profit Margin of 14.55%. This is amongst the best in the industry. CL outperforms 91.67% of its industry peers.
In the last couple of years the Profit Margin of CL has remained more or less at the same level.
CL has a better Operating Margin (21.60%) than 91.67% of its industry peers.
In the last couple of years the Operating Margin of CL has declined.
The Gross Margin of CL (60.56%) is better than 100.00% of its industry peers.
CL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.6% | ||
| PM (TTM) | 14.55% | ||
| GM | 60.56% |
OM growth 3Y-1.21%
OM growth 5Y-1.94%
PM growth 3Y4.95%
PM growth 5Y-0.96%
GM growth 3Y0.53%
GM growth 5Y0.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CL is creating value.
CL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CL has less shares outstanding
The debt/assets ratio for CL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.33 indicates that CL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.33, CL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of CL is 2.60, which is a good value as it means it would take CL, 2.60 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.60, CL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
CL has a Debt/Equity ratio of 10.18. This is a high value indicating a heavy dependency on external financing.
CL has a worse Debt to Equity ratio (10.18) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.18 | ||
| Debt/FCF | 2.6 | ||
| Altman-Z | 6.33 |
ROIC/WACC3.73
WACC8.1%
2.3 Liquidity
A Current Ratio of 0.89 indicates that CL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.89, CL is doing worse than 66.67% of the companies in the same industry.
A Quick Ratio of 0.57 indicates that CL may have some problems paying its short term obligations.
CL's Quick ratio of 0.57 is on the low side compared to the rest of the industry. CL is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.29% over the past year.
CL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.87% yearly.
Looking at the last year, CL shows a small growth in Revenue. The Revenue has grown by 0.06% in the last year.
Measured over the past years, CL shows a small growth in Revenue. The Revenue has been growing by 5.08% on average per year.
EPS 1Y (TTM)4.29%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%1.1%
Revenue 1Y (TTM)0.06%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.03%
3.2 Future
Based on estimates for the next years, CL will show a small growth in Earnings Per Share. The EPS will grow by 7.29% on average per year.
The Revenue is expected to grow by 3.21% on average over the next years.
EPS Next Y5.51%
EPS Next 2Y6.29%
EPS Next 3Y6.68%
EPS Next 5Y7.29%
Revenue Next Year1.11%
Revenue Next 2Y2.68%
Revenue Next 3Y3.08%
Revenue Next 5Y3.21%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.65, CL is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CL indicates a slightly more expensive valuation: CL is more expensive than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.79. CL is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 19.48, CL is valued on the expensive side.
CL's Price/Forward Earnings is on the same level as the industry average.
CL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 19.48 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than CL, based on the Enterprise Value to EBITDA ratio.
CL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.95 | ||
| EV/EBITDA | 14.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.93
PEG (5Y)4.44
EPS Next 2Y6.29%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
CL has a Yearly Dividend Yield of 2.61%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.99, CL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, CL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
The dividend of CL has a limited annual growth rate of 3.11%.
CL has been paying a dividend for at least 10 years, so it has a reliable track record.
CL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.11%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
61.95% of the earnings are spent on dividend by CL. This is not a sustainable payout ratio.
CL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP61.95%
EPS Next 2Y6.29%
EPS Next 3Y6.68%
79.01
-0.93 (-1.16%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.03%
Inst Owner Change-5.58%
Ins Owners0.06%
Ins Owner Change4.68%
Market Cap63.86B
Analysts74.67
Price Target96.64 (22.31%)
Short Float %1.56%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend2.19
Dividend Growth(5Y)3.11%
DP61.95%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.31%
Min EPS beat(2)-0.33%
Max EPS beat(2)2.94%
EPS beat(4)1
Avg EPS beat(4)0.39%
Min EPS beat(4)-0.87%
Max EPS beat(4)2.94%
EPS beat(8)4
Avg EPS beat(8)1.21%
EPS beat(12)6
Avg EPS beat(12)0.57%
EPS beat(16)6
Avg EPS beat(16)-0.1%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-2%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-1.35%
Revenue beat(8)0
Avg Revenue beat(8)-1.83%
Revenue beat(12)1
Avg Revenue beat(12)-1.59%
Revenue beat(16)2
Avg Revenue beat(16)-1.73%
PT rev (1m)0%
PT rev (3m)-3.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.53%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.65 | ||
| Fwd PE | 19.48 | ||
| P/S | 3.19 | ||
| P/FCF | 18.95 | ||
| P/OCF | 16.29 | ||
| P/B | 90.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.44 |
EPS(TTM)3.65
EY4.62%
EPS(NY)4.06
Fwd EY5.13%
FCF(TTM)4.17
FCFY5.28%
OCF(TTM)4.85
OCFY6.14%
SpS24.74
BVpS0.87
TBVpS-6.06
PEG (NY)3.93
PEG (5Y)4.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.65% | ||
| ROE | 414.39% | ||
| ROCE | 40.38% | ||
| ROIC | 30.18% | ||
| ROICexc | 34.77% | ||
| ROICexgc | 87.63% | ||
| OM | 21.6% | ||
| PM (TTM) | 14.55% | ||
| GM | 60.56% | ||
| FCFM | 16.85% |
ROA(3y)14.46%
ROA(5y)14.94%
ROE(3y)728.51%
ROE(5y)580.79%
ROIC(3y)26.58%
ROIC(5y)26.1%
ROICexc(3y)29.6%
ROICexc(5y)28.78%
ROICexgc(3y)61.47%
ROICexgc(5y)63.97%
ROCE(3y)35.89%
ROCE(5y)35.3%
ROICexcg growth 3Y6.99%
ROICexcg growth 5Y3.87%
ROICexc growth 3Y7.74%
ROICexc growth 5Y5.87%
OM growth 3Y-1.21%
OM growth 5Y-1.94%
PM growth 3Y4.95%
PM growth 5Y-0.96%
GM growth 3Y0.53%
GM growth 5Y0.34%
F-Score6
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.18 | ||
| Debt/FCF | 2.6 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 92.13% | ||
| Cap/Sales | 2.75% | ||
| Interest Coverage | 15.54 | ||
| Cash Conversion | 79.74% | ||
| Profit Quality | 115.85% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 6.33 |
F-Score6
WACC8.1%
ROIC/WACC3.73
Cap/Depr(3y)114.92%
Cap/Depr(5y)104.56%
Cap/Sales(3y)3.43%
Cap/Sales(5y)3.21%
Profit Quality(3y)119.71%
Profit Quality(5y)121.85%
High Growth Momentum
Growth
EPS 1Y (TTM)4.29%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%1.1%
EPS Next Y5.51%
EPS Next 2Y6.29%
EPS Next 3Y6.68%
EPS Next 5Y7.29%
Revenue 1Y (TTM)0.06%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.03%
Revenue Next Year1.11%
Revenue Next 2Y2.68%
Revenue Next 3Y3.08%
Revenue Next 5Y3.21%
EBIT growth 1Y0.51%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year14.23%
EBIT Next 3Y8.24%
EBIT Next 5Y7.2%
FCF growth 1Y43.04%
FCF growth 3Y8.74%
FCF growth 5Y4.85%
OCF growth 1Y26.49%
OCF growth 3Y7.29%
OCF growth 5Y5.56%