Majorie buys CL 63.72: However, the company reported dismal second-quarter 2015 results, wherein both the top and bottom lines declined year over year and lagged estimates due to the impact of adverse foreign currency fluctuations.

But the macro situation in Latin America has not improved in the current quarter and currency headwinds are expected to sustain in the near term. Nevertheless, a look at the tail end of the graph reveals that Colgate-Palmolive will have to pare back its price hikes if it hopes to keep Latin American volume growth in positive territory. To be fair, the company may not have many other options at its disposal considering the extent of currency fluctuations in Latin America. This suggests that Colgate-Palmolive may have been relying almost completely on price hikes to offset the substantial drag on revenues from adverse currency movements. The correlation is even stronger when pricing and currency headwinds are compared.


Tanja:
A closer look at the above graph reveals some interesting trends.

Willene:
To facilitate comparison, the currency impact on revenue is mapped in absolute terms on the right axis.

Briana:
Colgate-Palmolive has been able to keep its volume growth in the black so far, but unless it finds a balance between price hikes and volume growth, that status quo may not hold for much longer.

Soledad:
In turn, the price upticks may have driven customers away to cheaper alternatives, resulting in a steady contraction in volume growth.

Elvia:
Heavy currency headwinds have forced the company to raise prices heavily in the region in the last few quarters.

Jeanine:
Finance, or Colgate-Palmolive Company's Investor Relations page.

Fonda:
Investors would be better off waiting for a lower price point and therefore a lower valuation.

Scottie:
However, I feel that shares are currently a bit expensive here.

Mindy:
With a return to growth in market share and further penetration into foreign markets Colgate-Palmolive will continue to offer compelling growth and dividend growth prospects for investors.

Luanne:
The dividend is well covered by both earnings and free cash flow; however, the payout ratio based on earnings has been drifting higher earnings growth has been stagnant.

Colgate-Palmolive Company (NYSE:CL)
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