COLGATE-PALMOLIVE CO (CL)
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 has a great profitability rating, 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
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.
CL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CL (17.10%) is better than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 659.54%, CL belongs to the top 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.
CL had an Average Return On Invested Capital over the past 3 years of 24.38%. This is significantly above the industry average of 15.23%.
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
With an excellent Profit Margin value of 14.27%, CL belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Profit Margin of CL has declined.
Looking at the Operating Margin, with a value of 21.57%, CL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Operating Margin of CL has declined.
CL has a Gross Margin of 60.33%. This is amongst the best in the industry. CL outperforms 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.
The number of shares outstanding for CL has been reduced compared to 5 years ago.
CL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.05 indicates that CL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.05, CL belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 2.48, CL is doing good in 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 | 7.05 |
ROIC/WACC3.23
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.04 indicates that CL should not have too much problems paying its short term obligations.
CL's Current ratio of 1.04 is on the low side compared to the rest of the industry. CL is outperformed by 66.67% of its industry peers.
A Quick Ratio of 0.68 indicates that CL may have some problems paying its short term obligations.
With a Quick ratio value of 0.68, CL is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.42% over the past year.
The Earnings Per Share has been growing slightly by 1.69% on average over the past years.
CL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.07%.
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
Based on estimates for the next years, CL will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.14% on average per year.
CL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.07% yearly.
EPS Next Y14.64%
EPS Next 2Y10.98%
EPS Next 3Y10.11%
EPS Next 5Y9.14%
Revenue Next Year4.2%
Revenue Next 2Y3.66%
Revenue Next 3Y3.85%
Revenue Next 5Y4.07%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.55, CL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CL indicates a slightly more expensive valuation: CL is more expensive than 75.00% of the companies listed in the same industry.
CL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.96.
Based on the Price/Forward Earnings ratio of 23.69, the valuation of CL can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CL is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of CL to the average of the S&P500 Index (23.82), we can say CL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.55 | ||
| Fwd PE | 23.69 |
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.
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 | 22.65 | ||
| EV/EBITDA | 16.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.81
PEG (5Y)15.69
EPS Next 2Y10.98%
EPS Next 3Y10.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.19%, CL has a reasonable but not impressive dividend return.
CL's Dividend Yield is comparable with the industry average which is at 2.40.
Compared to an average S&P500 Dividend Yield of 2.23, CL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
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 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 Years33
Div Non Decr Years33
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 2Y10.98%
EPS Next 3Y10.11%
COLGATE-PALMOLIVE CO
NYSE:CL (11/21/2024, 8:19:47 PM)
After market: 94.28 +0.03 (+0.03%)94.25
+0.34 (+0.36%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap77.00B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.55 | ||
| Fwd PE | 23.69 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.81
PEG (5Y)15.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.1% | ||
| ROE | 659.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.57% | ||
| PM (TTM) | 14.27% | ||
| GM | 60.33% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 19.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.04 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)13.42%
EPS 3Y1.93%
EPS 5Y
EPS Q2Q%
EPS Next Y14.64%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.07%
Revenue growth 3Y5.71%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y