NYSE:CL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-3.9%

CL

-3.4%

US Household Products

2.3%

US Market


1 Year Return

6.8%

CL

36.4%

US Household Products

5.6%

US Market

Return vs Industry: CL underperformed the US Household Products industry which returned 36.4% over the past year.

Return vs Market: CL exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

CLIndustryMarket
7 Day-3.9%-3.4%2.3%
30 Day-2.3%-1.9%-1.0%
90 Day-8.2%0.8%-0.7%
1 Year9.5%6.8%40.3%36.4%7.9%5.6%
3 Year1.5%-5.4%46.6%35.0%45.6%36.3%
5 Year15.9%3.9%64.3%42.2%65.8%47.6%

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?

25.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: CL ($67.85) is trading above our estimate of fair value ($65.52)

Significantly Undervalued: CL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CL is good value based on its PE Ratio (25.8x) compared to the Household Products industry average (26.5x).

PE vs Market: CL is poor value based on its PE Ratio (25.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: CL is poor value based on its PEG Ratio (5x)


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 19 analysts?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CL's forecast earnings growth (5.2% per year) is above the savings rate (2.7%).

Earnings vs Market: CL's earnings (5.2% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: CL's revenue (2.5% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CL's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CL's Return on Equity is forecast to be very high in 3 years time (1729.7%).


Next Steps

Past Performance

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

-0.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CL's earnings have declined by -0.5% per year over the past 5 years.

Accelerating Growth: CL's earnings growth over the past year (3.4%) exceeds its 5-year average (-0.5% per year).

Earnings vs Industry: CL earnings growth over the past year (3.4%) exceeded the Household Products industry -7.1%.


Return on Equity

High ROE: CL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: CL has a higher Return on Assets than the Household Products industry average last year.


Return on Capital Employed

ROCE Improving: CL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Colgate-Palmolive's financial position?


Financial Position Analysis

Short Term Liabilities: CL has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: CL has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: CL has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: CL's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: CL's debt is well covered by operating cash flow (45.3%).

Interest Coverage: CL's interest payments on its debt are well covered by EBIT (23.7x coverage).


Balance Sheet

Inventory Level: CL has a high level of physical assets or inventory.

Debt Coverage by Assets: CL has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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

2.54%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Colgate-Palmolive before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.5%marketbottom25%1.5%markettop25%3.8%industryaverage2.5%forecastin3Years2.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CL's dividend (2.54%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: CL's dividend (2.54%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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 (64.2%), 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 (60.5% payout ratio).


Next Steps

Management

What is the CEO of Colgate-Palmolive's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Noel Wallace (55yo)

0.5yrs

Tenure

US$2,806,390

Compensation

Mr. Noel R. Wallace is Chief Executive Officer and Director of Colgate-Palmolive Company since April 2, 2019 and has been its President since July 11, 2018. He was Chief Operating Officer of Colgate-Palmol ...


CEO Compensation Analysis

Compensation vs. Market: Noel has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Noel's compensation has been consistent with company performance over the past year.


Management Age and Tenure

0.8yrs

Average Tenure

57yo

Average Age

Experienced Management: CL's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

4.6yrs

Average Tenure

62yo

Average Age

Experienced Board: CL's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: CL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$50,70414 Aug 19
John Kooyman
EntityIndividual
Shares714
Max PriceUS$71.01
SellUS$722,60413 Aug 19
John Huston
EntityIndividual
Shares10,170
Max PriceUS$71.05
SellUS$346,72608 Aug 19
Prabha Parameswaran
EntityIndividual
Shares5,000
Max PriceUS$69.35
SellUS$990,99809 May 19
John Huston
EntityIndividual
Shares14,039
Max PriceUS$71.11

Ownership Breakdown


Management Team

  • Ian Cook (66yo)

    Executive Chairman

    • Tenure: 10.8yrs
    • Compensation: US$11.55m
  • Pat Verduin (60yo)

    Chief Technology Officer

    • Tenure: 0yrs
  • Noel Wallace (55yo)

    President

    • Tenure: 0.5yrs
    • Compensation: US$2.81m
  • Henning Jakobsen (59yo)

    Chief Financial Officer

    • Tenure: 1.4yrs
    • Compensation: US$2.22m
  • Jennifer Daniels (55yo)

    Chief Legal Officer & Secretary

    • Tenure: 4.9yrs
  • Mike Crowe

    Chief Information Officer

    • Tenure: 0yrs
  • John Faucher

    Senior Vice President of Investor Relations

    • Tenure: 0yrs
  • Paula Davis

    VP & Chief Communications Officer

    • Tenure: 1.2yrs
  • Valerie Haliburton

    Vice President of Global Ethics & Compliance

    • Tenure: 0.8yrs
  • John Kooyman (54yo)

    Chief Marketing Officer

    • Tenure: 0.8yrs

Board Members

  • Steve Sadove (67yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$319.04k
  • Ian Cook (66yo)

    Executive Chairman

    • Tenure: 10.8yrs
    • Compensation: US$11.55m
  • John Cahill (62yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: US$303.74k
  • C. Harris (63yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$290.49k
  • Lorrie Norrington (59yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$290.37k
  • Mike Polk (58yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$295.37k
  • J.P. Bilbrey (62yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$292.99k
  • Helene Gayle (63yo)

    Independent Director

    • Tenure: 9.6yrs
    • Compensation: US$295.49k
  • Noel Wallace (55yo)

    President

    • Tenure: 0.5yrs
    • Compensation: US$2.81m
  • Charlie Bancroft (59yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$290.37k

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$58.216b
  • Shares outstanding: 858.01m
  • 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
CLSWX (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
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. It ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:35
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.