COLGATE-PALMOLIVE CO (CPA.DE) Stock Fundamental Analysis
Europe - FRA:CPA - US1941621039 - Common Stock
67.105 EUR
+0.29 (+0.43%)
CPA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 8 industry peers in the Household Products industry. While CPA has a great profitability rating, there are some minor concerns on its financial health. CPA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
CPA had positive earnings in the past year.
CPA had a positive operating cash flow in the past year.
CPA had positive earnings in each of the past 5 years.
CPA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CPA has a better Return On Assets (16.65%) than 100.00% of its industry peers.
CPA has a Return On Equity of 414.39%. This is amongst the best in the industry. CPA outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 30.18%, CPA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
CPA had an Average Return On Invested Capital over the past 3 years of 26.58%. This is significantly above the industry average of 18.07%.
The 3 year average ROIC (26.58%) for CPA is below the current ROIC(30.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.65% | ||
| ROE | 414.39% | ||
| ROIC | 30.18% |
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 a decent Profit Margin value of 14.55%, CPA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
CPA's Profit Margin has been stable in the last couple of years.
The Operating Margin of CPA (21.60%) is better than 62.50% of its industry peers.
CPA's Operating Margin has declined in the last couple of years.
The Gross Margin of CPA (60.56%) is better than 87.50% of its industry peers.
CPA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.6% | ||
| PM (TTM) | 14.55% | ||
| GM | 60.56% |
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
CPA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CPA has been reduced compared to 1 year ago.
CPA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CPA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.32 indicates that CPA is not in any danger for bankruptcy at the moment.
CPA has a better Altman-Z score (6.32) than 100.00% of its industry peers.
The Debt to FCF ratio of CPA is 2.60, which is a good value as it means it would take CPA, 2.60 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CPA (2.60) is comparable to the rest of the industry.
CPA has a Debt/Equity ratio of 10.18. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 10.18, CPA is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.18 | ||
| Debt/FCF | 2.6 | ||
| Altman-Z | 6.32 |
ROIC/WACC3.79
WACC7.97%
2.3 Liquidity
A Current Ratio of 0.89 indicates that CPA may have some problems paying its short term obligations.
CPA has a better Current ratio (0.89) than 75.00% of its industry peers.
CPA has a Quick Ratio of 0.89. This is a bad value and indicates that CPA is not financially healthy enough and could expect problems in meeting its short term obligations.
CPA has a better Quick ratio (0.57) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
CPA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.29%.
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 0.06%.
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)4.29%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%1.1%
Revenue 1Y (TTM)0.06%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.03%
3.2 Future
CPA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.20% yearly.
The Revenue is expected to grow by 3.13% on average over the next years.
EPS Next Y5.51%
EPS Next 2Y6.29%
EPS Next 3Y6.68%
EPS Next 5Y7.2%
Revenue Next Year0.9%
Revenue Next 2Y2.47%
Revenue Next 3Y2.88%
Revenue Next 5Y3.13%
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
The Price/Earnings ratio is 21.58, which indicates a rather expensive current valuation of CPA.
CPA's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CPA to the average of the S&P500 Index (27.86), we can say CPA is valued slightly cheaper.
The Price/Forward Earnings ratio is 19.41, which indicates a rather expensive current valuation of CPA.
CPA's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CPA to the average of the S&P500 Index (23.32), we can say CPA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 19.41 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CPA.
Based on the Price/Free Cash Flow ratio, CPA is valued a bit cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.88 | ||
| EV/EBITDA | 14.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CPA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.92
PEG (5Y)4.43
EPS Next 2Y6.29%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.66%, CPA has a reasonable but not impressive dividend return.
With a Dividend Yield of 2.66, CPA pays less dividend than the industry average, which is at 3.18. 87.50% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
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
61.95% of the earnings are spent on dividend by CPA. This is not a sustainable payout ratio.
CPA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP61.95%
EPS Next 2Y6.29%
EPS Next 3Y6.68%
FRA:CPA (10/6/2025, 4:29:31 PM)
67.105
+0.29 (+0.43%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.03%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap54.24B
Analysts74.48
Price Target82.29 (22.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend1.87
Dividend Growth(5Y)3.11%
DP61.95%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.31%
Min EPS beat(2)-0.33%
Max EPS beat(2)2.94%
EPS beat(4)1
Avg EPS beat(4)0.39%
Min EPS beat(4)-0.87%
Max EPS beat(4)2.94%
EPS beat(8)4
Avg EPS beat(8)1.21%
EPS beat(12)6
Avg EPS beat(12)0.57%
EPS beat(16)6
Avg EPS beat(16)-0.1%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-2%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-1.35%
Revenue beat(8)0
Avg Revenue beat(8)-1.83%
Revenue beat(12)1
Avg Revenue beat(12)-1.59%
Revenue beat(16)2
Avg Revenue beat(16)-1.73%
PT rev (1m)-0.49%
PT rev (3m)-5.07%
EPS NQ rev (1m)-0.39%
EPS NQ rev (3m)-0.93%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.58 | ||
| Fwd PE | 19.41 | ||
| P/S | 3.18 | ||
| P/FCF | 18.88 | ||
| P/OCF | 16.23 | ||
| P/B | 90.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.34 |
EPS(TTM)3.11
EY4.63%
EPS(NY)3.46
Fwd EY5.15%
FCF(TTM)3.55
FCFY5.3%
OCF(TTM)4.13
OCFY6.16%
SpS21.09
BVpS0.74
TBVpS-5.16
PEG (NY)3.92
PEG (5Y)4.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.65% | ||
| ROE | 414.39% | ||
| ROCE | 40.38% | ||
| ROIC | 30.18% | ||
| ROICexc | 34.77% | ||
| ROICexgc | 87.63% | ||
| OM | 21.6% | ||
| PM (TTM) | 14.55% | ||
| GM | 60.56% | ||
| FCFM | 16.85% |
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-Score6
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.18 | ||
| Debt/FCF | 2.6 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 92.13% | ||
| Cap/Sales | 2.75% | ||
| Interest Coverage | 15.54 | ||
| Cash Conversion | 79.74% | ||
| Profit Quality | 115.85% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 6.32 |
F-Score6
WACC7.97%
ROIC/WACC3.79
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)4.29%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%1.1%
EPS Next Y5.51%
EPS Next 2Y6.29%
EPS Next 3Y6.68%
EPS Next 5Y7.2%
Revenue 1Y (TTM)0.06%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.03%
Revenue Next Year0.9%
Revenue Next 2Y2.47%
Revenue Next 3Y2.88%
Revenue Next 5Y3.13%
EBIT growth 1Y0.51%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year14.23%
EBIT Next 3Y8.24%
EBIT Next 5Y7.11%
FCF growth 1Y43.04%
FCF growth 3Y8.74%
FCF growth 5Y4.85%
OCF growth 1Y26.49%
OCF growth 3Y7.29%
OCF growth 5Y5.56%