COLGATE-PALMOLIVE CO (CL)

US1941621039 - Common Stock

93.425  -0.53 (-0.57%)

Fundamental Rating

5

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 has a great profitability rating, there are some minor concerns on its financial health. CL is quite expensive at the moment. It does show a decent growth rate.



8

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

With an excellent Return On Assets value of 15.76%, CL belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
With an excellent Return On Equity value of 1135.22%, CL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of CL (25.97%) is better than 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 14.24%.
The 3 year average ROIC (24.38%) for CL is below the current ROIC(25.97%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 15.76%
ROE 1135.22%
ROIC 25.97%
ROA(3y)13.26%
ROA(5y)14.49%
ROE(3y)392.82%
ROE(5y)712.85%
ROIC(3y)24.38%
ROIC(5y)24.26%

1.3 Margins

CL's Profit Margin of 13.22% is amongst the best of the industry. CL outperforms 83.33% of its industry peers.
CL's Profit Margin has declined in the last couple of years.
CL has a better Operating Margin (21.16%) than 91.67% of its industry peers.
In the last couple of years the Operating Margin of CL has declined.
CL has a better Gross Margin (59.00%) than 100.00% of its industry peers.
In the last couple of years the Gross Margin of CL has remained more or less at the same level.
Industry RankSector Rank
OM 21.16%
PM (TTM) 13.22%
GM 59%
OM growth 3Y-4.15%
OM growth 5Y-3.5%
PM growth 3Y-10.27%
PM growth 5Y-5.2%
GM growth 3Y-1.45%
GM growth 5Y-0.47%

5

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.
Compared to 1 year ago, CL has less shares outstanding
The number of shares outstanding for CL has been reduced compared to 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 7.00 indicates that CL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.00, CL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
CL has a debt to FCF ratio of 2.87. This is a good value and a sign of high solvency as CL would need 2.87 years to pay back of all of its debts.
The Debt to FCF ratio of CL (2.87) is better than 66.67% of its industry peers.
A Debt/Equity ratio of 37.69 is on the high side and indicates that CL has dependencies on debt financing.
With a Debt to Equity ratio value of 37.69, CL is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 37.69
Debt/FCF 2.87
Altman-Z 7
ROIC/WACC3.08
WACC8.43%

2.3 Liquidity

CL has a Current Ratio of 1.06. This is a normal value and indicates that CL is financially healthy and should not expect problems in meeting its short term obligations.
CL has a worse Current ratio (1.06) than 66.67% of its industry peers.
CL has a Quick Ratio of 1.06. 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 Quick ratio of 0.70. This is in the lower half of the industry: CL underperforms 66.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.06
Quick Ratio 0.7

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 13.51% over the past year.
CL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.69% yearly.
The Revenue has been growing slightly by 7.71% in the past year.
CL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.59% yearly.
EPS 1Y (TTM)13.51%
EPS 3Y1.93%
EPS 5Y1.69%
EPS Q2Q%17.81%
Revenue 1Y (TTM)7.71%
Revenue growth 3Y5.71%
Revenue growth 5Y4.59%
Sales Q2Q%6.18%

3.2 Future

The Earnings Per Share is expected to grow by 9.06% on average over the next years. This is quite good.
Based on estimates for the next years, CL will show a small growth in Revenue. The Revenue will grow by 3.99% on average per year.
EPS Next Y12.48%
EPS Next 2Y10.63%
EPS Next 3Y10.02%
EPS Next 5Y9.06%
Revenue Next Year4.26%
Revenue Next 2Y4.16%
Revenue Next 3Y4.2%
Revenue Next 5Y3.99%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.

1

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 27.81, CL can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CL is valued a bit more expensive than 75.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.24. CL is around the same levels.
Based on the Price/Forward Earnings ratio of 23.63, the valuation of CL can be described as rather expensive.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.93, CL is valued at the same level.
Industry RankSector Rank
PE 27.81
Fwd PE 23.63

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.
66.67% of the companies in the same industry are cheaper than CL, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 25.36
EV/EBITDA 17.56

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)2.23
PEG (5Y)16.43
EPS Next 2Y10.63%
EPS Next 3Y10.02%

5

5. Dividend

5.1 Amount

CL has a Yearly Dividend Yield of 2.13%.
Compared to an average industry Dividend Yield of 2.54, CL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, CL has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.13%

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 Years33
Div Non Decr Years33

5.3 Sustainability

CL pays out 67.14% of its income as dividend. This is not a sustainable payout ratio.
CL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP67.14%
EPS Next 2Y10.63%
EPS Next 3Y10.02%

COLGATE-PALMOLIVE CO

NYSE:CL (6/12/2024, 12:07:44 PM)

93.425

-0.53 (-0.57%)

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 Cap76.65B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.13%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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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 RankSector Rank
PE 27.81
Fwd PE 23.63
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)2.23
PEG (5Y)16.43
Profitability
Industry RankSector Rank
ROA 15.76%
ROE 1135.22%
ROCE
ROIC
ROICexc
ROICexgc
OM 21.16%
PM (TTM) 13.22%
GM 59%
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 RankSector Rank
Debt/Equity 37.69
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.06
Quick Ratio 0.7
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)
High Growth Momentum
Growth
EPS 1Y (TTM)13.51%
EPS 3Y1.93%
EPS 5Y
EPS Q2Q%
EPS Next Y12.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.71%
Revenue growth 3Y5.71%
Revenue growth 5Y
Sales 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