COLGATE-PALMOLIVE CO (CL)

US1941621039 - Common Stock

94.23  -0.87 (-0.91%)

After market: 94.23 0 (0%)

Fundamental Rating

6

CL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. CL scores excellent on profitability, but 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.
In the past 5 years CL has always been profitable.
Each year in the past 5 years CL had a positive operating cash flow.

1.2 Ratios

CL has a Return On Assets of 17.10%. This is amongst the best in the industry. CL outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 659.54%, CL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 27.08%, CL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CL is significantly above the industry average of 15.07%.
The last Return On Invested Capital (27.08%) for CL is above the 3 year average (24.38%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 17.1%
ROE 659.54%
ROIC 27.08%
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

Looking at the Profit Margin, with a value of 14.27%, 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 Profit Margin of CL has declined.
CL has a better Operating Margin (21.57%) than 91.67% of its industry peers.
CL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 60.33%, CL belongs to the top 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 RankSector Rank
OM 21.57%
PM (TTM) 14.27%
GM 60.33%
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%

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CL 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.
Compared to 1 year ago, CL has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 7.08 indicates that CL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.08, CL belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
The Debt to FCF ratio of CL is 2.48, which is a good value as it means it would take CL, 2.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.48, CL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
CL has a Debt/Equity ratio of 19.35. This is a high value indicating a heavy dependency on external financing.
CL has a Debt to Equity ratio of 19.35. This is in the lower half of the industry: CL underperforms 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 RankSector Rank
Debt/Equity 19.35
Debt/FCF 2.48
Altman-Z 7.08
ROIC/WACC3.32
WACC8.16%

2.3 Liquidity

CL has a Current Ratio of 1.04. 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 (1.04) than 66.67% of its industry peers.
CL has a Quick Ratio of 1.04. 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 Quick ratio, with a value of 0.68, CL is doing worse than 66.67% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 0.68

5

3. Growth

3.1 Past

CL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.42%, which is quite good.
CL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.69% yearly.
CL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.07%.
The Revenue has been growing slightly by 4.59% on average over the past years.
EPS 1Y (TTM)13.42%
EPS 3Y1.93%
EPS 5Y1.69%
EPS Q2Q%5.81%
Revenue 1Y (TTM)5.07%
Revenue growth 3Y5.71%
Revenue growth 5Y4.59%
Sales Q2Q%2.4%

3.2 Future

The Earnings Per Share is expected to grow by 9.14% 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 4.07% on average per year.
EPS Next Y14.64%
EPS Next 2Y10.98%
EPS Next 3Y10.11%
EPS Next 5Y9.14%
Revenue Next Year4.2%
Revenue Next 2Y3.66%
Revenue Next 3Y3.85%
Revenue Next 5Y4.07%

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.

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 26.54 indicates a quite expensive valuation of CL.
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 29.48. CL is around the same levels.
With a Price/Forward Earnings ratio of 23.69, CL is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward 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.
The average S&P500 Price/Forward Earnings ratio is at 23.95. CL is around the same levels.
Industry RankSector Rank
PE 26.54
Fwd PE 23.69

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.
The rest of the industry has a similar Price/Free Cash Flow ratio as CL.
Industry RankSector Rank
P/FCF 22.64
EV/EBITDA 16.97

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)1.81
PEG (5Y)15.68
EPS Next 2Y10.98%
EPS Next 3Y10.11%

5

5. Dividend

5.1 Amount

CL has a Yearly Dividend Yield of 2.07%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.32, CL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.19, CL has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.07%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)2.96%
Div Incr Years34
Div Non Decr Years34

5.3 Sustainability

62.08% 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.
DP62.08%
EPS Next 2Y10.98%
EPS Next 3Y10.11%

COLGATE-PALMOLIVE CO

NYSE:CL (12/6/2024, 8:04:00 PM)

After market: 94.23 0 (0%)

94.23

-0.87 (-0.91%)

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 Cap76.99B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
Industry RankSector Rank
Dividend Yield 2.07%
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)
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EPS beat(8)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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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 26.54
Fwd PE 23.69
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)1.81
PEG (5Y)15.68
Profitability
Industry RankSector Rank
ROA 17.1%
ROE 659.54%
ROCE
ROIC
ROICexc
ROICexgc
OM 21.57%
PM (TTM) 14.27%
GM 60.33%
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 Turnover1.2
Health
Industry RankSector Rank
Debt/Equity 19.35
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.04
Quick Ratio 0.68
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)13.42%
EPS 3Y1.93%
EPS 5Y
EPS Q2Q%
EPS Next Y14.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.07%
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