COLGATE-PALMOLIVE CO (CPA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:CPA - US1941621039 - Common Stock
72.56 EUR
+0.18 (+0.25%)
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
- 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.
- In the past 5 years CPA always reported a positive cash flow from operatings.
1.2 Ratios
- CPA has a better Return On Assets (16.60%) than 100.00% of its industry peers.
- CPA has a Return On Equity of 339.60%. This is amongst the best in the industry. CPA outperforms 100.00% of its industry peers.
- 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 17.07%.
- 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
- CPA's Profit Margin of 14.46% is fine compared to the rest of the industry. CPA outperforms 80.00% of its industry peers.
- CPA's Profit Margin has been stable in the last couple of years.
- 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.
- The number of shares outstanding for CPA has been reduced compared to 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
- An Altman-Z score of 6.53 indicates that CPA is not in any danger for bankruptcy at the moment.
- CPA has a better Altman-Z score (6.53) than 100.00% of its industry peers.
- CPA has a debt to FCF ratio of 2.45. This is a good value and a sign of high solvency as CPA would need 2.45 years to pay back of 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 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 | 6.53 |
ROIC/WACC3.6
WACC8.12%
2.3 Liquidity
- A Current Ratio of 0.93 indicates that CPA may have some problems paying its short term obligations.
- CPA has a better Current ratio (0.93) than 70.00% of its industry peers.
- 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's Quick ratio of 0.60 is fine compared to the rest of the industry. CPA outperforms 70.00% 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.
- CPA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.87% yearly.
- CPA shows a decrease in Revenue. In the last year, the revenue decreased by -0.04%.
- 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
- Based on estimates for the next years, CPA will show a small growth in Earnings Per Share. The EPS will grow by 5.90% on average per year.
- CPA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.66% yearly.
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.
- 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
- CPA is valuated rather expensively with a Price/Earnings ratio of 23.11.
- 70.00% of the companies in the same industry are cheaper than CPA, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.47. CPA is around the same levels.
- The Price/Forward Earnings ratio is 21.33, 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 70.00% of the companies are valued more cheaply.
- CPA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 21.33 |
4.2 Price Multiples
- CPA's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CPA is more expensive than 60.00% of the companies in the same industry.
- 80.00% of the companies in the same industry are more expensive than CPA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.75 | ||
| EV/EBITDA | 15.18 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of CPA may justify a higher PE ratio.
PEG (NY)4.72
PEG (5Y)4.74
EPS Next 2Y4.94%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.47%, CPA has a reasonable but not impressive dividend return.
- With a Dividend Yield of 2.47, 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!
- CPA's Dividend Yield is a higher than the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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 (1/16/2026, 7:00:00 PM)
72.56
+0.18 (+0.25%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)10-31 2025-10-31/bmo
Earnings (Next)01-30 2026-01-30/amc
Inst Owners86.76%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap58.49B
Revenue(TTM)20.10B
Net Income(TTM)2.91B
Analysts73.33
Price Target76.33 (5.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
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 | 23.11 | ||
| Fwd PE | 21.33 | ||
| P/S | 3.38 | ||
| P/FCF | 19.75 | ||
| P/OCF | 16.94 | ||
| P/B | 79.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.18 |
EPS(TTM)3.14
EY4.33%
EPS(NY)3.4
Fwd EY4.69%
FCF(TTM)3.67
FCFY5.06%
OCF(TTM)4.28
OCFY5.9%
SpS21.45
BVpS0.91
TBVpS-5.05
PEG (NY)4.72
PEG (5Y)4.74
Graham Number8.03
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 | 6.53 |
F-Score5
WACC8.12%
ROIC/WACC3.6
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 2 / 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 23.11 and the Price/Book (PB) ratio is 79.42.
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%.