COLGATE-PALMOLIVE CO (CPA.DE) Stock Fundamental Analysis
Europe - FRA:CPA - US1941621039 - Common Stock
68.99 EUR
+1.17 (+1.73%)
We assign a fundamental rating of 5 out of 10 to CPA. CPA was compared to 9 industry peers in the Household Products industry. While CPA has a great profitability rating, there are some minor concerns on its financial health. CPA has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
CPA had positive earnings in the past year.
In the past year CPA had a positive cash flow from operations.
In the past 5 years CPA has always been profitable.
In the past 5 years CPA always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 16.60%, CPA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Equity value of 339.60%, CPA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of CPA (29.23%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CPA is significantly above the industry average of 17.07%.
The 3 year average ROIC (26.58%) for CPA is below the current ROIC(29.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.6% | ||
| ROE | 339.6% | ||
| ROIC | 29.23% |
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
With a decent Profit Margin value of 14.46%, CPA is doing good in the industry, outperforming 77.78% of the companies in the same industry.
In the last couple of years the Profit Margin of CPA has remained more or less at the same level.
With a decent Operating Margin value of 21.44%, CPA is doing good in the industry, outperforming 66.67% of the companies in the same industry.
CPA's Operating Margin has declined in the last couple of years.
CPA has a Gross Margin of 60.14%. This is amongst the best in the industry. CPA outperforms 88.89% of its industry peers.
In the last couple of years the Gross Margin of CPA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.44% | ||
| PM (TTM) | 14.46% | ||
| GM | 60.14% |
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.
CPA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CPA has less shares outstanding
Compared to 1 year ago, CPA has an improved debt to assets ratio.
2.2 Solvency
CPA has an Altman-Z score of 6.36. This indicates that CPA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CPA (6.36) is better than 100.00% of its industry peers.
The Debt to FCF ratio of CPA is 2.45, which is a good value as it means it would take CPA, 2.45 years of fcf income to pay off all of its debts.
CPA has a Debt to FCF ratio (2.45) which is comparable to the rest of the industry.
CPA has a Debt/Equity ratio of 8.54. This is a high value indicating a heavy dependency on external financing.
CPA has a worse Debt to Equity ratio (8.54) than 66.67% of its industry peers.
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 | 8.54 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | 6.36 |
ROIC/WACC3.67
WACC7.97%
2.3 Liquidity
CPA has a Current Ratio of 0.93. This is a bad value and indicates that CPA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Current ratio value of 0.93, CPA is doing good in the industry, outperforming 77.78% of the companies in the same industry.
CPA has a Quick Ratio of 0.93. This is a bad value and indicates that CPA is not financially healthy enough and could expect problems in meeting its short term obligations.
CPA has a better Quick ratio (0.60) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
CPA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.82%.
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.
CPA shows a decrease in Revenue. In the last year, the revenue decreased by -0.04%.
The Revenue has been growing slightly by 5.08% on average over the past years.
EPS 1Y (TTM)2.82%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.95%
3.2 Future
The Earnings Per Share is expected to grow by 5.37% on average over the next years.
Based on estimates for the next years, CPA will show a small growth in Revenue. The Revenue will grow by 2.88% on average per year.
EPS Next Y4.87%
EPS Next 2Y5.32%
EPS Next 3Y5.66%
EPS Next 5Y5.37%
Revenue Next Year0.84%
Revenue Next 2Y2.28%
Revenue Next 3Y2.63%
Revenue Next 5Y2.88%
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 stable.
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
With a Price/Earnings ratio of 21.76, CPA is valued on the expensive side.
CPA's Price/Earnings ratio is in line with the industry average.
CPA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
CPA is valuated rather expensively with a Price/Forward Earnings ratio of 19.95.
Based on the Price/Forward Earnings ratio, CPA is valued a bit more expensive than 66.67% of the companies in the same industry.
CPA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 19.95 |
4.2 Price Multiples
CPA's Enterprise Value to EBITDA is on the same level as the industry average.
CPA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CPA is cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.65 | ||
| EV/EBITDA | 14.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CPA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.46
PEG (5Y)4.47
EPS Next 2Y5.32%
EPS Next 3Y5.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.64%, CPA has a reasonable but not impressive dividend return.
CPA's Dividend Yield is slightly below the industry average, which is at 3.27.
CPA's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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 62.40% of its income as dividend. This is not a sustainable payout ratio.
CPA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.4%
EPS Next 2Y5.32%
EPS Next 3Y5.66%
FRA:CPA (11/21/2025, 3:31:51 PM)
68.99
+1.17 (+1.73%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.03%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap55.76B
Revenue(TTM)20.10B
Net Income(TTM)2.91B
Analysts74
Price Target79.61 (15.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Yearly Dividend1.88
Dividend Growth(5Y)3.11%
DP62.4%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.44%
Min EPS beat(2)-0.54%
Max EPS beat(2)-0.33%
EPS beat(4)1
Avg EPS beat(4)0.3%
Min EPS beat(4)-0.87%
Max EPS beat(4)2.94%
EPS beat(8)3
Avg EPS beat(8)0.62%
EPS beat(12)6
Avg EPS beat(12)0.68%
EPS beat(16)6
Avg EPS beat(16)-0.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-2.43%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-1.35%
Revenue beat(8)0
Avg Revenue beat(8)-2.08%
Revenue beat(12)1
Avg Revenue beat(12)-1.56%
Revenue beat(16)2
Avg Revenue beat(16)-1.75%
PT rev (1m)-3.25%
PT rev (3m)-5.84%
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)-3.1%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 19.95 | ||
| P/S | 3.19 | ||
| P/FCF | 18.65 | ||
| P/OCF | 15.99 | ||
| P/B | 75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.22 |
EPS(TTM)3.17
EY4.59%
EPS(NY)3.46
Fwd EY5.01%
FCF(TTM)3.7
FCFY5.36%
OCF(TTM)4.31
OCFY6.25%
SpS21.6
BVpS0.92
TBVpS-5.09
PEG (NY)4.46
PEG (5Y)4.47
Graham Number8.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.6% | ||
| ROE | 339.6% | ||
| ROCE | 39.11% | ||
| ROIC | 29.23% | ||
| ROICexc | 33.73% | ||
| ROICexgc | 81.43% | ||
| OM | 21.44% | ||
| PM (TTM) | 14.46% | ||
| GM | 60.14% | ||
| FCFM | 17.13% |
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%
ROICexgc growth 3Y6.99%
ROICexgc 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-Score5
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.54 | ||
| Debt/FCF | 2.45 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 94.38% | ||
| Cap/Sales | 2.84% | ||
| Interest Coverage | 15.96 | ||
| Cash Conversion | 81.69% | ||
| Profit Quality | 118.44% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 6.36 |
F-Score5
WACC7.97%
ROIC/WACC3.67
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)2.82%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%0%
EPS Next Y4.87%
EPS Next 2Y5.32%
EPS Next 3Y5.66%
EPS Next 5Y5.37%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.95%
Revenue Next Year0.84%
Revenue Next 2Y2.28%
Revenue Next 3Y2.63%
Revenue Next 5Y2.88%
EBIT growth 1Y-0.62%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year14.23%
EBIT Next 3Y8.24%
EBIT Next 5Y6.18%
FCF growth 1Y34.86%
FCF growth 3Y8.74%
FCF growth 5Y4.85%
OCF growth 1Y22.3%
OCF growth 3Y7.29%
OCF growth 5Y5.56%
COLGATE-PALMOLIVE CO / CPA.DE FAQ
What is the fundamental rating for CPA stock?
ChartMill assigns a fundamental rating of 5 / 10 to CPA.DE.
What is the valuation status of COLGATE-PALMOLIVE CO (CPA.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to COLGATE-PALMOLIVE CO (CPA.DE). This can be considered as Overvalued.
Can you provide the profitability details for COLGATE-PALMOLIVE CO?
COLGATE-PALMOLIVE CO (CPA.DE) has a profitability rating of 8 / 10.
What is the valuation of COLGATE-PALMOLIVE CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for COLGATE-PALMOLIVE CO (CPA.DE) is 21.76 and the Price/Book (PB) ratio is 75.
Can you provide the financial health for CPA stock?
The financial health rating of COLGATE-PALMOLIVE CO (CPA.DE) is 6 / 10.