Colgate-Palmolive Stock Analysis, Valuation (NYSE:CL)
Colgate-Palmolive Stock Analysis
View Colgate-Palmolive stock analysis video. This is our analyst opinion covering the buy and sell arguments for CL stock.
Colgate-Palmolive Company Stock Rating 3.6/5
Our Colgate-Palmolive stock opinion is based on fundamentals of the company. This Colgate-Palmolive stock analysis is based on latest 2017 Q2 earnings. The stock price analysis takes into account the company's valuation metrics.
Should you buy CL stock?
- Colgate-Palmolive had a healthy average operating margin of 24.8% over the last 4 quarters.
- LTM Net margins were good at 15.8% for Colgate-Palmolive.
- Colgate-Palmolive's return on invested capital of 35.7% is good.
- Colgate-Palmolive has a good Return On Equity (ROE) of 3317.7%.
- Colgate-Palmolive has a healthy FCF (Free Cash Flow) margin of 13.2%.
Should you sell CL stock?
- Colgate-Palmolive sales declined by -0.5% year on year in 2017 Q2.
- The company saw an average annual sales decline of -2.3% in sales over the last 5 years.
- With a debt/equity ratio of 74.08, Colgate-Palmolive is highly leveraged in comparison to Consumer Staples peers.
- The company is trading at a price to sales multiple of 4.1, which is overvalued in comparison to the Soap and Cleaning Preparations industry average multiple of 1.6.