Company Research Report Ru
ic
Advanced (100%)
Proficient (85%)
Basic (70%)
Developing (55%)
Unacceptable (0%)
Points Earned
Demonstrate an understanding of how the financial ratios are calculated (20 pts).
Complete and accurate financial analysis regarding financial ratio calculations, including detailed explanations and supporting examples. There is no confusion regarding the way in which any of the ratios are calculated.
Largely accurate and mostly complete financial analysis, but may lack supporting examples or clear detail. (student supplied 3 accurate, calculations and supporting documentation)
Minor e
ors and/or omissions in the financial analysis or explanations and does not provide adequate supporting examples or clear detail. (student supplied 1-2 accurate calculations and supporting documentation)
Substantial confusion associated with the financial analysis or explanations. (student supplied calculations but all were inaccurate and there was no supporting documentation)
Required elements missing or significantly flawed.
Explain how financial ratios provide the firm with strategic information and insight on its forensic/financial health (45 pts).
Complete and accurate analysis regarding the strategic significance and financial health implications of financial ratios, including detailed explanations and supporting examples. There is no confusion regarding the analysis and explanations.
Largely accurate and mostly complete financial analysis, but may lack supporting examples or clear detail. (student supplied 3 accurate, calculations and supporting documentation)
Minor e
ors and/or omissions in the financial analysis or explanations and does not provide adequate supporting examples or clear detail. (student supplied 1-2 accurate calculations and supporting documentation)
Substantial confusion associated with the financial analysis or explanations. (student supplied calculations but all were inaccurate and there was no supporting documentation)
Required elements missing or significantly flawed.
Present financial ratios and analysis in an analytical manner that incorporates tables and line charts XXXXXXXXXXpts).
All of the analysis is presented in a logical manner and effectively incorporates and references all tables and line charts to support financial analysis. The primary objectives and conclusions of the analysis are clearly stated and supported.
Most of the analysis, tables and charts are presented in an analytical manner, but lacks clearly stated objectives or conclusions.
Minor e
ors or omissions in the presentation of analysis and does not clearly state objectives or support for the conclusions of the analysis.
Substantial confusion associated with the way in which the analysis, tables, and charts are presented.
Required elements missing or significantly flawed.
Format the report in a professional and business-like manner that meets the specified length and formatting requirements (15 pts).
Complete and accurate formatting of financial analysis and tables, including APA and specified length requirements.
Most of the formatting of financial analysis, tables, and charts is complete (no more than 2 e
ors) and accurate, but deviates from specified length requirements by less than one page.
Minor e
ors or omissions in the formatting of the analysis, tables, and charts (no more than 3 e
ors), but may significantly deviate from specified length requirements (+/- one page or more)
Substantial e
ors or omissions associated with the formatting of the analysis, tables, and charts.
Required elements missing or significantly flawed.
Effectively communicate, in a recorded video, financial analysis in a professional manner that is designed for a business audience XXXXXXXXXXpts).
Effective communication that integrates ethical reasoning, including supporting examples, and leaves no confusion regarding the overall assessment of the financial results to a business audience.
Effective communication that integrates ethical reasoning and explanations, but may lack 3 or more substantial supporting examples or clear detail.
Minor e
ors in communication of financial results or the integration of ethical reasoning and does not provide adequate supporting examples or clear detail (no more than 2).
Substantial confusion regarding the communication of financial results or the integration of ethical reasoning.
Required elements missing or significantly flawed.
160
120
100
80
60
50
40
30
20
15
Percent
shares
traded
18
12
6
Target Price Range
XXXXXXXXXX
COLGATE-PALMOLIVE NYSE-CL XXXXXXXXXX XXXXXXXXXX%
TIMELINESS 4 Raised 12/2/22
SAFETY 1 Raised 10/11/02
TECHNICAL 4 Lowered 11/18/22
BETA XXXXXXXXXX = Market)
18-Month Target Price Range
Low-High Midpoint (% to Mid)
$67-$99 $83 (10%)
XXXXXXXXXXPROJECTIONS
Ann’l Total
Price Gain Return
High XXXXXXXXXX%) 9%
Low XXXXXXXXXX%) 5%
Institutional Decisions
1Q2022 2Q2022 3Q2022
to Buy XXXXXXXXXX
to Sell XXXXXXXXXX
Hld’s XXXXXXXXXX654554
High: XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
Low: XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
% TOT. RETURN 11/22
THIS VL ARITH.*
STOCK INDEX
1 yr XXXXXXXXXX
3 yr XXXXXXXXXX
5 yr XXXXXXXXXX
CAPITAL STRUCTURE as of 9/30/22
Total Debt $8248 mill. Due in 5 Yrs $2000 mill.
LT Debt $8219 mill. LT Interest $400 mill.
(Total int. cov.: 18.6x)
(93% of Cap’l)
Leases, Uncapitalized Annual rentals $156 mill.
Pension Assets-12/21 $82.0 mill.
Oblig. $805.0 mill.
Pfd Stock None
Common Stock 835,214,210 shs.
MARKET CAP: $64.4 billion (Large Cap)
CURRENT POSITION XXXXXXXXXX/30/22
($MILL.)
Cash Assets XXXXXXXXXX
Receivables XXXXXXXXXX
Inventory (FIFO XXXXXXXXXX
Other XXXXXXXXXX
Cu
ent Assets XXXXXXXXXX
Accts Payable XXXXXXXXXX
Debt Due XXXXXXXXXX
Other XXXXXXXXXX
Cu
ent Liab XXXXXXXXXX
ANNUAL RATES Past Past Est’d ’19-’21
of change (per sh) 10 Yrs. 5 Yrs. to ’25-’27
Sales 2.0% 1.5% 5.0%
‘‘Cash Flow’’ 2.5% 5.0% 5.5%
Earnings 2.0% 5.0% 6.5%
Dividends 5.5% 3.5% 3.0%
Book Value -14.5% XXXXXXXXXX%
Cal- Full
endar Yea
QUARTERLY SALES ($ mill.)
Mar.31 Jun.30 Sep.30 Dec.31
XXXXXXXXXX XXXXXXXXXX
XXXXXXXXXX XXXXXXXXXX
XXXXXXXXXX XXXXXXXXXX
XXXXXXXXXX XXXXXXXXXX
XXXXXXXXXX XXXXXXXXXX
Cal- Full
endar Yea
EARNINGS PER SHARE A
Mar.31 Jun.30 Sep.30 Dec.31
XXXXXXXXXX 2.75
XXXXXXXXXX 3.14
XXXXXXXXXX 2.55
XXXXXXXXXX 2.25
XXXXXXXXXX 2.40
Cal- Full
endar Yea
QUARTERLY DIVIDENDS PAID B â–
Mar.31 Jun.30 Sep.30 Dec.31
XXXXXXXXXX 1.68
XXXXXXXXXX 1.71
XXXXXXXXXX 1.75
XXXXXXXXXX 1.79
XXXXXXXXXX
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX18.36
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX 1.71
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
XXXXXXXXXX XXXXXXXXXX1.26 d.34 d.27 d.07 d.12 .14
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
2.1% 2.0% 2.2% 2.5% 2.5% 2.7% 2.4% 2.2% 2.2% 2.2% 2.2% 2.2% 2.5% 2.5%
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
25.9% 25.4% 26.4% 27.3% 28.4% 27.6% 28.0% 27.2%
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
32.1% 32.4% 33.8% 44.0% 30.8% 29.8% 26.2% 23.4%
14.5% 12.9% 12.6% 8.6% 16.1% 14.9% 15.4% 15.1%
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
XXXXXXXXXX d299.0 d243.0 d60.0 d XXXXXXXXXX
34.8% 32.6% 33.1% 24.3% 41.9% 36.5% 39.5% 32.7%
NMF 97.2% NMF XXXXXXXXXXNMF
54.6% 37.3% 64.1% XXXXXXXXXXNMF
52% 62% 66% 108% 62% 67% 66% 68%
XXXXXXXXXX © VALUE LINE PUB. LLC 25-27
XXXXXXXXXX.80 Sales per sh 25.90
XXXXXXXXXX ‘‘Cash Flow’’ per sh 4.85
XXXXXXXXXXEarnings per sh A 4.10
XXXXXXXXXXDiv’ds Decl’d per sh B■2.10
XXXXXXXXXXCap’l Spending per sh .75
XXXXXXXXXXBook Value per sh C 5.40
XXXXXXXXXX XXXXXXXXXXCommon Shs Outst’g D 830.00
XXXXXXXXXXBold figures are
Value Line
estimates
Avg Ann’l P/E Ratio 22.5
XXXXXXXXXXRelative P/E Ratio 1.25
2.3% 2.2% Avg Ann’l Div’d Yield 2.3%
XXXXXXXXXX18125 Sales ($mill) 21500
27.5% 31.7% 26.5% 27.0% Operating Margin 30.0%
XXXXXXXXXXDepreciation ($mill) 620
XXXXXXXXXX2000 Net Profit ($mill) 3400
21.6% 24.3% 25.0% 25.0% Income Tax Rate 25.0%
16.4% 12.4% 10.6% 11.0% Net Profit Margin 15.8%
d XXXXXXXXXXWorking Cap’l ($mill) 625
XXXXXXXXXX8000 Long-Term Debt ($mill) 7000
XXXXXXXXXX Shr. Equity ($mill) 4500
34.4% 28.9% 21.0% 22.0% Return on Total Cap’l 29.5%
NMF NMF NMF NMF Return on Shr. Equity 75.5%
NMF 80.0% NMF NMF Retained to Com Eq 37.0%
61% 78% 81% 78% All Div’ds to Net Prof 51%
Company’s Financial Strength A
Stock’s Price Stability 100
Price Growth Persistence 25
Earnings Predictability 65
(A) Diluted earnings. Excludes nonrec.
gains/(losses): ’09, ($0.27); ’10, ($0.26). In-
cludes n
gain/(loss): ’08, ($0.11); ’15, $0.08;
’17, ($0.31). EPS may not sum due to round-
ing. Next egs. report due late January.
(B) Dividends historically paid in mid-Fe
uary,
mid-May, mid-August, and mid-November. â–
Div’d reinvestment plan available.
(C) Inc. intang. In ’21: $5,746 mill., $6.84/sh.
(D) In mill., adjusted for stock split.
BUSINESS: Colgate-Palmolive Company is the second-largest
domestic maker of toiletries, and other household products. Majo
ands: Ajax, Fab, Murphy, Palmolive cleansers; Colgate tooth-
paste; Irish Spring, Palmolive, Sanex, Softsoap soaps; Mennen
shave cream; Hill’s pet food
ands—Science Diet and Prescription
Diet. 70% of ’21 sales came from overseas (45% from emerging
markets). Walmart accounted for 12% of ’21 sales. 6.2%. Has
about 33,800 employees. ESOP controls 7.6% of common equiv-
alent shares. Off./dir. own less than 1% of stock; Vanguard, 9.1%;
BlackRock, 7.7%; State St., 5.9% (3/22 proxy). Chair./Pres./CEO:
Noel R. Wallace. Inc: DE. Address: 300 Park Ave., New York, NY
10022. Tel.: XXXXXXXXXXInternet: www.colgatepalmolive.com.
The difficult operating backdrop has
een weighing on Colgate-Palmolive.
Operating and logistical expenses contin-
ued to soar over the past few months
owing to inflationary pressures, supply-
chain issues, and elevated commodity pric-
ing. Plus, the strength of the U.S. dolla
erased some of the gains from overseas
markets. While the company benefited
from a surge in demand for many of its
cleaning products during the height of the
COVID-19 pandemic, this tailwind has
tapered over the past several quarters,
thereby hurting year-to-year comparisons.
The company will probably post lack-
luster results for 2022. Earnings pe
share may well decline nearly 12% for the
full year. The top line, supported by highe
selling prices and a decent product mix,
ought to eke out a 2% gain. That said,
organic revenues, which exclude the for-
eign cu
ency drag and modest benefit
from the Red Collar Pet Foods acquisition,
will likely increase at a mid- to upper-
single-digit clip for the full year.
Things may begin to improve next
year. Productivity enhancements, cost
controls, and pricing initiatives should
help counter the aforementioned operating
headwinds. Consequently, we believe reve-
nues will climb another 2% in 2023, while
share earnings rebound 5%-10%.
Colgate has been widening its foot-
print. Product innovation ought to remain
a key