COLGATE-PALMOLIVE CO (CL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CL - US1941621039 - Common Stock
77.25 USD
-0.51 (-0.66%)
77.8793 USD
+0.63 (+0.81%)
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 does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
CL had positive earnings in the past year.
CL had a positive operating cash flow in the past year.
CL had positive earnings in each of the past 5 years.
CL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CL (16.60%) is better than 91.67% of its industry peers.
CL has a better Return On Equity (339.60%) than 100.00% of its industry peers.
CL has a Return On Invested Capital of 29.23%. 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 14.97%.
The last Return On Invested Capital (29.23%) for CL is above the 3 year average (26.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.6% | ||
| ROE | 339.6% | ||
| ROIC | 29.23% |
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's Profit Margin of 14.46% is amongst the best of the industry. CL outperforms 83.33% of its industry peers.
In the last couple of years the Profit Margin of CL has remained more or less at the same level.
CL's Operating Margin of 21.44% is amongst the best of the industry. CL outperforms 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 (60.14%) 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 | 21.44% | ||
| PM (TTM) | 14.46% | ||
| GM | 60.14% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CL 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
An Altman-Z score of 6.35 indicates that CL is not in any danger for bankruptcy at the moment.
CL's Altman-Z score of 6.35 is amongst the best of the industry. CL outperforms 91.67% of its industry peers.
The Debt to FCF ratio of CL is 2.45, which is a good value as it means it would take CL, 2.45 years of fcf income to pay off all of its debts.
CL's Debt to FCF ratio of 2.45 is fine compared to the rest of the industry. CL outperforms 66.67% of its industry peers.
A Debt/Equity ratio of 8.54 is on the high side and indicates that CL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 8.54, CL is doing worse than 75.00% of the companies in the same industry.
Although CL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.54 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | 6.35 |
ROIC/WACC3.63
WACC8.06%
2.3 Liquidity
A Current Ratio of 0.93 indicates that CL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.93, CL is doing worse than 66.67% of the companies in the same industry.
CL has a Quick Ratio of 0.93. 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 0.60 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 | 0.93 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.82% 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.
The Revenue has decreased by -0.04% in the past year.
Measured over the past years, CL shows a small growth in Revenue. The Revenue has been growing by 5.08% on average per year.
EPS 1Y (TTM)2.82%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.95%
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 5.87% on average per year.
Based on estimates for the next years, CL will show a small growth in Revenue. The Revenue will grow by 2.84% on average per year.
EPS Next Y4.9%
EPS Next 2Y4.97%
EPS Next 3Y5.47%
EPS Next 5Y5.87%
Revenue Next Year0.66%
Revenue Next 2Y2.01%
Revenue Next 3Y2.48%
Revenue Next 5Y2.84%
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
Based on the Price/Earnings ratio of 21.16, the valuation of CL can be described as rather expensive.
Based on the Price/Earnings ratio, CL is valued a bit more expensive than 75.00% of the companies in the same industry.
CL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.76.
CL is valuated rather expensively with a Price/Forward Earnings ratio of 19.53.
Based on the Price/Forward Earnings ratio, CL is valued a bit more expensive than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CL to the average of the S&P500 Index (23.96), we can say CL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.16 | ||
| Fwd PE | 19.53 |
4.2 Price Multiples
CL's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, CL is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.09 | ||
| EV/EBITDA | 14.13 |
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)4.32
PEG (5Y)4.34
EPS Next 2Y4.97%
EPS Next 3Y5.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.68%, CL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.37, CL has a dividend in line with its industry peers.
CL's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.11%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
62.40% 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.
DP62.4%
EPS Next 2Y4.97%
EPS Next 3Y5.47%
77.25
-0.51 (-0.66%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.75%
Inst Owner Change4.96%
Ins Owners0.06%
Ins Owner Change4.18%
Market Cap62.27B
Revenue(TTM)20.10B
Net Income(TTM)2.91B
Analysts74
Price Target88.82 (14.98%)
Short Float %1.77%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
Yearly Dividend2.19
Dividend Growth(5Y)3.11%
DP62.4%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.44%
Min EPS beat(2)-0.54%
Max EPS beat(2)-0.33%
EPS beat(4)1
Avg EPS beat(4)0.3%
Min EPS beat(4)-0.87%
Max EPS beat(4)2.94%
EPS beat(8)3
Avg EPS beat(8)0.62%
EPS beat(12)6
Avg EPS beat(12)0.68%
EPS beat(16)6
Avg EPS beat(16)-0.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-2.43%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-1.35%
Revenue beat(8)0
Avg Revenue beat(8)-2.08%
Revenue beat(12)1
Avg Revenue beat(12)-1.56%
Revenue beat(16)2
Avg Revenue beat(16)-1.75%
PT rev (1m)-3.68%
PT rev (3m)-8.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.1%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.16 | ||
| Fwd PE | 19.53 | ||
| P/S | 3.1 | ||
| P/FCF | 18.09 | ||
| P/OCF | 15.51 | ||
| P/B | 72.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.13 |
EPS(TTM)3.65
EY4.72%
EPS(NY)3.96
Fwd EY5.12%
FCF(TTM)4.27
FCFY5.53%
OCF(TTM)4.98
OCFY6.45%
SpS24.93
BVpS1.06
TBVpS-5.87
PEG (NY)4.32
PEG (5Y)4.34
Graham Number9.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.6% | ||
| ROE | 339.6% | ||
| ROCE | 39.11% | ||
| ROIC | 29.23% | ||
| ROICexc | 33.73% | ||
| ROICexgc | 81.43% | ||
| OM | 21.44% | ||
| PM (TTM) | 14.46% | ||
| GM | 60.14% | ||
| FCFM | 17.13% |
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-Score5
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.54 | ||
| Debt/FCF | 2.45 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 94.38% | ||
| Cap/Sales | 2.84% | ||
| Interest Coverage | 15.96 | ||
| Cash Conversion | 81.69% | ||
| Profit Quality | 118.44% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 6.35 |
F-Score5
WACC8.06%
ROIC/WACC3.63
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)2.82%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%0%
EPS Next Y4.9%
EPS Next 2Y4.97%
EPS Next 3Y5.47%
EPS Next 5Y5.87%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.95%
Revenue Next Year0.66%
Revenue Next 2Y2.01%
Revenue Next 3Y2.48%
Revenue Next 5Y2.84%
EBIT growth 1Y-0.62%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year12.68%
EBIT Next 3Y6.94%
EBIT Next 5Y6%
FCF growth 1Y34.86%
FCF growth 3Y8.74%
FCF growth 5Y4.85%
OCF growth 1Y22.3%
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 5 / 10 to CL.
What is the valuation status for CL stock?
ChartMill assigns a valuation rating of 3 / 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 21.16 and the Price/Book (PB) ratio is 72.74.
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 62.4%.