COLGATE-PALMOLIVE CO (CL) Stock Fundamental Analysis
NYSE:CL - New York Stock Exchange, Inc. - US1941621039 - Common Stock - Currency: USD
Taking everything into account, CL scores 6 out of 10 in our fundamental rating. CL was compared to 12 industry peers in the Household Products industry. While CL has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, CL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
CL had positive earnings in the past year.
In the past year CL had a positive cash flow from operations.
CL had positive earnings in each of the past 5 years.
CL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
CL has a better Return On Assets (17.40%) than 91.67% of its industry peers.
CL's Return On Equity of 798.07% is amongst the best of the industry. CL outperforms 91.67% of its industry peers.
With an excellent Return On Invested Capital value of 33.14%, 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 15.74%.
The 3 year average ROIC (26.58%) for CL is below the current ROIC(33.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.4% | ||
| ROE | 798.07% | ||
| ROIC | 33.14% |
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 (14.52%) is better than 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.
The Operating Margin of CL (21.76%) is better than 91.67% of its industry peers.
In the last couple of years the Operating Margin of CL has declined.
CL has a better Gross Margin (60.71%) 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 | 21.76% | ||
| PM (TTM) | 14.52% | ||
| GM | 60.71% |
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.
The number of shares outstanding for CL has been reduced compared to 1 year ago.
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 6.79. This indicates that CL is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CL (6.79) is better than 83.33% of its industry peers.
CL has a debt to FCF ratio of 2.39. This is a good value and a sign of high solvency as CL would need 2.39 years to pay back of all of its debts.
CL has a Debt to FCF ratio of 2.39. This is in the better half of the industry: CL outperforms 66.67% of its industry peers.
CL has a Debt/Equity ratio of 18.10. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 18.10, CL is doing worse than 75.00% of the companies in the same industry.
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 | 18.1 | ||
| Debt/FCF | 2.39 | ||
| Altman-Z | 6.79 |
ROIC/WACC3.95
WACC8.38%
2.3 Liquidity
CL has a Current Ratio of 0.85. This is a bad value and indicates that CL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of CL (0.85) is worse than 66.67% of its industry peers.
A Quick Ratio of 0.54 indicates that CL may have some problems paying its short term obligations.
CL has a worse Quick ratio (0.54) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
CL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.33%, which is quite good.
CL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.87% yearly.
Looking at the last year, CL shows a small growth in Revenue. The Revenue has grown by 0.99% in the last 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)8.33%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%5.81%
Revenue 1Y (TTM)0.99%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%-3.04%
3.2 Future
CL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.05% yearly.
Based on estimates for the next years, CL will show a small growth in Revenue. The Revenue will grow by 3.10% on average per year.
EPS Next Y5.18%
EPS Next 2Y6.26%
EPS Next 3Y6.65%
EPS Next 5Y7.05%
Revenue Next Year0.72%
Revenue Next 2Y2.36%
Revenue Next 3Y2.84%
Revenue Next 5Y3.1%
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.
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 23.84, 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.
CL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.93, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.41 indicates a rather expensive valuation of CL.
CL's Price/Forward Earnings ratio is in line with the industry average.
CL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.84 | ||
| Fwd PE | 21.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CL is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CL indicates a slightly more expensive valuation: CL is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.29 | ||
| EV/EBITDA | 15.54 |
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)4.6
PEG (5Y)4.89
EPS Next 2Y6.26%
EPS Next 3Y6.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.34%, CL has a reasonable but not impressive dividend return.
CL's Dividend Yield is comparable with the industry average which is at 2.90.
CL's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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
CL pays out 62.17% 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.
DP62.17%
EPS Next 2Y6.26%
EPS Next 3Y6.65%
NYSE:CL (7/29/2025, 3:21:02 PM)
86.78
+0.31 (+0.36%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners86.12%
Inst Owner Change-0.14%
Ins Owners0.05%
Ins Owner Change5.68%
Market Cap70.33B
Analysts74.67
Price Target99.54 (14.7%)
Short Float %1.67%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend2.19
Dividend Growth(5Y)3.11%
DP62.17%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.04%
Min EPS beat(2)-0.87%
Max EPS beat(2)2.94%
EPS beat(4)2
Avg EPS beat(4)0.92%
Min EPS beat(4)-0.87%
Max EPS beat(4)2.94%
EPS beat(8)5
Avg EPS beat(8)1.28%
EPS beat(12)6
Avg EPS beat(12)0.48%
EPS beat(16)6
Avg EPS beat(16)-0.25%
Revenue beat(2)0
Avg Revenue beat(2)-2.73%
Min Revenue beat(2)-3.46%
Max Revenue beat(2)-2%
Revenue beat(4)0
Avg Revenue beat(4)-2.43%
Min Revenue beat(4)-3.46%
Max Revenue beat(4)-1.98%
Revenue beat(8)0
Avg Revenue beat(8)-1.69%
Revenue beat(12)2
Avg Revenue beat(12)-1.47%
Revenue beat(16)2
Avg Revenue beat(16)-1.81%
PT rev (1m)-0.22%
PT rev (3m)-0.03%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-4.18%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-0.59%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.84 | ||
| Fwd PE | 21.41 | ||
| P/S | 3.53 | ||
| P/FCF | 20.29 | ||
| P/OCF | 17.47 | ||
| P/B | 193.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.54 |
EPS(TTM)3.64
EY4.19%
EPS(NY)4.05
Fwd EY4.67%
FCF(TTM)4.28
FCFY4.93%
OCF(TTM)4.97
OCFY5.72%
SpS24.61
BVpS0.45
TBVpS-5.86
PEG (NY)4.6
PEG (5Y)4.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.4% | ||
| ROE | 798.07% | ||
| ROCE | 44.35% | ||
| ROIC | 33.14% | ||
| ROICexc | 38.27% | ||
| ROICexgc | 96.55% | ||
| OM | 21.76% | ||
| PM (TTM) | 14.52% | ||
| GM | 60.71% | ||
| FCFM | 17.38% |
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-Score8
Asset Turnover1.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 18.1 | ||
| Debt/FCF | 2.39 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 92.7% | ||
| Cap/Sales | 2.8% | ||
| Interest Coverage | 15.07 | ||
| Cash Conversion | 81.45% | ||
| Profit Quality | 119.68% | ||
| Current Ratio | 0.85 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 6.79 |
F-Score8
WACC8.38%
ROIC/WACC3.95
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)8.33%
EPS 3Y3.91%
EPS 5Y4.87%
EPS Q2Q%5.81%
EPS Next Y5.18%
EPS Next 2Y6.26%
EPS Next 3Y6.65%
EPS Next 5Y7.05%
Revenue 1Y (TTM)0.99%
Revenue growth 3Y4.89%
Revenue growth 5Y5.08%
Sales Q2Q%-3.04%
Revenue Next Year0.72%
Revenue Next 2Y2.36%
Revenue Next 3Y2.84%
Revenue Next 5Y3.1%
EBIT growth 1Y3.85%
EBIT growth 3Y3.62%
EBIT growth 5Y3.04%
EBIT Next Year14.63%
EBIT Next 3Y8.54%
EBIT Next 5Y7.18%
FCF growth 1Y59.92%
FCF growth 3Y8.74%
FCF growth 5Y4.85%
OCF growth 1Y38.59%
OCF growth 3Y7.29%
OCF growth 5Y5.56%