COLGATE-PALMOLIVE CO (CPA.DE) Stock Fundamental Analysis
FRA:CPA - Deutsche Boerse Ag - US1941621039 - Common Stock - Currency: EUR
CPA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 7 industry peers in the Household Products industry. CPA has an excellent profitability rating, but there are some minor concerns on its financial health. CPA is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CPA was profitable.
CPA had a positive operating cash flow in the past year.
Each year in the past 5 years CPA has been profitable.
CPA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CPA's Return On Assets of 17.40% is amongst the best of the industry. CPA outperforms 100.00% of its industry peers.
CPA has a Return On Equity of 798.07%. This is amongst the best in the industry. CPA outperforms 100.00% of its industry peers.
CPA has a better Return On Invested Capital (33.14%) than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CPA is significantly above the industry average of 18.15%.
The last Return On Invested Capital (33.14%) for CPA is above the 3 year average (26.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.4% | ||
| ROE | 798.07% | ||
| ROIC | 33.14% |
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
CPA has a Profit Margin of 14.52%. This is amongst the best in the industry. CPA outperforms 85.71% of its industry peers.
CPA's Profit Margin has been stable in the last couple of years.
CPA's Operating Margin of 21.76% is fine compared to the rest of the industry. CPA outperforms 71.43% of its industry peers.
In the last couple of years the Operating Margin of CPA has declined.
CPA has a Gross Margin of 60.71%. This is amongst the best in the industry. CPA outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of CPA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.76% | ||
| PM (TTM) | 14.52% | ||
| GM | 60.71% |
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), CPA is creating value.
The number of shares outstanding for CPA has been reduced compared to 1 year ago.
The number of shares outstanding for CPA has been reduced compared to 5 years ago.
Compared to 1 year ago, CPA has an improved debt to assets ratio.
2.2 Solvency
CPA has an Altman-Z score of 6.97. This indicates that CPA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.97, CPA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of CPA is 2.39, which is a good value as it means it would take CPA, 2.39 years of fcf income to pay off all of its debts.
CPA has a Debt to FCF ratio (2.39) which is comparable to the rest of the industry.
A Debt/Equity ratio of 18.10 is on the high side and indicates that CPA has dependencies on debt financing.
CPA has a worse Debt to Equity ratio (18.10) than 71.43% of its industry peers.
Although CPA 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 | 18.1 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 6.97 |
ROIC/WACC4.05
WACC8.19%
2.3 Liquidity
CPA has a Current Ratio of 0.85. This is a bad value and indicates that CPA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CPA (0.85) is better than 71.43% of its industry peers.
A Quick Ratio of 0.54 indicates that CPA may have some problems paying its short term obligations.
CPA has a better Quick ratio (0.54) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.33% over the past year.
Measured over the past 5 years, CPA shows a small growth in Earnings Per Share. The EPS has been growing by 4.87% on average per year.
CPA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.99%.
Measured over the past years, CPA shows a small growth in Revenue. The Revenue has been growing by 5.08% on average per year.
EPS 1Y (TTM)8.33%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%5.81%
Revenue 1Y (TTM)0.99%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%-3.04%
3.2 Future
The Earnings Per Share is expected to grow by 7.05% on average over the next years.
CPA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.10% yearly.
EPS Next Y5%
EPS Next 2Y6.17%
EPS Next 3Y6.69%
EPS Next 5Y7.05%
Revenue Next Year0.65%
Revenue Next 2Y2.28%
Revenue Next 3Y2.83%
Revenue Next 5Y3.1%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 25.46, the valuation of CPA can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CPA indicates a slightly more expensive valuation: CPA is more expensive than 71.43% of the companies listed in the same industry.
CPA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.91, which indicates a rather expensive current valuation of CPA.
CPA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CPA is more expensive than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, CPA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.46 | ||
| Fwd PE | 22.91 |
4.2 Price Multiples
CPA's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CPA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.67 | ||
| EV/EBITDA | 16.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CPA does not grow enough to justify the current Price/Earnings ratio.
CPA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.09
PEG (5Y)5.23
EPS Next 2Y6.17%
EPS Next 3Y6.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.37%, CPA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.26, CPA's dividend is way lower than its industry peers. On top of this 85.71% of the companies listed in the same industry pay a better dividend than CPA!
CPA's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
The dividend of CPA has a limited annual growth rate of 3.11%.
Dividend Growth(5Y)3.11%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
62.17% of the earnings are spent on dividend by CPA. This is not a sustainable payout ratio.
The dividend of CPA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.17%
EPS Next 2Y6.17%
EPS Next 3Y6.69%
FRA:CPA (7/3/2025, 7:00:00 PM)
78.67
+0.58 (+0.74%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.12%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap63.76B
Analysts74.67
Price Target86.68 (10.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend1.87
Dividend Growth(5Y)3.11%
DP62.17%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.04%
Min EPS beat(2)-0.87%
Max EPS beat(2)2.94%
EPS beat(4)2
Avg EPS beat(4)0.92%
Min EPS beat(4)-0.87%
Max EPS beat(4)2.94%
EPS beat(8)5
Avg EPS beat(8)1.28%
EPS beat(12)6
Avg EPS beat(12)0.48%
EPS beat(16)6
Avg EPS beat(16)-0.25%
Revenue beat(2)0
Avg Revenue beat(2)-2.73%
Min Revenue beat(2)-3.46%
Max Revenue beat(2)-2%
Revenue beat(4)0
Avg Revenue beat(4)-2.43%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-1.98%
Revenue beat(8)0
Avg Revenue beat(8)-1.69%
Revenue beat(12)2
Avg Revenue beat(12)-1.47%
Revenue beat(16)2
Avg Revenue beat(16)-1.81%
PT rev (1m)-1.98%
PT rev (3m)-4.64%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-4.64%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.46 | ||
| Fwd PE | 22.91 | ||
| P/S | 3.77 | ||
| P/FCF | 21.67 | ||
| P/OCF | 18.66 | ||
| P/B | 206.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.56 |
EPS(TTM)3.09
EY3.93%
EPS(NY)3.43
Fwd EY4.37%
FCF(TTM)3.63
FCFY4.62%
OCF(TTM)4.22
OCFY5.36%
SpS20.89
BVpS0.38
TBVpS-4.98
PEG (NY)5.09
PEG (5Y)5.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.4% | ||
| ROE | 798.07% | ||
| ROCE | 44.35% | ||
| ROIC | 33.14% | ||
| ROICexc | 38.27% | ||
| ROICexgc | 96.55% | ||
| OM | 21.76% | ||
| PM (TTM) | 14.52% | ||
| GM | 60.71% | ||
| FCFM | 17.38% |
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-Score8
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.1 | ||
| Debt/FCF | 2.39 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 92.7% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 15.07 | ||
| Cash Conversion | 81.45% | ||
| Profit Quality | 119.68% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 6.97 |
F-Score8
WACC8.19%
ROIC/WACC4.05
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)8.33%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%5.81%
EPS Next Y5%
EPS Next 2Y6.17%
EPS Next 3Y6.69%
EPS Next 5Y7.05%
Revenue 1Y (TTM)0.99%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%-3.04%
Revenue Next Year0.65%
Revenue Next 2Y2.28%
Revenue Next 3Y2.83%
Revenue Next 5Y3.1%
EBIT growth 1Y3.85%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year14.63%
EBIT Next 3Y8.54%
EBIT Next 5Y7.18%
FCF growth 1Y59.92%
FCF growth 3Y8.74%
FCF growth 5Y4.85%
OCF growth 1Y38.59%
OCF growth 3Y7.29%
OCF growth 5Y5.56%