COLGATE-PALMOLIVE CO (CL) Stock Fundamental Analysis
NYSE:CL - US1941621039 - Common Stock
84.06 USD
+0.86 (+1.03%)
84.06 USD
0 (0%)
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. While showing a medium growth rate, CL is valued expensive at the moment.
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.
In the past 5 years CL always reported a positive cash flow from operatings.
1.2 Ratios
CL's Return On Assets of 16.65% is amongst the best of 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 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
The Profit Margin of CL (14.55%) is better than 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.
Looking at the Operating Margin, with a value of 21.60%, CL belongs to the top 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.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CL is creating value.
The number of shares outstanding for CL has been reduced compared to 1 year ago.
Compared to 5 years ago, CL has less shares outstanding
Compared to 1 year ago, CL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.46 indicates that CL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.46, 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.
The Debt to FCF ratio of CL (2.60) is better than 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 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 | 6.46 |
ROIC/WACC3.75
WACC8.04%
2.3 Liquidity
A Current Ratio of 0.89 indicates that CL may have some problems paying its short term obligations.
CL has a worse Current ratio (0.89) than 66.67% of its industry peers.
A Quick Ratio of 0.57 indicates that CL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.57, CL is doing worse than 66.67% of the companies in the same industry.
| 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.
Measured over the past 5 years, CL shows a small growth in Earnings Per Share. The EPS has been growing by 4.87% on average per year.
Looking at the last year, CL shows a small growth in Revenue. The Revenue has grown by 0.06% in the last year.
The Revenue has been growing slightly by 5.08% on average over the past years.
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
The Earnings Per Share is expected to grow by 7.29% on average over the next years.
The Revenue is expected to grow by 3.21% on average over the next years.
EPS Next Y5.56%
EPS Next 2Y6.29%
EPS Next 3Y6.68%
EPS Next 5Y7.29%
Revenue Next Year1.19%
Revenue Next 2Y2.75%
Revenue Next 3Y3.16%
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 23.03, CL is valued on the expensive side.
CL's Price/Earnings ratio is a bit more expensive when compared to the industry. CL is more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of CL to the average of the S&P500 Index (27.44), we can say CL is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.73, the valuation of CL can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as CL.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.87, CL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.03 | ||
| Fwd PE | 20.73 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as CL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.16 | ||
| EV/EBITDA | 15.13 |
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)4.14
PEG (5Y)4.73
EPS Next 2Y6.29%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
CL has a Yearly Dividend Yield of 2.49%.
Compared to an average industry Dividend Yield of 2.86, CL has a dividend in line with its industry peers.
CL's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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
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%
84.06
+0.86 (+1.03%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.04%
Inst Owner Change-5.58%
Ins Owners0.06%
Ins Owner Change3.01%
Market Cap67.94B
Analysts74.67
Price Target96.64 (14.97%)
Short Float %1.49%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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)-1.21%
PT rev (3m)-3.66%
EPS NQ rev (1m)-0.84%
EPS NQ rev (3m)-2.29%
EPS NY rev (1m)0.36%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)2.38%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.03 | ||
| Fwd PE | 20.73 | ||
| P/S | 3.4 | ||
| P/FCF | 20.16 | ||
| P/OCF | 17.33 | ||
| P/B | 96.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.13 |
EPS(TTM)3.65
EY4.34%
EPS(NY)4.06
Fwd EY4.82%
FCF(TTM)4.17
FCFY4.96%
OCF(TTM)4.85
OCFY5.77%
SpS24.74
BVpS0.87
TBVpS-6.06
PEG (NY)4.14
PEG (5Y)4.73
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 | 6.46 |
F-Score6
WACC8.04%
ROIC/WACC3.75
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 Y5.56%
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 Year1.19%
Revenue Next 2Y2.75%
Revenue Next 3Y3.16%
Revenue Next 5Y3.21%
EBIT growth 1Y0.51%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year14.37%
EBIT Next 3Y8.34%
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%