COLGATE-PALMOLIVE CO (CL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CL - US1941621039 - Common Stock
84.73 USD
-0.71 (-0.83%)
84.41 USD
-0.32 (-0.38%)
CL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. CL scores excellent on profitability, but 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
- CL had positive earnings in the past year.
- CL had a positive operating cash flow in the past year.
- Each year in the past 5 years CL has been profitable.
- CL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CL has a Return On Assets of 16.60%. This is amongst the best in the industry. CL outperforms 91.67% of its industry peers.
- CL's Return On Equity of 339.60% is amongst the best of the industry. CL outperforms 100.00% of its industry peers.
- With an excellent Return On Invested Capital value of 29.23%, CL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CL is significantly above the industry average of 14.86%.
- 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 91.67% of the companies in the same industry.
- CL's Profit Margin has been stable in the last couple of years.
- CL has a better Operating Margin (21.44%) than 91.67% of its industry peers.
- CL's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 60.14%, CL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- CL's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CL is creating value.
- Compared to 1 year ago, CL has less shares outstanding
- Compared to 5 years ago, CL has less shares outstanding
- The debt/assets ratio for CL has been reduced compared to a year ago.
2.2 Solvency
- CL has an Altman-Z score of 6.55. This indicates that CL is financially healthy and has little risk of bankruptcy at the moment.
- CL has a Altman-Z score of 6.55. This is amongst the best in the industry. CL outperforms 83.33% of its industry peers.
- CL has a debt to FCF ratio of 2.45. This is a good value and a sign of high solvency as CL would need 2.45 years to pay back of all of its debts.
- CL's Debt to FCF ratio of 2.45 is fine compared to the rest of the industry. CL outperforms 66.67% of its industry peers.
- 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.
- Even though the debt/equity ratio score it not favorable for CL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.54 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | 6.55 |
ROIC/WACC3.53
WACC8.27%
2.3 Liquidity
- A Current Ratio of 0.93 indicates that CL may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.93, CL is doing worse than 66.67% of the companies in the same industry.
- CL has a Quick 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 worse Quick ratio (0.60) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 2.82% over the past year.
- CL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.87% yearly.
- The Revenue has decreased by -0.04% in the past year.
- 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.
- CL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.66% yearly.
EPS Next Y4.86%
EPS Next 2Y4.96%
EPS Next 3Y5.41%
EPS Next 5Y5.9%
Revenue Next Year0.64%
Revenue Next 2Y1.99%
Revenue Next 3Y2.46%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 23.21, which indicates a rather expensive current valuation of CL.
- Compared to the rest of the industry, the Price/Earnings ratio of CL indicates a slightly more expensive valuation: CL is more expensive than 75.00% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of CL to the average of the S&P500 Index (27.32), we can say CL is valued inline with the index average.
- CL is valuated rather expensively with a Price/Forward Earnings ratio of 21.42.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CL indicates a slightly more expensive valuation: CL is more expensive than 66.67% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.30, CL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.21 | ||
| Fwd PE | 21.42 |
4.2 Price Multiples
- CL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CL is more expensive than 66.67% of the companies 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 | 19.84 | ||
| EV/EBITDA | 15.27 |
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)4.77
PEG (5Y)4.76
EPS Next 2Y4.96%
EPS Next 3Y5.41%
5. Dividend
5.1 Amount
- CL has a Yearly Dividend Yield of 2.47%.
- CL's Dividend Yield is comparable with the industry average which is at 2.67.
- Compared to an average S&P500 Dividend Yield of 1.86, CL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
5.2 History
- The dividend of CL has a limited annual growth rate of 3.11%.
- CL has paid a dividend for at least 10 years, which is 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
- CL pays out 62.40% of its income as dividend. This is not a sustainable payout ratio.
- CL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP62.4%
EPS Next 2Y4.96%
EPS Next 3Y5.41%
84.73
-0.71 (-0.83%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)10-31 2025-10-31/bmo
Earnings (Next)01-30 2026-01-30/amc
Inst Owners86.76%
Inst Owner Change0.01%
Ins Owners0.06%
Ins Owner Change1.66%
Market Cap68.30B
Revenue(TTM)20.10B
Net Income(TTM)2.91B
Analysts73.33
Price Target89.06 (5.11%)
Short Float %1.8%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.47% |
Yearly Dividend2.19
Dividend Growth(5Y)3.11%
DP62.4%
Div Incr Years34
Div Non Decr Years34
Ex-Date01-21 2026-01-21 (0.52)
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)0.27%
PT rev (3m)-7.64%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-3.02%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.61%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-1.42%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.21 | ||
| Fwd PE | 21.42 | ||
| P/S | 3.4 | ||
| P/FCF | 19.84 | ||
| P/OCF | 17.01 | ||
| P/B | 79.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.27 |
EPS(TTM)3.65
EY4.31%
EPS(NY)3.95
Fwd EY4.67%
FCF(TTM)4.27
FCFY5.04%
OCF(TTM)4.98
OCFY5.88%
SpS24.93
BVpS1.06
TBVpS-5.87
PEG (NY)4.77
PEG (5Y)4.76
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 | 6.55 |
F-Score5
WACC8.27%
ROIC/WACC3.53
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 Y4.86%
EPS Next 2Y4.96%
EPS Next 3Y5.41%
EPS Next 5Y5.9%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.95%
Revenue Next Year0.64%
Revenue Next 2Y1.99%
Revenue Next 3Y2.46%
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 23.21 and the Price/Book (PB) ratio is 79.79.
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%.