COLGATE-PALMOLIVE CO (CL) Stock Fundamental Analysis
NYSE:CL - New York Stock Exchange, Inc. - US1941621039 - Common Stock - Currency: USD
CL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. CL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, CL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
CL had positive earnings in the past year.
In the past year CL had a positive cash flow from operations.
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
CL has a Return On Assets of 18.01%. This is amongst the best in the industry. CL outperforms 91.67% of its industry peers.
CL's Return On Equity of 1363.21% is amongst the best of the industry. CL outperforms 100.00% of its industry peers.
CL's Return On Invested Capital of 31.44% is amongst the best of the industry. CL outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CL is significantly above the industry average of 15.44%.
The 3 year average ROIC (26.58%) for CL is below the current ROIC(31.44%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.01% | ||
| ROE | 1363.21% | ||
| ROIC | 31.44% |
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
CL's Profit Margin of 14.38% is amongst the best of the industry. CL outperforms 91.67% of its industry peers.
In the last couple of years the Profit Margin of CL has remained more or less at the same level.
CL has a Operating Margin of 21.55%. This is amongst the best in the industry. CL outperforms 91.67% of its industry peers.
In the last couple of years the Operating Margin of CL has declined.
CL has a Gross Margin of 60.50%. This is amongst the best in the industry. CL outperforms 100.00% of its industry peers.
CL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.55% | ||
| PM (TTM) | 14.38% | ||
| GM | 60.5% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CL is creating value.
CL has less shares outstanding than it did 1 year ago.
CL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.28 indicates that CL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.28, CL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
The Debt to FCF ratio of CL is 2.24, which is a good value as it means it would take CL, 2.24 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.24, CL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
A Debt/Equity ratio of 34.42 is on the high side and indicates that CL has dependencies on debt financing.
CL's Debt to Equity ratio of 34.42 is on the low side compared to the rest of the industry. CL is outperformed by 83.33% of its industry peers.
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 | 34.42 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 7.28 |
ROIC/WACC3.73
WACC8.43%
2.3 Liquidity
A Current Ratio of 0.92 indicates that CL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.92, CL is doing worse than 75.00% of the companies in the same industry.
CL has a Quick Ratio of 0.92. 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 0.58. This is in the lower half of the industry: CL underperforms 75.00% of its industry peers.
The current and quick ratio evaluation for CL is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.15% over the past year.
Measured over the past 5 years, CL shows a small growth in Earnings Per Share. The EPS has been growing by 4.87% on average per year.
CL shows a small growth in Revenue. In the last year, the Revenue has grown by 3.31%.
Measured over the past years, CL shows a small growth in Revenue. The Revenue has been growing by 5.08% on average per year.
EPS 1Y (TTM)11.15%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%4.6%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%-0.12%
3.2 Future
CL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.93% yearly.
CL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.83% yearly.
EPS Next Y5.8%
EPS Next 2Y6.85%
EPS Next 3Y7.11%
EPS Next 5Y7.93%
Revenue Next Year-0.26%
Revenue Next 2Y1.88%
Revenue Next 3Y2.66%
Revenue Next 5Y2.83%
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
CL is valuated quite expensively with a Price/Earnings ratio of 25.86.
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 28.64, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 24.44, the valuation of CL can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CL indicates a slightly more expensive valuation: CL is more expensive than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.44. CL is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 24.44 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CL is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as CL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.24 | ||
| EV/EBITDA | 16.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CL may justify a higher PE ratio.
PEG (NY)4.46
PEG (5Y)5.31
EPS Next 2Y6.85%
EPS Next 3Y7.11%
5. Dividend
5.1 Amount
CL has a Yearly Dividend Yield of 2.18%.
Compared to an average industry Dividend Yield of 2.75, CL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.52, CL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
The dividend of CL has a limited annual growth rate of 3.11%.
CL has paid a dividend for at least 10 years, which is a reliable track record.
CL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.11%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
CL pays out 61.90% of its income as dividend. This is not a sustainable payout ratio.
CL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP61.9%
EPS Next 2Y6.85%
EPS Next 3Y7.11%
NYSE:CL (4/24/2025, 12:44:57 PM)
92.85
-1.04 (-1.11%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.23%
Inst Owner Change0.26%
Ins Owners0.05%
Ins Owner Change1.69%
Market Cap75.31B
Analysts74.38
Price Target99.38 (7.03%)
Short Float %1.33%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
Yearly Dividend2.19
Dividend Growth(5Y)3.11%
DP61.9%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.53%
Min EPS beat(2)-0.87%
Max EPS beat(2)-0.19%
EPS beat(4)2
Avg EPS beat(4)0.87%
Min EPS beat(4)-0.87%
Max EPS beat(4)2.78%
EPS beat(8)5
Avg EPS beat(8)1.03%
EPS beat(12)5
Avg EPS beat(12)-0.05%
EPS beat(16)5
Avg EPS beat(16)-0.54%
Revenue beat(2)0
Avg Revenue beat(2)-2.88%
Min Revenue beat(2)-3.46%
Max Revenue beat(2)-2.31%
Revenue beat(4)0
Avg Revenue beat(4)-2.13%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-0.78%
Revenue beat(8)1
Avg Revenue beat(8)-1.31%
Revenue beat(12)2
Avg Revenue beat(12)-1.54%
Revenue beat(16)2
Avg Revenue beat(16)-1.72%
PT rev (1m)0.54%
PT rev (3m)-7.22%
EPS NQ rev (1m)-2.66%
EPS NQ rev (3m)-8.14%
EPS NY rev (1m)-0.63%
EPS NY rev (3m)-4.33%
Revenue NQ rev (1m)-1.53%
Revenue NQ rev (3m)-5.68%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.86 | ||
| Fwd PE | 24.44 | ||
| P/S | 3.75 | ||
| P/FCF | 21.24 | ||
| P/OCF | 18.34 | ||
| P/B | 355.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.75 |
EPS(TTM)3.59
EY3.87%
EPS(NY)3.8
Fwd EY4.09%
FCF(TTM)4.37
FCFY4.71%
OCF(TTM)5.06
OCFY5.45%
SpS24.78
BVpS0.26
TBVpS-5.94
PEG (NY)4.46
PEG (5Y)5.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.01% | ||
| ROE | 1363.21% | ||
| ROCE | 42.11% | ||
| ROIC | 31.44% | ||
| ROICexc | 35.81% | ||
| ROICexgc | 80.7% | ||
| OM | 21.55% | ||
| PM (TTM) | 14.38% | ||
| GM | 60.5% | ||
| FCFM | 17.64% |
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 Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 34.42 | ||
| Debt/FCF | 2.24 | ||
| Debt/EBITDA | 1.48 | ||
| Cap/Depr | 92.73% | ||
| Cap/Sales | 2.79% | ||
| Interest Coverage | 14.34 | ||
| Cash Conversion | 83.19% | ||
| Profit Quality | 122.7% | ||
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.58 | ||
| Altman-Z | 7.28 |
F-Score8
WACC8.43%
ROIC/WACC3.73
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)11.15%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%4.6%
EPS Next Y5.8%
EPS Next 2Y6.85%
EPS Next 3Y7.11%
EPS Next 5Y7.93%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%-0.12%
Revenue Next Year-0.26%
Revenue Next 2Y1.88%
Revenue Next 3Y2.66%
Revenue Next 5Y2.83%
EBIT growth 1Y7.36%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year15.5%
EBIT Next 3Y9.04%
EBIT Next 5Y7.65%
FCF growth 1Y16.64%
FCF growth 3Y8.74%
FCF growth 5Y4.85%
OCF growth 1Y9.67%
OCF growth 3Y7.29%
OCF growth 5Y5.56%