CL Colgate-Palmolive Company - Fundamental Analysis
NEUTRAL
CL Stock | Fundamental Analysis & Investment Insights
NYSE
•
Consumer Defensive
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Household & Personal Products
Current Price
$78.05
Analyst Target
$87.26
+11.8% Upside
52W High
$100.18
52W Low
$74.55
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
Colgate-Palmolive (CL) trades at a slight discount to sector peers on P/E (21.86 vs 22.17) but faces meaningful headwinds from near-zero revenue growth (1.9% YoY) and deteriorating short-term momentum, with 1Y and 6M returns of -12.6% and -13.4%, respectively. The company maintains elite profitability—Gross Margin of 60.15%, Operating Margin of 20.23%, and ROE of 293.63%—supported by consistent earnings beats over the last 25 quarters, though recent Q/Q EPS growth has turned negative. Elevated leverage (Debt/Equity: 6.80) and weak liquidity (Current Ratio: 0.93) raise structural concerns, while the 2.66% dividend yield offers modest income appeal with a sustainable 57% payout ratio. Analysts are constructive with a $87.26 target implying ~12% upside, but lack of insider activity and stagnant top-line expansion cap near-term catalysts.
Key Strengths
Exceptional profitability: 60.15% gross margin and 20.23% operating margin, among the highest in consumer defensive sector
Outstanding ROE of 293.63%, reflecting aggressive leverage and efficient equity utilization
Consistent earnings outperformance: 22 out of last 25 quarters beat estimates, with 4-quarter average surprise of 3.78%
Reliable dividend profile: 2.66% yield with 57.14% payout ratio indicating sustainable capital return
Valuation discount to peer PM: CL's P/E of 21.86 vs PM's 22.17 despite lower growth
Key Risks
Anemic growth: Revenue up only 1.9% YoY and Q/Q EPS declining -1.1%, signaling stagnation
High financial leverage: Debt/Equity ratio of 6.80, significantly above safe thresholds and likely sector highs
Weak liquidity position: Current ratio of 0.93 and quick ratio of 0.51 indicate potential near-term solvency pressure
Underperformance vs peer PM: 1Y return of -12.6% vs PM's +25.8%, despite similar valuation and better margins
Lack of price momentum: Trading near 52-week low ($74.55) with 200-day trend likely negative
AI Fair Value Estimate
Based on comprehensive analysis
$87.26
+11.8% above current price
Performance Snowflake
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Stock Price & Analyst Targets
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Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
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Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
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Insider Trading & Analyst Ratings
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