Colgate-Palmolive Company logged a 0.4% change during today's afternoon session, and is now trading at a price of $80.79 per share.
Colgate-Palmolive Company returned gains of 5.4% last year, with its stock price reaching a high of $82.09 and a low of $67.62. Over the same period, the stock underperformed the S&P 500 index by -15.9%. As of April 2023, the company's 50-day average price was $77.84. Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide. Based in New York, NY, the large-cap Consumer Discretionary company has 33,800 full time employees. Colgate-Palmolive Company has offered a 2.4% dividend yield over the last 12 months.
Increasing Revenues but Narrowing Margins:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $15,544 | $15,693 | $16,471 | $17,421 | $17,967 | $19,136 |
| Revenue Growth | n/a | 0.96% | 4.96% | 5.77% | 3.13% | 6.51% |
| Operating Margins | 24% | 23% | 24% | 19% | 16% | 16% |
| Net Margins | 15% | 15% | 16% | 12% | 10% | 8% |
| Net Income (MM) | $2,400 | $2,367 | $2,695 | $2,166 | $1,785 | $1,587 |
| Earnings Per Share | $2.75 | $2.75 | $3.14 | $2.55 | $2.13 | $1.92 |
| EPS Growth | n/a | 0.0% | 14.18% | -18.79% | -16.47% | -9.86% |
| Diluted Shares (MM) | 873 | 861 | 859 | 848 | 839 | 827 |
| Free Cash Flow (MM) | $2,620 | $2,798 | $3,309 | $2,758 | $1,860 | $2,553 |
| Capital Expenditures (MM) | $436 | $335 | $410 | $567 | $696 | $729 |
| Current Ratio | 1.14 | 1.03 | 0.99 | 1.09 | 1.28 | 1.16 |
The Market May Be Overvaluing Colgate-Palmolive Company's Earnings and Assets:
Colgate-Palmolive Company has a trailing twelve month P/E ratio of 40.8, compared to an average of 22.96 for the Consumer Discretionary sector. Based on its EPS guidance of $3.46, the company has a forward P/E ratio of 22.5. The 3.3% compound average growth rate of Colgate-Palmolive Company's historical and projected earnings per share yields a PEG ratio of 12.22. This suggests that these shares are overvalued.
There's an Analyst Consensus of Some Upside Potential for Colgate-Palmolive Company:
The 18 analysts following Colgate-Palmolive Company have set target prices ranging from $66.0 to $93.0 per share, for an average of $84.83 with a buy rating. As of April 2023, the company is trading -8.2% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Colgate-Palmolive Company has a very low short interest because 1.2% of the company's shares are sold short. Institutions own 83.5% of the company's shares, and the insider ownership rate stands at 0.09%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $6,420,986,570.
