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Colgate-Palmolive Company (CL) Stock

Colgate-Palmolive Company Stock Details, Movements and Public Alerts

Colgate-Palmolive Company (CL): The $83B Consumer Staples Giant Navigating Tariffs and AI Transformation

When Noel Wallace outlined Colgate-Palmolive's path to 2030 at the Barclays Conference, he emphasized three priorities: innovation acceleration, omnichannel demand generation, and AI integration across operations. The company sells products in over 200 countries through brands including Colgate toothpaste, Hill's Science Diet pet nutrition, Irish Spring soap, Fabuloso cleaners, and Tom's of Maine natural products. Despite delivering Q2 2025 revenue of $5.11 billion (beating expectations) and raising EPS 2% to $0.91, Wallace faces headwinds from prolonged tariff impacts and the strategic exit from low-margin private label pet sales. With a $200-300 million productivity program optimizing global supply chains and heavy AI investments reshaping decision-making, Colgate is positioning for sustained growth through technology-driven operational excellence even as near-term organic sales growth trends toward the low end of guidance.

52-Week Range

$98.37 - $75.38

-22.87% from high · +0.65% from low

Avg Daily Volume

110,698

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

22.58

Near market average

Forward P/E

20.12

Earnings expected to grow

PEG Ratio

1.62

Reasonably valued

Price to Book

91.63

EV/EBITDA

14.93

EPS (TTM)

$3.56

Price to Sales

3.25

Beta

0.35

Less volatile than market

How is CL valued relative to its earnings and growth?
Colgate-Palmolive Company trades at a P/E ratio of 22.58, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 20.12 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.62 indicates reasonable value when growth is considered.
What is CL's risk profile compared to the market?
With a beta of 0.35, Colgate-Palmolive Company is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 91.63 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

14.50%

Operating Margin

20.90%

EBITDA

$4.82B

Return on Equity

39.80%

Return on Assets

15.60%

Revenue Growth (YoY)

1.00%

Earnings Growth (YoY)

2.20%

How profitable and efficient is CL's business model?
Colgate-Palmolive Company achieves a profit margin of 14.50%, meaning it retains $14.50 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 20.90% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 39.80% and ROA at 15.60%, the company generates strong returns on invested capital.
What are CL's recent growth trends?
Colgate-Palmolive Company's revenue grew by 1.00% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 2.20% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against HOUSEHOLD & PERSONAL PRODUCTS industry averages for proper context.

Dividend Information

Dividend Per Share

$2.02

Dividend Yield

2.54%

Ex-Dividend Date

Oct 17, 2025

Dividend Date

Nov 14, 2025

What dividend income can investors expect from CL?
Colgate-Palmolive Company offers a dividend yield of 2.54%, paying $2.02 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Oct 17, 2025.
How reliable is CL's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Colgate-Palmolive Company pays $2.02 per share in dividends against earnings of $3.56 per share, resulting in a payout ratio of 56.74%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for Nov 14, 2025.

Company Size & Market

Market Cap

$65.0B

Revenue (TTM)

$20.00B

Revenue/Share (TTM)

$24.57

Shares Outstanding

808.22M

Book Value/Share

$0.87

Asset Type

Common Stock

What is CL's market capitalization and position?
Colgate-Palmolive Company has a market capitalization of $65.0B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 808.22M shares outstanding, the company's ownership is relatively concentrated. As a participant in the HOUSEHOLD & PERSONAL PRODUCTS industry, it competes with other firms in this sector.
How does CL's price compare to its book value?
Colgate-Palmolive Company's book value per share is $0.87, while the current stock price is $75.87, resulting in a price-to-book (P/B) ratio of 87.31. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$95.22

25.50% upside potential

Analyst Recommendations

Strong Buy

4

Buy

8

Hold

7

Sell

1

Strong Sell

0

How reliable are analyst predictions for CL?
20 analysts cover CL with 60% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $95.22 implies 25.5% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on CL?
Current analyst recommendations:4 Strong Buy, 8 Buy, 7 Hold, 1 Sell, 0The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Oct 1, 2025, 07:21 AM

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Colgate-Palmolive Company (CL) Stock Analysis 2025: Complete Investment Guide

The Consumer Staples Giant Betting on AI to Drive the Next Decade

Few consumer products companies can match Colgate-Palmolive's global reach: over 200 countries, dozens of leading brands, and generations of consumer loyalty built on products like Colgate toothpaste and Hill's pet nutrition. Yet when Noel Wallace presented the company's 2030 strategy, he focused less on heritage and more on transformation—specifically, how artificial intelligence and supply chain optimization will sustain competitive advantages as tariffs, inflation, and private label competition pressure margins. The $200-300 million productivity program Wallace launched represents more than cost-cutting; it's a fundamental reshaping of how Colgate manufactures, distributes, and markets products globally. For investors, the question is whether these technology-driven efficiencies can offset slowing category growth and tariff headwinds that pushed 2025 organic sales guidance toward the low end of the 2-4% range.

Business Model & Competitive Moat

Colgate-Palmolive generates revenue across four segments: Oral Care (flagship Colgate, elmex, hello, meridol, Sorriso, Tom's of Maine), Personal Care (EltaMD, Filorga, Irish Spring, Lady Speed Stick, PCA SKIN, Protex, Sanex, Softsoap, Speed Stick), Home Care (Ajax, Axion, Fabuloso, Murphy, Soupline, Suavitel), and Pet Nutrition (Hill's Science Diet and Hill's Prescription Diet). The competitive moat rests on brand strength, global distribution infrastructure, and formulation expertise that sustains premium pricing versus private label alternatives.

What differentiates Colgate from competitors like Procter & Gamble or Unilever is category focus—the company concentrates on oral care leadership globally while maintaining strong positions in adjacent personal and home care categories. Hill's pet nutrition provides diversification and higher margins than traditional consumer products. The agent network spanning 200+ countries creates barriers to entry that new competitors cannot replicate quickly. Wallace's 2030 strategy enhances the moat through AI-driven consumer insights, allowing faster product innovation and more targeted marketing than competitors relying on traditional research methods.

Financial Performance

  • •Q1 2025: Net sales down 3.1% (FX headwind -4.4%), organic sales +1.4%, GAAP EPS $0.85 (+2%), revenue $4.91B (beat estimates)
  • •Q2 2025: Net sales +1.0%, organic sales +1.8%, GAAP EPS $0.91 (+2%), Base Business EPS $0.92 (+1%), revenue $5.11B (beat)
  • •Private Label Impact: Negative -0.4% (Q1) and -0.6% (Q2) from lower private label pet sales; planning strategic exit
  • •Organic Growth Acceleration: Excluding private label impact, Q2 organic sales growth was 2.4%, up 60bps from Q1
  • •FY 2025 Guidance: Organic sales growth now expected at low end of 2%-4% range due to tariff pressures and pet exit
  • •Margins: Productivity program targeting $200-300M savings to offset tariff and input cost inflation

The sequential improvement from Q1 to Q2 demonstrates resilience despite challenging global conditions, though Wallace acknowledges tariff impacts remain prolonged headwinds.

Growth Catalysts

  • •2030 AI Integration: Scaling AI across innovation, marketing, and operations for faster decision-making and product development
  • •Supply Chain Optimization: $200-300M productivity program restructuring global operations for efficiency gains
  • •Premium Oral Care: Innovation in high-margin segments like whitening, sensitivity, and natural products (Tom's of Maine)
  • •Hill's Pet Nutrition Growth: Premiumization trend in pet food supports above-market growth and margin expansion
  • •Emerging Markets: North America improvement and Africa/Eurasia growth driving volume recovery
  • •Private Label Exit: Exiting low-margin private label pet sales to focus on branded, higher-margin products
  • •Digital Commerce: Omnichannel demand generation capturing e-commerce growth trends

Risks & Challenges

  • •Tariff Headwinds: Prolonged tariff impacts compressing margins and pushing organic sales to low end of guidance
  • •Category Slowdown: Slowing category growth across oral care and personal care markets globally
  • •FX Volatility: Q1 saw 4.4% FX headwind; currency fluctuations materially impact reported results
  • •Private Label Competition: Retail private label pressure on pricing power in mature markets
  • •Input Cost Inflation: Commodity and packaging costs require continuous productivity improvements to maintain margins
  • •Emerging Market Volatility: Economic instability in key growth markets affects demand and profitability
  • •Execution Risk: $200-300M productivity program requires successful implementation without disrupting operations

Competitive Landscape

In oral care, Colgate battles Procter & Gamble (Crest, Oral-B), GlaxoSmithKline (Sensodyne, Aquafresh), and regional brands. Colgate maintains global leadership through emerging market strength and innovation in premium segments. In personal care, the company competes with Unilever (Dove, Axe), P&G (Old Spice, Olay), and specialty brands, holding strong positions with Irish Spring and Speed Stick but lacking the scale of mega-brands like Dove.

Hill's pet nutrition faces competition from Nestlé Purina, Mars Petcare (Pedigree, Royal Canin), and premium brands like Blue Buffalo. Hill's differentiates through veterinary science positioning and prescription diet formulations, capturing higher margins than mass-market competitors. In home care, Fabuloso competes with P&G (Mr. Clean), Clorox, and Reckitt (Lysol), with strength in Hispanic markets. Wallace's AI and productivity initiatives aim to widen the competitive gap through operational efficiency advantages that rivals cannot easily replicate.

Who Is This Stock Suitable For?

Perfect For

  • ✓Dividend-focused investors seeking stable 2.48% yield with modest growth
  • ✓Defensive portfolio allocations prioritizing consumer staples stability
  • ✓Long-term holders (5-10+ years) comfortable with single-digit growth
  • ✓Those seeking emerging markets exposure through established brands
  • ✓Investors valuing operational transformation (AI, supply chain) over rapid growth

Less Suitable For

  • ✗Growth investors requiring double-digit revenue/earnings expansion
  • ✗Income investors needing high current yield (2.48% is modest)
  • ✗Short-term traders (consumer staples lack volatility/catalysts for quick gains)
  • ✗Those seeking pure innovation plays (transformation is incremental, not disruptive)

Investment Thesis

Colgate-Palmolive presents a classic defensive consumer staples investment with a technology-driven operational upgrade underway. The bull case centers on Noel Wallace successfully executing the 2030 strategy—leveraging AI to accelerate innovation, optimize supply chains, and improve margins even as category growth slows. The $200-300 million productivity program, if delivered, offsets tariff headwinds and creates competitive advantages through cost structure improvements. Exiting private label pet sales eliminates low-margin revenue while focusing resources on higher-return branded products. With brands spanning 200+ countries and 16-20% analyst upside to price targets averaging $95-96, Colgate offers stability with modest appreciation potential.

The bear case questions whether operational improvements can offset structural headwinds: slowing oral care category growth, persistent FX volatility, tariff pressures that may not abate, and private label competition eroding pricing power. AI investments and supply chain optimization take years to fully realize, while tariff impacts hit immediately. The 2.48% dividend yield is defensive but not compelling for income investors, and single-digit organic growth limits capital appreciation. For conservative investors seeking defensive consumer staples exposure, Colgate's global brand portfolio and transformation initiatives justify allocation. Size as a core holding expecting high-single-digit total returns (dividend + modest appreciation) rather than aggressive growth.

Conclusion

Hold for current investors, buy on dips below $85 for long-term defensive allocation. Colgate offers stability through a challenging consumer environment with operational transformation providing upside optionality. The 2.48% dividend is reliable but modest. Suitable for conservative portfolios seeking consumer staples exposure with 5+ year horizons. Expect high-single-digit total returns rather than aggressive appreciation.
Bull Case
$100-106 (20-27% upside if productivity program delivers and categories stabilize)
Base Case
$95-98 (16-18% upside, matching analyst consensus)
Bear Case
$80-85 (flat to 2% upside if tariffs persist and categories deteriorate)

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