Colgate-Palmolive Stock Analysis, Valuation (NYSE:CL)
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 3.4/5
Amigobulls CL stock analysis uses latest quarter 2018 Q1 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 23.49 was exceptional.
- LTM Net margins were good at 13.3% for Colgate-Palmolive.
- Colgate-Palmolive generates a high return on invested capital of 30.9.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Colgate-Palmolive at 1504.3.
- The company has a good Free Cash Flow (FCF) margin of 12.4.
Should you sell CL stock?
- The company saw an average annual sales decline of -1.8 in sales over the last 5 years.
- Colgate-Palmolive has a debt/equity ratio of 64.96, which is worse than the average in the Consumer Staples sector.
- The company is trading at a price to sales multiple of 3.7, which is overvalued in comparison to the Consumer Staples sector 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.