Colgate-Palmolive manufactures and markets consumer products worldwide. It operates in two segments: Oral, Personal and Home Care; and Pet Nutrition. The company was founded in 1806 and is based in New York, New York.
CL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Colgate Palmolive Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Colgate Palmolive Co ranked in the 35th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Colgate Palmolive Co ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 25.92; that's higher than 87.25% of US stocks in the Consumer Defensive sector that have positive free cash flow.
CL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 34.08% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Since I put out my bullish recommendation on Colgate-Palmolive Company (CL), the shares have returned about 10% against a gain of 26.5% for the S&P 500. I thought I’d check in on the name to see if it makes sense to add to the shares or trim the position at...
Consumer staples businesses have historically made very attractive dividend growth investments. That's largely due to the substantial amount of repeat purchases as well as their ability to pass on modest price increases over time. Colgate-Palmolive (CL) is a prime example of just how powerful consumer staples companies can be. What...
Passive Income Pursuit on Seeking Alpha | January 24, 2021
The Board of Directors of Colgate-Palmolive Company (NYSE:CL) today declared a quarterly cash dividend of $0.44 per common share, payable on February 16, 2021, to shareholders of record on January 25, 2021. The Company has paid uninterrupted dividends on its common stock since 1895.