COLGATE-PALMOLIVE CO's gross profit margin for the fourth quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. COLGATE-PALMOLIVE CO has weak liquidity. Currently, the Quick Ratio is 0.73 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 50.32% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||4221.0||4361.0|
|Net Income ($mil)||628.0||564.0|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||1289.0||1135.0|
|Total Assets ($mil)||13459.0||13876.0|
|Total Debt ($mil)||6148.0||5657.0|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||61.45||61.61|
|Return on Assets||16.19||16.15|
|Return on Equity||190.39||97.22|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||906.71||919.95|
|Div / share||0.36||0.34|
|Book value / share||1.26||2.51|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3110608.0||3165336.0|
BUY. COLGATE-PALMOLIVE CO's P/E ratio indicates a premium compared to an average of 24.29 for the Household Products industry and a premium compared to the S&P 500 average of 19.72. For additional comparison, its price-to-book ratio of 54.08 indicates a significant premium versus the S&P 500 average of 2.78 and a significant premium versus the industry average of 19.14. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, COLGATE-PALMOLIVE CO proves to trade at a premium to investment alternatives within the industry.
|CL 28.94||Peers 24.29||CL 18.77||Peers 15.34|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
CL is trading at a premium to its peers.
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
CL is trading at a premium to its peers.
|CL 20.78||Peers 21.18||CL 1.07||Peers 22.48|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
CL is trading at a valuation on par with its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
CL trades at a significant discount to its peers.
|CL 54.08||Peers 19.14||CL -1.05||Peers 29.69|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
CL is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, CL is expected to significantly trail its peers on the basis of its earnings growth rate.
|CL 3.58||Peers 2.79||CL -0.83||Peers -2.36|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
CL is trading at a significant premium to its industry.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
CL has a sales growth rate that significantly exceeds its peers.
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