COLGATE-PALMOLIVE CO (CL) Stock Fundamental Analysis
USA - NYSE:CL - US1941621039 - Common Stock
78 USD
-0.44 (-0.56%)
78.18 USD
+0.18 (+0.23%)
We assign a fundamental rating of 6 out of 10 to CL. 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.
In the past year CL had a positive cash flow from operations.
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
CL has a Return On Assets of 16.65%. This is amongst the best in the industry. CL outperforms 91.67% of its industry peers.
With an excellent Return On Equity value of 414.39%, CL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CL's Return On Invested Capital of 30.18% is amongst the best of 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 15.54%.
The last Return On Invested Capital (30.18%) for CL is above the 3 year average (26.58%), which is a sign of increasing profitability.
| 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 better Profit Margin (14.55%) than 91.67% of its industry peers.
CL's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 21.60%, CL belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Operating Margin of CL has declined.
CL's Gross Margin of 60.56% is amongst the best of the industry. CL outperforms 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
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.
Compared to 5 years ago, CL has less shares outstanding
CL has a better debt/assets ratio than last year.
2.2 Solvency
CL has an Altman-Z score of 6.32. This indicates that CL is financially healthy and has little risk of bankruptcy at the moment.
CL's Altman-Z score of 6.32 is amongst the best of the industry. CL outperforms 83.33% of its industry peers.
CL has a debt to FCF ratio of 2.60. This is a good value and a sign of high solvency as CL would need 2.60 years to pay back of all of its debts.
CL's Debt to FCF ratio of 2.60 is fine compared to the rest of the industry. CL outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 10.18 is on the high side and indicates that CL has dependencies on debt financing.
CL has a Debt to Equity ratio of 10.18. This is amonst the worse of the industry: CL underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.18 | ||
| Debt/FCF | 2.6 | ||
| Altman-Z | 6.32 |
ROIC/WACC3.79
WACC7.97%
2.3 Liquidity
CL has a Current Ratio of 0.89. This is a bad value and indicates that CL is not financially healthy enough and could expect problems in meeting its short term obligations.
CL has a Current ratio of 0.89. This is in the lower half of the industry: CL underperforms 66.67% of its industry peers.
CL has a Quick Ratio of 0.89. This is a bad value and indicates that CL is not financially healthy enough and could expect problems in meeting 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.
The Revenue has been growing slightly by 0.06% in the past year.
CL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.08% yearly.
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 7.20% on average per year.
The Revenue is expected to grow by 3.13% on average over the next years.
EPS Next Y5.51%
EPS Next 2Y6.29%
EPS Next 3Y6.68%
EPS Next 5Y7.2%
Revenue Next Year0.9%
Revenue Next 2Y2.47%
Revenue Next 3Y2.88%
Revenue Next 5Y3.13%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.37, the valuation of CL can be described as rather expensive.
66.67% of the companies in the same industry are cheaper than CL, based on the Price/Earnings ratio.
CL is valuated rather cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.23 indicates a rather expensive valuation of CL.
CL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CL to the average of the S&P500 Index (22.92), we can say CL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.37 | ||
| Fwd PE | 19.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CL is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, CL is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.71 | ||
| EV/EBITDA | 14.35 |
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)3.88
PEG (5Y)4.39
EPS Next 2Y6.29%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.66%, CL has a reasonable but not impressive dividend return.
CL's Dividend Yield is comparable with the industry average which is at 3.08.
Compared to an average S&P500 Dividend Yield of 2.34, CL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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
CL pays out 61.95% 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.
DP61.95%
EPS Next 2Y6.29%
EPS Next 3Y6.68%
78
-0.44 (-0.56%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.03%
Inst Owner Change0.72%
Ins Owners0.06%
Ins Owner Change4.68%
Market Cap63.04B
Revenue(TTM)20.00B
Net Income(TTM)2.91B
Analysts74.48
Price Target96.43 (23.63%)
Short Float %1.56%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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)-0.22%
PT rev (3m)-3.34%
EPS NQ rev (1m)-1.73%
EPS NQ rev (3m)-2.56%
EPS NY rev (1m)0%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)-0.81%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.37 | ||
| Fwd PE | 19.23 | ||
| P/S | 3.15 | ||
| P/FCF | 18.71 | ||
| P/OCF | 16.08 | ||
| P/B | 89.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.35 |
EPS(TTM)3.65
EY4.68%
EPS(NY)4.06
Fwd EY5.2%
FCF(TTM)4.17
FCFY5.35%
OCF(TTM)4.85
OCFY6.22%
SpS24.74
BVpS0.87
TBVpS-6.06
PEG (NY)3.88
PEG (5Y)4.39
Graham Number8.45
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%
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-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 | 6.32 |
F-Score6
WACC7.97%
ROIC/WACC3.79
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 5Y7.2%
Revenue 1Y (TTM)0.06%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.03%
Revenue Next Year0.9%
Revenue Next 2Y2.47%
Revenue Next 3Y2.88%
Revenue Next 5Y3.13%
EBIT growth 1Y0.51%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year14.23%
EBIT Next 3Y8.24%
EBIT Next 5Y7.11%
FCF growth 1Y43.04%
FCF growth 3Y8.74%
FCF growth 5Y4.85%
OCF growth 1Y26.49%
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 6 / 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 21.37 and the Price/Book (PB) ratio is 89.8.
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 61.95%.