Top.Mail.Ru
empty
08.04.2021 02:12 PM
Analysis of COLGATE-PALMOLIVE COMPANY (CL) shares

COLGATE-PALMOLIVE COMPANY (CL) is a consumer goods that operates in two product segments: oral, personal, and home care; and pet nutrition. The oral care and personal care products segment operates across five geographic areas, which include North America, Latin America, Europe, Asia-Pacific, and Africa/Eurasia.

The company's oral care products consist of several brands: Colgate Total, Colgate Sensitive Pro-Relief, Colgate Max Fresh, and Colgate Optic White. The company also specializes in various categories of personal care products, offering consumers liquid hand soap, which it sells under the brands Palmolive, Protex, and Softsoap. The company manufactures and sells a wide range of home cleaning and dishwashing products, including Palmolive and Ajax dishwashing liquids, Ajax Fabuloso household cleaning products, and Murphy's soap. Through its Hill's Pet Nutrition (Hill's) segment, COLGATE-PALMOLIVE produces food for pets, dogs, and cats.

This image is no longer relevant

The fair value of the company's Enterprise Value (EV) is higher than its capitalization, which is a positive factor. The price-to-earnings (P/E) ratio multiplier is the average for the US market for companies included in the SP 500 index. The dividend paid by the company is 2.37%. The Capitalization / Revenue multiplier is 3.87x. For each dollar invested, an investor will receive only 0.025 in the company's assets. The margin generated by the company is at high values and amounts to 23.7%. Sales are stable, and the forecast is up. The profit is stable, and the forecast is with an increase.

This image is no longer relevant

The company has significant financial stability. Leverage (Debt/EBITDA) is at 1.33x. Free cash flow is $3 billion. Colgate has a high ROA (Net Profit / Asset) utilization rate of 17.4%. The group's high margin level ensures high profit margins. Given the small differences between various analyst estimates, business visibility is good. The sales forecast was recently revised upwards. Over the past year, analysts have regularly revised their forecasts towards growth. The company has no significant fundamental weaknesses.

Considering the company's prospects in relation to the sector, it should be recognized that at a distance of 5 years, the company is lagging behind, but at a distance of two years, it is knocked out in the middle of the rating by adding 20% to its value, which provides investors with a dividend of 12.5% per annum.

This image is no longer relevant

Since 2019, the company's shares have been in an upward trend and are currently recovering from a correction, which makes it possible to purchase assets at an attractive value with a target of $94. At the same time, the profit-to-risk ratio assumes a target of 125, which, according to a rough estimate based on the current trend, the company can achieve by 2026, which, together with the dividends, offers the investor up to 10% of annual income in US dollars. In this case, if the shares fall below the $58 level, the investor should think about fixing losses. Investments are possible for 5% of the amount of liquid capital. Shorter targets of interest to traders should involve shorter stops. The target of $94 implies a stop below the level of $72, but its implementation may occur by the end of this year. An investor or trader should not deceive himself, it is necessary to strictly adhere to the previously adopted plan. Everyone should be careful and follow the rules of money management.

Daniel Adler,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US equities: bulls steady, broader market leads

S&P 500 Overview on July 2 US market: bulls hold their ground, broader market leads The main US indices on Tuesday: Dow +0.9%, NASDAQ -0.8%, S&P 500 -0.1%. S&P

Jozef Kovach 13:04 2025-07-02 UTC+2

Update on US stock market on July 2. SP500 and NASDAQ enjoy buoyant demand

At the close of trading yesterday, US stock indices ended the day mixed. The S&P 500 declined by 0.11%, while the Nasdaq 100 fell by 0.82%. In contrast

Jakub Novak 12:48 2025-07-02 UTC+2

US market holds near highs

S&P 500 Overview on July 1 US market pauses at highs Major US indices on Monday: Dow +0.6%, NASDAQ +0.5%, S&P 500 +0.5%, S&P 500: 6,204, trading range: 5,700–6,300

Jozef Kovach 11:53 2025-07-01 UTC+2

Update on US stock market on July 2. SP500 and NASDAQ going on with steady growth

At the end of yesterday's trading, US stock indices closed higher. The S&P 500 rose by 0.52%, while the Nasdaq 100 gained 0.47%. The Dow Jones Industrial Average strengthened

Jakub Novak 09:52 2025-07-01 UTC+2

Update on US stock market on June 30. SP500 notches up new peak at 6,200. Inflation reports indicate stagflation

S&P500 The US stock market is ahead of a week of big news. The S&P 500 is eyeing 6,200 Snapshot of major US stock indices on Friday: Dow +1%, NASDAQ

Jozef Kovach 11:17 2025-06-30 UTC+2

Update on US stock market on June 27. SP500 and NASDAQ reach new highs

The S&P 500 rose by 0.80%, while the Nasdaq 100 added 0.97%. The Dow Jones Industrial Average climbed by 0.84%. Stocks gained amid talks that the US is getting closer

Jakub Novak 11:58 2025-06-27 UTC+2

Nvidia Shares Reach All-Time High

Yesterday, the NASDAQ technology index closed the day in positive territory, thanks largely to the rally in Nvidia Corp. shares, which reached a historic high. The leading producer

Jakub Novak 11:06 2025-06-26 UTC+2

The Stock Market Is Approaching Dangerous Levels

The wave pattern on the 24-hour chart for the #SPX instrument appears generally clear. At this point, the formation of an upward trend segment is presumably complete. In my view

Chin Zhao 12:35 2025-06-25 UTC+2

Update on US stock market on June 25. Key stock indices growing in confidence

S&P500 Snapshot of the US major stock indexes on Tuesday: Dow +1.2%, NASDAQ +1.4%, S&P 500 +1.1% (closed at 6,092, within a 5,700–6,300 range). The stock market traded with

Jozef Kovach 11:52 2025-06-25 UTC+2

US stock market in uptrend as ceasefire announced between Israel and Iran

S&P500 Snapshot of the benchmark US stock indices on Monday: Dow +0.9%, NASDAQ +0.9%, S&P 500 +1%, S&P 500 at 6,025, range 5,600–6,200 In the early hours of June

Jozef Kovach 12:37 2025-06-24 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.