Colgate-Palmolive (Pakistan) Ltd. (COLG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Colgate-Palmolive (Pakistan) Ltd.

Treet Corp. Ltd.

Gillette Pakistan Ltd.

Why is Colgate-Palmolive (Pakistan) Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 39.79%

Healthy long term growth as Net Sales has grown by an annual rate of 22.85% and Operating profit at 36.22%
Company has very low debt and has enough cash to service the debt requirements

With ROE of 57.2, it has a attractive valuation with a 9.8 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 0%, its profits have risen by 22.6% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 5

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Colgate-Palmolive (Pakistan) Ltd. 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 (Pakistan) Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Colgate-Palmolive (Pakistan) Ltd.

-100.0%

0.26

26.06%

Pakistan KSE 100 Share

60.28%

2.81

22.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.70%

EBIT Growth (5y)

31.09%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.67

Sales to Capital Employed (avg)

3.37

Tax Ratio

34.76%

Dividend Payout Ratio

81.16%

Pledged Shares

Institutional Holding

ROCE (avg)

258.77%

ROE (avg)

39.79%

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

8.40

EV to EBIT

10.53

EV to EBITDA

10.07

EV to Capital Employed

22.33

EV to Sales

2.48

PEG Ratio

2.83

Dividend Yield

4.78%

ROCE (Latest)

212.04%

ROE (Latest)

49.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

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

2What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 166.8%

DEBTORS TURNOVER RATIO(HY)

Highest at 41.3%

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR 14,584.69 MM

RAW MATERIAL COST(Y)

Grown by 6.59% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -64.7 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.13%

OPERATING PROFIT(Q)

Lowest at PKR 6,700.6 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 23.09 %

EPS(Q)

Lowest at PKR 17.69

Here's what is working for Colgate-Palmolive (Pakistan) Ltd.

Debtors Turnover Ratio

Highest at 41.3%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 166.8%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Colgate-Palmolive (Pakistan) Ltd.

Operating Cash Flow

Lowest at PKR 14,584.69 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Operating Profit

Lowest at PKR 6,700.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PKR MM)

Operating Profit Margin

Lowest at 23.09 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at PKR 17.69

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (PKR)

Debt-Equity Ratio

Highest at -64.7 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 4.13%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 6.59% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales