COLGATE-PALMOLIVE CO (CL)
US1941621039 - Common Stock
Taking everything into account, CL scores 6 out of 10 in our fundamental rating. CL was compared to 12 industry peers in the Household Products industry. While CL has a great profitability rating, 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.
CL had positive earnings in each of the past 5 years.
Each year in the past 5 years CL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.03%, CL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 377.67%, CL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
CL has a Return On Invested Capital of 24.68%. This is amongst the best in the industry. CL outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CL is significantly above the industry average of 13.81%.
The 3 year average ROIC (24.33%) for CL is below the current ROIC(24.68%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.03% | ||
| ROE | 377.67% | ||
| ROIC | 24.68% |
ROA(3y)13.26%
ROA(5y)14.49%
ROE(3y)392.82%
ROE(5y)712.85%
ROIC(3y)24.33%
ROIC(5y)24.22%
1.3 Margins
Looking at the Profit Margin, with a value of 11.82%, CL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of CL has declined.
CL's Operating Margin of 20.74% is amongst the best of the industry. CL outperforms 91.67% of its industry peers.
In the last couple of years the Operating Margin of CL has declined.
Looking at the Gross Margin, with a value of 58.21%, CL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
CL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.74% | ||
| PM (TTM) | 11.82% | ||
| GM | 58.21% |
OM growth 3Y-4.34%
OM growth 5Y-3.62%
PM growth 3Y-10.27%
PM growth 5Y-5.2%
GM growth 3Y-1.45%
GM growth 5Y-0.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CL is creating value.
Compared to 1 year ago, CL has less shares outstanding
CL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.97 indicates that CL is not in any danger for bankruptcy at the moment.
CL has a better Altman-Z score (6.97) than 91.67% of its industry peers.
The Debt to FCF ratio of CL is 2.81, which is a good value as it means it would take CL, 2.81 years of fcf income to pay off all of its debts.
CL has a better Debt to FCF ratio (2.81) than 75.00% of its industry peers.
CL has a Debt/Equity ratio of 14.00. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CL (14.00) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14 | ||
| Debt/FCF | 2.81 | ||
| Altman-Z | 6.97 |
ROIC/WACC2.89
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.11 indicates that CL should not have too much problems paying its short term obligations.
CL's Current ratio of 1.11 is in line compared to the rest of the industry. CL outperforms 41.67% of its industry peers.
A Quick Ratio of 0.71 indicates that CL may have some problems paying its short term obligations.
CL has a Quick ratio of 0.71. This is comparable to the rest of the industry: CL outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.75% over the past year.
The Earnings Per Share has been growing slightly by 1.69% on average over the past years.
Looking at the last year, CL shows a quite strong growth in Revenue. The Revenue has grown by 8.29% in the last year.
Measured over the past years, CL shows a small growth in Revenue. The Revenue has been growing by 4.59% on average per year.
EPS 1Y (TTM)8.75%
EPS 3Y1.93%
EPS 5Y1.69%
EPS growth Q2Q12.99%
Revenue 1Y (TTM)8.29%
Revenue growth 3Y5.71%
Revenue growth 5Y4.59%
Revenue growth Q2Q6.93%
3.2 Future
The Earnings Per Share is expected to grow by 8.54% on average over the next years. This is quite good.
CL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.93% yearly.
EPS Next Y11.18%
EPS Next 2Y10.04%
EPS Next 3Y9.63%
EPS Next 5Y8.54%
Revenue Next Year4.1%
Revenue Next 2Y4.19%
Revenue Next 3Y4.27%
Revenue Next 5Y3.93%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 27.29, CL can be considered very expensive at the moment.
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.
When comparing the Price/Earnings ratio of CL to the average of the S&P500 Index (25.20), we can say CL is valued inline with the index average.
A Price/Forward Earnings ratio of 24.54 indicates a rather expensive valuation of CL.
Based on the Price/Forward Earnings ratio, CL is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of CL to the average of the S&P500 Index (21.60), we can say CL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.29 | ||
| Fwd PE | 24.54 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CL is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as CL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.83 | ||
| EV/EBITDA | 17.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CL may justify a higher PE ratio.
PEG (NY)2.44
PEG (5Y)16.12
EPS Next 2Y10.04%
EPS Next 3Y9.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.31%, CL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.60, CL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.45, CL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
5.2 History
The dividend of CL has a limited annual growth rate of 2.96%.
CL has paid a dividend for at least 10 years, which is a reliable track record.
CL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.96%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
CL pays out 76.04% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP76.04%
EPS Next 2Y10.04%
EPS Next 3Y9.63%
COLGATE-PALMOLIVE CO
NYSE:CL (4/24/2024, 8:56:07 AM)
88.14
-0.44 (-0.5%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap72.45B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.29 | ||
| Fwd PE | 24.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.44
PEG (5Y)16.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.03% | ||
| ROE | 377.67% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.74% | ||
| PM (TTM) | 11.82% | ||
| GM | 58.21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.75%
EPS 3Y1.93%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.18%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.29%
Revenue growth 3Y5.71%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y