Colgate-Palmolive Co: Is It A Buy?
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As part of an ongoing series, we will take a closer look at one of the stocks from our stock screeners and review why it’s a ‘buy’ based on key fundamentals.
One of the cheapest stocks in our screens is:
Colgate-Palmolive Co (CL)
Since its founding in 1806, Colgate-Palmolive has grown to become a leading player in the household and personal care arena. In addition to its namesake oral care line (which accounts for more than 40% of its total sales), the firm manufactures shampoos, shower gels, deodorants, and homecare products that are sold in over 200 countries.
International sales account for about 70% of its total business, including approximately 45% from emerging regions. It also owns specialty pet food maker Hill’s (around one fifth of sales), which primarily sells its products through veterinarians and specialty pet retailers.
A quick look at the share price history (provided below) over the past twelve months shows that the price has moved up approximately 34.94%. Here is a brief look at why the company is potentially undervalued.
Source: Google Finance
Key Stats
- Market cap: $85.14 billion
- Enterprise value: $91.19 billion
Operating Earnings
- Operating earnings: $4.52 million
Acquirer’s Multiple
- Acquirer’s multiple: 20.20
Free Cash Flow (TTM)
- Free cash flow: $3.36 billion
FCF/MC Yield Percentage
- FCF/MC yield: 4.02
Shareholder Yield Percentage
- Shareholder yield: 3.10
Other Indicators
- Piotroski F score: 8.00
- Altman Z-score: 7.10
- ROA (five-year average percentage): 27
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AT&T Inc: Is It A Buy?
Disclosure: None.
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