COLGATE-PALMOLIVE CO (CPA.DE) Stock Fundamental Analysis
Europe - FRA:CPA - US1941621039 - Common Stock
69.62 EUR
-0.02 (-0.03%)
Overall CPA gets a fundamental rating of 5 out of 10. We evaluated CPA against 9 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 quite expensive at the moment. It does show a decent growth rate.
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.
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 (16.65%) than 100.00% of its industry peers.
CPA has a Return On Equity of 414.39%. This is amongst the best in the industry. CPA outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 30.18%, CPA belongs to the top 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 16.40%.
The last Return On Invested Capital (30.18%) for CPA is above the 3 year average (26.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.65% | ||
| ROE | 414.39% | ||
| ROIC | 30.18% |
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 (14.55%) is better than 88.89% 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 21.60% is fine compared to the rest of the industry. CPA outperforms 77.78% of its industry peers.
In the last couple of years the Operating Margin of CPA has declined.
The Gross Margin of CPA (60.56%) is better than 88.89% of its industry peers.
In the last couple of years the Gross Margin of CPA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.6% | ||
| PM (TTM) | 14.55% | ||
| GM | 60.56% |
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
CPA has an Altman-Z score of 6.43. This indicates that CPA is financially healthy and has little risk of bankruptcy at the moment.
CPA has a better Altman-Z score (6.43) than 100.00% of its industry peers.
The Debt to FCF ratio of CPA is 2.60, which is a good value as it means it would take CPA, 2.60 years of fcf income to pay off all of its debts.
CPA has a Debt to FCF ratio of 2.60. This is comparable to the rest of the industry: CPA outperforms 55.56% of its industry peers.
CPA has a Debt/Equity ratio of 10.18. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 10.18, CPA is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.18 | ||
| Debt/FCF | 2.6 | ||
| Altman-Z | 6.43 |
ROIC/WACC3.8
WACC7.94%
2.3 Liquidity
A Current Ratio of 0.89 indicates that CPA may have some problems paying its short term obligations.
CPA has a better Current ratio (0.89) than 66.67% of its industry peers.
A Quick Ratio of 0.57 indicates that CPA may have some problems paying its short term obligations.
CPA has a better Quick ratio (0.57) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.29% over the past year.
The Earnings Per Share has been growing slightly by 4.87% on average over the past years.
The Revenue has been growing slightly by 0.06% 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)4.29%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%1.1%
Revenue 1Y (TTM)0.06%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.03%
3.2 Future
CPA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.29% yearly.
The Revenue is expected to grow by 3.21% on average over the next years.
EPS Next Y5.56%
EPS Next 2Y6.29%
EPS Next 3Y6.68%
EPS Next 5Y7.29%
Revenue Next Year1.11%
Revenue Next 2Y2.68%
Revenue Next 3Y3.08%
Revenue Next 5Y3.21%
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 22.53, CPA is valued on the expensive side.
CPA's Price/Earnings is on the same level as the industry average.
CPA is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.29, the valuation of CPA can be described as rather expensive.
CPA's Price/Forward Earnings is on the same level as the industry average.
CPA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 20.29 |
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.
CPA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.73 | ||
| EV/EBITDA | 14.98 |
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)4.05
PEG (5Y)4.62
EPS Next 2Y6.29%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
CPA has a Yearly Dividend Yield of 2.47%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.08, CPA is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, CPA has a dividend comparable with the average S&P500 company.
| 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
CPA pays out 61.95% 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.
DP61.95%
EPS Next 2Y6.29%
EPS Next 3Y6.68%
FRA:CPA (9/18/2025, 7:00:00 PM)
69.62
-0.02 (-0.03%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.04%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap56.27B
Analysts74.67
Price Target82.21 (18.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Yearly Dividend1.87
Dividend Growth(5Y)3.11%
DP61.95%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.31%
Min EPS beat(2)-0.33%
Max EPS beat(2)2.94%
EPS beat(4)1
Avg EPS beat(4)0.39%
Min EPS beat(4)-0.87%
Max EPS beat(4)2.94%
EPS beat(8)4
Avg EPS beat(8)1.21%
EPS beat(12)6
Avg EPS beat(12)0.57%
EPS beat(16)6
Avg EPS beat(16)-0.1%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-2%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-1.35%
Revenue beat(8)0
Avg Revenue beat(8)-1.83%
Revenue beat(12)1
Avg Revenue beat(12)-1.59%
Revenue beat(16)2
Avg Revenue beat(16)-1.73%
PT rev (1m)-2.76%
PT rev (3m)-6.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.53%
EPS NY rev (1m)0.36%
EPS NY rev (3m)0.56%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.53 | ||
| Fwd PE | 20.29 | ||
| P/S | 3.33 | ||
| P/FCF | 19.73 | ||
| P/OCF | 16.96 | ||
| P/B | 94.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.98 |
EPS(TTM)3.09
EY4.44%
EPS(NY)3.43
Fwd EY4.93%
FCF(TTM)3.53
FCFY5.07%
OCF(TTM)4.1
OCFY5.89%
SpS20.94
BVpS0.73
TBVpS-5.13
PEG (NY)4.05
PEG (5Y)4.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.65% | ||
| ROE | 414.39% | ||
| ROCE | 40.38% | ||
| ROIC | 30.18% | ||
| ROICexc | 34.77% | ||
| ROICexgc | 87.63% | ||
| OM | 21.6% | ||
| PM (TTM) | 14.55% | ||
| GM | 60.56% | ||
| FCFM | 16.85% |
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-Score6
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.18 | ||
| Debt/FCF | 2.6 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 92.13% | ||
| Cap/Sales | 2.75% | ||
| Interest Coverage | 15.54 | ||
| Cash Conversion | 79.74% | ||
| Profit Quality | 115.85% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 6.43 |
F-Score6
WACC7.94%
ROIC/WACC3.8
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)4.29%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%1.1%
EPS Next Y5.56%
EPS Next 2Y6.29%
EPS Next 3Y6.68%
EPS Next 5Y7.29%
Revenue 1Y (TTM)0.06%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.03%
Revenue Next Year1.11%
Revenue Next 2Y2.68%
Revenue Next 3Y3.08%
Revenue Next 5Y3.21%
EBIT growth 1Y0.51%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year14.37%
EBIT Next 3Y8.34%
EBIT Next 5Y7.2%
FCF growth 1Y43.04%
FCF growth 3Y8.74%
FCF growth 5Y4.85%
OCF growth 1Y26.49%
OCF growth 3Y7.29%
OCF growth 5Y5.56%