NYSE:CL

Stock Analysis Report

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Market Cap

US$67.3b

Last Updated

2021/07/31 05:33 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Established dividend payer with adequate balance sheet.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: CL's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-4.5%

CL

1.4%

US Household Products

-0.5%

US Market


1 Year Return

3.0%

CL

4.8%

US Household Products

35.9%

US Market

Return vs Industry: CL underperformed the US Household Products industry which returned 4.8% over the past year.

Return vs Market: CL underperformed the US Market which returned 35.9% over the past year.


Shareholder returns

CLIndustryMarket
7 Day-4.5%1.4%-0.5%
30 Day-2.7%4.5%0.3%
90 Day-1.5%5.2%3.1%
1 Year5.3%3.0%7.2%4.8%38.0%35.9%
3 Year26.5%17.8%77.1%64.2%62.9%52.7%
5 Year19.8%6.6%85.9%62.2%121.7%97.3%

Long-Term 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?

21.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CL ($79.5) is trading below our estimate of fair value ($101.06)

Significantly Below Fair Value: CL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CL is poor value based on its PE Ratio (24.9x) compared to the US Household Products industry average (16.1x).

PE vs Market: CL is poor value based on its PE Ratio (24.9x) compared to the US market (18x).


Price to Earnings Growth Ratio

PEG Ratio: CL is poor value based on its PEG Ratio (6x)


Price to Book Ratio

PB vs Industry: CL is overvalued based on its PB Ratio (145.1x) compared to the US Household Products industry average (5.1x).


Future Growth

How is Colgate-Palmolive forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CL's forecast earnings growth (4.1% per year) is above the savings rate (2%).

Earnings vs Market: CL's earnings (4.1% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: CL's revenue (3.9% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CL's revenue (3.9% 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 (362%).


Past Performance

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

2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CL has high quality earnings.

Growing Profit Margin: CL's current net profit margins (16%) are lower than last year (16.1%).


Past Earnings Growth Analysis

Earnings Trend: CL's earnings have grown by 2.7% per year over the past 5 years.

Accelerating Growth: CL's earnings growth over the past year (6.1%) exceeds its 5-year average (2.7% per year).

Earnings vs Industry: CL earnings growth over the past year (6.1%) underperformed the Household Products industry 14%.


Return on Equity

High ROE: Whilst CL's Return on Equity (337.12%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Colgate-Palmolive's financial position?


Financial Position Analysis

Short Term Liabilities: CL's short term assets ($4.7B) exceed its short term liabilities ($4.2B).

Long Term Liabilities: CL's short term assets ($4.7B) do not cover its long term liabilities ($10.9B).


Debt to Equity History and Analysis

Debt Level: CL's debt to equity ratio (849.1%) is considered high.

Reducing Debt: CL's debt to equity ratio has reduced from 18199.1% to 849.1% over the past 5 years.

Debt Coverage: CL's debt is well covered by operating cash flow (43%).

Interest Coverage: CL's interest payments on its debt are well covered by EBIT (26.5x coverage).


Balance Sheet


Dividend

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

2.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CL's dividend (2.26%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: CL's dividend (2.26%) is low compared to the top 25% of dividend payers in the US market (3.54%).


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 (54.8%), 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 (55% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Noel Wallace (57 yo)

2.17yrs

Tenure

US$14,364,118

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 ($USD14.36M) is about average for companies of similar size in the US market ($USD11.17M).

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


Leadership Team

Experienced Management: CL's management team is considered experienced (2 years average tenure).


Board Members

Experienced Board: CL's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CL insiders have only sold shares 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$67.255b
  • Shares outstanding: 845.97m
  • Website: https://www.colgatepalmolive.com

Number of Employees


Location

  • Colgate-Palmolive Company
  • 300 Park Avenue
  • New York
  • New York
  • 10022-7499
  • United States

Listings


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. Th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 05:33
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.