COLGATE-PALMOLIVE CO (CL) Stock Fundamental Analysis
USA - NYSE:CL - US1941621039 - Common Stock
78.86 USD
+0.39 (+0.5%)
78.86 USD
0 (0%)
Taking everything into account, CL scores 5 out of 10 in our fundamental rating. CL was compared to 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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
CL had positive earnings in the past year.
In the past year CL had a positive cash flow from operations.
CL had positive earnings in each of the past 5 years.
CL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CL (16.60%) is better than 91.67% of its industry peers.
With an excellent Return On Equity value of 339.60%, CL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CL has a Return On Invested Capital of 29.23%. 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 14.82%.
The last Return On Invested Capital (29.23%) for CL is above the 3 year average (26.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.6% | ||
| ROE | 339.6% | ||
| ROIC | 29.23% |
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
Looking at the Profit Margin, with a value of 14.46%, CL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
CL's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 21.44%, CL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
CL's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 60.14%, CL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of CL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.44% | ||
| PM (TTM) | 14.46% | ||
| GM | 60.14% |
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
CL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CL has less shares outstanding than it did 1 year ago.
CL has less shares outstanding than it did 5 years ago.
CL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.38 indicates that CL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.38, CL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
CL has a debt to FCF ratio of 2.45. This is a good value and a sign of high solvency as CL would need 2.45 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.45, CL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 8.54 is on the high side and indicates that CL has dependencies on debt financing.
CL has a worse Debt to Equity ratio (8.54) than 75.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for CL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.54 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | 6.38 |
ROIC/WACC3.62
WACC8.08%
2.3 Liquidity
CL has a Current Ratio of 0.93. This is a bad value and indicates that CL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.93, CL is doing worse than 66.67% of the companies in the same industry.
A Quick Ratio of 0.60 indicates that CL may have some problems paying its short term obligations.
CL has a worse Quick ratio (0.60) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
CL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.82%.
The Earnings Per Share has been growing slightly by 4.87% on average over the past years.
The Revenue has decreased by -0.04% in the past 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)2.82%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.95%
3.2 Future
CL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.37% yearly.
Based on estimates for the next years, CL will show a small growth in Revenue. The Revenue will grow by 2.88% on average per year.
EPS Next Y4.87%
EPS Next 2Y5.32%
EPS Next 3Y5.66%
EPS Next 5Y5.37%
Revenue Next Year0.84%
Revenue Next 2Y2.28%
Revenue Next 3Y2.63%
Revenue Next 5Y2.88%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CL is valuated rather expensively with a Price/Earnings ratio of 21.61.
75.00% of the companies in the same industry are cheaper than CL, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CL to the average of the S&P500 Index (25.07), we can say CL is valued inline with the index average.
A Price/Forward Earnings ratio of 19.81 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.
The average S&P500 Price/Forward Earnings ratio is at 34.08. CL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.61 | ||
| Fwd PE | 19.81 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CL.
The rest of the industry has a similar Price/Free Cash Flow ratio as CL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.51 | ||
| EV/EBITDA | 14.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CL may justify a higher PE ratio.
PEG (NY)4.43
PEG (5Y)4.43
EPS Next 2Y5.32%
EPS Next 3Y5.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.64%, CL has a reasonable but not impressive dividend return.
CL's Dividend Yield is comparable with the industry average which is at 3.30.
CL's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
5.2 History
The dividend of CL has a limited annual growth rate of 3.11%.
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)3.11%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
62.40% of the earnings are spent on dividend by CL. This is not a sustainable payout ratio.
The dividend of CL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.4%
EPS Next 2Y5.32%
EPS Next 3Y5.66%
78.86
+0.39 (+0.5%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.03%
Inst Owner Change4.88%
Ins Owners0.06%
Ins Owner Change15.72%
Market Cap63.74B
Revenue(TTM)20.10B
Net Income(TTM)2.91B
Analysts74
Price Target92.21 (16.93%)
Short Float %1.7%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Yearly Dividend2.19
Dividend Growth(5Y)3.11%
DP62.4%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.44%
Min EPS beat(2)-0.54%
Max EPS beat(2)-0.33%
EPS beat(4)1
Avg EPS beat(4)0.3%
Min EPS beat(4)-0.87%
Max EPS beat(4)2.94%
EPS beat(8)3
Avg EPS beat(8)0.62%
EPS beat(12)6
Avg EPS beat(12)0.68%
EPS beat(16)6
Avg EPS beat(16)-0.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-2.43%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-1.35%
Revenue beat(8)0
Avg Revenue beat(8)-2.08%
Revenue beat(12)1
Avg Revenue beat(12)-1.56%
Revenue beat(16)2
Avg Revenue beat(16)-1.75%
PT rev (1m)-4.37%
PT rev (3m)-5.73%
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)-3.38%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-1.29%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.61 | ||
| Fwd PE | 19.81 | ||
| P/S | 3.17 | ||
| P/FCF | 18.51 | ||
| P/OCF | 15.88 | ||
| P/B | 74.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.28 |
EPS(TTM)3.65
EY4.63%
EPS(NY)3.98
Fwd EY5.05%
FCF(TTM)4.26
FCFY5.4%
OCF(TTM)4.97
OCFY6.3%
SpS24.87
BVpS1.06
TBVpS-5.86
PEG (NY)4.43
PEG (5Y)4.43
Graham Number9.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.6% | ||
| ROE | 339.6% | ||
| ROCE | 39.11% | ||
| ROIC | 29.23% | ||
| ROICexc | 33.73% | ||
| ROICexgc | 81.43% | ||
| OM | 21.44% | ||
| PM (TTM) | 14.46% | ||
| GM | 60.14% | ||
| FCFM | 17.13% |
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%
ROICexgc growth 3Y6.99%
ROICexgc 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-Score5
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.54 | ||
| Debt/FCF | 2.45 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 94.38% | ||
| Cap/Sales | 2.84% | ||
| Interest Coverage | 15.96 | ||
| Cash Conversion | 81.69% | ||
| Profit Quality | 118.44% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 6.38 |
F-Score5
WACC8.08%
ROIC/WACC3.62
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)2.82%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%0%
EPS Next Y4.87%
EPS Next 2Y5.32%
EPS Next 3Y5.66%
EPS Next 5Y5.37%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.95%
Revenue Next Year0.84%
Revenue Next 2Y2.28%
Revenue Next 3Y2.63%
Revenue Next 5Y2.88%
EBIT growth 1Y-0.62%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year14.23%
EBIT Next 3Y8.24%
EBIT Next 5Y6.18%
FCF growth 1Y34.86%
FCF growth 3Y8.74%
FCF growth 5Y4.85%
OCF growth 1Y22.3%
OCF growth 3Y7.29%
OCF growth 5Y5.56%
COLGATE-PALMOLIVE CO / CL FAQ
Can you provide the ChartMill fundamental rating for COLGATE-PALMOLIVE CO?
ChartMill assigns a fundamental rating of 5 / 10 to CL.
What is the valuation status for CL stock?
ChartMill assigns a valuation rating of 2 / 10 to COLGATE-PALMOLIVE CO (CL). This can be considered as Overvalued.
Can you provide the profitability details for COLGATE-PALMOLIVE CO?
COLGATE-PALMOLIVE CO (CL) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for CL stock?
The Price/Earnings (PE) ratio for COLGATE-PALMOLIVE CO (CL) is 21.61 and the Price/Book (PB) ratio is 74.46.
How sustainable is the dividend of COLGATE-PALMOLIVE CO (CL) stock?
The dividend rating of COLGATE-PALMOLIVE CO (CL) is 5 / 10 and the dividend payout ratio is 62.4%.