COLGATE-PALMOLIVE CO (CPA.DE) Stock Fundamental Analysis
FRA:CPA - Deutsche Boerse Ag - US1941621039 - Common Stock - Currency: EUR
Taking everything into account, CPA scores 6 out of 10 in our fundamental rating. CPA was compared to 9 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.
In the past 5 years CPA has always 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 better Return On Equity (798.07%) than 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 18.69%.
The 3 year average ROIC (26.58%) for CPA is below the current ROIC(33.14%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 14.52%, CPA is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
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 66.67% of its industry peers.
In the last couple of years the Operating Margin of CPA has declined.
The Gross Margin of CPA (60.71%) is better than 88.89% 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.
Compared to 5 years ago, CPA has less shares outstanding
Compared to 1 year ago, CPA has an improved debt to assets ratio.
2.2 Solvency
CPA has an Altman-Z score of 6.82. This indicates that CPA is financially healthy and has little risk of bankruptcy at the moment.
CPA's Altman-Z score of 6.82 is amongst the best of the industry. CPA outperforms 100.00% of its industry peers.
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.
The Debt to FCF ratio of CPA (2.39) is comparable to the rest of the industry.
CPA has a Debt/Equity ratio of 18.10. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 18.10, CPA is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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 | 6.82 |
ROIC/WACC4
WACC8.28%
2.3 Liquidity
A Current Ratio of 0.85 indicates that CPA may have some problems paying its short term obligations.
CPA's Current ratio of 0.85 is fine compared to the rest of the industry. CPA outperforms 77.78% 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 Quick ratio of 0.54. This is in the better half of the industry: CPA outperforms 77.78% 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.
The Earnings Per Share has been growing slightly by 4.87% on average over the past years.
Looking at the last year, CPA shows a small growth in Revenue. The Revenue has grown by 0.99% in the last year.
The Revenue has been growing slightly by 5.08% on average over the past years.
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
Based on estimates for the next years, CPA will show a small growth in Earnings Per Share. The EPS will grow by 7.05% on average per year.
The Revenue is expected to grow by 3.10% on average over the next years.
EPS Next Y5.18%
EPS Next 2Y6.26%
EPS Next 3Y6.65%
EPS Next 5Y7.05%
Revenue Next Year0.72%
Revenue Next 2Y2.36%
Revenue Next 3Y2.84%
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
The Price/Earnings ratio is 24.41, which indicates a rather expensive current valuation of CPA.
Compared to the rest of the industry, the Price/Earnings ratio of CPA indicates a slightly more expensive valuation: CPA is more expensive than 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.05, CPA is valued at the same level.
A Price/Forward Earnings ratio of 21.89 indicates a rather expensive valuation of CPA.
CPA's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 37.67. CPA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.41 | ||
| Fwd PE | 21.89 |
4.2 Price Multiples
CPA's Enterprise Value to EBITDA ratio is in line with the industry average.
CPA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.74 | ||
| EV/EBITDA | 15.72 |
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)4.71
PEG (5Y)5.01
EPS Next 2Y6.26%
EPS Next 3Y6.65%
5. Dividend
5.1 Amount
CPA has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.22, CPA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.32, CPA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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.
CPA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.17%
EPS Next 2Y6.26%
EPS Next 3Y6.65%
FRA:CPA (7/28/2025, 12:03:13 PM)
75.67
+0.98 (+1.31%)
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 Cap61.32B
Analysts74.67
Price Target86.22 (13.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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)-0.53%
PT rev (3m)-0.61%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-4.18%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-0.59%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.41 | ||
| Fwd PE | 21.89 | ||
| P/S | 3.6 | ||
| P/FCF | 20.74 | ||
| P/OCF | 17.86 | ||
| P/B | 198.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.72 |
EPS(TTM)3.1
EY4.1%
EPS(NY)3.46
Fwd EY4.57%
FCF(TTM)3.65
FCFY4.82%
OCF(TTM)4.24
OCFY5.6%
SpS20.99
BVpS0.38
TBVpS-5
PEG (NY)4.71
PEG (5Y)5.01
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 | 6.82 |
F-Score8
WACC8.28%
ROIC/WACC4
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 Y5.18%
EPS Next 2Y6.26%
EPS Next 3Y6.65%
EPS Next 5Y7.05%
Revenue 1Y (TTM)0.99%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%-3.04%
Revenue Next Year0.72%
Revenue Next 2Y2.36%
Revenue Next 3Y2.84%
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%