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CL

Colgate-Palmolive NYSE:CL Stock Report

Last Price

US$75.12

Market Cap

US$63.4b

7D

-3.1%

1Y

-10.7%

Updated

19 May, 2022

Data

Company Financials +
CL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance2/6
Financial Health4/6
Dividends5/6

CL Stock Overview

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

Colgate-Palmolive Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Colgate-Palmolive
Historical stock prices
Current Share PriceUS$75.12
52 Week HighUS$85.61
52 Week LowUS$72.20
Beta0.55
1 Month Change-6.81%
3 Month Change-5.57%
1 Year Change-10.67%
3 Year Change4.70%
5 Year Change-0.33%
Change since IPO1,785.36%

Recent News & Updates

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.

Apr 20
Is Colgate-Palmolive (NYSE:CL) A Risky Investment?

Is Colgate-Palmolive (NYSE:CL) A Risky Investment?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

CLUS Household ProductsUS Market
7D-3.1%-7.1%0.1%
1Y-10.7%-0.1%-12.7%

Return vs Industry: CL underperformed the US Household Products industry which returned 3.3% over the past year.

Return vs Market: CL matched the US Market which returned -11.5% over the past year.

Price Volatility

Is CL's price volatile compared to industry and market?
CL volatility
CL Average Weekly Movement3.7%
Household Products Industry Average Movement4.7%
Market Average Movement8.0%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.0%

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

FoundedEmployeesCEOWebsite
180633,800Noel Wallacehttps://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 CapUS$63.44b
Earnings (TTM)US$2.04b
Revenue (TTM)US$17.48b

30.8x

P/E Ratio

3.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CL income statement (TTM)
RevenueUS$17.48b
Cost of RevenueUS$7.17b
Gross ProfitUS$10.31b
Other ExpensesUS$8.27b
EarningsUS$2.04b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 29, 2022

Earnings per share (EPS)2.44
Gross Margin59.00%
Net Profit Margin11.70%
Debt/Equity Ratio1,044.9%

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


42.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CL ($75.12) 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 (21.7x).

PE vs Market: CL is poor value based on its PE Ratio (30.8x) compared to the US market (15.5x).


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 (4.2x).


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 (12.4% 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 (1.57%).

High Dividend: CL's dividend (2.5%) is low compared to the top 25% of dividend payers in the US market (4.07%).


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 ($USD15.46M) is about average for companies of similar size in the US market ($USD13.26M).

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.


Top Shareholders

Company Information

Colgate-Palmolive Company's employee growth, exchange listings and data sources


Key Information

  • Name: Colgate-Palmolive Company
  • Ticker: CL
  • Exchange: NYSE
  • Founded: 1806
  • Industry: Household Products
  • Sector: Household
  • Implied Market Cap: US$63.441b
  • Shares outstanding: 837.94m
  • Website: https://www.colgatepalmolive.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/19 00:00
End of Day Share Price2022/05/19 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.