COLGATE-PALMOLIVE CO (CL) Stock Fundamental Analysis
NYSE:CL - New York Stock Exchange, Inc. - US1941621039 - Common Stock
Overall CL gets a fundamental rating of 6 out of 10. We evaluated CL against 12 industry peers in the Household Products industry. While CL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CL is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years CL always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 17.10%, CL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CL's Return On Equity of 659.54% is amongst the best of the industry. CL outperforms 100.00% of its industry peers.
CL has a better Return On Invested Capital (27.08%) than 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CL is significantly above the industry average of 15.26%.
The 3 year average ROIC (24.38%) for CL is below the current ROIC(27.08%), indicating increased profibility in the last year.
| 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.
In the last couple of years the Profit Margin of CL has declined.
CL's Operating Margin of 21.57% is amongst the best of the industry. CL outperforms 91.67% of its industry peers.
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.
Compared to 1 year ago, CL has less shares outstanding
CL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.87 indicates that CL is not in any danger for bankruptcy at the moment.
The Altman-Z score of CL (6.87) is better than 91.67% of its industry peers.
CL has a debt to FCF ratio of 2.48. This is a good value and a sign of high solvency as CL would need 2.48 years to pay back of all of its debts.
CL has a better Debt to FCF ratio (2.48) than 75.00% of its industry peers.
CL has a Debt/Equity ratio of 19.35. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 19.35, CL is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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 | 19.35 | ||
| Debt/FCF | 2.48 | ||
| Altman-Z | 6.87 |
ROIC/WACC3.18
WACC8.51%
2.3 Liquidity
CL has a Current Ratio of 1.04. This is a normal value and indicates that CL is financially healthy and should not expect problems in meeting 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 has a Quick ratio of 0.68. This is in the lower half of the industry: CL underperforms 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.
Measured over the past 5 years, CL shows a small growth in Earnings Per Share. The EPS has been growing by 1.69% on average per year.
The Revenue has been growing slightly by 5.07% in the past year.
The Revenue has been growing slightly by 4.59% on average over the past years.
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 8.75% yearly.
Based on estimates for the next years, CL will show a small growth in Revenue. The Revenue will grow by 3.74% on average per year.
EPS Next Y14.6%
EPS Next 2Y10.87%
EPS Next 3Y10.06%
EPS Next 5Y8.75%
Revenue Next Year4.1%
Revenue Next 2Y3.42%
Revenue Next 3Y3.65%
Revenue Next 5Y3.74%
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
A Price/Earnings ratio of 24.85 indicates a rather expensive valuation of CL.
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's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
The Price/Forward Earnings ratio is 22.22, which indicates a rather expensive current 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.
CL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 22.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CL indicates a slightly more expensive valuation: CL is more expensive than 66.67% of the companies listed in the same industry.
CL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.2 | ||
| EV/EBITDA | 15.83 |
4.3 Compensation for Growth
CL's 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)1.7
PEG (5Y)14.68
EPS Next 2Y10.87%
EPS Next 3Y10.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.26%, CL has a reasonable but not impressive dividend return.
CL's Dividend Yield is comparable with the industry average which is at 2.48.
CL's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
The dividend of CL has a limited annual growth rate of 2.96%.
CL has been paying a dividend for at least 10 years, so it has a reliable track record.
CL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.96%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
CL pays out 62.08% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.08%
EPS Next 2Y10.87%
EPS Next 3Y10.06%
COLGATE-PALMOLIVE CO
NYSE:CL (1/21/2025, 8:04:00 PM)
After market: 88.23 0 (0%)88.23
-0.46 (-0.52%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners84.67%
Inst Owner Change0.21%
Ins Owners0.05%
Ins Owner Change-0.01%
Market Cap72.08B
Analysts74.38
Price Target107.11 (21.4%)
Short Float %1.13%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Yearly Dividend2.12
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)-0.22%
PT rev (3m)-1.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.59%
EPS NY rev (1m)0%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.09%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 22.22 | ||
| P/S | 3.59 | ||
| P/FCF | 21.2 | ||
| P/OCF | 18.14 | ||
| P/B | 165.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.83 |
EPS(TTM)3.55
EY4.02%
EPS(NY)3.97
Fwd EY4.5%
FCF(TTM)4.16
FCFY4.72%
OCF(TTM)4.86
OCFY5.51%
SpS24.61
BVpS0.53
TBVpS-5.86
PEG (NY)1.7
PEG (5Y)14.68
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 | 6.87 |
F-Score8
WACC8.51%
ROIC/WACC3.18
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 Y14.6%
EPS Next 2Y10.87%
EPS Next 3Y10.06%
EPS Next 5Y8.75%
Revenue 1Y (TTM)5.07%
Revenue growth 3Y5.71%
Revenue growth 5Y4.59%
Sales Q2Q%2.4%
Revenue Next Year4.1%
Revenue Next 2Y3.42%
Revenue Next 3Y3.65%
Revenue Next 5Y3.74%
EBIT growth 1Y11.12%
EBIT growth 3Y1.33%
EBIT growth 5Y0.93%
EBIT Next Year24.68%
EBIT Next 3Y11.78%
EBIT Next 5Y9.15%
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%