As part of our ongoing series here at The Acquirer’s Multiple, each week we focus on one of the stocks from our Stock Screeners, and why it’s a ‘buy’ based on key fundamentals.
One of the cheapest stocks in our Stock Screeners 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 (below) over the past twelve months shows that the price is up 34.94%. Here’s why the company is undervalued.
Source: Google Finance
Key Stats
Market Cap: $83.49 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 %:
FCF/MC Yield: 4.02
Shareholder Yield %:
Shareholder Yield: 3.10
Other Indicators
Piotroski F Score: 8.00
Altman Z-Score: 7.10
ROA (5 Year Avge%): 27
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