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Colgate-Palmolive
(NYSE:CL)
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Rating:61Neutral
Price Target:
$95.00
▲(4.68% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by solid operating fundamentals and strong free cash flow, reinforced by a constructive earnings call (margin expansion, improved gross-margin guidance, and strong shareholder returns). Offsetting these positives are elevated balance-sheet leverage with very low equity, a high valuation multiple (P/E ~35.9), and only mixed technicals with near-term weakness versus the 20D/50D averages.
Positive Factors
Free Cash Flow Generation
Consistent, large free cash flow (TTM ~$3.86B) funds dividends, buybacks and debt service, enabling durable capital allocation. Strong operating cash flow (~$4.46B) supports investment in brands, innovation and working capital, and provides a buffer through cycles.
Negative Factors
High Financial Leverage
Very high leverage and an unusually small equity base materially reduce financial flexibility. Elevated debt-to-equity (~33x) raises refinancing, covenant and interest-rate sensitivity risks, limiting the company's ability to invest or absorb earnings shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Consistent, large free cash flow (TTM ~$3.86B) funds dividends, buybacks and debt service, enabling durable capital allocation. Strong operating cash flow (~$4.46B) supports investment in brands, innovation and working capital, and provides a buffer through cycles.
Read all positive factors
Colgate-Palmolive Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals profitability across different business segments, highlighting which areas are driving earnings and which may need strategic adjustments.
Reveals profitability across different business segments, highlighting which areas are driving earnings and which may need strategic adjustments.
Data provided by:
The Fly
The FlyColgate-Palmolive (CL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$73.06B
Dividend Yield2.3%
Average Volume (3M)4.65M
Price to Earnings (P/E)35.9
Beta (1Y)0.11
Revenue Growth5.24%
EPS Growth-29.04%
CountryUS
Employees33,600
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)2.54
Shares Outstanding800,189,330
10 Day Avg. Volume4,061,491
30 Day Avg. Volume4,654,399
Financial Highlights & Ratios
PEG Ratio-1.19
Price to Book (P/B)1.18K
Price to Sales (P/S)3.14
P/FCF Ratio17.58
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$99.77Price Target Upside9.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)3.86
Revenue Forecast (FY)$21.42B
Colgate-Palmolive Business Overview & Revenue Model
Company Description
Operating globally, Colgate-Palmolive Company and its affiliated entities are engaged in the production and distribution of a diverse range of consumer goods. Its operations are structured into two primary divisions: Oral, Personal and Home Care, ...
How the Company Makes Money
Colgate-Palmolive primarily makes money by manufacturing and selling branded consumer staples and pet nutrition products to retailers, distributors, and other customers worldwide. Its revenue is largely generated from product sales across major ca...
Colgate-Palmolive Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 23, 2026
Earnings Call Sentiment Positive
The call communicated a predominantly constructive operating performance — broad-based organic growth across divisions, meaningful gross margin expansion, improved guidance, strong free cash flow (+18%) and sizable shareholder returns ($1.4B). Hill's and emerging markets were notable growth drivers, and management is increasing investment in advertising, innovation and AI. Offsetting these positives are persistent macro and category headwinds: U.S. softness and volatility, retailer inventory destocking (shipments down ~3%), private-label pressure in pet (-200 bps impact), and the risk of higher raw material and tariff costs in H2. Management emphasized prudent guidance and specific remedial actions for the U.S. business while citing confidence in the global operating model.Positive Updates
Broad-Based Organic Growth
Organic sales growth was achieved in 4 of 5 divisions and 3 of 4 categories; the company reported year-to-date organic sales of ~2.6% and noted strong performance across emerging markets and Europe.
Negative Updates
U.S. Performance and Category Volatility
The U.S. business was disappointing in the quarter with pronounced month-to-month volatility (notably a weak May), category softness tied to consumer confidence and higher gasoline prices, and only partial recovery in June/early July — management expects choppy conditions and is taking actions to stabilize share.
Read all updates
Q2-2026 Updates
Positive
Negative
Broad-Based Organic Growth
Organic sales growth was achieved in 4 of 5 divisions and 3 of 4 categories; the company reported year-to-date organic sales of ~2.6% and noted strong performance across emerging markets and Europe.
Read all positive updates
Company Guidance
Management kept its full‑year outlook largely intact while raising gross‑margin guidance to “roughly flat” for 2026, citing Q2 gross‑margin expansion of ~100 basis points (≈90 bps vs. Q1) driven mainly by pricing, RGM, mix and productivity with a modest tariff refund; they warned raw‑material and tariff cost pressure will peak in the back half (Q3 largely locked, Q4 could be a bit worse with oil around $90) but said material prices were slightly below prior expectations. Key operating metrics called out: organic sales YTD 2.6%, emerging markets up mid‑single digits (India, Brazil, Mexico, China), Hill’s organic ex‑private‑label ~4% (U.S. Hill’s +4%), private‑label disruptions subtracted ~200 bps of volume, shipments were down ~3% while consumption was roughly flat, free cash flow was up 18% through Q2, and the company returned $1.4 billion to shareholders; management also noted double‑digit advertising increases (notably at Hill’s) and plans to continue investing behind innovation, Promo AI, data/analytics and brand support.Colgate-Palmolive Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
38
Negative
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.05B | 20.38B | 20.10B | 19.46B | 17.97B | 17.42B |
| Gross Profit | 12.72B | 12.25B | 12.11B | 11.25B | 10.15B | 10.29B |
| EBITDA | 3.68B | 3.96B | 4.85B | 4.25B | 3.37B | 3.76B |
| Net Income | 2.04B | 2.13B | 2.89B | 2.30B | 1.78B | 2.17B |
Balance Sheet | ||||||
| Total Assets | 16.79B | 16.33B | 16.05B | 16.39B | 15.73B | 15.04B |
| Cash, Cash Equivalents and Short-Term Investments | 1.37B | 1.29B | 1.10B | 966.00M | 775.00M | 832.00M |
| Total Debt | 7.86B | 7.99B | 8.51B | 9.06B | 9.27B | 7.83B |
| Total Liabilities | 16.22B | 15.96B | 15.50B | 15.44B | 14.93B | 14.07B |
| Stockholders Equity | 236.00M | 54.00M | 212.00M | 609.00M | 401.00M | 609.00M |
Cash Flow | ||||||
| Free Cash Flow | 3.86B | 3.63B | 3.55B | 3.04B | 1.86B | 2.76B |
| Operating Cash Flow | 4.46B | 4.20B | 4.11B | 3.75B | 2.56B | 3.33B |
| Investing Cash Flow | -501.00M | -817.00M | -534.00M | -742.00M | -1.60B | -592.00M |
| Financing Cash Flow | -3.80B | -3.26B | -3.39B | -2.79B | -952.00M | -2.77B |
Colgate-Palmolive Technical Analysis
Positive
90.75
Price Trends
90.58
Positive
87.97
Positive
85.31
Positive
Market Momentum
0.37
Positive
55.45
Neutral
42.97
Neutral
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 90.75 is below the 20-day moving average (MA) of 91.70, above the 50-day MA of 90.58, and above the 200-day MA of 85.31, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 55.45 is Neutral, neither overbought nor oversold. The STOCH value of 42.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CL.
Colgate-Palmolive Risk Analysis
Colgate-Palmolive disclosed 19 risk factors in its most recent earnings report. Colgate-Palmolive reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Colgate-Palmolive Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $336.46B | 21.41 | 29.84% | 2.91% | 3.26% | 1.21% | |
75 Outperform | $23.41B | 31.67 | 17.78% | 1.23% | 2.69% | 46.04% | |
70 Outperform | $137.69B | 21.49 | 35.40% | 3.71% | -17.45% | 8.84% | |
64 Neutral | $36.28B | 17.16 | 143.64% | 4.63% | -16.17% | -13.40% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $73.06B | 35.89 | 631.14% | 2.31% | 5.24% | -29.04% | |
58 Neutral | $11.55B | 15.46 | -1893.55% | 5.19% | -3.69% | 10.26% |
* Consumer Defensive Sector Average
CL
Colgate-Palmolive
93.28
10.64
12.87%
CHD
Church & Dwight
103.64
12.21
13.35%
CLX
Clorox
105.84
-14.80
-12.27%
KMB
Kimberly Clark
112.37
-18.02
-13.82%
PG
Procter & Gamble
146.80
-2.31
-1.55%
UL
Unilever
64.43
0.94
1.48%
Colgate-Palmolive Corporate Events
Executive/Board ChangesShareholder Meetings
Colgate-Palmolive Shareholders Back Board, Pay Practices, Auditor
Positive
May 13, 2026
At Colgate-Palmolive’s annual meeting of stockholders held on May 8, 2026, shareholders elected ten directors, including CEO Noel Wallace, and ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor for the fiscal y...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.