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

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$66.63 $0.26 (0.39%) CL stock closing price Apr 24, 2018 (Closing)
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Colgate-Palmolive
Updated on : Apr 24, 2018
previous close
CL 66.6 (0%)
S&P 500 2634.6 (0%)
Closing Price On: Apr 24, 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:
11.9%
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:
2.39%
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 :
3.8
Industry PS :
1.6
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
30.5%
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 3.4/5

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.
  • LTM Net margins were good at 13.1% for Colgate-Palmolive.
  • The operating cash flow looks good at 2.3 times the net income.
  • Colgate-Palmolive generates a high return on invested capital of 30.5%.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Colgate-Palmolive at 1659%.
  • The company has a good Free Cash Flow (FCF) margin of 16.2%.

Should you sell CL stock?

  • Revenue declined at a CAGR of -2% over the last 5 years.
  • Colgate-Palmolive has a debt/equity ratio of  27.07, which is worse than the average in the Consumer Staples sector.
  • The company is trading at a price to sales multiple of 3.8, which is higher in comparison to the Soap and Cleaning Preparations industry average of 1.6, making CL stock expensive.

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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.