Colgate-Palmolive (CL) AI Stock Analysis

• Market Cap: $74.55B
• Dividend Yield: 2.19%
• Average Volume (3M): 5.51M
• Price to Earnings (P/E): 26.0
• Beta (1Y): 0.15
• Revenue Growth: 0.98%
• EPS Growth: 12.12%
• Country: US
• Employees: 34,000
• Sector: Consumer Defensive
• Sector Strength: 69
• Industry: Household & Personal Products
• EPS (TTM): 0.91
• Shares Outstanding: 810,420,100
• 10 Day Avg. Volume: 4,339,303
• 30 Day Avg. Volume: 5,505,263
• PEG Ratio: 44.62
• Price to Book (P/B): 202.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.99
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 6.60
• Enterprise Value/Ebitda: 3.95
• 1Y Price Target: $101.15
• Price Target Upside: 10.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 63 Neutral
• Price Target: ―

Colgate-Palmolive's stock has a moderate score due to its strong profitability and cash flow, which are offset by high leverage and a slightly negative revenue growth trend. Technical analysis indicates a neutral stance with no strong momentum, and valuation metrics suggest limited upside given the high P/E ratio. The earnings call provided a balanced view, highlighting profit growth and geographic diversification, but also pointing out challenges with tariffs and volume growth.

Positive Factors

Financial Performance

The clean +5c EPS beat in 1Q signals a level of P&L flex that management has oft alluded to and is now fully deploying, showcasing financial strength.

Growth Driver

Hill’s Pet Nutrition remains a key growth driver for the company, with expectations to outpace the category due to investments in innovation, advertising, and additional capacity.

International Opportunities

Incremental opportunity is seen in international markets like China and Brazil, providing potential for expansion and revenue growth.

Negative Factors

Competition and Market Share

Downside risks include intensified competition leading to market share losses and higher promotional activity.

Consumer Sentiment

Broader macro uncertainty has taken a toll on consumer sentiment, leading to a more prudent approach to wallet management.

Tariffs Impact

Tariffs are weighing on margins to the tune of $200 million, presenting a significant challenge for profitability.

Colgate-Palmolive Business Overview & Revenue Model

Company Description

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide. The company operates through two segments, Oral, Personal and Home Care; and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, bar and liquid hand soaps, shower gels, shampoos, conditioners, deodorants and antiperspirants, skin health products, dishwashing detergents, fabric conditioners, household cleaners, and other related items. This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, Soupline, and Cuddly to a range of traditional and eCommerce retailers, wholesalers, and distributors. It also includes pharmaceutical products for dentists and other oral health professionals. The Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic products to manage disease conditions in dogs and cats under the Hill's Prescription Diet brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.

How the Company Makes Money

Colgate-Palmolive generates revenue primarily through the sale of its products in the Oral, Personal and Home Care, and Pet Nutrition segments. The Oral, Personal and Home Care segment, which includes oral hygiene products like toothpaste and toothbrushes, as well as personal care products like body wash and deodorants, is the largest contributor to the company's revenue. The Pet Nutrition segment, represented by the Hill's Pet Nutrition brand, provides premium pet food for dogs and cats, catering to the veterinary and specialty pet retail channels. The company leverages its extensive global distribution network to reach a wide range of customers, from large retailers to individual consumers. Strategic partnerships, continuous innovation, brand strength, and a focus on emerging markets are significant factors contributing to Colgate-Palmolive's earnings.

Colgate-Palmolive Financial Statement Overview

Summary

Colgate-Palmolive demonstrates strong profitability with robust margins and efficient cash flow management as evidenced by strong cash flow ratios and a high net profit margin. However, the company faces concerns with high leverage indicated by a high debt-to-equity ratio and low equity base, coupled with a slight decline in recent revenue growth.

Income Statement

Colgate-Palmolive shows a stable financial performance with consistent revenue growth over the years. The TTM (Trailing-Twelve-Months) gross profit margin is robust at around 60.73%, and the net profit margin stands at 14.52%, both indicating strong profitability. The EBIT and EBITDA margins are healthy at 21.87% and 23.72%, respectively. However, the revenue growth rate from 2024 to TTM is slightly negative at -0.77%, which is a point of concern despite the overall stable performance.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 18.10 in the TTM period, indicating significant leverage. The return on equity (ROE) is strong at 798.35%, but this is primarily due to the low equity base, which poses a risk. The equity ratio is low at 2.18%, suggesting a reliance on debt financing and potential financial instability in adverse conditions.

Cash Flow

Cash flow analysis shows strong performance, with a free cash flow growth rate of -2.23% from 2024 to TTM, suggesting a slight decline but still maintaining substantial free cash flow. The operating cash flow to net income ratio is 1.39, and the free cash flow to net income ratio is 1.20, both indicating efficient cash generation relative to net income.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
19.95B	20.10B	19.46B	17.97B	17.42B	16.47B
	Gross Profit
12.11B	12.16B	11.33B	10.25B	10.38B	10.02B
	EBIT
4.36B	4.27B	3.98B	4.33B	4.47B	3.88B
	EBITDA
4.82B	4.27B	4.25B	4.13B	4.37B	4.33B
	Net Income Common Stockholders
2.90B	2.89B	2.30B	1.78B	2.17B	2.69B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.11B	1.10B	1.15B	775.00M	832.00M	888.00M
	Total Assets
16.65B	16.05B	16.39B	15.73B	15.04B	15.92B
	Total Debt
8.27B	8.51B	9.06B	8.90B	7.25B	7.60B
	Net Debt
7.16B	7.42B	8.10B	8.12B	6.41B	6.71B
	Total Liabilities
15.91B	15.50B	15.44B	14.93B	14.07B	14.82B
	Stockholders Equity
363.00M	212.00M	609.00M	401.00M	609.00M	743.00M
Cash Flow		Free Cash Flow
3.47B	3.55B	3.04B	1.86B	2.76B	3.31B
	Operating Cash Flow
4.03B	4.11B	3.75B	2.56B	3.33B	3.72B
	Investing Cash Flow
-500.00M	-534.00M	-742.00M	-1.60B	-592.00M	-779.00M
	Financing Cash Flow
-3.49B	-3.39B	-2.79B	-952.00M	-2.77B	-2.92B

Colgate-Palmolive Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 91.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CL, the sentiment is Positive. The current price of 91.67 is above the 20-day moving average (MA) of 90.87, above the 50-day MA of 91.41, and below the 200-day MA of 93.87, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 94.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CL.

Colgate-Palmolive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PG	76 Outperform	$386.31B	26.17	30.29%	2.46%	-0.16%	2.74%
KVUE	73 Outperform	$46.08B	43.76	10.22%	3.38%	-1.18%	-29.18%
KMB	70 Outperform	$46.72B	19.19	229.84%	3.47%	-3.12%	34.80%
Sector *	64 Neutral	$8.88B	14.67	4.78%	173.89%	3.39%	2.18%
CL	63 Neutral	$74.55B	26.05	977.07%	2.19%	0.98%	12.12%
CHD	63 Neutral	$23.85B	41.55	13.35%	1.18%	2.18%	-26.08%
CLX	62 Neutral	$16.62B	24.21	1176.27%	3.60%	-2.64%	189.29%

Colgate-Palmolive Corporate Events

Colgate-Palmolive Holds Annual Stockholders Meeting

On May 9, 2025, Colgate-Palmolive held its Annual Meeting of Stockholders where several key decisions were made. The election of ten directors was confirmed, and PricewaterhouseCoopers LLP was ratified as the independent registered public accounting firm for 2025. A non-binding advisory vote on executive compensation was approved, while stockholder proposals for an independent Board Chairman and revisiting plastic packaging policies were not approved.

The most recent analyst rating on (CL) stock is a Buy with a $103.00 price target. To see the full list of analyst forecasts on Colgate-Palmolive stock, see the CL Stock Forecast page.