COLGATE-PALMOLIVE CO (CL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CL - US1941621039 - Common Stock
79.73 USD
-0.52 (-0.65%)
79.72 USD
-0.01 (-0.01%)
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 has an excellent profitability rating, but there are some minor concerns on its financial health. CL has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CL was profitable.
CL had a positive operating cash flow in the past year.
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
The Return On Assets of CL (16.60%) is better than 91.67% of its industry peers.
With an excellent Return On Equity value of 339.60%, CL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 29.23%, CL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CL had an Average Return On Invested Capital over the past 3 years of 26.58%. This is significantly above the industry average of 14.85%.
The 3 year average ROIC (26.58%) for CL is below the current ROIC(29.23%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 14.46%, CL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of CL has remained more or less at the same level.
CL has a better Operating Margin (21.44%) than 91.67% of its industry peers.
CL's Operating Margin has declined in the last couple of years.
CL has a better Gross Margin (60.14%) 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 | 21.44% | ||
| 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 6.42 indicates that CL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.42, 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 2.45, 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.
The Debt to FCF ratio of CL (2.45) is better than 66.67% of its industry peers.
CL has a Debt/Equity ratio of 8.54. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CL (8.54) is worse than 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.54 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | 6.42 |
ROIC/WACC3.61
WACC8.09%
2.3 Liquidity
CL has a Current 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.
The Current ratio of CL (0.93) is worse than 66.67% of its industry peers.
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.
The Quick ratio of CL (0.60) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
CL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.82%.
CL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.87% yearly.
The Revenue has decreased by -0.04% in the past year.
CL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.08% yearly.
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.
CL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.84% yearly.
EPS Next Y4.89%
EPS Next 2Y4.94%
EPS Next 3Y5.42%
EPS Next 5Y5.87%
Revenue Next Year0.66%
Revenue Next 2Y1.99%
Revenue Next 3Y2.45%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.84, the valuation of CL can be described as rather expensive.
75.00% of the companies in the same industry are cheaper than CL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.57. CL is around the same levels.
With a Price/Forward Earnings ratio of 20.17, CL is valued on the expensive side.
66.67% of the companies in the same industry are cheaper than CL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, CL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.84 | ||
| Fwd PE | 20.17 |
4.2 Price Multiples
CL's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CL indicates a somewhat cheap valuation: CL is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.67 | ||
| EV/EBITDA | 14.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CL may justify a higher PE ratio.
PEG (NY)4.47
PEG (5Y)4.48
EPS Next 2Y4.94%
EPS Next 3Y5.42%
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 2.80, CL has a dividend in line with its industry peers.
CL's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| 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 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
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 2Y4.94%
EPS Next 3Y5.42%
79.73
-0.52 (-0.65%)
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 Change1.66%
Market Cap64.27B
Revenue(TTM)20.10B
Net Income(TTM)2.91B
Analysts74
Price Target88.91 (11.51%)
Short Float %1.78%
Short Ratio2.13
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)-3.58%
PT rev (3m)-8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.1%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.84 | ||
| Fwd PE | 20.17 | ||
| P/S | 3.2 | ||
| P/FCF | 18.67 | ||
| P/OCF | 16.01 | ||
| P/B | 75.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.54 |
EPS(TTM)3.65
EY4.58%
EPS(NY)3.95
Fwd EY4.96%
FCF(TTM)4.27
FCFY5.36%
OCF(TTM)4.98
OCFY6.25%
SpS24.93
BVpS1.06
TBVpS-5.87
PEG (NY)4.47
PEG (5Y)4.48
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 | 6.42 |
F-Score5
WACC8.09%
ROIC/WACC3.61
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 Y4.89%
EPS Next 2Y4.94%
EPS Next 3Y5.42%
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 2Y1.99%
Revenue Next 3Y2.45%
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 6 / 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 21.84 and the Price/Book (PB) ratio is 75.08.
How sustainable is the dividend of COLGATE-PALMOLIVE CO (CL) stock?
The dividend rating of COLGATE-PALMOLIVE CO (CL) is 6 / 10 and the dividend payout ratio is 62.4%.