Colgate-Palmolive Company (CL) AI Stock Analysis

Colgate-Palmolive Company manufactures and distributes consumer products worldwide across two main segments: Oral, Personal and Home Care, and Pet Nutrition. The Oral, Personal and Home Care segment offers toothpaste, toothbrushes, mouthwash, soaps, shower gels, shampoos, conditioners, deodorants, skin health items, detergents, fabric conditioners, and household cleaners under brands including Colgate, Palmolive, Tom's of Maine, Irish Spring, and Softsoap, along with dental pharmaceutical products. The Pet Nutrition segment provides everyday and therapeutic nutrition for dogs and cats under the Hill's Science Diet and Hill's Prescription Diet brands through retailers, veterinarians, and eCommerce platforms.

Revenue expanded from $17.42B in FY2021 to $20.38B in FY2025, representing a 5-year revenue CAGR of 4.4%. Gross margin reached 60.1% in FY2025, with an operating margin of 16.2% and net income of $2.13B. Annual EPS increased from $3.20 in FY2021 to $3.69 in FY2025. In the latest quarter ending June 30, 2026, quarterly revenue rose 4.9% year-over-year, while quarterly earnings declined 5.5% year-over-year. Trailing twelve-month revenue stood at $21.05B with a net profit margin of 9.7% and an operating margin of 21.0%.

As of June 30, 2026, Colgate-Palmolive held $1.37B in cash and short-term investments against total debt of $7.86B, resulting in net debt of $6.49B. Shareholders' equity was $236.0M, and the current ratio was 1.03. In FY2025, operating cash flow was $4.20B and free cash flow was $3.63B. Capital expenditures were $564.0M, while cash returned to shareholders included $1.21B in share buybacks and $1.82B in dividends paid.

Colgate-Palmolive trades at a trailing P/E of 37.1x and a forward P/E of 21.0x, both above the median of its S&P 500 Consumer Defensive peers of 23.3x and 15.2x, respectively. Its enterprise value to EBITDA ratio is 19.5x compared to the peer median of 13.3x, and its price-to-sales ratio is 3.6x against the peer median of 1.6x. The stock gained 23.5% over the past year, exceeding the S&P 500 (SPY) return of 16.8%, but its 5-year return of 39.0% trailed the S&P 500 return of 83.0%.

Colgate-Palmolive pays an annual forward dividend of $2.12 per share, yielding 2.25% with a payout ratio of 55.2%. Dividends are distributed quarterly and have been paid for 54 consecutive years. Over the past five years, the dividend has grown at an annualized rate of 3.3%. Its last ex-dividend date was October 20, 2026.

Wall Street analysts maintain 7 Strong Buy, 6 Buy, and 8 Hold ratings on the stock, with 0 Sell and 0 Strong Sell ratings. The mean price target is $98.10, indicating a 4.2% premium over the October 16, 2026 close of $94.11. For the fiscal year ending December 31, 2026, analysts estimate EPS of $3.87 on revenue of $21.40B. The company has beaten EPS estimates in each of the last 4 quarters, with the next earnings release scheduled for October 30, 2026.

This page is an AI-written research summary of Colgate-Palmolive Company (CL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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