Colgate-Palmolive Co

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CL : NYSE : Consumer Goods
$75.92 | %
Today's Range: 75.45 - 76.48
Avg. Daily Volume: 3495300.0
06/23/17 - 4:01 PM ET

Financial Analysis

COLGATE-PALMOLIVE CO's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales have remained unchanged, but net income increased. COLGATE-PALMOLIVE CO has weak liquidity. Currently, the Quick Ratio is 0.76 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.

During the same period, stockholders' equity ("net worth") has increased by 15.40% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)3762.03762.0
EBITDA ($mil)1051.01034.0
EBIT ($mil)942.0928.0
Net Income ($mil)570.0533.0

Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)1403.01101.0
Total Assets ($mil)12448.012448.0
Total Debt ($mil)6473.06580.0
Equity ($mil)-313.0-370.0

Profitability Q1 FY17 Q1 FY16
Gross Profit Margin63.5862.79
EBITDA Margin27.9327.48
Operating Margin25.0424.67
Sales Turnover1.221.26
Return on Assets19.911.04
Return on Equity0.00.0
Debt Q1 FY17 Q1 FY16
Current Ratio1.211.01
Interest Expense24.030.0
Interest Coverage39.2530.93

Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)883.29893.02
Div / share0.390.38
Book value / share-0.35-0.41
Institutional Own % n/a n/a
Avg Daily Volume3530191.04361592.0


HOLD. The current P/E ratio indicates a premium compared to an average of 25.29 for the Household Products industry and a value on par with the S&P 500 average of 25.73. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CL 27.56 Peers 25.29   CL 20.91 Peers 17.91

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

CL is trading at a valuation on par with 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
CL 24.09 Peers 23.62   CL 3.66 Peers 3.24

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CL NM Peers 55.11   CL 83.44 Peers 40.96

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.


Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

CL is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CL 4.44 Peers 3.45   CL -3.38 Peers -0.85

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.


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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