About Colgate-Palmolive Company
Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products in the United States and internationally. It 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. This segment markets and sells its products under the Colgate, Palmolive, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, EltaMD, Filorga, Irish Spring, Lady Speed Stick, PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Murphy, Soupline, and Suavitel brands to a range of traditional and eCommerce retailers, wholesalers, and distributors, as well as dentists and skin health professionals. It also offers pharmaceutical products for dentists and other oral health professionals. The Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic pet products to help nutritionally support dogs and cats in different stages of health under the Hill's Prescription Diet brand; and a fresh pet food sold to pet specialty and other retailers in Australia under Prime100 brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.
Colgate-Palmolive Company (CL) is a Consumer Defensive company in the Household & Personal Products industry with a market capitalisation of $75B. The stock trades at 37.02x trailing earnings and yields 2.25%.
- Sector
- Consumer Defensive
- Industry
- Household & Personal Products
- Market cap
- $75B
- P/E ratio
- 37.02
- Forward P/E
- 23.01
- EPS (TTM)
- $2.54
- Revenue (TTM)
- $21B
- Free cash flow
- $3.5B
- Profit margin
- 9.7%
- Dividend yield
- 2.25%
- Beta
- 0.32
- Shares outstanding
- 797.2M
Financial health: Fair5/10
4 strengths, 4 concerns. Weakest points: debt to equity, current ratio, earnings growth and 1 more.
- Debt to equity: 147.89 (Concern, benchmark < 0.5) — Debt of 147.89x equity is high against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 1.8y (Strong, benchmark < 4 years) — Net debt of $6.7B is 1.8x annual free cash flow — about 2 years of cash flow to repay.
- Current ratio: 0.83 (Concern, benchmark > 1.5) — Short-term assets cover only 0.83x short-term liabilities — below 1.0, meaning bills due this year exceed the assets on hand to pay them. It has deteriorated over the last 4 years.
- Return on equity: 267.4% (Strong, benchmark > 15%) — Earns 267.4% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 60.4% (Strong, benchmark > 40%) — Keeps 60.4% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 9.7% (Watch, benchmark > 10%) — Turns 9.7% of revenue into profit, short of the > 10% mark.
- Free cash flow: $3.6B (Strong, benchmark positive) — Generated $3.6B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 4.9% (Watch, benchmark > 10%) — Revenue changed 4.9% year on year, short of the > 10% mark.
- Earnings growth: -5.5% (Concern, benchmark > 10%) — Earnings changed -5.5% year on year, well short of the > 10% mark.
- PEG ratio: 1.60 (Watch, benchmark < 1) — At 1.60, the price looks fair relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 82.3% (Concern, benchmark < 60%) — Pays out 82.3% of earnings as dividends — above the level usually considered sustainable.