Colgate-Palmolive Company
Exchange: NYSESector: Consumer DefensiveIndustry: Household & Personal Products
Colgate-Palmolive Company is a caring, innovative growth company that is reimagining a healthier future for all people, their pets and our planet. Focused on Oral Care, Personal Care, Home Care and Pet Nutrition, we sell our products in more than 200 countries and territories under brands such as Colgate, Palmolive, elmex, hello, meridol, Sorriso, Tom’s of Maine, EltaMD, Filorga, Irish Spring, Lady Speed Stick, PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Murphy, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet. The Company is recognized for its leadership and innovation in promoting sustainability and community wellbeing, including its achievements in decreasing plastic waste and promoting recyclability, saving water, conserving natural resources and improving children’s oral health through the Colgate Bright Smiles, Bright Futures program, which has reached approximately 1.8 billion children and their families since 1991.
Did you know?
Earnings per share grew at a 4.5% CAGR.
Current Price
$85.14
-0.32%GoodMoat Value
$61.72
27.5% overvaluedProfile
Valuation (TTM)
Market Cap$68.63B
P/E32.20
EV$75.34B
P/B1270.90
Shares Out806.06M
P/Sales3.37
Revenue$20.38B
EV/EBITDA19.67
Colgate-Palmolive Company (CL) Stock Analysis
GoodMoat Analysis
Colgate-Palmolive is a high-quality, moat-protected consumer staples giant with a powerful brand and global scale. However, its current valuation appears significantly above the GoodMoat target, presenting a classic quality vs. price dilemma for value investors.
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Colgate-Palmolive is a global leader in the consumer defensive sector, producing essential household and personal care products like toothpaste, soap, and detergents. Applying the GoodMoat framework, the company demonstrates a strong competitive position. It likely scores highly on Brand & Culture (criterion 6), given its dominant global market share in oral care, and on Scale Privilege (criterion 8) through its massive, efficient distribution network. Its pricing power (criterion 13) is evidenced by its ability to pass on cost increases, and its low disruption risk (criterion 14) is inherent in its essential product categories. A moat score of 5 or more is probable, passing the first gate of the Decision Framework.
Financially, it shows quality with a robust 10.5% profit margin and an exceptionally high ROE, though the latter is skewed by high financial leverage as indicated by a Debt/Equity ratio of 147.9%. The critical issue is valuation. At $85.49, the stock trades at a P/E of 32.3x, which is high for a company with 5.8% revenue growth. More importantly, it trades 38% above the GoodMoat target price of $61.72. According to the framework's Valuation & Risk Gate, a price this far above a target suggests an unfavourable or, at best, a 'with caution' scenario, as it offers no margin of safety. The high debt level is also a notable risk to monitor.
Analysis based on data as of 2024-05-15.
Market Cap$68.63B
Current Price$85.14
P/E Ratio32.20
Forward P/E—
PEG Ratio-0.31
EPS$2.63
Book Value$0.07
P/B Ratio1270.90
CL Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 4.5% FCF growth (CAGR)
Cash vs Debt
Net Debt: 6.7B
Revenue
15.7B
FY19
16.5B
FY20
17.4B
FY21
18.0B
FY22
19.5B
FY23
20.1B
FY24
20.4B
FY25
Net Income
2.4B
FY19
2.7B
FY20
2.2B
FY21
1.8B
FY22
2.3B
FY23
2.9B
FY24
2.1B
FY25
CL 52-Week Range
$74.52
$99.14
50-Day MA: $90.95200-Day MA: $83.74
Did you know?
Earnings per share grew at a 4.5% CAGR.
Colgate-Palmolive Company (CL) Financial Summary
Colgate-Palmolive Company (CL) is a Consumer Defensive company in the Household & Personal Products industry, listed on NYSE. The stock currently trades at $85.14 with a market capitalization of $68.63B.
Key valuation metrics include a P/E ratio of 32.20, price-to-book ratio of 1270.90, and EPS of $2.63. The company reports a profit margin of 10.5% and return on equity of 3946.3%.
CL Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $68.63B |
| P/E Ratio | 32.20 |
| EPS | $2.63 |
| P/B Ratio | 1270.90 |
| P/S Ratio | 3.37 |
| EV/EBITDA | 19.67 |
| Dividend Yield | 2.66% |
| Profit Margin | 10.5% |
| Return on Equity | 3946.3% |
| Debt/Equity | 147.93 |
CL Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $15.69B | $2.37B |
| FY20 | $16.47B | $2.69B |
| FY21 | $17.42B | $2.17B |
| FY22 | $17.97B | $1.78B |
| FY23 | $19.46B | $2.30B |
| FY24 | $20.10B | $2.89B |
| FY25 | $20.38B | $2.13B |
Colgate-Palmolive Company (CL) Valuation
Based on GoodMoat's DCF model, Colgate-Palmolive Company has a fair value estimate of $61.72. At the current price of $85.14, the stock appears 38.0% overvalued relative to our intrinsic value estimate.
CL Quality Indicators
Colgate-Palmolive Company maintains a profit margin of 10.5% and an operating margin of 16.2%. Return on equity stands at 3946.3%. The current ratio is 0.83. Debt-to-equity ratio is 147.93.
About Colgate-Palmolive Company
Colgate-Palmolive Company is a caring, innovative growth company that is reimagining a healthier future for all people, their pets and our planet. Focused on Oral Care, Personal Care, Home Care and Pet Nutrition, we sell our products in more than 200 countries and territories under brands such as Colgate, Palmolive, elmex, hello, meridol, Sorriso, Tom’s of Maine, EltaMD, Filorga, Irish Spring, Lady Speed Stick, PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Murphy, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet. The Company is recognized for its leadership and innovation in promoting sustainability and community wellbeing, including its achievements in decreasing plastic waste and promoting recyclability, saving water, conserving natural resources and improving children’s oral health through the Colgate Bright Smiles, Bright Futures program, which has reached approximately 1.8 billion children and their families since 1991.
CL Free Cash Flow
Colgate-Palmolive Company generated $3.63B in trailing twelve-month free cash flow, representing an FCF yield of 5.30%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
CL Shares Outstanding
Colgate-Palmolive Company has 0.81 billion shares outstanding at a share price of $85.14, giving it a market capitalization of $68.63B.
CL Recent Insider Trades
Recent insider transactions at Colgate-Palmolive Company include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Hazlin John (Chief Growth Officer) | SELL | 20,989 | $1.98M |
| Massey Sally (Chief Human Resources Officer) | SELL | 15,851 | $1.51M |
| SUTULA STANLEY J III (Chief Financial Officer) | SELL | 97,843 | $9.22M |