COLGATE-PALMOLIVE CO (CPA.DE) Stock Fundamental Analysis
FRA:CPA - Deutsche Boerse Ag - US1941621039 - Common Stock - Currency: EUR
Taking everything into account, CPA scores 5 out of 10 in our fundamental rating. CPA was compared to 8 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.
In the past year CPA had a positive cash flow from operations.
CPA had positive earnings in each of the past 5 years.
In the past 5 years CPA always reported a positive cash flow from operatings.
1.2 Ratios
CPA has a Return On Assets of 17.40%. This is amongst the best in the industry. CPA outperforms 100.00% of its industry peers.
With an excellent Return On Equity value of 798.07%, 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 33.14%, CPA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CPA is significantly above the industry average of 18.66%.
The 3 year average ROIC (26.58%) for CPA is below the current ROIC(33.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.4% | ||
| ROE | 798.07% | ||
| ROIC | 33.14% |
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 an excellent Profit Margin value of 14.52%, CPA belongs to the best of the industry, outperforming 87.50% 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.
CPA has a Operating Margin of 21.76%. This is in the better half of the industry: CPA outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of CPA has declined.
CPA has a better Gross Margin (60.71%) than 100.00% of its industry peers.
CPA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.76% | ||
| PM (TTM) | 14.52% | ||
| GM | 60.71% |
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
CPA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
An Altman-Z score of 6.88 indicates that CPA is not in any danger for bankruptcy at the moment.
CPA has a Altman-Z score of 6.88. This is amongst the best in the industry. CPA outperforms 100.00% of its industry peers.
The Debt to FCF ratio of CPA is 2.39, which is a good value as it means it would take CPA, 2.39 years of fcf income to pay off all of its debts.
CPA's Debt to FCF ratio of 2.39 is fine compared to the rest of the industry. CPA outperforms 62.50% of its industry peers.
CPA has a Debt/Equity ratio of 18.10. This is a high value indicating a heavy dependency on external financing.
CPA has a worse Debt to Equity ratio (18.10) than 62.50% of its industry peers.
Even though the debt/equity ratio score it not favorable for CPA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.1 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 6.88 |
ROIC/WACC3.98
WACC8.33%
2.3 Liquidity
A Current Ratio of 0.85 indicates that CPA may have some problems paying its short term obligations.
With a decent Current ratio value of 0.85, CPA is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 0.54 indicates that CPA may have some problems paying its short term obligations.
CPA has a Quick ratio of 0.54. This is in the better half of the industry: CPA outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.33% over the past year.
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 small growth in Revenue. In the last year, the Revenue has grown by 0.99%.
The Revenue has been growing slightly by 5.08% on average over the past years.
EPS 1Y (TTM)8.33%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%5.81%
Revenue 1Y (TTM)0.99%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%-3.04%
3.2 Future
The Earnings Per Share is expected to grow by 7.05% 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 3.10% yearly.
EPS Next Y5.18%
EPS Next 2Y6.26%
EPS Next 3Y6.65%
EPS Next 5Y7.05%
Revenue Next Year0.72%
Revenue Next 2Y2.36%
Revenue Next 3Y2.84%
Revenue Next 5Y3.1%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.58, CPA is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of CPA indicates a slightly more expensive valuation: CPA is more expensive than 62.50% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. CPA is around the same levels.
The Price/Forward Earnings ratio is 22.11, which indicates a rather expensive current valuation of CPA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CPA indicates a slightly more expensive valuation: CPA is more expensive than 62.50% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. CPA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.58 | ||
| Fwd PE | 22.11 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CPA.
CPA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.95 | ||
| EV/EBITDA | 16.06 |
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)4.75
PEG (5Y)5.05
EPS Next 2Y6.26%
EPS Next 3Y6.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.30%, CPA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.21, CPA is paying slightly less dividend.
CPA's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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 62.17% 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.
DP62.17%
EPS Next 2Y6.26%
EPS Next 3Y6.65%
FRA:CPA (7/11/2025, 7:00:00 PM)
76.7
-1.55 (-1.98%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.12%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap62.16B
Analysts74.67
Price Target86.68 (13.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend1.87
Dividend Growth(5Y)3.11%
DP62.17%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.04%
Min EPS beat(2)-0.87%
Max EPS beat(2)2.94%
EPS beat(4)2
Avg EPS beat(4)0.92%
Min EPS beat(4)-0.87%
Max EPS beat(4)2.94%
EPS beat(8)5
Avg EPS beat(8)1.28%
EPS beat(12)6
Avg EPS beat(12)0.48%
EPS beat(16)6
Avg EPS beat(16)-0.25%
Revenue beat(2)0
Avg Revenue beat(2)-2.73%
Min Revenue beat(2)-3.46%
Max Revenue beat(2)-2%
Revenue beat(4)0
Avg Revenue beat(4)-2.43%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-1.98%
Revenue beat(8)0
Avg Revenue beat(8)-1.69%
Revenue beat(12)2
Avg Revenue beat(12)-1.47%
Revenue beat(16)2
Avg Revenue beat(16)-1.81%
PT rev (1m)-1.19%
PT rev (3m)-5.95%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)-4.08%
EPS NY rev (1m)0.2%
EPS NY rev (3m)-1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.92%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.58 | ||
| Fwd PE | 22.11 | ||
| P/S | 3.64 | ||
| P/FCF | 20.95 | ||
| P/OCF | 18.04 | ||
| P/B | 200.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.06 |
EPS(TTM)3.12
EY4.07%
EPS(NY)3.47
Fwd EY4.52%
FCF(TTM)3.66
FCFY4.77%
OCF(TTM)4.25
OCFY5.54%
SpS21.07
BVpS0.38
TBVpS-5.02
PEG (NY)4.75
PEG (5Y)5.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.4% | ||
| ROE | 798.07% | ||
| ROCE | 44.35% | ||
| ROIC | 33.14% | ||
| ROICexc | 38.27% | ||
| ROICexgc | 96.55% | ||
| OM | 21.76% | ||
| PM (TTM) | 14.52% | ||
| GM | 60.71% | ||
| FCFM | 17.38% |
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 Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.1 | ||
| Debt/FCF | 2.39 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 92.7% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 15.07 | ||
| Cash Conversion | 81.45% | ||
| Profit Quality | 119.68% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 6.88 |
F-Score8
WACC8.33%
ROIC/WACC3.98
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)8.33%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%5.81%
EPS Next Y5.18%
EPS Next 2Y6.26%
EPS Next 3Y6.65%
EPS Next 5Y7.05%
Revenue 1Y (TTM)0.99%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%-3.04%
Revenue Next Year0.72%
Revenue Next 2Y2.36%
Revenue Next 3Y2.84%
Revenue Next 5Y3.1%
EBIT growth 1Y3.85%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year14.63%
EBIT Next 3Y8.54%
EBIT Next 5Y7.18%
FCF growth 1Y59.92%
FCF growth 3Y8.74%
FCF growth 5Y4.85%
OCF growth 1Y38.59%
OCF growth 3Y7.29%
OCF growth 5Y5.56%