COLGATE-PALMOLIVE CO (CL) Stock Fundamental Analysis
NYSE:CL - New York Stock Exchange, Inc. - US1941621039 - Common Stock - Currency: USD
Overall CL gets a fundamental rating of 6 out of 10. We evaluated CL against 12 industry peers in the Household Products industry. While CL has a great profitability rating, there are some minor concerns on its financial health. CL is valied quite expensively at the moment, while it does show a decent growth rate.
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
Looking at the Return On Assets, with a value of 16.65%, CL belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
CL has a Return On Equity of 414.39%. This is amongst the best in the industry. CL outperforms 91.67% of its industry peers.
CL has a Return On Invested Capital of 30.18%. This is amongst the best in the industry. CL outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CL is significantly above the industry average of 15.45%.
The last Return On Invested Capital (30.18%) for CL is above the 3 year average (26.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.65% | ||
| ROE | 414.39% | ||
| ROIC | 30.18% |
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
CL's Profit Margin of 14.55% is amongst the best of the industry. CL outperforms 91.67% of its industry peers.
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 21.60%, 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.
The Gross Margin of CL (60.56%) is better 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 | 21.6% | ||
| PM (TTM) | 14.55% | ||
| GM | 60.56% |
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
The number of shares outstanding for CL has been reduced compared to 5 years ago.
The debt/assets ratio for CL has been reduced compared to a year ago.
2.2 Solvency
CL has an Altman-Z score of 6.53. This indicates that CL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.53, 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 2.60, which is a good value as it means it would take CL, 2.60 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.60, CL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 10.18 is on the high side and indicates that CL has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 10.18, CL is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.18 | ||
| Debt/FCF | 2.6 | ||
| Altman-Z | 6.53 |
ROIC/WACC3.63
WACC8.32%
2.3 Liquidity
A Current Ratio of 0.89 indicates that CL may have some problems paying its short term obligations.
With a Current ratio value of 0.89, CL is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
CL has a Quick Ratio of 0.89. 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 (0.57) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.29% over the past year.
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.
Looking at the last year, CL shows a small growth in Revenue. The Revenue has grown by 0.06% in the last year.
The Revenue has been growing slightly by 5.08% on average over the past years.
EPS 1Y (TTM)4.29%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%1.1%
Revenue 1Y (TTM)0.06%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.03%
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 7.29% on average per year.
The Revenue is expected to grow by 3.21% on average over the next years.
EPS Next Y5.18%
EPS Next 2Y6.26%
EPS Next 3Y6.65%
EPS Next 5Y7.29%
Revenue Next Year0.89%
Revenue Next 2Y2.51%
Revenue Next 3Y2.99%
Revenue Next 5Y3.21%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 23.88, CL is valued on the expensive side.
Based on the Price/Earnings ratio, CL is valued a bit more expensive than 75.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of CL to the average of the S&P500 Index (26.85), we can say CL is valued inline with the index average.
A Price/Forward Earnings ratio of 21.51 indicates a rather expensive valuation of CL.
CL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CL to the average of the S&P500 Index (34.98), we can say CL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 21.51 |
4.2 Price Multiples
66.67% of the companies in the same industry are cheaper than CL, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as CL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.91 | ||
| EV/EBITDA | 15.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.61
PEG (5Y)4.9
EPS Next 2Y6.26%
EPS Next 3Y6.65%
5. Dividend
5.1 Amount
CL has a Yearly Dividend Yield of 2.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.87, CL has a dividend in line with its industry peers.
CL's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.11%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
61.95% of the earnings are spent on dividend by CL. This is not a sustainable payout ratio.
CL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP61.95%
EPS Next 2Y6.26%
EPS Next 3Y6.65%
NYSE:CL (8/20/2025, 10:06:10 AM)
87.17
+1.32 (+1.54%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.04%
Inst Owner Change-5.58%
Ins Owners0.06%
Ins Owner Change2.78%
Market Cap70.45B
Analysts74.67
Price Target97.82 (12.22%)
Short Float %1.46%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.46% |
Yearly Dividend2.19
Dividend Growth(5Y)3.11%
DP61.95%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.31%
Min EPS beat(2)-0.33%
Max EPS beat(2)2.94%
EPS beat(4)1
Avg EPS beat(4)0.39%
Min EPS beat(4)-0.87%
Max EPS beat(4)2.94%
EPS beat(8)4
Avg EPS beat(8)1.21%
EPS beat(12)6
Avg EPS beat(12)0.57%
EPS beat(16)6
Avg EPS beat(16)-0.1%
Revenue beat(2)0
Avg Revenue beat(2)-1.67%
Min Revenue beat(2)-2%
Max Revenue beat(2)-1.35%
Revenue beat(4)0
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-1.35%
Revenue beat(8)0
Avg Revenue beat(8)-1.83%
Revenue beat(12)1
Avg Revenue beat(12)-1.59%
Revenue beat(16)2
Avg Revenue beat(16)-1.73%
PT rev (1m)-1.94%
PT rev (3m)-2.49%
EPS NQ rev (1m)-0.84%
EPS NQ rev (3m)-2.29%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.59%
Revenue NQ rev (1m)0.36%
Revenue NQ rev (3m)2.38%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.88 | ||
| Fwd PE | 21.51 | ||
| P/S | 3.52 | ||
| P/FCF | 20.91 | ||
| P/OCF | 17.97 | ||
| P/B | 100.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.57 |
EPS(TTM)3.65
EY4.19%
EPS(NY)4.05
Fwd EY4.65%
FCF(TTM)4.17
FCFY4.78%
OCF(TTM)4.85
OCFY5.56%
SpS24.74
BVpS0.87
TBVpS-6.06
PEG (NY)4.61
PEG (5Y)4.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.65% | ||
| ROE | 414.39% | ||
| ROCE | 40.38% | ||
| ROIC | 30.18% | ||
| ROICexc | 34.77% | ||
| ROICexgc | 87.63% | ||
| OM | 21.6% | ||
| PM (TTM) | 14.55% | ||
| GM | 60.56% | ||
| FCFM | 16.85% |
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%
ROICexcg growth 3Y6.99%
ROICexcg 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-Score6
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.18 | ||
| Debt/FCF | 2.6 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 92.13% | ||
| Cap/Sales | 2.75% | ||
| Interest Coverage | 15.54 | ||
| Cash Conversion | 79.74% | ||
| Profit Quality | 115.85% | ||
| Current Ratio | 0.89 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 6.53 |
F-Score6
WACC8.32%
ROIC/WACC3.63
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)4.29%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%1.1%
EPS Next Y5.18%
EPS Next 2Y6.26%
EPS Next 3Y6.65%
EPS Next 5Y7.29%
Revenue 1Y (TTM)0.06%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.03%
Revenue Next Year0.89%
Revenue Next 2Y2.51%
Revenue Next 3Y2.99%
Revenue Next 5Y3.21%
EBIT growth 1Y0.51%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year14.37%
EBIT Next 3Y8.34%
EBIT Next 5Y7.2%
FCF growth 1Y43.04%
FCF growth 3Y8.74%
FCF growth 5Y4.85%
OCF growth 1Y26.49%
OCF growth 3Y7.29%
OCF growth 5Y5.56%