Colgate-Palmolive Co.

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CL : NYSE : Consumer Non-Durables
$69.14 -0.89 | -1.27%
Today's Range: 69.14 - 70.45
Avg. Daily Volume: 3634000.0
02/21/18 - 4:01 PM ET

Financial Analysis


COLGATE-PALMOLIVE CO's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line.

At the same time, stockholders' equity ("net worth") has greatly increased by 75.30% from the same quarter last year.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)3892.03721.0
EBITDA ($mil)1129.01151.0
EBIT ($mil)1008.01037.0
Net Income ($mil)323.0606.0


Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)1535.01386.0
Total Assets ($mil)12676.012123.0
Total Debt ($mil)6577.06533.0
Equity ($mil)-60.0-243.0


Profitability Q4 FY17 Q4 FY16
Gross Profit Margin63.5463.85
EBITDA Margin29.030.93
Operating Margin25.927.87
Sales Turnover1.221.25
Return on Assets15.9620.13
Return on Equity0.00.0
Debt Q4 FY17 Q4 FY16
Current Ratio0.01.31
Debt/Capital1.011.04
Interest Expense0.021.0
Interest Coverage0.049.38


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)878.11883.11
Div / share0.40.39
EPS0.370.68
Book value / share-0.07-0.28
Institutional Own % n/a n/a
Avg Daily Volume3709174.03225523.0

Valuation


HOLD. COLGATE-PALMOLIVE CO's P/E ratio indicates a premium compared to an average of 23.34 for the Household Products industry and a premium compared to the S&P 500 average of 25.51. 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 31.24 Peers 23.34   CL 20.48 Peers 15.97

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 significant 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 20.76 Peers 19.90   CL 1.89 Peers 1.67

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

CL is trading at a premium to 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 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 14.33   CL -16.18 Peers 9.86

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 4.05 Peers 3.11   CL 1.70 Peers 1.48

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 exceeds its peers.

 

 

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