COLGATE-PALMOLIVE CO (CPA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CPA - US1941621039 - Common Stock
66.81 EUR
+0.26 (+0.39%)
We assign a fundamental rating of 5 out of 10 to CPA. CPA was compared to 12 industry peers in the Household Products industry. CPA has an excellent profitability rating, but 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.
CPA had a positive operating cash flow in the past year.
CPA had positive earnings in each of the past 5 years.
CPA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CPA has a better Return On Assets (16.60%) than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 339.60%, CPA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 29.23%, CPA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
CPA had an Average Return On Invested Capital over the past 3 years of 26.58%. This is significantly above the industry average of 17.69%.
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
The Profit Margin of CPA (14.46%) is better than 83.33% of its industry peers.
In the last couple of years the Profit Margin of CPA has remained more or less at the same level.
CPA's Operating Margin of 21.44% is fine compared to the rest of the industry. CPA outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of CPA has declined.
The Gross Margin of CPA (60.14%) is better than 91.67% of its industry peers.
CPA's Gross Margin has been stable in the last couple of years.
| 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
The debt/assets ratio for CPA has been reduced compared to a year ago.
2.2 Solvency
CPA has an Altman-Z score of 6.35. This indicates that CPA is financially healthy and has little risk of bankruptcy at the moment.
CPA's Altman-Z score of 6.35 is amongst the best of the industry. CPA outperforms 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.
The Debt to FCF ratio of CPA (2.45) is comparable to the rest of the industry.
A Debt/Equity ratio of 8.54 is on the high side and indicates that CPA has dependencies on debt financing.
CPA has a Debt to Equity ratio of 8.54. This is in the lower half of the industry: CPA underperforms 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 | 6.35 |
ROIC/WACC3.66
WACC7.98%
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.
Looking at the Current ratio, with a value of 0.93, CPA is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
A Quick Ratio of 0.60 indicates that CPA may have some problems paying its short term obligations.
CPA has a better Quick ratio (0.60) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.82% 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.
The Revenue has decreased by -0.04% in the past year.
CPA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.08% yearly.
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
CPA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.87% yearly.
The Revenue is expected to grow by 2.84% on average over the next years.
EPS Next Y4.9%
EPS Next 2Y4.97%
EPS Next 3Y5.47%
EPS Next 5Y5.87%
Revenue Next Year0.66%
Revenue Next 2Y2.01%
Revenue Next 3Y2.48%
Revenue Next 5Y2.84%
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
A Price/Earnings ratio of 21.41 indicates a rather expensive valuation of CPA.
Compared to the rest of the industry, the Price/Earnings ratio of CPA indicates a slightly more expensive valuation: CPA is more expensive than 66.67% of the companies listed in the same industry.
CPA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.54.
The Price/Forward Earnings ratio is 19.79, which indicates a rather expensive current valuation of CPA.
Based on the Price/Forward Earnings ratio, CPA 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 CPA to the average of the S&P500 Index (23.78), we can say CPA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.41 | ||
| Fwd PE | 19.79 |
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.
Based on the Price/Free Cash Flow ratio, CPA is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.32 | ||
| EV/EBITDA | 14.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CPA does not grow enough to justify the current Price/Earnings ratio.
CPA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.37
PEG (5Y)4.39
EPS Next 2Y4.97%
EPS Next 3Y5.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.68%, CPA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.38, CPA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.27, CPA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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 2Y4.97%
EPS Next 3Y5.47%
FRA:CPA (12/12/2025, 7:00:00 PM)
66.81
+0.26 (+0.39%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.75%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap53.85B
Revenue(TTM)20.10B
Net Income(TTM)2.91B
Analysts74
Price Target76.41 (14.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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)-3.72%
PT rev (3m)-7.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.1%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.55%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.41 | ||
| Fwd PE | 19.79 | ||
| P/S | 3.14 | ||
| P/FCF | 18.32 | ||
| P/OCF | 15.72 | ||
| P/B | 73.7 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.16 |
EPS(TTM)3.12
EY4.67%
EPS(NY)3.38
Fwd EY5.05%
FCF(TTM)3.65
FCFY5.46%
OCF(TTM)4.25
OCFY6.36%
SpS21.28
BVpS0.91
TBVpS-5.01
PEG (NY)4.37
PEG (5Y)4.39
Graham Number7.98
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 | 6.35 |
F-Score5
WACC7.98%
ROIC/WACC3.66
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 Y4.9%
EPS Next 2Y4.97%
EPS Next 3Y5.47%
EPS Next 5Y5.87%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.95%
Revenue Next Year0.66%
Revenue Next 2Y2.01%
Revenue Next 3Y2.48%
Revenue Next 5Y2.84%
EBIT growth 1Y-0.62%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year12.68%
EBIT Next 3Y6.94%
EBIT Next 5Y6%
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 21.41 and the Price/Book (PB) ratio is 73.7.
Can you provide the financial health for CPA stock?
The financial health rating of COLGATE-PALMOLIVE CO (CPA.DE) is 6 / 10.