Colgate-Palmolive Stock Analysis, Valuation (NYSE:CL)

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$71.46 $0.24 (0.34%) CL stock closing price Feb 16, 2018 (Closing)
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Colgate-Palmolive
Updated on : Feb 16, 2018
previous close
CL 71.5 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Soap and Cleaning Preparations
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-2%
Operating Profit
Operating Margin:
23.2%
Sector Average:
11.2%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
6.58B
Debt/Equity Ratio:
 27.07
Compared to the industry
Cash Flow
Operating cash flow:
$759M
Net Income:
$323M
Dividend Yield
CL dividend yield:
2.23%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
Long Term Growth
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CL PS :
4.1
Industry PS :
1.7
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
30.3%
Return on Equity:
1659%
Free Cash Flow Margin:
16.2%
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Colgate-Palmolive Stock Analysis

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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.

Comments on this video and Colgate-Palmolive stock

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.