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Colgate-Palmolive Co
CL : NYSE : Consumer Goods
$65.70 | %
Today's Range: 64.54 - 65.75
Avg. Daily Volume: 3,724,200
02/12/16 - 4:00 PM ET

Financial Analysis


COLGATE-PALMOLIVE CO's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not.

At the same time, stockholders' equity ("net worth") has significantly decreased by 126.11% from the same quarter last year.

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Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)3899.04221.0
EBITDA ($mil)1148.01180.0
EBIT ($mil)1036.01067.0
Net Income ($mil)-458.0628.0


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)1072.01289.0
Total Assets ($mil)11958.013459.0
Total Debt ($mil)0.06148.0
Equity ($mil)-299.01145.0


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin61.9161.45
EBITDA Margin29.4427.95
Operating Margin26.5725.28
Sales Turnover1.341.28
Return on Assets11.5716.19
Return on Equity0.0190.39
Debt Q4 FY15 Q4 FY14
Current Ratio0.01.23
Debt/Capital0.00.84
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)896.92906.71
Div / share0.380.36
EPS-0.510.68
Book value / share-0.331.26
Institutional Own % n/a n/a
Avg Daily Volume3666175.03929765.0

Valuation


HOLD. COLGATE-PALMOLIVE CO's P/E ratio indicates a significant premium compared to an average of 32.14 for the Household Products industry and a significant premium compared to the S&P 500 average of 21.13. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. 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 seems to be trading at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CL 43.70 Peers 32.14   CL 20.07 Peers 16.18

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

CL is trading at a significant 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CL 22.00 Peers 22.60   CL 2.58 Peers 1.62

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CL NM Peers 8.63   CL -36.02 Peers -20.68

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CL's P/B is negative making this valuation measure meaningless.

 

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CL 3.69 Peers 3.08   CL -7.20 Peers -7.14

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 premium to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

CL significantly trails its peers on the basis of sales growth

 

 

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