Colgate-Palmolive Co

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CL : NYSE : Consumer Goods
$71.61 up 0.59 | 0.83%
Today's Range: 71.0772 - 71.75
Avg. Daily Volume: 3015100.0
08/21/17 - 4:00 PM ET

Financial Analysis


COLGATE-PALMOLIVE CO's gross profit margin for the second quarter of its fiscal year 2017 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 0.77 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 13.87% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)3826.03845.0
EBITDA ($mil)1122.01119.0
EBIT ($mil)1005.01010.0
Net Income ($mil)524.0600.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)1385.01248.0
Total Assets ($mil)12580.012515.0
Total Debt ($mil)6519.06572.0
Equity ($mil)-242.0-281.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin63.7263.07
EBITDA Margin29.3229.1
Operating Margin26.2726.27
Sales Turnover1.211.24
Return on Assets19.0911.19
Return on Equity0.00.0
Debt Q2 FY17 Q2 FY16
Current Ratio1.210.99
Debt/Capital1.041.04
Interest Expense24.027.0
Interest Coverage41.8837.41


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)880.84891.49
Div / share0.40.39
EPS0.590.67
Book value / share-0.27-0.32
Institutional Own % n/a n/a
Avg Daily Volume3074370.04015370.0

Valuation


HOLD. COLGATE-PALMOLIVE CO's P/E ratio indicates a premium compared to an average of 24.82 for the Household Products industry and a premium compared to the S&P 500 average of 24.23. 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 26.51 Peers 24.82   CL 20.04 Peers 18.08

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 22.78 Peers 22.30   CL 4.01 Peers 2.93

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 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 61.82   CL 73.54 Peers 17.58

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CL 4.14 Peers 3.42   CL -2.13 Peers -0.35

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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