COLGATE-PALMOLIVE CO (CPA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CPA - US1941621039 - Common Stock
70.22 EUR
+1.54 (+2.24%)
CPA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 10 industry peers in the Household Products industry. While CPA has a great profitability rating, there are some minor concerns on its financial health. CPA is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CPA was profitable.
In the past year CPA had a positive cash flow from operations.
In the past 5 years CPA has always been profitable.
Each year in the past 5 years CPA had a positive operating cash flow.
1.2 Ratios
CPA has a better Return On Assets (16.60%) than 100.00% of its industry peers.
The Return On Equity of CPA (339.60%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 29.23%, CPA belongs to the top 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 17.07%.
The last Return On Invested Capital (29.23%) for CPA is above the 3 year average (26.58%), which is a sign of increasing profitability.
| 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 80.00% 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.
Looking at the Operating Margin, with a value of 21.44%, CPA is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CPA has declined.
With an excellent Gross Margin value of 60.14%, CPA belongs to the best of the industry, outperforming 90.00% 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 | 21.44% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
An Altman-Z score of 6.47 indicates that CPA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.47, CPA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.45, CPA is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 8.54 is on the high side and indicates that CPA has dependencies on debt financing.
CPA's Debt to Equity ratio of 8.54 is on the low side compared to the rest of the industry. CPA is outperformed by 70.00% 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 | 6.47 |
ROIC/WACC3.63
WACC8.05%
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.
CPA has a better Current ratio (0.93) than 70.00% of its industry peers.
A Quick Ratio of 0.60 indicates that CPA may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.60, CPA is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing slightly by 4.87% on average over the past years.
Looking at the last year, CPA shows a decrease in Revenue. The Revenue has decreased by -0.04% in the last year.
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
CPA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.90% yearly.
The Revenue is expected to grow by 2.66% on average over the next years.
EPS Next Y4.89%
EPS Next 2Y4.94%
EPS Next 3Y5.42%
EPS Next 5Y5.9%
Revenue Next Year0.66%
Revenue Next 2Y1.99%
Revenue Next 3Y2.45%
Revenue Next 5Y2.66%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CPA is valuated rather expensively with a Price/Earnings ratio of 22.51.
Based on the Price/Earnings ratio, CPA is valued a bit more expensive than 70.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. CPA is around the same levels.
Based on the Price/Forward Earnings ratio of 20.77, the valuation of CPA can be described as rather expensive.
70.00% of the companies in the same industry are cheaper than CPA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, CPA is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 20.77 |
4.2 Price Multiples
CPA's Enterprise Value to EBITDA ratio is in line with the industry average.
CPA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CPA is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.22 | ||
| EV/EBITDA | 14.84 |
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.
The excellent profitability rating of CPA may justify a higher PE ratio.
PEG (NY)4.6
PEG (5Y)4.62
EPS Next 2Y4.94%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
CPA has a Yearly Dividend Yield of 2.57%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.57, CPA pays less dividend than the industry average, which is at 3.28. 80.00% of the companies listed in the same industry pay a better dividend than CPA!
Compared to an average S&P500 Dividend Yield of 1.92, CPA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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
62.40% of the earnings are spent on dividend by CPA. This is not a sustainable payout ratio.
The dividend of CPA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.4%
EPS Next 2Y4.94%
EPS Next 3Y5.42%
FRA:CPA (1/12/2026, 7:00:00 PM)
70.22
+1.54 (+2.24%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.76%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap56.60B
Revenue(TTM)20.10B
Net Income(TTM)2.91B
Analysts73.33
Price Target75.82 (7.97%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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)-0.77%
PT rev (3m)-7.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.88%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.51 | ||
| Fwd PE | 20.77 | ||
| P/S | 3.29 | ||
| P/FCF | 19.22 | ||
| P/OCF | 16.49 | ||
| P/B | 77.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.84 |
EPS(TTM)3.12
EY4.44%
EPS(NY)3.38
Fwd EY4.82%
FCF(TTM)3.65
FCFY5.2%
OCF(TTM)4.26
OCFY6.07%
SpS21.32
BVpS0.91
TBVpS-5.02
PEG (NY)4.6
PEG (5Y)4.62
Graham Number7.99
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 | 6.47 |
F-Score5
WACC8.05%
ROIC/WACC3.63
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 Y4.89%
EPS Next 2Y4.94%
EPS Next 3Y5.42%
EPS Next 5Y5.9%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.95%
Revenue Next Year0.66%
Revenue Next 2Y1.99%
Revenue Next 3Y2.45%
Revenue Next 5Y2.66%
EBIT growth 1Y-0.62%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year12.68%
EBIT Next 3Y6.9%
EBIT Next 5Y5.95%
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 for CPA stock?
ChartMill assigns a valuation rating of 3 / 10 to COLGATE-PALMOLIVE CO (CPA.DE). This can be considered as Overvalued.
How profitable is COLGATE-PALMOLIVE CO (CPA.DE) stock?
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 22.51 and the Price/Book (PB) ratio is 77.31.
Is the dividend of COLGATE-PALMOLIVE CO sustainable?
The dividend rating of COLGATE-PALMOLIVE CO (CPA.DE) is 4 / 10 and the dividend payout ratio is 62.4%.