You cannot compare CL to PG. CL is far superior in just about every financial metric: ROE, ROA, profit margin, growth rate of sales/earnings/dividends. PG seems to be in permanent turnaround mode since 2008. CL has continued to grow and operate as a successful business.
Could Colgate be entering that rare situation again where unit sales continue to rise but revenue numbers drop because of the strength of the dollar?
Last time that happened Reuben Mark emphasized the unit growth in the quarterlies to show that the company was still growing and minimized the downturn. after the dollar started to normalize against the world currencies the stock bounced back and got a little extra spring from the combined benefit of increasing sales and dropping dollar.
As long as unit sales worldwide are still growing at a healthy clip a pullback could present a buying opportunity. If unit sales stall, time to re #$%$
Sold some at 70, but still holding the shares from the mid 80s as the cap gain taxes alone would probably make me physically ill
UBS downgraded the consumer products maker's shares to "neutral" from "buy" despite strong fundamentals, saying rising macroeconomic and currency related risks may be too difficult to overcome. Read More:
From today "Colgate-Palmolive Co. (CL) SELL ~ 5 Day Price Target: $67.60 Issued 01/04/2015 By Stock Price Target"
Colgate Announces 3rd Quarter 2014 Results
Organic Sales Growth In All Operating Divisions
Colgate-Palmolive Company (CL) today reported worldwide Net sales of $4,379 million in third quarter 2014, a decrease of 0.5% versus third quarter 2013. Global unit volume grew 2.0%, pricing increased 1.5% and foreign exchange was negative 4.0%. Organic sales (Net sales excluding foreign exchange, acquisitions and divestments) grew 3.5%.
Net income and Diluted earnings per share in third quarter 2014 were $542 million and $0.59, respectively. Net income in third quarter 2014 included $159 million ($0.17 per diluted share) of aftertax charges resulting from the implementation of the previously disclosed four-year Global Growth and Efficiency Program (the “2012 Restructuring Program”), a Venezuela remeasurement charge, costs related to the sale of land in Mexico and charges for a foreign tax matter and a European competition law matter, both previously disclosed.
Net income and Diluted earnings per share in third quarter 2013 were $656 million and $0.70, respectively. Net income in third quarter 2013 included aftertax charges of $24 million ($0.03 per diluted share) resulting from the items described in Table 8.
Excluding the above noted items in both periods, Net income in third quarter 2014 was $701 million, an increase of 3% versus third quarter 2013, and Diluted earnings per share in third quarter 2014 was $0.76, an increase of 4% versus third quarter 2013.
Gross profit margin was 58.4% in third quarter 2014 versus 58.8% in the year ago quarter. Excluding the above noted items in both periods, Gross profit margin was 58.6% in third quarter 2014, a decrease of 40 basis points versus the year ago quarter, primarily as a result of higher pricing and cost savings from the Company’s funding-the-growth initiatives
Colgate-Palmolive Company (NYSE:CL) was downgraded by equities research analysts at BMO Capital Markets from an “outperform” rating to a “market perform” rating in a research note .
Other equities research analysts have also recently issued reports about the stock. Analysts at Citigroup Inc. reiterated a “neutral” rating on shares of Colgate-Palmolive Company in a research note on Tuesday, September 30th. They now have a $71.00 price target on the stock, up previously from $67.00. Separately, analysts at Zacks reiterated a “neutral” rating on shares of Colgate-Palmolive Company in a research note on Thursday, August 14th. They now have a $68.00 price target on the stock. Finally, analysts at Bernstein cut their price target on shares of Colgate-Palmolive Company from $69.00 to $66.00 in a research note on Friday, August 1st. One analyst has rated the stock with a sell rating, eight have issued a hold rating and five have issued a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average price target of $68.00.
Venezuela has a decent consumer base--29M people , but given the past and current economic climate/constraints, CLX is leaving Venezuela.
"Several other U.S. multinationals, including Colgate-Palmolive (NYSE:CL) and Avon Products (NYSE:AVP), have had to slash prices amid the price freeze."
Will CL tough it out?
Curious nugget re CL tinkering with the recipe of some of Tom's products:
"Colgate-Palmolive added aluminum to the formula of Tom’s of Maine deodorant to offer 24-hour odor protection. That basically undermined the entire reason Tom’s of Maine's regular customers with skin allergies and sensitivity used the product in the first place. Its flagship toothpaste, meanwhile, just got a dose of titanium dioxide, which makes toothpaste seem less granular and earthy, but is considered a “possible human carcinogen” by the International Agency for Research on Cancer."
my computer must be in the future because all these posts are nnot made until 11th and 12th of august 2014
me too, first time buyer. I have wanted the stock for a while but it's never cheap. But it's a stock similar to what Buffet would own and it's small enought where it can grow at a good pace for the foreseeable future.
"...they are out."
Perhaps. And perhaps those consumers will buy Tom's Toothpaste (owned by?)
Does the shampoo you use include Sodium Lauryl Sulfate (an ingredient that is banned in Europe & Central America???
Ever since this story came out the stock has been muted, and ticking down. Rather complicated for the company from the PR angle, the studies (evidence, or lack of here), intellectual property of the product. But one thing is for sure, it does not matter to some whether the product is safe after/when they hear that one of the chemicals had negative affects in mice, they are out.
Lots of negative talk and the news on Total I took advantage of this buying opportunity. This is a nice stock to hold for the dividend even in a down market!
Sentiment: Strong Buy
Perhaps consumers will discontinue using Colgate Total and switch to Tom's.