COLGATE-PALMOLIVE CO (CPA.DE) Stock Fundamental Analysis
FRA:CPA - Deutsche Boerse Ag - US1941621039 - Common Stock - Currency: EUR
CPA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 7 industry peers in the Household Products industry. While CPA has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, CPA is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
CPA had positive earnings in the past year.
CPA had a positive operating cash flow in the past year.
Each year in the past 5 years CPA has been profitable.
CPA 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 18.01%, CPA 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 1363.21%, CPA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 31.44%, CPA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CPA is significantly above the industry average of 17.71%.
The 3 year average ROIC (26.58%) for CPA 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
CPA has a Profit Margin of 14.38%. This is in the better half of the industry: CPA outperforms 77.78% of its industry peers.
CPA's Profit Margin has been stable in the last couple of years.
CPA has a better Operating Margin (21.55%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of CPA has declined.
With an excellent Gross Margin value of 60.50%, CPA belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
CPA'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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CPA is creating value.
Compared to 1 year ago, CPA has less shares outstanding
CPA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CPA has an improved debt to assets ratio.
2.2 Solvency
CPA has an Altman-Z score of 7.41. This indicates that CPA is financially healthy and has little risk of bankruptcy at the moment.
CPA has a Altman-Z score of 7.41. This is amongst the best in the industry. CPA outperforms 100.00% of its industry peers.
CPA has a debt to FCF ratio of 2.24. This is a good value and a sign of high solvency as CPA would need 2.24 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.24, CPA is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
CPA has a Debt/Equity ratio of 34.42. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 34.42, 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 | 34.42 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 7.41 |
ROIC/WACC3.75
WACC8.38%
2.3 Liquidity
CPA has a Current Ratio of 0.92. This is a bad value and indicates that CPA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.92, CPA is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
A Quick Ratio of 0.58 indicates that CPA may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.58, CPA is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.58 |
3. Growth
3.1 Past
CPA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.15%, which is quite good.
Measured over the past 5 years, CPA shows a small growth in Earnings Per Share. The EPS has been growing by 4.87% on average per year.
Looking at the last year, CPA shows a small growth in Revenue. The Revenue has grown by 3.31% in the last year.
The Revenue has been growing slightly by 5.08% on average over the past years.
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
The Earnings Per Share is expected to grow by 7.78% on average over the next years.
CPA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.33% yearly.
EPS Next Y6.48%
EPS Next 2Y7.3%
EPS Next 3Y7.48%
EPS Next 5Y7.78%
Revenue Next Year-0.38%
Revenue Next 2Y1.87%
Revenue Next 3Y2.59%
Revenue Next 5Y4.33%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 27.28, which means the current valuation is very expensive for CPA.
Based on the Price/Earnings ratio, CPA is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, CPA is valued at the same level.
A Price/Forward Earnings ratio of 25.65 indicates a quite expensive valuation of CPA.
Based on the Price/Forward Earnings ratio, CPA is valued a bit more expensive than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, CPA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.28 | ||
| Fwd PE | 25.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CPA is on the same level as its industry peers.
CPA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.44 | ||
| EV/EBITDA | 17.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CPA may justify a higher PE ratio.
PEG (NY)4.21
PEG (5Y)5.6
EPS Next 2Y7.3%
EPS Next 3Y7.48%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.14%, CPA has a reasonable but not impressive dividend return.
CPA's Dividend Yield is comparable with the industry average which is at 2.77.
CPA's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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
CPA pays out 61.90% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CPA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP61.9%
EPS Next 2Y7.3%
EPS Next 3Y7.48%
FRA:CPA (3/7/2025, 7:00:00 PM)
90.31
+4.82 (+5.64%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.23%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap73.29B
Analysts74.38
Price Target94.23 (4.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend2.02
Dividend Growth(5Y)3.11%
DP61.9%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
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)-2.9%
PT rev (3m)-7.13%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)-5.44%
EPS NY rev (1m)-1.77%
EPS NY rev (3m)-3.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.18%
Revenue NY rev (1m)-0.42%
Revenue NY rev (3m)-3.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.28 | ||
| Fwd PE | 25.65 | ||
| P/S | 3.96 | ||
| P/FCF | 22.44 | ||
| P/OCF | 19.37 | ||
| P/B | 375.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.44 |
EPS(TTM)3.31
EY3.67%
EPS(NY)3.52
Fwd EY3.9%
FCF(TTM)4.02
FCFY4.46%
OCF(TTM)4.66
OCFY5.16%
SpS22.81
BVpS0.24
TBVpS-5.47
PEG (NY)4.21
PEG (5Y)5.6
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 | 7.41 |
F-Score8
WACC8.38%
ROIC/WACC3.75
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 Y6.48%
EPS Next 2Y7.3%
EPS Next 3Y7.48%
EPS Next 5Y7.78%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%-0.12%
Revenue Next Year-0.38%
Revenue Next 2Y1.87%
Revenue Next 3Y2.59%
Revenue Next 5Y4.33%
EBIT growth 1Y7.36%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year16.03%
EBIT Next 3Y9.33%
EBIT Next 5Y8.82%
FCF growth 1Y16.64%
FCF growth 3Y8.74%
FCF growth 5Y4.85%
OCF growth 1Y9.67%
OCF growth 3Y7.29%
OCF growth 5Y5.56%