Colgate-Palmolive Stock Analysis, Valuation (NYSE:CL)
Colgate-Palmolive Stock Analysis
Watch the robo advisor video of Colgate-Palmolive stock analysis on Amigobulls. This video puts forward our latest analysis highlighting the pros and cons for CL stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Colgate-Palmolive Company Stock Rating 3.3/5
Amigobulls CL stock analysis uses latest quarter 2017 Q4 financial data like Colgate-Palmolive revenue growth, profit margins and cash flows. We also use relative valuation metrics like PE ratio and price to sales ratio for Colgate-Palmolive valuation analysis. Our Colgate-Palmolive stock rating is based on company's fundamentals like balance sheet risk and cash flow position.
Should you buy CL stock?
- Colgate-Palmolive's average operating margin of 23.2% was exceptional.
- Net margins came in at average 13.1% for Colgate-Palmolive over the last twelve months.
- The company has an operating cash flow which is 2.3 times the net income.
- Colgate-Palmolive has an attractive ROIC (Return on Invested Capital) of 30.3%
- Colgate-Palmolive has a good Return On Equity (ROE) of 1659%.
- The company has a healthy free cash flow margin of 16.2%.
Should you sell CL stock?
- The company saw an average annual sales decline of -2% in sales over the last 5 years.
- With a debt/equity ratio of 27.07, Colgate-Palmolive is highly leveraged in comparison to Consumer Staples peers.
- CL stock is trading at a PS multiple of 4.1, which is a negative when compared to the Soap and Cleaning Preparations industry average multiple of 1.7.
Amigobulls Colgate-Palmolive stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of CL stock. Company's fundamentals remain one of the key driver of CL stock and helps investors in making good buy and sell decision.
While doing a study of the company financials, Colgate-Palmolive revenue growth and profit or net income are two main metrics which help in identifying whether CL stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Colgate-Palmolive stock.