Colgate-Palmolive Co

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CL : NYSE : Consumer Goods
$65.93 up 0.9 | 1.38%
Today's Range: 64.92 - 65.95
Avg. Daily Volume: 3438700.0
12/07/16 - 4:02 PM ET

Financial Analysis

COLGATE-PALMOLIVE CO's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. COLGATE-PALMOLIVE CO has weak liquidity. Currently, the Quick Ratio is 0.65 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 152.15% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)3867.03999.0
EBITDA ($mil)1136.01130.0
EBIT ($mil)1022.01018.0
Net Income ($mil)702.0726.0

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1486.01591.0
Total Assets ($mil)12623.013563.0
Total Debt ($mil)6523.06790.0
Equity ($mil)-133.0255.0

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin63.3361.57
EBITDA Margin29.3728.25
Operating Margin26.4325.46
Sales Turnover1.221.21
Return on Assets10.918.21
Return on Equity0.0968.62
Debt Q3 FY16 Q3 FY15
Current Ratio1.021.29
Interest Expense27.06.0
Interest Coverage37.85169.67

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)888.84896.92
Div / share0.390.38
Book value / share-0.150.28
Institutional Own % n/a n/a
Avg Daily Volume3439065.02802849.0


HOLD. COLGATE-PALMOLIVE CO's P/E ratio indicates a significant premium compared to an average of 26.16 for the Household Products industry and a significant premium compared to the S&P 500 average of 25.22. 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 42.30 Peers 26.16   CL 18.18 Peers 15.19

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
CL 20.88 Peers 21.36   CL 0.49 Peers 1.86

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CL NM Peers 24.14   CL -43.34 Peers 39.89

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CL 3.74 Peers 3.17   CL -6.02 Peers -3.43

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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