COLGATE-PALMOLIVE CO (CL) Stock Fundamental Analysis
USA - NYSE:CL - US1941621039 - Common Stock
79.18 USD
+0.32 (+0.41%)
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
In the past year CL was profitable.
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 16.60%, 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 339.60%. This is amongst the best in the industry. CL outperforms 100.00% of its industry peers.
CL has a better Return On Invested Capital (29.23%) than 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 14.82%.
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
The Profit Margin of CL (14.46%) is better than 83.33% of its industry peers.
CL's Profit Margin has been stable in the last couple of years.
The Operating Margin of CL (21.44%) is better than 91.67% of its industry peers.
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.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CL is creating value.
CL has less shares outstanding than it did 1 year ago.
CL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.39 indicates that CL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.39, 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.
With a decent Debt to FCF ratio value of 2.45, CL is doing good in 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 Debt to Equity ratio of 8.54. This is in the lower half of the industry: CL underperforms 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 | 6.39 |
ROIC/WACC3.62
WACC8.08%
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.
A Quick Ratio of 0.60 indicates that CL may have some problems paying its short term obligations.
The Quick ratio of CL (0.60) is worse than 66.67% of its industry peers.
| 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
The Earnings Per Share is expected to grow by 5.37% on average over the next years.
The Revenue is expected to grow by 2.88% on average over the next years.
EPS Next Y4.87%
EPS Next 2Y5.32%
EPS Next 3Y5.66%
EPS Next 5Y5.37%
Revenue Next Year0.84%
Revenue Next 2Y2.28%
Revenue Next 3Y2.63%
Revenue Next 5Y2.88%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
Based on the Price/Earnings ratio of 21.69, the valuation of CL can be described as rather expensive.
Based on the Price/Earnings ratio, CL is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
CL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.89, which indicates a rather expensive current valuation of CL.
CL's Price/Forward Earnings 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.
The average S&P500 Price/Forward Earnings ratio is at 34.08. CL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 19.89 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CL is on the same level as its industry peers.
CL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.59 | ||
| EV/EBITDA | 14.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CL may justify a higher PE ratio.
PEG (NY)4.45
PEG (5Y)4.45
EPS Next 2Y5.32%
EPS Next 3Y5.66%
5. Dividend
5.1 Amount
CL has a Yearly Dividend Yield of 2.64%.
CL's Dividend Yield is comparable with the industry average which is at 3.34.
Compared to an average S&P500 Dividend Yield of 2.44, CL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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
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 2Y5.32%
EPS Next 3Y5.66%
NYSE:CL (11/21/2025, 9:31:05 AM)
79.18
+0.32 (+0.41%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.03%
Inst Owner Change4.88%
Ins Owners0.06%
Ins Owner Change15.72%
Market Cap63.99B
Revenue(TTM)20.10B
Net Income(TTM)2.91B
Analysts74
Price Target92.21 (16.46%)
Short Float %1.7%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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)-4.37%
PT rev (3m)-5.73%
EPS NQ rev (1m)-1.96%
EPS NQ rev (3m)-3.38%
EPS NY rev (1m)-0.6%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)-1.29%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.69 | ||
| Fwd PE | 19.89 | ||
| P/S | 3.18 | ||
| P/FCF | 18.59 | ||
| P/OCF | 15.94 | ||
| P/B | 74.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.34 |
EPS(TTM)3.65
EY4.61%
EPS(NY)3.98
Fwd EY5.03%
FCF(TTM)4.26
FCFY5.38%
OCF(TTM)4.97
OCFY6.27%
SpS24.87
BVpS1.06
TBVpS-5.86
PEG (NY)4.45
PEG (5Y)4.45
Graham Number9.33
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 | 6.39 |
F-Score5
WACC8.08%
ROIC/WACC3.62
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 Y4.87%
EPS Next 2Y5.32%
EPS Next 3Y5.66%
EPS Next 5Y5.37%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%1.95%
Revenue Next Year0.84%
Revenue Next 2Y2.28%
Revenue Next 3Y2.63%
Revenue Next 5Y2.88%
EBIT growth 1Y-0.62%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year14.23%
EBIT Next 3Y8.24%
EBIT Next 5Y6.18%
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.
What is the valuation status for CL stock?
ChartMill assigns a valuation rating of 2 / 10 to COLGATE-PALMOLIVE CO (CL). This can be considered as Overvalued.
Can you provide the profitability details for COLGATE-PALMOLIVE CO?
COLGATE-PALMOLIVE CO (CL) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for CL stock?
The Price/Earnings (PE) ratio for COLGATE-PALMOLIVE CO (CL) is 21.69 and the Price/Book (PB) ratio is 74.76.
How sustainable is the dividend of COLGATE-PALMOLIVE CO (CL) stock?
The dividend rating of COLGATE-PALMOLIVE CO (CL) is 5 / 10 and the dividend payout ratio is 62.4%.