NYSE:CL

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Established dividend payer and fair value.


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

-0.5%

CL

0.4%

US Household Products

-1.0%

US Market


1 Year Return

14.0%

CL

23.6%

US Household Products

18.0%

US Market

Return vs Industry: CL underperformed the US Household Products industry which returned 23.6% over the past year.

Return vs Market: CL underperformed the US Market which returned 18% over the past year.


Shareholder returns

CLIndustryMarket
7 Day-0.5%0.4%-1.0%
30 Day8.0%1.8%0.6%
90 Day14.3%5.8%7.9%
1 Year16.8%14.0%26.7%23.6%20.4%18.0%
3 Year11.7%4.0%48.4%36.1%48.0%38.5%
5 Year21.0%7.7%74.1%50.0%72.2%53.3%

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 ($76.27) is trading below our estimate of fair value ($96.9)

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


Price To Earnings Ratio

PE vs Industry: CL is good value based on its PE Ratio (27.7x) compared to the Household Products industry average (28.1x).

PE vs Market: CL is poor value based on its PE Ratio (27.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CL is overvalued based on its PB Ratio (558.5x) compared to the US Household Products industry average (4x).


Next Steps

Future Growth

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

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CL's forecast earnings growth (5.5% per year) is above the savings rate (1.7%).

Earnings vs Market: CL's earnings (5.5% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: CL's revenue (3.5% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: CL's revenue (3.5% 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 (145.9%).


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 (15.1%) are lower than last year (15.4%).


Past Earnings Growth Analysis

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

Accelerating Growth: CL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CL had negative earnings growth (-1.4%) over the past year, making it difficult to compare to the Household Products industry average (-14%).


Return on Equity

High ROE: Whilst CL's Return on Equity (452.87%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Colgate-Palmolive's financial position?


Financial Position Analysis

Short Term Liabilities: CL's short term assets ($4.2B) exceed its short term liabilities ($3.5B).

Long Term Liabilities: CL's short term assets ($4.2B) do not cover its long term liabilities ($11.0B).


Debt to Equity History and Analysis

Debt Level: CL's debt to equity ratio (1289.2%) is considered high.

Reducing Debt: CL's debt to equity ratio has increased from 446.3% to 1289.2% over the past 5 years.

Debt Coverage: CL's debt is well covered by operating cash flow (43.6%).

Interest Coverage: CL's interest payments on its debt are well covered by EBIT (24.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: CL's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Colgate-Palmolive's 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 (1.45%).

High Dividend: CL's dividend (2.26%) is low compared to the top 25% of dividend payers in the US market (3.73%).


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 (62.1%), 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?

1.1yrs

Average management tenure


CEO

Noel Wallace (55yo)

0.8yrs

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's total compensation ($USD2.81M) is below average for companies of similar size in the US market ($USD10.79M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ian Cook
Executive Chairman11.1yrsUS$11.55m0.15% $93.8m
Noel Wallace
President0.8yrsUS$2.81m0.028% $18.1m
Henning Jakobsen
Chief Financial Officer1.8yrsUS$2.22m0.0057% $3.6m
Patricia Verduin
Chief Technology Officer0yrsno data0.0066% $4.3m
Mike Crowe
Chief Information Officer0yrsno datano data
John Faucher
Chief Investor Relations Officer0yrsno datano data
Jennifer Daniels
Chief Legal Officer & Secretary5.3yrsno data0.0046% $3.0m
Valerie Haliburton
Vice President of Global Ethics & Compliance1.1yrsno datano data
Paula Davis
VP & Chief Communications Officer1.5yrsno datano data
John Kooyman
Chief Marketing Officer1.1yrsno data0.0018% $1.2m

1.1yrs

Average Tenure

57yo

Average Age

Experienced Management: CL's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Ian Cook
Executive Chairman11.1yrsUS$11.55m0.15% $93.8m
Noel Wallace
President0.8yrsUS$2.81m0.028% $18.1m
Stephen Sadove
Lead Director0yrsUS$319.04k0.0027% $1.8m
John Cahill
Independent Director14.3yrsUS$303.74k0.0027% $1.7m
C. Harris
Independent Director3.9yrsUS$290.49k0.00088% $566.9k
Lorrie Norrington
Independent Director4.4yrsUS$290.37k0.00010% $64.4k
Michael Polk
Independent Director5.7yrsUS$295.37k0.0017% $1.1m
John Bilbrey
Independent Director4.9yrsUS$292.99k0.00055% $354.3k
Helene Gayle
Independent Director9.9yrsUS$295.49k0.0029% $1.8m
Charles Bancroft
Independent Director3.1yrsUS$290.37k0.00095% $611.9k

4.9yrs

Average Tenure

62yo

Average Age

Experienced Board: CL's board of directors are considered experienced (4.9 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$64.415b
  • Shares outstanding: 857.04m
  • 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
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. It offers oral care products, including toothpastes, toothbrushes, and mouthwashes, as well as pharmaceutical products for dentists and other oral health professionals; and personal care products, such as liquid hand soaps, bar soaps, shower gels, deodorants and antiperspirants, skin care products, and shampoos and conditioners. The company also provides home care products comprising dishwashing detergents, household cleaners, and fabric conditioners; pet nutrition products for everyday nutritional needs; and a range of therapeutic products to manage disease conditions in dogs and cats. Its principal global and regional trademarks include Colgate, Palmolive, elmex, Tom’s of Maine, Sorriso, Speed Stick, Lady Speed Stick, Softsoap, Irish Spring, Protex, Sanex, Elta MD, PCA Skin, Ajax, Axion, Fabuloso, Soupline, and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet. The company markets and sells its oral, personal, and home care products to various retailers, wholesalers, and distributors; and pet nutrition products for dogs and cats through pet supply retailers, veterinarians, and e-commerce retailers. 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 Analysis2020/02/22 00:48
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.