Colgate-Palmolive Company
Colgate-Palmolive Company Fundamental Analysis
Colgate-Palmolive Company (CPA.DE) shows weak financial fundamentals with a PE ratio of 31.78, profit margin of 10.46%, and ROE of 4.32%. The company generates $20.3B in annual revenue with moderate year-over-year growth of 3.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 26.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CPA.DE's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCPA.DE demonstrates superior asset utilization.
Valuation Score
ModerateCPA.DE shows balanced valuation metrics.
Growth Score
ModerateCPA.DE shows steady but slowing expansion.
Financial Health Score
WeakCPA.DE carries high financial risk with limited liquidity.
Profitability Score
WeakCPA.DE struggles to sustain strong margins.
Key Financial Metrics
Is CPA.DE Expensive or Cheap?
P/E Ratio
CPA.DE trades at 31.78 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CPA.DE's PEG of -1.03 indicates potential undervaluation.
Price to Book
The market values Colgate-Palmolive Company at 1254.11 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.22 times EBITDA. This signals the market has high growth expectations.
How Well Does CPA.DE Make Money?
Net Profit Margin
For every $100 in sales, Colgate-Palmolive Company keeps $10.46 as profit after all expenses.
Operating Margin
Core operations generate 20.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.32 in profit for every $100 of shareholder equity.
ROA
Colgate-Palmolive Company generates $13.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Colgate-Palmolive Company produces operating cash flow of $4.18B, showing steady but balanced cash generation.
Free Cash Flow
Colgate-Palmolive Company generates strong free cash flow of $3.62B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.52 in free cash annually.
FCF Yield
CPA.DE converts 5.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.78
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1254.11
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
158.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
4.32
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.45
vs 25 benchmark
How CPA.DE Stacks Against Its Sector Peers
| Metric | CPA.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.78 | 22.46 | Worse (Expensive) |
| ROE | 431.59% | 1260.00% | Weak |
| Net Margin | 10.46% | -5313.00% (disorted) | Strong |
| Debt/Equity | 158.40 | 0.84 | Weak (High Leverage) |
| Current Ratio | 0.83 | 2.49 | Weak Liquidity |
| ROA | 13.05% | -193380.00% (disorted) | Strong |
CPA.DE outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Colgate-Palmolive Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
34.57%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
28.23%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
37.73%
Industry Style: Defensive, Dividend, Low Volatility
High Growth