Colgate-Palmolive Company (CL) posts lower YOY liquidity

Total Money flow for the day ended at $-1006.05mn with tick up at $4182.82mn and tick down at $5188.87mn led to up /down ratio of 0.81x. With Tick up down ratio robust at 0.43, MF saw a boost of $-968.50mnCurrently the Consumer Goods index is trading at 6262.67 with 0.24 change.

On the backdrop of rising macro volatility company’s EPS of 78.60% continue to be on a +Ve trend line , and By 7.00% Colgate-Palmolive Company EPS 7.00% compared to past year , analyst expect per share earnings to decline by 7.00%.

Traders are bullish because of future growth prospects of the business and supported by traders interest present in this Consumer Goods sector as current assets price are expensive relative to its PE .

However in a long-term investment , We are not sure that the company has found that the challenge for its sector caused ailment , as price are trading 7.68% above its sector .

Estimates point to stellar five year period growth of 6.95% compared to current 28.56 PE. Company’s functioning capacity already seems to be at peak , and we think company has less to be achieved by any future productivity boost supporting this company is on track for increased growth of 24.09, keep in mind that analyst estimates can often go wrong .

Current markets forecast lower earnings for the company , one street firm noted that with forward PE of 24.09, Colgate-Palmolive Company is likely to see downtrend EPS for the next 12 months .

The company has a 18.50% assets to equity ratio which is indicative of the strong growth and performance of the company over the year . Trend indicate company is showing showing resistance as stock remains at 16.65% below its 52W High As values near 52w there is enough gap in the intrinsic value and current price , so focus should be on the core drivers , not price.

Colgate-Palmolive Company might not seem to have a respectable quick ratio which is 1:0.9, we believe Colgate-Palmolive Company low liquidity ratio has been a worry to creditors indicating low stock in current assets .

Colgate-Palmolive Company RSI 56.08 does not yet show any divergence and this shows lack of strong pattern . the RSI for the shares trading in the no trade zone indicating of sideways price moves in the short term .

Considering where the stock is trading today, MA is at 1.24% higher than current index range. With higher price movement business is attractive for short time perspectives and generally not favored by investors with a long-term outlook , however considering growth with return along with overall sector , we have beta of 0.8, is comfortably stable .

With increased debt to liquid ratio Colgate-Palmolive Company has a sound financial gains with potential to meet its near term liabilities with its short-term assets, and from value prespective Colgate-Palmolive Company current assets to current liabilities stands at 1.2.

End of the day Monday, Dec 18 market cap stood at $65162.99 ML , however we prefer enterprise value against market cap for fair value. Lately it has been quite volatile for the company .

. Societe Generale was among the firms issuing bearish ratings, as Iain Simpson saw downside in PT, downgraded company to Sell from a previous rating of Hold, and its PT on the firm by $ to Sell.

Analysts believe asset won’t be able to meet market expectations in terms of future growth, consequently PEG at 4.11x indicated higher price while taking the company’s earnings growth into account. Colgate-Palmolive Company PEG ratio stands at just 4.11, compared with the sector average growth of 1.85. This suggests a decent undervalued trading relative to its earnings growth track right now.

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