COLGATE-PALMOLIVE CO (CL)
US1941621039 - Common Stock
Taking everything into account, CL scores 6 out of 10 in our fundamental rating. CL was compared to 12 industry peers in the Household Products industry. CL scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, CL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CL was profitable.
CL had a positive operating cash flow in the past year.
Each year in the past 5 years CL has been profitable.
CL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 17.10%, CL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 659.54%, CL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 27.08%, CL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CL is significantly above the industry average of 15.22%.
The last Return On Invested Capital (27.08%) for CL is above the 3 year average (24.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.1% | ||
| ROE | 659.54% | ||
| ROIC | 27.08% |
ROA(3y)13.26%
ROA(5y)14.49%
ROE(3y)392.82%
ROE(5y)712.85%
ROIC(3y)24.38%
ROIC(5y)24.26%
1.3 Margins
CL has a Profit Margin of 14.27%. This is amongst the best in the industry. CL outperforms 91.67% of its industry peers.
CL's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 21.57%, CL belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
CL's Operating Margin has declined in the last couple of years.
The Gross Margin of CL (60.33%) is better 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 | 21.57% | ||
| PM (TTM) | 14.27% | ||
| GM | 60.33% |
OM growth 3Y-4.15%
OM growth 5Y-3.5%
PM growth 3Y-10.27%
PM growth 5Y-5.2%
GM growth 3Y-1.45%
GM growth 5Y-0.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CL is creating value.
The number of shares outstanding for CL has been reduced compared to 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 7.01 indicates that CL is not in any danger for bankruptcy at the moment.
CL has a Altman-Z score of 7.01. This is amongst the best in the industry. CL outperforms 91.67% of its industry peers.
The Debt to FCF ratio of CL is 2.48, which is a good value as it means it would take CL, 2.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.48, CL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 19.35 is on the high side and indicates that CL has dependencies on debt financing.
CL's Debt to Equity ratio of 19.35 is on the low side compared to the rest of the industry. CL is outperformed by 75.00% of its industry peers.
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 | 19.35 | ||
| Debt/FCF | 2.48 | ||
| Altman-Z | 7.01 |
ROIC/WACC3.19
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.04 indicates that CL should not have too much problems paying its short term obligations.
CL has a Current ratio of 1.04. This is in the lower half of the industry: CL underperforms 66.67% of its industry peers.
CL has a Quick Ratio of 1.04. 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 0.68 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 | 1.04 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
CL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.42%, which is quite good.
The Earnings Per Share has been growing slightly by 1.69% on average over the past years.
Looking at the last year, CL shows a small growth in Revenue. The Revenue has grown by 5.07% in the last year.
CL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.59% yearly.
EPS 1Y (TTM)13.42%
EPS 3Y1.93%
EPS 5Y1.69%
EPS Q2Q%5.81%
Revenue 1Y (TTM)5.07%
Revenue growth 3Y5.71%
Revenue growth 5Y4.59%
Sales Q2Q%2.4%
3.2 Future
CL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.93% yearly.
Based on estimates for the next years, CL will show a small growth in Revenue. The Revenue will grow by 3.89% on average per year.
EPS Next Y14.64%
EPS Next 2Y10.98%
EPS Next 3Y10.11%
EPS Next 5Y8.93%
Revenue Next Year4.2%
Revenue Next 2Y3.66%
Revenue Next 3Y3.85%
Revenue Next 5Y3.89%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.92, CL can be considered very expensive at the moment.
CL's Price/Earnings ratio is a bit more expensive when compared to the industry. CL is more expensive than 75.00% of the companies in the same industry.
CL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.13 indicates a rather expensive valuation of CL.
Based on the Price/Forward Earnings ratio, CL is valued a bit more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. CL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.92 | ||
| Fwd PE | 23.13 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than CL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.11 | ||
| EV/EBITDA | 16.61 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.77
PEG (5Y)15.32
EPS Next 2Y10.98%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.14%, CL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.36, CL has a dividend in line with its industry peers.
CL's Dividend Yield is comparable with the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
5.2 History
The dividend of CL has a limited annual growth rate of 2.96%.
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)2.96%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
62.08% 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.
DP62.08%
EPS Next 2Y10.98%
EPS Next 3Y10.11%
COLGATE-PALMOLIVE CO
NYSE:CL (12/20/2024, 8:04:00 PM)
After market: 92.03 0 (0%)92.03
-0.89 (-0.96%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners82.56%
Inst Owner Change1.24%
Ins Owners0.43%
Ins Owner Change0.02%
Market Cap75.19B
Analysts74.38
Price Target107.34 (16.64%)
Short Float %1.09%
Short Ratio1.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Dividend Growth(5Y)2.96%
DP62.08%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.79%
Min EPS beat(2)-0.19%
Max EPS beat(2)1.78%
EPS beat(4)2
Avg EPS beat(4)0.94%
Min EPS beat(4)-0.6%
Max EPS beat(4)2.78%
EPS beat(8)5
Avg EPS beat(8)0.88%
EPS beat(12)5
Avg EPS beat(12)-0.19%
EPS beat(16)5
Avg EPS beat(16)-0.62%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-2.31%
Max Revenue beat(2)-1.98%
Revenue beat(4)0
Avg Revenue beat(4)-1.74%
Min Revenue beat(4)-2.31%
Max Revenue beat(4)-0.78%
Revenue beat(8)1
Avg Revenue beat(8)-1.12%
Revenue beat(12)2
Avg Revenue beat(12)-1.53%
Revenue beat(16)3
Avg Revenue beat(16)-1.42%
PT rev (1m)-2.33%
PT rev (3m)-0.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.59%
EPS NY rev (1m)0%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.92 | ||
| Fwd PE | 23.13 | ||
| P/S | 3.74 | ||
| P/FCF | 22.11 | ||
| P/OCF | 18.92 | ||
| P/B | 172.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.61 |
EPS(TTM)3.55
EY3.86%
EPS(NY)3.98
Fwd EY4.32%
FCF(TTM)4.16
FCFY4.52%
OCF(TTM)4.86
OCFY5.29%
SpS24.61
BVpS0.53
TBVpS-5.86
PEG (NY)1.77
PEG (5Y)15.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.1% | ||
| ROE | 659.54% | ||
| ROCE | 38.68% | ||
| ROIC | 27.08% | ||
| ROICexc | 31.03% | ||
| ROICexgc | 63.46% | ||
| OM | 21.57% | ||
| PM (TTM) | 14.27% | ||
| GM | 60.33% | ||
| FCFM | 16.91% |
ROA(3y)13.26%
ROA(5y)14.49%
ROE(3y)392.82%
ROE(5y)712.85%
ROIC(3y)24.38%
ROIC(5y)24.26%
ROICexc(3y)26.65%
ROICexc(5y)26.45%
ROICexgc(3y)55.37%
ROICexgc(5y)59.91%
ROCE(3y)33.68%
ROCE(5y)33.67%
ROICexcg growth 3Y-8%
ROICexcg growth 5Y-5.7%
ROICexc growth 3Y1.43%
ROICexc growth 5Y-4.75%
OM growth 3Y-4.15%
OM growth 5Y-3.5%
PM growth 3Y-10.27%
PM growth 5Y-5.2%
GM growth 3Y-1.45%
GM growth 5Y-0.47%
F-Score8
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 19.35 | ||
| Debt/FCF | 2.48 | ||
| Debt/EBITDA | 1.7 | ||
| Cap/Depr | 94.56% | ||
| Cap/Sales | 2.85% | ||
| Interest Coverage | 14.26 | ||
| Cash Conversion | 80.4% | ||
| Profit Quality | 118.51% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 7.01 |
F-Score8
WACC8.5%
ROIC/WACC3.19
Cap/Depr(3y)118.01%
Cap/Depr(5y)98.93%
Cap/Sales(3y)3.58%
Cap/Sales(5y)3.08%
Profit Quality(3y)121.24%
Profit Quality(5y)120.94%
High Growth Momentum
Growth
EPS 1Y (TTM)13.42%
EPS 3Y1.93%
EPS 5Y1.69%
EPS Q2Q%5.81%
EPS Next Y14.64%
EPS Next 2Y10.98%
EPS Next 3Y10.11%
EPS Next 5Y8.93%
Revenue 1Y (TTM)5.07%
Revenue growth 3Y5.71%
Revenue growth 5Y4.59%
Sales Q2Q%2.4%
Revenue Next Year4.2%
Revenue Next 2Y3.66%
Revenue Next 3Y3.85%
Revenue Next 5Y3.89%
EBIT growth 1Y11.12%
EBIT growth 3Y1.33%
EBIT growth 5Y0.93%
EBIT Next Year24.93%
EBIT Next 3Y12.12%
EBIT Next 5Y9.31%
FCF growth 1Y46.49%
FCF growth 3Y-2.79%
FCF growth 5Y3.02%
OCF growth 1Y32.95%
OCF growth 3Y0.23%
OCF growth 5Y4.15%