COLGATE-PALMOLIVE CO (CL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CL - US1941621039 - Common Stock
81.8082 USD
+0.33 (+0.4%)
Overall CL gets a fundamental rating of 5 out of 10. We evaluated CL against 12 industry peers in the Household Products industry. While CL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CL is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CL was profitable.
CL had a positive operating cash flow in the past year.
CL had positive earnings in each of the past 5 years.
In the past 5 years CL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.60%, CL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 339.60%, CL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of CL (29.23%) is better than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CL is significantly above the industry average of 14.87%.
The last Return On Invested Capital (29.23%) for CL is above the 3 year average (26.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.6% | ||
| ROE | 339.6% | ||
| ROIC | 29.23% |
ROA(3y)14.46%
ROA(5y)14.94%
ROE(3y)728.51%
ROE(5y)580.79%
ROIC(3y)26.58%
ROIC(5y)26.1%
1.3 Margins
Looking at the Profit Margin, with a value of 14.46%, CL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
In the last couple of years the Profit Margin of CL has remained more or less at the same level.
With an excellent Operating Margin value of 21.44%, CL belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
CL's Operating Margin has declined in the last couple of years.
CL has a better Gross Margin (60.14%) than 100.00% of its industry peers.
In the last couple of years the Gross Margin of CL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.44% | ||
| PM (TTM) | 14.46% | ||
| GM | 60.14% |
OM growth 3Y-1.21%
OM growth 5Y-1.94%
PM growth 3Y4.95%
PM growth 5Y-0.96%
GM growth 3Y0.53%
GM growth 5Y0.34%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CL is creating value.
Compared to 1 year ago, CL has less shares outstanding
Compared to 5 years ago, CL has less shares outstanding
Compared to 1 year ago, CL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.46 indicates that CL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.46, CL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of CL is 2.45, which is a good value as it means it would take CL, 2.45 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.45, CL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 8.54 is on the high side and indicates that CL has dependencies on debt financing.
CL has a worse Debt to Equity ratio (8.54) than 75.00% of its industry peers.
Although CL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.54 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | 6.46 |
ROIC/WACC3.59
WACC8.14%
2.3 Liquidity
CL has a Current Ratio of 0.93. This is a bad value and indicates that CL is not financially healthy enough and could expect problems in meeting its short term obligations.
CL has a Current ratio of 0.93. This is in the lower half of the industry: CL underperforms 66.67% of its industry peers.
A Quick Ratio of 0.60 indicates that CL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.60, CL is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
CL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.82%.
Measured over the past 5 years, CL shows a small growth in Earnings Per Share. The EPS has been growing by 4.87% on average per year.
CL shows a decrease in Revenue. In the last year, the revenue decreased by -0.04%.
CL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.08% yearly.
EPS 1Y (TTM)2.82%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%0%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.95%
3.2 Future
Based on estimates for the next years, CL will show a small growth in Earnings Per Share. The EPS will grow by 5.90% on average per year.
Based on estimates for the next years, CL will show a small growth in Revenue. The Revenue will grow by 2.66% on average per year.
EPS Next Y4.89%
EPS Next 2Y4.94%
EPS Next 3Y5.42%
EPS Next 5Y5.9%
Revenue Next Year0.66%
Revenue Next 2Y1.99%
Revenue Next 3Y2.45%
Revenue Next 5Y2.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CL is valuated rather expensively with a Price/Earnings ratio of 22.41.
CL's Price/Earnings ratio is a bit more expensive when compared to the industry. CL is more expensive than 75.00% of the companies in the same industry.
CL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.19.
CL is valuated rather expensively with a Price/Forward Earnings ratio of 20.69.
Based on the Price/Forward Earnings ratio, CL is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of CL to the average of the S&P500 Index (23.92), we can say CL is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 20.69 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CL indicates a slightly more expensive valuation: CL is more expensive than 66.67% of the companies listed in the same industry.
66.67% of the companies in the same industry are more expensive than CL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.15 | ||
| EV/EBITDA | 14.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CL does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CL may justify a higher PE ratio.
PEG (NY)4.58
PEG (5Y)4.6
EPS Next 2Y4.94%
EPS Next 3Y5.42%
5. Dividend
5.1 Amount
CL has a Yearly Dividend Yield of 2.57%.
Compared to an average industry Dividend Yield of 2.75, CL has a dividend in line with its industry peers.
CL's Dividend Yield is a higher than the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
5.2 History
The dividend of CL has a limited annual growth rate of 3.11%.
CL has been paying a dividend for at least 10 years, so it has a reliable track record.
CL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.11%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
62.40% of the earnings are spent on dividend by CL. This is not a sustainable payout ratio.
The dividend of CL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.4%
EPS Next 2Y4.94%
EPS Next 3Y5.42%
NYSE:CL (1/12/2026, 2:27:09 PM)
81.8082
+0.33 (+0.4%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.76%
Inst Owner Change0.04%
Ins Owners0.06%
Ins Owner Change1.66%
Market Cap65.94B
Revenue(TTM)20.10B
Net Income(TTM)2.91B
Analysts73.33
Price Target88.91 (8.68%)
Short Float %1.68%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
Yearly Dividend2.19
Dividend Growth(5Y)3.11%
DP62.4%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.44%
Min EPS beat(2)-0.54%
Max EPS beat(2)-0.33%
EPS beat(4)1
Avg EPS beat(4)0.3%
Min EPS beat(4)-0.87%
Max EPS beat(4)2.94%
EPS beat(8)3
Avg EPS beat(8)0.62%
EPS beat(12)6
Avg EPS beat(12)0.68%
EPS beat(16)6
Avg EPS beat(16)-0.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-2.91%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-2.43%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-1.35%
Revenue beat(8)0
Avg Revenue beat(8)-2.08%
Revenue beat(12)1
Avg Revenue beat(12)-1.56%
Revenue beat(16)2
Avg Revenue beat(16)-1.75%
PT rev (1m)0.11%
PT rev (3m)-7.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.88%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.41 | ||
| Fwd PE | 20.69 | ||
| P/S | 3.28 | ||
| P/FCF | 19.15 | ||
| P/OCF | 16.43 | ||
| P/B | 77.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.74 |
EPS(TTM)3.65
EY4.46%
EPS(NY)3.95
Fwd EY4.83%
FCF(TTM)4.27
FCFY5.22%
OCF(TTM)4.98
OCFY6.09%
SpS24.93
BVpS1.06
TBVpS-5.87
PEG (NY)4.58
PEG (5Y)4.6
Graham Number9.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.6% | ||
| ROE | 339.6% | ||
| ROCE | 39.11% | ||
| ROIC | 29.23% | ||
| ROICexc | 33.73% | ||
| ROICexgc | 81.43% | ||
| OM | 21.44% | ||
| PM (TTM) | 14.46% | ||
| GM | 60.14% | ||
| FCFM | 17.13% |
ROA(3y)14.46%
ROA(5y)14.94%
ROE(3y)728.51%
ROE(5y)580.79%
ROIC(3y)26.58%
ROIC(5y)26.1%
ROICexc(3y)29.6%
ROICexc(5y)28.78%
ROICexgc(3y)61.47%
ROICexgc(5y)63.97%
ROCE(3y)35.89%
ROCE(5y)35.3%
ROICexgc growth 3Y6.99%
ROICexgc growth 5Y3.87%
ROICexc growth 3Y7.74%
ROICexc growth 5Y5.87%
OM growth 3Y-1.21%
OM growth 5Y-1.94%
PM growth 3Y4.95%
PM growth 5Y-0.96%
GM growth 3Y0.53%
GM growth 5Y0.34%
F-Score5
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.54 | ||
| Debt/FCF | 2.45 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 94.38% | ||
| Cap/Sales | 2.84% | ||
| Interest Coverage | 15.96 | ||
| Cash Conversion | 81.69% | ||
| Profit Quality | 118.44% | ||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 6.46 |
F-Score5
WACC8.14%
ROIC/WACC3.59
Cap/Depr(3y)114.92%
Cap/Depr(5y)104.56%
Cap/Sales(3y)3.43%
Cap/Sales(5y)3.21%
Profit Quality(3y)119.71%
Profit Quality(5y)121.85%
High Growth Momentum
Growth
EPS 1Y (TTM)2.82%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%0%
EPS Next Y4.89%
EPS Next 2Y4.94%
EPS Next 3Y5.42%
EPS Next 5Y5.9%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.95%
Revenue Next Year0.66%
Revenue Next 2Y1.99%
Revenue Next 3Y2.45%
Revenue Next 5Y2.66%
EBIT growth 1Y-0.62%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year12.68%
EBIT Next 3Y6.9%
EBIT Next 5Y5.95%
FCF growth 1Y34.86%
FCF growth 3Y8.74%
FCF growth 5Y4.85%
OCF growth 1Y22.3%
OCF growth 3Y7.29%
OCF growth 5Y5.56%
COLGATE-PALMOLIVE CO / CL FAQ
Can you provide the ChartMill fundamental rating for COLGATE-PALMOLIVE CO?
ChartMill assigns a fundamental rating of 5 / 10 to CL.
Can you provide the valuation status for COLGATE-PALMOLIVE CO?
ChartMill assigns a valuation rating of 2 / 10 to COLGATE-PALMOLIVE CO (CL). This can be considered as Overvalued.
How profitable is COLGATE-PALMOLIVE CO (CL) stock?
COLGATE-PALMOLIVE CO (CL) has a profitability rating of 9 / 10.
What is the valuation of COLGATE-PALMOLIVE CO based on its PE and PB ratios?
The Price/Earnings (PE) ratio for COLGATE-PALMOLIVE CO (CL) is 22.41 and the Price/Book (PB) ratio is 77.04.
Can you provide the dividend sustainability for CL stock?
The dividend rating of COLGATE-PALMOLIVE CO (CL) is 6 / 10 and the dividend payout ratio is 62.4%.