flyer61 wrote:Seeking Alpha 30 Oct 20......40 per cent of the world toothpaste market is some moat..
Colgate-Palmolive (NYSE:CL) reports organic growth increased 7.5% vs. +3.9% consensus.
You can make a case:
41.8 percent average ten-year ROCE;
27.5 percent ditto CROIC;
24.3 percent ditto Operating Margin;
7.2 percent CAGR dividend per share.
I have to say, growth forecasts are not brilliant - earnings per share forecast up 7.8 percent in 2020, 5.7 percent in 2021 and 7 percent in 2022 and dividend growth lagging at 3.6-3.9 percent in each of those years as the payout ratio comes down.
Earnings forecast to grow ahead of turnover, showing margin expansion. However, free cash flow growth forecast to lag earnings. Nonetheless, a current free cash flow yield of 4 percent isn't too bad.
Best wishes
Mark