Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide. The company operates through two segments, Oral, Personal and Home Care; and Pet Nutrition. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York. This week, I fundamentally analyze Colgate-Palmolive’s stock. I review Colgate-Palmolive’s business segments, look at its key ratios, and derive the intrinsic value using Discounted Cash Flow (DCF) analysis. Since this is a long video, please feel free to use the time stamps in the video if you only wish to watch certain topics.
I review various key ratios such as Revenue, Net Income, Shares outstanding, Dividends, Payout Ratio, Free Cash Flows (FCF), Financial Leverage, Current Ratio, Debt to Equity Ratio, Return on Equity (ROE), Days Sales Outstanding (DSO), Days Inventory, Payable Period, Cash Conversion Cycle, Inventory Turnover, etc.
After taking into account Colgate-Palmolive’s 2021 free cash flow of $2,758 million figure, a 7% growth rate of FCF (growth for the next 10 years), 10% discount rate, 2.6% long term growth rate (growth from 10 year mark in the future to perpetuity), 848 million shares outstanding, and $7,194 million of long term debt, the DCF analysis yields us an intrinsic value of $52.81 per share.
Timestamp
0:00 Introduction
0:34 Business Overview
5:21 Key Ratios Analysis
15:28 Discounted Cash Flow Analysis / Intrinsic Value
17:50 Conclusion
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References:
Colgate-Palmolive’s Website: here.
Morningstar Key Ratios Link: here.
Useful Resources here.
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