NYSE:CL

Stock Analysis Report

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Executive Summary

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide.


Snowflake Analysis

Established dividend payer with acceptable track record.


Similar Companies

Share Price & News

How has Colgate-Palmolive's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.3%

CL

2.6%

US Household Products

2.3%

US Market


1 Year Return

-0.4%

CL

10.2%

US Household Products

6.7%

US Market

Return vs Industry: CL underperformed the US Household Products industry which returned 10.2% over the past year.

Return vs Market: CL underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

CLIndustryMarket
7 Day0.3%2.6%2.3%
30 Day1.2%7.8%6.0%
90 Day0.8%9.4%18.9%
1 Year2.0%-0.4%13.0%10.2%9.0%6.7%
3 Year8.5%1.5%55.5%42.8%36.6%27.7%
5 Year22.2%8.7%79.5%54.9%64.2%46.1%

Price Volatility Vs. Market

How volatile is Colgate-Palmolive's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Colgate-Palmolive undervalued compared to its fair value and its price relative to the market?

14.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CL ($73.68) is trading below our estimate of fair value ($85.76)

Significantly Below Fair Value: CL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CL is good value based on its PE Ratio (25.1x) compared to the US Household Products industry average (31.8x).

PE vs Market: CL is poor value based on its PE Ratio (25.1x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: CL is poor value based on its PEG Ratio (12x)


Price to Book Ratio

PB vs Industry: CL has negative assets, so we can't compare its PB Ratio to the US Household Products industry average.


Next Steps

Future Growth

How is Colgate-Palmolive forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

2.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CL's forecast earnings growth (2.1% per year) is below the savings rate (2.2%).

Earnings vs Market: CL's earnings (2.1% per year) are forecast to grow slower than the US market (22.9% per year).

High Growth Earnings: CL's earnings are forecast to grow, but not significantly.

Revenue vs Market: CL's revenue (2% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: CL's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CL's Return on Equity is forecast to be very high in 3 years time (172.9%).


Next Steps

Past Performance

How has Colgate-Palmolive performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CL has high quality earnings.

Growing Profit Margin: CL's current net profit margins (15.9%) are higher than last year (15.1%).


Past Earnings Growth Analysis

Earnings Trend: CL's earnings have declined by -1% per year over the past 5 years.

Accelerating Growth: CL's earnings growth over the past year (8.5%) exceeds its 5-year average (-1% per year).

Earnings vs Industry: CL earnings growth over the past year (8.5%) underperformed the Household Products industry 14.2%.


Return on Equity

High ROE: Whilst CL's Return on Equity (784.46%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Colgate-Palmolive's financial position?


Financial Position Analysis

Short Term Liabilities: CL's short term assets ($4.2B) do not cover its short term liabilities ($4.4B).

Long Term Liabilities: CL's short term assets ($4.2B) do not cover its long term liabilities ($10.3B).


Debt to Equity History and Analysis

Debt Level: CL's debt to equity ratio (2108.5%) is considered high.

Reducing Debt: CL's debt to equity ratio has increased from 830.4% to 2108.5% over the past 5 years.

Debt Coverage: CL's debt is well covered by operating cash flow (45.8%).

Interest Coverage: CL's interest payments on its debt are well covered by EBIT (26x coverage).


Balance Sheet


Next Steps

Dividend

What is Colgate-Palmolive current dividend yield, its reliability and sustainability?

2.39%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CL's dividend (2.39%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: CL's dividend (2.39%) is low compared to the top 25% of dividend payers in the US market (4.6%).


Stability and Growth of Payments

Stable Dividend: CL's dividends per share have been stable in the past 10 years.

Growing Dividend: CL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.5%), CL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CL's dividends in 3 years are forecast to be covered by earnings (59.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.5yrs

Average management tenure


CEO

Noel Wallace (56yo)

1.25yrs

Tenure

US$10,828,665

Compensation

Mr. Noel R. Wallace serves as Chief Executive Officer and Director of Colgate-Palmolive Company since April 2, 2019 and has been its President since July 11, 2018. Mr. Wallace serves as Chairman of Colgate ...


CEO Compensation Analysis

Compensation vs Market: Noel's total compensation ($USD10.83M) is about average for companies of similar size in the US market ($USD11.50M).

Compensation vs Earnings: Noel's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Noel Wallace
Chairman1.25yrsUS$10.83m0.027% $16.9m
Henning Jakobsen
Chief Financial Officer2.17yrsUS$3.48m0.0050% $3.2m
Jennifer Daniels
Chief Legal Officer & Secretary5.67yrsUS$2.96m0.0036% $2.3m
Panagiotis Tsourapas
Group President of Latin America & Asia Pacific0.92yrUS$2.95m0.0053% $3.3m
Prabha Parameswaran
Group President of Global Innovation Group & Africa-Eurasia0.92yrUS$3.02m0.0016% $1.0m
Patricia Verduin
Chief Technology Officerno datano data0.0065% $4.1m
Mike Crowe
Chief Information Officerno datano datano data
John Faucher
Chief Investor Relations Officerno datano datano data
Valerie Haliburton
Vice President of Global Ethics & Compliance1.5yrsno datano data
Paula Davis
VP & Chief Communications Officer1.92yrsno datano data
Sally Massey
Corporate Officer & Chief Human Resources Officer0.50yrno data0.0014% $858.3k
John Huston
Senior VP & Chief of Staff4.5yrsno data0.010% $6.4m

1.5yrs

Average Tenure

60yo

Average Age

Experienced Management: CL's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Noel Wallace
Chairman1.25yrsUS$10.83m0.027% $16.9m
Stephen Sadove
Lead Independent Directorno dataUS$319.03k0.0030% $1.9m
John Cahill
Independent Director14.75yrsUS$303.48k0.0027% $1.7m
C. Harris
Independent Director4.33yrsUS$290.48k0.0011% $694.2k
Lisa Edwards
Independent Director1.33yrsUS$236.48k0.00041% $258.7k
Lorrie Norrington
Independent Director4.83yrsUS$290.36k0.00010% $63.1k
Michael Polk
Independent Director6.08yrsUS$295.36k0.0020% $1.3m
Martina Therese Hund-Mejean
Independent Director0.33yrno data0.00019% $119.9k
John Bilbrey
Independent Director5.33yrsUS$295.48k0.00055% $347.1k
Helene Gayle
Independent Director10.33yrsUS$295.48k0.0029% $1.8m

4.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: CL's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Colgate-Palmolive Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Colgate-Palmolive Company
  • Ticker: CL
  • Exchange: NYSE
  • Founded: 1806
  • Industry: Household Products
  • Sector: Household
  • Market Cap: US$63.109b
  • Shares outstanding: 856.53m
  • Website: https://www.colgatepalmolive.com

Number of Employees


Location

  • Colgate-Palmolive Company
  • 300 Park Avenue
  • New York
  • New York
  • 10022
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
0P59LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968
919477SWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
CPADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
CL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
CPAXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
CPAETLX (Eurotlx)YesCommon StockITEURJan 1968
COLGWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1968
CLBASE (Buenos Aires Stock Exchange)CEDEAR EACH 3 REP 1 ORD USD1ARARSNov 2002
COLG34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD1BRBRLSep 2011

Biography

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 products include 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 similar items. This segment markets and sells its products to various retailers, wholesalers, and distributors. The Pet Nutrition segment offers pet nutrition products for everyday nutritional needs; and a range of therapeutic products to manage disease conditions in dogs and cats. This segment markets and sells its products for dogs and cats through pet supply retailers, veterinarians, and e-commerce retailers. Its principal global and regional trademarks include Colgate, Palmolive, elmex, meridol, Tom’s of Maine, Sorriso, Hello, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring, Protex, Sanex, Filorga, Elta MD, PCA Skin, Ajax, Axion, Fabuloso, Soupline, and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 06:41
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.