This firm's average rating is Hold from 13 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Colgate Palmolive market sentiment investors' perception of the future value of Colgate. Let us look at a few aspects of Colgate technical analysis. The company has Net Profit Margin (PM) of
15.86 %, which may suggest that it has sound control over its expenditures, executes well on its competitive polices, or have a solid pricing strategies. This is very large. Likewise, it shows Net Operating Margin (NOM) of
26.12 %, which signifies that for every $100 of sales, it has a net operating income of 0.26.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of Colgate Palmolive. In general, sophisticated investors focus on analyzing Colgate Palmolive stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Colgate Palmolive's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
Colgate Palmolive's intrinsic value. In addition to deriving basic predictive indicators for Colgate Palmolive, many experienced traders also check how macroeconomic factors affect Colgate Palmolive price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Colgate Palmolive's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Colgate Palmolive. Your research has to be compared to or analyzed against Colgate Palmolive's peers to derive any actionable benefits. When done correctly, Colgate Palmolive's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Colgate Palmolive.
How important is Colgate Palmolive's Liquidity
Colgate Palmolive
financial leverage refers to using borrowed capital as a funding source to finance Colgate Palmolive ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Colgate Palmolive financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Colgate Palmolive's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Colgate Palmolive's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Colgate Palmolive's total debt and its cash.
Colgate Palmolive Gross Profit
Colgate Palmolive Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Colgate Palmolive previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Colgate Palmolive Gross Profit growth over the last 10 years. Please check Colgate Palmolive's
gross profit and other
fundamental indicators for more details.
Closer look at Colgate Palmolive Semi Variance
Colgate Palmolive has current Semi Variance of 1.12. Semi-variance provides a good measure of downside volatility for equity or a portfolio. It is similar to variance, but it only looks at periods where the returns are less than the target or average level.
Semi-variance is the square of semi-deviation. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.
Semi Variance | = | SUM(RET DEV)2 N(ZERO) |
| = | 1.12 |
| SUM | = | Summation notation |
| RET DEV | = | Actual return deviation over selected period |
| N(ZERO) | = | Number of points with returns less than zero |
Let's now compare Colgate Palmolive Semi Variance to its closest peers:
| CL | 1.12 |
| EL | 2.62 |
| ACU | 6.67 |
| CHD | 1.16 |
Will Colgate continue to hike?
New Total Risk Alpha is up to 0.02. Price may pull down again. Colgate Palmolive has relatively low volatility with skewness of -0.1 and kurtosis of -0.27. However, we advise all investors to independently investigate Colgate Palmolive to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.
Our Final Take On Colgate Palmolive
While some other companies within the household & personal products industry are still a little expensive, even after the recent corrections, Colgate Palmolive may offer a potential longer-term growth to stakeholders. The bottom line, as of the 31st of July 2020, our current 30 days buy-sell recommendation on the company is
Buy. We believe Colgate Palmolive is
undervalued with
very low probability of distress for the next two years.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Colgate Palmolive. Please refer to our
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