Colgate-Palmolive (CL) Stock Analysis
Here is a fundamental analysis of Colgate-Palmolive (CL), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: CL | Industry group median |
|---|---|---|
| 1-Year Return | -1.53% | -5.68% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: CL | Industry group median |
|---|---|---|
| 1-Year Volatility | 21.84% | 36.58% |
| Beta | 0.33 | 0.61 |
Company Profile
| Profile Item | CL |
|---|---|
| Name | Colgate-Palmolive Company |
| Country/Region | United States |
| GICS Sector | Consumer Staples |
| GICS Industry Group | Household & Personal Products |
| GICS Industry | Household Products |
| GICS Sub-Industry | Household Products |
| Market Capitalization | 71.58 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | May 2, 1973 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Colgate-Palmolive (CL) trades at P/E ratio of 34.67, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.
CL
Household & Personal Products industry group
34.67
Group distribution
- CL
- 34.67
- Max
- 34.67
- Q3
- 24.01
- Median
- 18.98
- Q1
- 15.21
- Min
- 5.30
Largest peers
- CL
- 34.67
- PG
- 21.87
- KVUE
- 21.60
- KMB
- 19.79
- UL
- 19.71
- HLN
- 18.63
- EL
- --
Price-to-Sales Ratio (TTM)
Colgate-Palmolive (CL) trades at 3.44 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
CL
Household & Personal Products industry group
3.44
Group distribution
- Max
- 4.71
- CL
- 3.44
- Q3
- 3.01
- Median
- 1.73
- Q1
- 0.71
- Min
- 0.24
Largest peers
- PG
- 4.02
- HLN
- 3.65
- CL
- 3.44
- UL
- 2.53
- KVUE
- 2.28
- EL
- 2.19
- KMB
- 2.05
Price-to-Book Ratio (MRQ)
Colgate-Palmolive (CL) trades at 494.20 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
CL
Household & Personal Products industry group
494.20
Group distribution
- CL
- 494.20
- Max
- 13.74
- Q3
- 6.82
- Median
- 2.19
- Q1
- 1.22
- Min
- -2.83
Largest peers
- CL
- 494.20
- KMB
- 18.90
- EL
- 8.13
- UL
- 7.17
- PG
- 6.48
- KVUE
- 3.28
- HLN
- 1.85
Valuation at a Glance
| Metric | Current stock: CL | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 34.67 | 18.98 |
| Price-to-Sales Ratio (TTM) | 3.44 | 1.73 |
| Price-to-Book Ratio (MRQ) | 494.20 | 2.19 |
| Free Cash Flow Yield | 4.64% | 5.33% |
Profitability
Return on Equity (TTM)
Colgate-Palmolive (CL) posts ROE of 363.58%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.
CL
Household & Personal Products industry group
363.58%
Group distribution
- CL
- 363.58%
- Max
- 31.30%
- Q3
- 30.96%
- Median
- 15.00%
- Q1
- 1.55%
- Min
- -13.94%
Largest peers
- CL
- 363.58%
- KMB
- 111.73%
- PG
- 31.11%
- UL
- 30.96%
- KVUE
- 15.70%
- HLN
- 10.27%
- EL
- -5.95%
Net Profit Margin (TTM)
Colgate-Palmolive (CL) keeps 10.04% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
CL
Household & Personal Products industry group
10.04%
Group distribution
- Max
- 19.16%
- Q3
- 11.34%
- CL
- 10.04%
- Median
- 6.79%
- Q1
- 2.51%
- Min
- -9.20%
Largest peers
- PG
- 19.16%
- UL
- 18.75%
- HLN
- 15.11%
- KMB
- 12.80%
- KVUE
- 10.61%
- CL
- 10.04%
- EL
- -1.67%
Operating Profit Margin (TTM)
Colgate-Palmolive (CL) turns 20.92% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
CL
Household & Personal Products industry group
20.92%
Group distribution
- Max
- 23.17%
- CL
- 20.92%
- Q3
- 19.85%
- Median
- 12.60%
- Q1
- 7.57%
- Min
- -5.14%
Largest peers
- HLN
- 23.17%
- PG
- 23.05%
- KVUE
- 21.62%
- CL
- 20.92%
- UL
- 20.05%
- KMB
- 19.65%
- EL
- 14.93%
Profitability at a Glance
| Metric | Current stock: CL | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 363.58% | 15.00% |
| Return on Assets (TTM) | 16.10% | 6.97% |
| Net Profit Margin (TTM) | 10.04% | 6.79% |
| Operating Profit Margin (TTM) | 20.92% | 12.60% |
| Gross Profit Margin (TTM) | 60.06% | 50.98% |
Financial Strength
Current Ratio (MRQ)
Colgate-Palmolive (CL) has current ratio of 1.03, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
CL
Household & Personal Products industry group
1.03
Group distribution
- Max
- 6.27
- Q3
- 3.17
- Median
- 2.05
- CL
- 1.03
- Q1
- 1.00
- Min
- 0.73
Largest peers
- EL
- 1.27
- CL
- 1.03
- KVUE
- 0.98
- HLN
- 0.92
- UL
- 0.79
- KMB
- 0.77
- PG
- 0.73
Debt-to-Equity Ratio (MRQ)
Colgate-Palmolive (CL) has debt-to-equity ratio of 16.41, above the industry benchmark range. Debt sits unusually high against shareholders’ equity, leaving the balance sheet more exposed to rate, refinancing, or earnings shocks.
CL
Household & Personal Products industry group
16.41
Group distribution
- CL
- 16.41
- Max
- 2.33
- Q3
- 1.61
- Median
- 0.81
- Q1
- 0.40
- Min
- 0.02
Largest peers
- CL
- 16.41
- KMB
- 3.71
- EL
- 2.33
- UL
- 1.61
- KVUE
- 0.83
- PG
- 0.68
- HLN
- 0.52
Financial Strength at a Glance
| Metric | Current stock: CL | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.03 | 2.05 |
| Debt-to-Equity Ratio (MRQ) | 16.41 | 0.81 |
| Net Debt / EBITDA | 1.33 | 2.14 |
Dividends
Dividend Yield (TTM)
Colgate-Palmolive (CL) has dividend yield of 2.37%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
CL
Household & Personal Products industry group
2.37%
Group distribution
- Max
- 5.93%
- Q3
- 2.99%
- CL
- 2.37%
- Median
- 1.56%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- KMB
- 5.01%
- KVUE
- 4.58%
- UL
- 3.87%
- PG
- 2.85%
- CL
- 2.37%
- HLN
- 2.11%
- EL
- 1.56%
Dividend Payout Ratio (TTM)
Colgate-Palmolive (CL) has payout ratio of 80.62%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
CL
Household & Personal Products industry group
80.62%
Group distribution
- Max
- 98.51%
- CL
- 80.62%
- Q3
- 71.90%
- Median
- 37.08%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- EL
- 471.43%
- KVUE
- 98.51%
- KMB
- 97.87%
- CL
- 80.62%
- UL
- 78.60%
- PG
- 61.80%
- HLN
- 37.08%
Dividends at a Glance
| Metric | Current stock: CL | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.37% | 1.56% |
| Dividend Payout Ratio (TTM) | 80.62% | 37.08% |