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 belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CPA is valied quite expensively at the moment, while it does show a decent growth rate.
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.
CPA had positive earnings in each of the past 5 years.
Each year in the past 5 years CPA had a positive operating cash flow.
1.2 Ratios
CPA has a Return On Assets of 18.01%. This is amongst the best in the industry. CPA outperforms 100.00% of its industry peers.
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.
CPA has a Return On Invested Capital of 31.44%. This is amongst the best in the industry. CPA outperforms 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 17.85%.
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
Looking at the Profit Margin, with a value of 14.38%, CPA belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
CPA's Profit Margin has been stable in the last couple of years.
CPA's Operating Margin of 21.55% is fine compared to the rest of the industry. CPA outperforms 71.43% of its industry peers.
In the last couple of years the Operating Margin of CPA has declined.
CPA's Gross Margin of 60.50% is amongst the best of the industry. CPA outperforms 85.71% of its industry peers.
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
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
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 7.26. This indicates that CPA is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CPA (7.26) is better than 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 71.43% of the companies in the same industry.
A Debt/Equity ratio of 34.42 is on the high side and indicates that CPA has dependencies on debt financing.
CPA's Debt to Equity ratio of 34.42 is on the low side compared to the rest of the industry. CPA is outperformed by 71.43% 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 | 34.42 | ||
| Debt/FCF | 2.24 | ||
| Altman-Z | 7.26 |
ROIC/WACC3.78
WACC8.32%
2.3 Liquidity
A Current Ratio of 0.92 indicates that CPA may have some problems paying its short term obligations.
CPA's Current ratio of 0.92 is fine compared to the rest of the industry. CPA outperforms 71.43% of its industry peers.
A Quick Ratio of 0.58 indicates that CPA may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.58, CPA is doing good in the industry, outperforming 71.43% 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 8.33%, 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)8.33%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%5.81%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%-3.04%
3.2 Future
The Earnings Per Share is expected to grow by 7.93% on average over the next years.
The Revenue is expected to grow by 2.83% on average over the next years.
EPS Next Y5.8%
EPS Next 2Y6.85%
EPS Next 3Y7.11%
EPS Next 5Y7.93%
Revenue Next Year-0.21%
Revenue Next 2Y1.92%
Revenue Next 3Y2.64%
Revenue Next 5Y2.83%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 25.64 indicates a quite expensive valuation of CPA.
71.43% of the companies in the same industry are cheaper than CPA, based on the Price/Earnings ratio.
CPA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.80, the valuation of CPA can be described as rather expensive.
CPA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. CPA is more expensive than 71.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CPA to the average of the S&P500 Index (21.38), we can say CPA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.64 | ||
| Fwd PE | 22.8 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CPA.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CPA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.38 | ||
| EV/EBITDA | 16.68 |
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)4.42
PEG (5Y)5.26
EPS Next 2Y6.85%
EPS Next 3Y7.11%
5. Dividend
5.1 Amount
CPA has a Yearly Dividend Yield of 2.24%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.15, CPA's dividend is way lower than its industry peers. On top of this 85.71% of the companies listed in the same industry pay a better dividend than CPA!
CPA's Dividend Yield is comparable with the S&P500 average which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
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.
CPA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP61.9%
EPS Next 2Y6.85%
EPS Next 3Y7.11%
FRA:CPA (4/25/2025, 7:00:00 PM)
82.29
+0.19 (+0.23%)
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 Cap66.74B
Analysts74.38
Price Target86.75 (5.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.24% |
Yearly Dividend1.93
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)-7.95%
PT rev (3m)-15.95%
EPS NQ rev (1m)-2.13%
EPS NQ rev (3m)-8.14%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-4.33%
Revenue NQ rev (1m)-1.07%
Revenue NQ rev (3m)-5.68%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.64 | ||
| Fwd PE | 22.8 | ||
| P/S | 3.77 | ||
| P/FCF | 21.38 | ||
| P/OCF | 18.46 | ||
| P/B | 357.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.68 |
EPS(TTM)3.21
EY3.9%
EPS(NY)3.61
Fwd EY4.39%
FCF(TTM)3.85
FCFY4.68%
OCF(TTM)4.46
OCFY5.42%
SpS21.82
BVpS0.23
TBVpS-5.23
PEG (NY)4.42
PEG (5Y)5.26
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 | 7.26 |
F-Score8
WACC8.32%
ROIC/WACC3.78
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 Y5.8%
EPS Next 2Y6.85%
EPS Next 3Y7.11%
EPS Next 5Y7.93%
Revenue 1Y (TTM)3.31%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%-3.04%
Revenue Next Year-0.21%
Revenue Next 2Y1.92%
Revenue Next 3Y2.64%
Revenue Next 5Y2.83%
EBIT growth 1Y7.36%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year15.5%
EBIT Next 3Y9.04%
EBIT Next 5Y7.65%
FCF growth 1Y16.64%
FCF growth 3Y8.74%
FCF growth 5Y4.85%
OCF growth 1Y9.67%
OCF growth 3Y7.29%
OCF growth 5Y5.56%