June 27, 2018

CL – Market expectations are for Uniform ROA expansion, and management is confident about growth, Hill’s, and e-commerce


  • Colgate-Palmolive Company (CL:USA)currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 20.7x Uniform P/E. However, even at these levels, the market has bullish expectations for the firm, and management is confident about growth, Hill’s, and e-commerce
  • Specifically, management is confident in their focus on identifying the category segments and retail environments that deliver growth, and that they did not participate in promotional activity where they felt it would be economically destructive. Additionally, they are confident in the scientific quality of Hill’s products, and in their e-commerce growth in China
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