Colgate-Palmolive Co

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CL : NYSE : Consumer Goods
$73.31 -0.19 | -0.26%
Today's Range: 73.25 - 73.85
Avg. Daily Volume: 4232700.0
04/27/17 - 3:59 PM ET

Financial Analysis


COLGATE-PALMOLIVE CO's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. COLGATE-PALMOLIVE CO has weak liquidity. Currently, the Quick Ratio is 0.83 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 18.72% 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 FY16 Q4 FY15
Net Sales ($mil)3721.03899.0
EBITDA ($mil)1151.01148.0
EBIT ($mil)1037.01036.0
Net Income ($mil)606.0-458.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)1338.01031.0
Total Assets ($mil)12123.011958.0
Total Debt ($mil)6533.06571.0
Equity ($mil)-243.0-299.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin63.8561.91
EBITDA Margin30.9329.44
Operating Margin27.8726.57
Sales Turnover1.251.34
Return on Assets20.1311.57
Return on Equity0.00.0
Debt Q4 FY16 Q4 FY15
Current Ratio1.311.24
Debt/Capital1.041.05
Interest Expense21.09.0
Interest Coverage49.38115.11


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)883.11892.74
Div / share0.390.38
EPS0.68-0.51
Book value / share-0.28-0.33
Institutional Own % n/a n/a
Avg Daily Volume4380371.03496274.0

Valuation


HOLD. The current P/E ratio indicates a premium compared to an average of 26.52 for the Household Products industry and a value on par with the S&P 500 average of 24.92. 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 26.90 Peers 26.52   CL 20.58 Peers 17.38

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CL 23.01 Peers 23.38   CL 3.66 Peers 3.37

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CL NM Peers 10.90   CL 80.13 Peers 276.96

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.

 

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 4.25 Peers 3.39   CL -5.24 Peers -2.05

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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