CL - Embedded Expectations Analysis - 2019 03 15
Colgate-Palmolive Company (CL:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 23.2x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about premium pricing, the expansion of their professional skincare and Naturals businesses, and new product launches.Specifically, management may lack confidence in their ability to drive premium prices in the U.S and Brazil, and through indirect channels in China. Additionally, they may be overstating their new Colgate formula's capabilities, and may be concerned about their ability to further expand their professional skincare product distribution and Naturals business. Moreover, they may lack confidence in the potential of their European hand soap, pharmacy, and pet prescription diet product launches, and in their ability to sustain Colgate Vedshakti market share growth in India.
Colgate-Palmolive manufactures and markets a variety of products in the United States and around the world. The company has two product segments: Oral, Personal and Home Care; and Pet Nutrition. Oral, Personal and Home Care products include toothpaste, toothbrushes and mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin care products, dishwashing detergents, fabric conditioners, household cleaners, and other similar items. Pet Nutrition products include specialty pet nutrition products manufactured and marketed by Hill's Pet Nutrition.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.