COLGATE-PALMOLIVE CO (CL)
US1941621039 - Common Stock
Overall CL gets a fundamental rating of 5 out of 10. We evaluated CL 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.
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.
Each year in the past 5 years CL has been profitable.
In the past 5 years CL always reported a positive cash flow from operatings.
1.2 Ratios
CL has a Return On Assets of 15.76%. This is amongst the best in the industry. CL outperforms 83.33% of its industry peers.
CL's Return On Equity of 1135.22% is amongst the best of the industry. CL outperforms 100.00% of its industry peers.
CL's Return On Invested Capital of 25.97% 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 14.40%.
The 3 year average ROIC (24.38%) for CL is below the current ROIC(25.97%), indicating increased profibility in the last year.
| Industry Rank | Sector 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 has a better Profit Margin (13.22%) than 83.33% of its industry peers.
In the last couple of years the Profit Margin of CL has declined.
With an excellent Operating Margin value of 21.16%, CL belongs to the best 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.
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 Rank | Sector 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%
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
Compared to 5 years ago, CL has less shares outstanding
The debt/assets ratio for CL has been reduced compared to a year ago.
2.2 Solvency
CL has an Altman-Z score of 7.08. This indicates that CL is financially healthy and has little risk of bankruptcy at the moment.
CL has a Altman-Z score of 7.08. This is amongst the best in the industry. CL outperforms 91.67% of its industry peers.
The Debt to FCF ratio of CL is 2.87, which is a good value as it means it would take CL, 2.87 years of fcf income to pay off all of its debts.
CL has a Debt to FCF ratio (2.87) which is comparable to the rest of the industry.
CL has a Debt/Equity ratio of 37.69. This is a high value indicating a heavy dependency on external 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 37.69 | ||
| Debt/FCF | 2.87 | ||
| Altman-Z | 7.08 |
ROIC/WACC3.14
WACC8.27%
2.3 Liquidity
A Current Ratio of 1.06 indicates that CL should not have too much problems paying 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.
Looking at the Quick ratio, with a value of 0.70, CL is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.7 |
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.
CL shows a small growth in Revenue. In the last year, the Revenue has grown by 7.71%.
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
CL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.14% yearly.
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 Y12.44%
EPS Next 2Y10.6%
EPS Next 3Y10.02%
EPS Next 5Y9.14%
Revenue Next Year4.26%
Revenue Next 2Y4.16%
Revenue Next 3Y4.2%
Revenue Next 5Y4.07%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.72, which means the current valuation is very expensive for 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 24.29. CL is around the same levels.
With a Price/Forward Earnings ratio of 24.42, CL is valued on the expensive side.
Based on the Price/Forward Earnings ratio, CL is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.35, CL is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.72 | ||
| Fwd PE | 24.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CL is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.19 | ||
| EV/EBITDA | 17.99 |
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.
CL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.31
PEG (5Y)16.97
EPS Next 2Y10.6%
EPS Next 3Y10.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.03%, CL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.53, CL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, CL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
5.2 History
The dividend of CL has a limited annual growth rate of 2.96%.
CL has been paying a dividend for at least 10 years, so it has 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
67.14% 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.
DP67.14%
EPS Next 2Y10.6%
EPS Next 3Y10.02%
COLGATE-PALMOLIVE CO
NYSE:CL (7/25/2024, 7:04:00 PM)
After market: 97 +0.51 (+0.53%)96.49
-0.11 (-0.11%)
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 Cap79.16B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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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)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.72 | ||
| Fwd PE | 24.42 | ||
| 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)2.31
PEG (5Y)16.97
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 Y12.44%
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