I didn’t look for a company for quite a long time, as my last post was in December 2015 (read more) and I found company rather expensive. I must admit that having investable levels in my docs is quite convenient tool as I do not lose my time for companies which I will not buy (cause they are expensive). Nevertheless from time to time it is a good idea to have a quick view. So how is Colgate-Palmolive going?

 

2016 is another good year for shareholders as YTD return is +14%. It is more than for example S&P, so the gap in long term performance is widening:

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How is business going?

As we can see revenues are lower comparing to 2015, but earnings are higher. Well I do not know how about you, but I prefer companies which generate more profit than earnings J

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Presented results in my opinion were good. During the first half year company spend around 1.2b on dividends and buyback -> multiplying by 2 gives us 2.4b, so with market cap of 66b it is 3.6% – in my opinion it is not high comparing to other Aristocrats/Kings.

 

As it comes to valuation it is quite high:

EV/EBITDA = 16.1

P/E = 26.8

I see no further space for increase in multiples. Well it is a high quality business, but c’mon it can’t be traded so much higher…

 

Summing up, one day I will be a shareholder of CL, but not now as shares are in my opinion too expensive.

 

Disclaimer – CL no position