Colgate-Palmolive Co. (CL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Inter Parfums, Inc.

Procter & Gamble Co.

Colgate-Palmolive Co.

Kenvue, Inc.

Church & Dwight Co., Inc.

Reynolds Consumer Products, Inc.

Coty, Inc.

Kimberly-Clark Corp.

The Estée Lauder Companies, Inc.

e.l.f. Beauty, Inc.

The Clorox Co.

Why is Colgate-Palmolive Co. ?

Flat results in Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 1,783.1
INVENTORY TURNOVER RATIO(HY) Lowest at 3.9 times
DEBTORS TURNOVER RATIO(HY) Lowest at 11.12 times

With ROE of 868.55%, it has a fair valuation with a 354.55 Price to Book Value

Over the past year, while the stock has generated a return of -16.72%, its profits have risen by 11.6% ; the PEG ratio of the company is 3.1

High Institutional Holdings at 86.65%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -16.72% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Colgate-Palmolive Co. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Colgate-Palmolive Co. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Colgate-Palmolive Co.

-16.19%

-0.85

20.78%

S&P 500

11.09%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.64%

EBIT Growth (5y)

2.79%

EBIT to Interest (avg)

21.96

Debt to EBITDA (avg)

1.53

Net Debt to Equity (avg)

19.17

Sales to Capital Employed (avg)

2.21

Tax Ratio

22.70%

Dividend Payout Ratio

56.42%

Pledged Shares

Institutional Holding

86.65%

ROCE (avg)

56.03%

ROE (avg)

997.38%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

354.55

EV to EBIT

30.50

EV to EBITDA

26.86

EV to Capital Employed

18.53

EV to Sales

6.80

PEG Ratio

3.10

Dividend Yield

1.29%

ROCE (Latest)

60.76%

ROE (Latest)

868.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at USD 11.12

RAW MATERIAL COST(Y)

Fallen by 1.04% (YoY

CASH AND EQV(HY)

Highest at USD 2,723 MM

NET SALES(Q)

Highest at USD 5,110 MM

EPS(Q)

Highest at USD 0.91

-6What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,783.1

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.9 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 11.12 times

INTEREST(Q)

Highest at USD 71 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 24.77 %

Here's what is working for Colgate-Palmolive Co.

Dividend per share

Highest at USD 11.12 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Net Sales

Highest at USD 5,110 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

EPS

Highest at USD 0.91

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 2,723 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 1.04% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Colgate-Palmolive Co.

Interest Coverage Ratio

Lowest at 1,783.1

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at USD 71 MM

in the last five periods and Increased by 7.58% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit Margin

Lowest at 24.77 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.9 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 11.12 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio