Colgate-Palmolive (NYSE:CL) - Share price, News & Analysis

CL fundamental analysis
Snowflake Score
Valuation	2/6
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.

Rewards

Trading at 42.6% below our estimate of its fair value

Earnings are forecast to grow 8.82% per year

Pays a reliable dividend of 2.5%

Risk Analysis

Has a high level of debt

Significant insider selling over the past 3 months

Colgate-Palmolive Competitors

Kimberly-Clark

NYSE:KMB

US$43.2b

Spectrum Brands Holdings

NYSE:SPB

US$3.5b

Johnson & Johnson

NYSE:JNJ

US$465.7b

Nestlé

SWX:NESN

CHF312.4b

Price History & Performance

Summary of all time highs, changes and price drops for Colgate-Palmolive
Historical stock prices
Current Share Price	US$75.13
52 Week High	US$85.61
52 Week Low	US$72.20
Beta	0.55
1 Month Change	-8.49%
3 Month Change	-5.56%
1 Year Change	-10.80%
3 Year Change	5.52%
5 Year Change	-0.42%
Change since IPO	1,785.62%

Recent News & Updates

May 21

Colgate-Palmolive: At $75, It's Not A Bad Buy For Income Investors

Colgate-Palmolive has struggled to create much shareholder value over the past decade. However, it's faring alright now despite the current inflationary uncertainty. Given the company's low growth rate, it's not an exciting buy, but shares are a fair value here for investors wanting an ultra-safe Dividend King.

Apr 30

Colgate-Palmolive Is Still Expensive, Yet Closer To An Entry Point

Colgate-Palmolive is a dividend king that raised its annual dividend for 59 years in a row. Colgate-Palmolive has been elusive, as I never added it to my portfolio due to its valuation. The higher volatility across the markets may serve as an opportunity to buy Colgate-Palmolive.

Apr 20

Colgate-Palmolive: A Masterclass In Long-Term Value Creation

In spite of certain short-term headwinds, Colgate-Palmolive remains one of the highest quality Home & Personal Care businesses. Rising commodity prices created only a temporary headwind for Colgate's valuation. The company retains the crown in terms of a high return on capital, best-in-class brands, and outstanding capital allocation.

Shareholder Returns

	CL	US Household Products	US Market
7D	-4.2%	-8.0%	-2.7%
1Y	-10.8%	0.09%	-12.9%

Return vs Industry: CL underperformed the US Household Products industry which returned 0.1% over the past year.

Return vs Market: CL exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is CL's price volatile compared to industry and market?
CL volatility
CL Average Weekly Movement	3.7%
Household Products Industry Average Movement	4.7%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: CL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CL's weekly volatility (4%) 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 Fundamentals Summary

How do Colgate-Palmolive's earnings and revenue compare to its market cap?
CL fundamental statistics
Market Cap	US$62.95b
Earnings (TTM)	US$2.04b
Revenue (TTM)	US$17.48b

30.8x

P/E Ratio

3.6x

P/S Ratio

Is CL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CL income statement (TTM)
Revenue	US$17.48b
Cost of Revenue	US$7.17b
Gross Profit	US$10.31b
Other Expenses	US$8.27b
Earnings	US$2.04b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 29, 2022

Earnings per share (EPS)	2.44
Gross Margin	59.00%
Net Profit Margin	11.70%
Debt/Equity Ratio	1,044.9%

How did CL perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

74%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

42.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CL ($75.13) is trading below our estimate of fair value ($130.99)

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 (30.8x) compared to the US Household Products industry average (21.2x).

PE vs Market: CL is poor value based on its PE Ratio (30.8x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: CL is poor value based on its PEG Ratio (3.5x)

Price to Book Ratio

PB vs Industry: CL is overvalued based on its PB Ratio (196.1x) compared to the US Household Products industry average (4x).

Future Growth

How is Colgate-Palmolive forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CL's forecast earnings growth (8.8% per year) is above the savings rate (1.9%).

Earnings vs Market: CL's earnings (8.8% per year) are forecast to grow slower than the US market (12.5% 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 (7.8% 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 (530%).

Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

2.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CL has high quality earnings.

Growing Profit Margin: CL's current net profit margins (11.7%) are lower than last year (15.9%).

Past Earnings Growth Analysis

Earnings Trend: CL's earnings have grown by 2.3% 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 (-23.2%) over the past year, making it difficult to compare to the Household Products industry average (-7.7%).

Return on Equity

High ROE: Whilst CL's Return on Equity (303.98%) is outstanding, this metric is skewed due to their high level of debt.

Financial Health

How is Colgate-Palmolive's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CL's short term assets ($5.0B) exceed its short term liabilities ($4.6B).

Long Term Liabilities: CL's short term assets ($5.0B) do not cover its long term liabilities ($10.4B).

Debt to Equity History and Analysis

Debt Level: CL's net debt to equity ratio (915.5%) is considered high.

Reducing Debt: CL had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: CL's debt is well covered by operating cash flow (40.9%).

Interest Coverage: CL's interest payments on its debt are well covered by EBIT (21.6x coverage).

Balance Sheet

Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CL's dividend (2.5%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: CL's dividend (2.5%) is low compared to the top 25% of dividend payers in the US market (4.11%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (74.2%), CL's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (62.2%), CL's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure

CEO

Noel Wallace (57 yo)

3.83yrs

Tenure

US$15,458,151

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 ($USD15.46M) is about average for companies of similar size in the US market ($USD13.34M).

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

Leadership Team

Experienced Management: CL's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: CL's board of directors are considered experienced (6.4 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31