Colgate posted 3.6% organic sales growth in the third quarter, driven by higher prices and volumes. Despite inflationary headwinds (300 basis points), adjusted gross margin expanded by 90 basis points to 60.3%, due to pricing, mix, and efficiency gains.
Increased pet adoption (up midsingle digits in the US) during the pandemic could juice the Hill's business over a longer horizon than we anticipate.
Raw material, labor, and packaging costs have yet to decline materially. Margins may be constrained over a longer horizon if Colgate's efforts to unlock efficiencies and/or raise prices to offset these pressures prove unsuccessful.
|
Metric
|
CL
|
RKT
|
UL
|
|---|---|---|---|
Price/Earnings (Normalized) | 24.95 | 19.90 | 19.26 |
Price/Book Value | 263.01 | 6.06 | 7.60 |
Price/Sales | 3.60 | 2.57 | 2.66 |
Price/Cash Flow | 19.00 | 14.46 | 21.04 |
|
Metric
|
CL
|
RKT
|
UL
|
|---|---|---|---|
Quick Ratio | 0.52 | 0.38 | 0.57 |
Current Ratio | 0.96 | 0.59 | 0.74 |
Interest Coverage | 12.61 | 8.84 | — |
|
Metric
|
CL
|
RKT
|
UL
|
|---|---|---|---|
Return on Assets (Normalized) | 19.20% | 9.05% | — |
Return on Equity (Normalized) | 1,021.33% | 33.99% | — |
Return on Invested Capital (Normalized) | 38.32% | 15.92% | — |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Procter & Gamble Co
PG
| LOCK|@H?$>p%# | LOCK|<r | $374B | |||
| L'Oreal SA
LRLCF
| — | LOCK|h@$ | $253B | |||
| Unilever PLC ADR
UL
| LOCK|w!>Q?Gh | LOCK|!M | $137B | |||
| Reckitt Benckiser Group PLC ADR
RBGLY
| LOCK|cYxKZy | LOCK|%JN | $45B | |||
| The Estee Lauder Companies Inc Class A
EL
| LOCK|yQYW>> | LOCK|Qr@ | $40B | |||
| Kenvue Inc
KVUE
| LOCK|dZX$#!! | LOCK|l&S | $37B | |||
| Kimberly-Clark Corp
KMB
| LOCK|FbF@K@! | LOCK|w!r%D | $36B | |||
| Church & Dwight Co Inc
CHD
| LOCK|<#lFW^# | LOCK|&< | $25B | |||
| Clorox Co
CLX
| LOCK|!j?yq&W | LOCK|g> | $11B |
United States