CL Colgate-Palmolive Company - Fundamental Analysis
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CL Stock | Fundamental Analysis & Investment Insights
NYSE
Consumer Defensive
Household & Personal Products
Current Price
Live
$78.05
Analyst Target
$87.26
+11.8%
Upside
52W High
$100.18
52W Low
$74.55
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Nov 16, 2025
Market cap
$63.51B
P/E
21.86
ROE
293.6%
Profit margin
14.5%
Debt/Equity
6.8
Dividend yield
2.66%
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
Multi-dimensional analysis across 5 key categories
Overall
68
Strong
70
55
80
50
85
AI Verdict
CL presents a mixed profile: premium profitability and dividend reliability are offset by stagnant growth, high leverage, and underperformance relative to peer PM. While trading at a slight valuation discount, the stock lacks near-term catalysts despite a $87.26 analyst target implying 11.8% upside from current levels.
Key drivers: Persistent earnings beat streak and margin strength, Elevated debt and weak liquidity constraining flexibility, Dividend yield providing floor but not growth catalyst
Confidence
75%
Value
70/100
CL is modestly cheaper than peer PM on earnings, but richer on sales and book value, with valuation supported more by profitability than growth
Positives
- P/E of 21.86 is marginally below sector average of 22.17
- Forward P/E of 20.22 suggests modest de-rating already priced in
Watchpoints
- Price/Book of 73.49 is extremely high, indicating potential overvaluation on asset basis
- Price/Sales of 3.16 exceeds typical household products multiples
Future
55/100
Near-term growth trajectory is flat and price momentum remains negative (1Y: -12.6%), limiting upside despite potential mean reversion
Positives
- Analyst target of $87.26 implies confidence in recovery
- History of beating earnings estimates may support future upside
Watchpoints
- Revenue growth of 1.9% YoY is insufficient for re-rating in a defensive sector
- Q/Q earnings decline of -0.3% and -1.1% EPS growth signal weakening momentum
Past
80/100
Historical earnings quality is excellent, but share price performance over 5Y and 1Y periods shows diminishing investor appetite despite consistency
Positives
- 22 out of 25 quarters beat EPS estimates, demonstrating strong execution and conservative guidance
- Profit margins and ROE have remained consistently high over multiple cycles
Watchpoints
- 5-year total return of +2.2% lags both sector and broader market
- 1-year performance of -12.6% reflects growing investor skepticism
Health
50/100
Financial leverage is significantly higher than typical for consumer staples, with liquidity metrics below 1.0 indicating potential vulnerability in downturn
Positives
- Operating cash flow likely stable given consistent earnings (implied)
- No reported debt maturities or liquidity events in immediate horizon
Watchpoints
- Debt/Equity ratio of 6.80 is dangerously high, increasing refinancing and interest rate risk
- Current ratio of 0.93 and quick ratio of 0.51 suggest working capital strain
Dividend
85/100
Dividend appears sustainable based on payout ratio and stable earnings, offering income appeal despite growth limitations
Positives
- 2.66% dividend yield is attractive in low-yield environment
- 57.14% payout ratio indicates strong earnings coverage and room for maintenance
Watchpoints
- No data on dividend growth history or streak length
- High leverage could pressure future capital allocation flexibility
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$78.05
Analyst Target
$87.26
Upside/Downside
+11.8%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for CL and closest competitors.
Updated 2025-11-14
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
CL
Colgate-Palmolive Company
Primary
|
+2.2% | +11.3% | -12.6% | -13.4% | +1.2% | -0.9% |
|
MNST
Monster Beverage Corporation
Peer
|
+70.6% | +45.3% | +27.4% | +13.4% | +3.9% | +2.3% |
|
MDLZ
Mondelez International, Inc.
Peer
|
+13.6% | -7.4% | +1.8% | -16.6% | +7.3% | +3.9% |
|
TGT
Target Corporation
Peer
|
-32.0% | -23.8% | -12.8% | +10.1% | +12.9% | +5.5% |
|
ABEV
Ambev S.A.
Peer
|
+22.3% | +20.9% | +57.3% | +17.5% | +17.3% | +7.3% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
21.86
Forward P/E
20.22
PEG Ratio
N/A
P/B Ratio
73.49
P/S Ratio
3.16
EV/Revenue
3.5
EV/EBITDA
14.6
Market Cap
$63.51B
Profitability
Profit margins and return metrics
Profit Margin
14.47%
Operating Margin
20.23%
Gross Margin
60.15%
ROE
293.63%
ROA
15.34%
Growth
Revenue and earnings growth rates
Revenue Growth
+1.9%
Earnings Growth
+1.1%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
-0.3%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
6.8
High debt
Current Ratio
0.93
Weak
Quick Ratio
0.51
Poor
Cash/Share
$1.83
Quarterly Earnings History
EPS performance vs analyst estimates
2026-01-30
$N/A
2025-10-31
$0.91
+2.4% surprise
2025-08-01
$0.92
+2.8% surprise
2025-04-25
$0.91
+6.1% surprise
Consumer Defensive Sector Comparison
Comparing CL against 48 companies in the Consumer Defensive sector
(2 bullish, 27 neutral, 19 bearish)
P/E Ratio
21.86
This Stock
vs
33.4
Sector Avg
-34.5%
(Discount)
Return on Equity (ROE)
293.63%
This Stock
vs
4.7%
Sector Avg
+6145.3%
(Excellent)
Profit Margin
14.47%
This Stock
vs
-1.11%
Sector Avg
-1403.8%
(Weaker)
Debt to Equity
6.8
This Stock
vs
1.71
Sector Avg
+296.7%
(Higher)
Revenue Growth
1.9%
This Stock
vs
8.8%
Sector Avg
-78.4%
(Slower)
Current Ratio
0.93
This Stock
vs
1.98
Sector Avg
-53.1%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
CL
Colgate-Palmolive Company
|
NEUTRAL | $63.51B | 21.86 | 293.6% | 14.5% | $78.05 | |
|
MNST
Monster Beverage Corporation
|
BULLISH | $69.67B | 40.52 | 25.5% | 21.7% | $71.31 | |
|
MDLZ
Mondelez International, Inc.
|
NEUTRAL | $74.07B | 21.44 | 13.1% | 9.4% | $57.24 | |
|
TGT
Target Corporation
|
NEUTRAL | $50.57B | 13.49 | 25.1% | 3.6% | $111.28 | |
|
ABEV
Ambev S.A.
|
NEUTRAL | $43.65B | 13.9 | 17.2% | 17.7% | $2.78 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-10-01 | NEWMAN BRIAN | Director | Stock Award | 228 | $18,726 |
| 2025-10-01 | BILBREY JOHN P. | Director | Stock Award | 289 | $23,736 |
| 2025-10-01 | NORRINGTON LORRIE M | Director | Stock Award | 319 | $26,199 |
| 2025-09-11 | GRANT SHANE | Officer | Stock Award | 3,569 | - |
| 2025-09-11 | HAZLIN JOHN | Officer | Stock Award | 4,045 | - |
| 2025-09-11 | TSOURAPAS PANAGIOTIS | Officer | Stock Award | 4,759 | - |
| 2025-09-11 | SUTULA STANLEY J III | Chief Financial Officer | Stock Award | 8,328 | - |
| 2025-09-11 | PARAMESWARAN PRABHA | Officer | Stock Award | 4,592 | - |
| 2025-09-11 | MASSEY SALLY | Officer | Stock Award | 3,450 | - |
| 2025-09-11 | MALCOLM GREGORY | Officer | Stock Award | 1,119 | - |
| 2025-09-11 | WALLACE NOEL R | Chief Executive Officer | Stock Award | 28,314 | - |
| 2025-09-11 | DANIELS JENNIFER M. | Officer | Stock Award | 4,592 | - |
| 2025-07-01 | NORRINGTON LORRIE M | Director | Stock Award | 292 | $26,254 |
| 2025-07-01 | NEWMAN BRIAN | Director | Stock Award | 208 | $18,701 |
| 2025-07-01 | BILBREY JOHN P. | Director | Stock Award | 264 | $23,736 |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
19 analysts
Barclays
2025-11-04
Equal-Weight
Equal-Weight
UBS
2025-11-03
Buy
Buy
Citigroup
2025-11-03
Buy
Buy
Morgan Stanley
2025-11-03
Overweight
Overweight
JP Morgan
2025-11-03
Overweight
Overweight
Evercore ISI Group
2025-11-03
Outperform
Outperform
Wells Fargo
2025-11-03
Underweight
Underweight
Raymond James
2025-10-20
Outperform
Outperform
JP Morgan
2025-10-10
Overweight
Overweight
B of A Securities
2025-10-08
Buy
Buy
Past News Coverage
Recent headlines mentioning CL from our newsroom.
Newest → oldest
No matching news yet.