| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 2/6 |
| Past Performance | 2/6 |
| Financial Health | 4/6 |
| Dividends | 5/6 |
CL Stock Overview
Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide.
Colgate-Palmolive Company Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$72.91 |
| 52 Week High | US$85.61 |
| 52 Week Low | US$72.20 |
| Beta | 0.47 |
| 1 Month Change | -8.39% |
| 3 Month Change | -9.02% |
| 1 Year Change | -5.41% |
| 3 Year Change | 3.39% |
| 5 Year Change | 0.041% |
| Change since IPO | 1,729.90% |
Recent News & Updates
Colgate-Palmolive's (NYSE:CL) Returns On Capital Not Reflecting Well On The Business
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
Colgate-Palmolive declares $0.47 dividend
Colgate-Palmolive (NYSE:CL) declares $0.47/share quarterly dividend, in line with previous. Forward yield 2.41% Payable Nov. 15; for shareholders of record Oct. 21; ex-div Oct. 20. See CL Dividend Scorecard, Yield Chart, & Dividend Growth.
CP India names Prabha Narasimhan as MD, CEO
Colgate-Palmolive (NYSE:CL) has appointed Prabha Narasimhan as Managing Director and CEO of its Indian subsidiary. Prior to this appointment, Narasimhan led the Home Care category at Hindustan Unilever as Executive Director. CP India announced her appointment in March 2022, and she has been special projects vice president for Colgate’s Asia Pacific Division.
Colgate-Palmolive: What Recent Results Mean For Long-Term Holders
Summary In spite of its lacklustre performance, Colgate-Palmolive generated superior risk-adjusted returns in recent years. All eyes are currently on the company's strong quarterly sales growth, which defied expectations. However, long-term investors should remain focused on CL's margins that are temporarily under pressure. Colgate-Palmolive (CL) is hardly a business for risk-seeking and short-term oriented investors. While the management has given us a master class in long-term value creation, the share price is also unlikely to make anyone rich quickly. On the contrary, CL is an investment akin for anyone looking for steady value accumulation, superior risk-adjusted returns and a wide moat. I first covered the company about four years ago when I emphasized the importance of having high and sustainable return on invested capital. My investment thesis has not changed materially since then, although for a period of time I did warn against the company's high valuation. To put everything said above into perspective, CL has achieved a total return more than 44% since my first article on the company, while the broader equity market returned roughly 57% over the same period. CL Total Return Level data by YCharts For the average retail investor, that would have meant significant underperformance at a time when returns of many high-risk technology names were making the headlines on a daily basis. If we consider risk, however, things look rather different for Colgate-Palmolive. The company has a beta of below 0.5 and more specifically of 0.42 over the past two years and 0.47 over a 5-year period. Seeking Alpha Therefore, on a risk-adjusted basis, Colgate-Palmolive has been a far superior investment over the period. Moreover, during the period when I rated the company as a 'Hold' and warned against short to medium term risks, CL did underperform the overall market. CL Total Return Level data by YCharts The Power Of Strong Global Brands As inflationary pressures are raging through the economy, consumer staples are at risk of declining volumes and margin pressures. These effects, however, are more pronounced for companies operating in lower valued added segments and those having weaker brands. In that regard, Colgate-Palmolive brand portfolio is well-positioned with many of the global strongest brands in their respective categories. Colgate-Palmolive Investor Presentation That is why, the company has recently surprised the investment community by reporting one of its strongest quarterly organic sales growth numbers in more than a decade. Colgate-Palmolive Investor Presentation For comparison, Procter & Gamble's (PG) most recent results were still below that number which clearly illustrates the pricing power of Colgate-Palmolive's brands. Procter & Gamble Investor Presentation Yet another reason why CL's most recent results were so impressive, was that the company achieved that in spite of its high exposure to markets outside of the United States (see below) at a time when the U.S. dollar index reached new highs. Colgate-Palmolive 10-Q SEC Filing The market has also been fixated on topline growth numbers, as Colgate tends to outperform the Consumer Staples Select Sector SPDR Fund (XLP) during quarters when organic sales growth is at high single digits. prepared by the author, using data from Seeking Alpha and Colgate-Palmolive Investor Presentation The impressive topline growth, however, was not a one-off deal as CL increased its full year guidance to 5-7%. Colgate-Palmolive Investor Presentation Profitability In The Spotlight Although sales growth is highly important for large cap consumer staples, which are severely limited in their growth potential, profitability is where long-term investors should be focused. Colgate-Palmolive has been one of the most profitable businesses in the Home & Personal Care space, both on gross profit and EBITDA basis. prepared by the author, using data from Seeking Alpha As the graph below clearly illustrates, more profitable businesses have fared far better in past year, when inflationary pressures returned. prepared by the author, using data from Seeking Alpha Not only are more profitable businesses better positioned to weather the rising commodity prices, but also have much better reinvestment opportunities and stronger competitive advantages. Having said that, gross margins are usually a good starting point since they indicate the price premium achieved by the company's brands. That is why, on a historical basis, gross margin is a very good indicator of Colgate's price-to-sales multiples. prepared by the author, using data from SEC Filings and Seeking Alpha Following the tailwinds during 2020, Colgate's gross margins have quickly fallen back to pre-pandemic levels and are now at one of their lowest levels for the past decade. As we see in the graph below, rising costs of raw materials were the major driving force of this decline. prepared by the author, using data from Earnings Transcripts Although CL's management has done a good job at improving productivity and the strong brands allowed for pricing action, inflationary pressures were far stronger and eventually margins fell. Interestingly, the management seems to have discontinued the practice to report the segmented basis points impact on gross margin since the first quarter of 2022.
Shareholder Returns
| CL | US Household Products | US Market | |
|---|---|---|---|
| 7D | -2.7% | -2.8% | -2.0% |
| 1Y | -5.4% | -8.9% | -20.3% |
Return vs Industry: CL exceeded the US Household Products industry which returned -8.1% over the past year.
Return vs Market: CL exceeded the US Market which returned -22.1% over the past year.
Price Volatility
| CL volatility | |
|---|---|
| CL Average Weekly Movement | 2.7% |
| Household Products Industry Average Movement | 4.0% |
| Market Average Movement | 6.9% |
| 10% most volatile stocks in US Market | 15.8% |
| 10% least volatile stocks in US Market | 2.8% |
Stable Share Price: CL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: CL's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1806 | 33,800 | Noel Wallace | https://www.colgatepalmolive.com |
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.
Colgate-Palmolive Company Fundamentals Summary
| CL fundamental statistics | |
|---|---|
| Market Cap | US$60.82b |
| Earnings (TTM) | US$1.94b |
| Revenue (TTM) | US$17.70b |
31.3x
P/E Ratio3.4x
P/S RatioIs CL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CL income statement (TTM) | |
|---|---|
| Revenue | US$17.70b |
| Cost of Revenue | US$7.39b |
| Gross Profit | US$10.31b |
| Other Expenses | US$8.36b |
| Earnings | US$1.94b |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
Oct 28, 2022
| Earnings per share (EPS) | 2.33 |
| Gross Margin | 58.24% |
| Net Profit Margin | 10.98% |
| Debt/Equity Ratio | 1,431.4% |
How did CL perform over the long term?
See historical performance and comparisonDividends
2.6%
Current Dividend Yield80%
Payout RatioDoes CL pay a reliable dividends?
See CL dividend history and benchmarks| Colgate-Palmolive dividend dates | |
|---|---|
| Ex Dividend Date | Oct 20 2022 |
| Dividend Pay Date | Nov 15 2022 |
| Days until Ex dividend | 21 days |
| Days until Dividend pay date | 47 days |
Does CL pay a reliable dividends?
See CL dividend history and benchmarks