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1. Company Snapshot

1.a. Company Description

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.


This segment markets and sells its products under various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, Soupline, and Cuddly to a range of traditional and eCommerce retailers, wholesalers, and distributors.It also includes 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 products to manage disease conditions in dogs and cats under the Hill's Prescription Diet 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.

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1.b. Last Insights on CL

Colgate-Palmolive Company's recent performance was driven by strong Q4 earnings and revenue growth, despite missing revenue estimates. The company reported organic sales growth in five of its six divisions, led by gains from volume and pricing. Improved gross margins also aided EPS growth. Furthermore, Colgate's premium innovations and enhanced advertising efforts have strengthened its market position, countering macroeconomic pressures.

1.c. Company Highlights

2. Colgate-Palmolive's Q3 2025 Earnings: A Resilient Performance Amidst Challenges

Colgate-Palmolive reported a mixed Q3 2025, with revenues growing 1.2% on an organic basis, driven by a combination of pricing and volume. The company's gross profit margin was impacted by anomalies, but management is confident in its ability to improve gross profit going forward. Earnings per share (EPS) came in at $0.91, beating estimates of $0.889. The company's EPS growth was driven by its sales growth and productivity program, which includes initiatives such as a new innovation model and omnichannel diversification.

Publication Date: Nov -04

📋 Highlights
  • Q3 Organic Sales Growth:: Achieved 2.5% growth in the Hill's segment despite category slowdown, driven by Prescription Diet market share gains.
  • Regional Performance:: Latin America saw 4% growth in Mexico and Brazil, contrasting with sluggish volumes in developed markets like North America and Europe.
  • AI & Innovation Investment:: Increased focus on agentic AI for marketing and innovation, with early pilots showing improved brand engagement and efficiency.
  • Q4 Guidance:: Organic sales growth expected to remain around 1.2%, with gross profit margin recovery anticipated despite 50-basis-point gross margin decline.

Segment Performance

The company's oral care segment saw a decline due to the replacement of trade inventories in connection with a formula change. However, management noted that consumer complaints related to the new flavor have subsided since the adjustment, and market shares have begun to improve. The Hill's segment delivered 2.5% organic sales growth, excluding private label, driven by the Prescription Diet business and market share gains.

Guidance and Outlook

For Q4, Colgate-Palmolive expects organic sales growth to be roughly in line with the year-to-date, around 1.2%. Management is confident in its ability to drive growth through its investments in AI and predictive analytics, as well as its focus on omnichannel demand generation and science-based innovation. Analysts estimate revenue growth of 3.7% for next year, which suggests a positive outlook for the company's top-line growth.

Valuation

Colgate-Palmolive's current valuation metrics suggest a premium valuation, with a P/E Ratio of 20.84 and a P/S Ratio of 3.02. The company's ROE is significantly high at 545.15%, driven by its strong brand portfolio and efficient operations. The dividend yield is 2.75%, which is attractive for income investors. Overall, the company's valuation metrics suggest that investors are pricing in a certain level of growth and profitability, which management is confident in delivering through its strategic initiatives.

3. NewsRoom

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Colgate-Palmolive Company (CL) Presents at Morgan Stanley Global Consumer & Retail Conference 2025 Transcript

Dec -02

Source: seekingalpha.com

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Colgate-Palmolive: Wide Moat And A Mispriced Future

Nov -26

Source: seekingalpha.com

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Advisors Asset Management Inc. Reduces Stake in Colgate-Palmolive Company $CL

Nov -26

Source: defenseworld.net

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Colgate-Palmolive Target of Unusually Large Options Trading (NYSE:CL)

Nov -25

Source: defenseworld.net

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5 Top Dividend Stocks to Buy in November

Nov -24

Source: fool.com

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Colgate-Palmolive: This Dividend King Is Rebounding (Technical Analysis)

Nov -24

Source: seekingalpha.com

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Bahl & Gaynor Inc. Cuts Holdings in Colgate-Palmolive Company $CL

Nov -23

Source: defenseworld.net

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Is Colgate's Innovation Engine Enough to Revive Its Volumes?

Nov -20

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.86%)

6. Segments

Oral, Personal and Home Care - Latin America

Expected Growth: 5.3%

Strong brand recognition, increasing demand for personal care products, and expanding distribution channels drive growth in oral, personal, and home care products in Latin America, supported by Colgate-Palmolive’s strong presence in the region.

Oral, Personal and Home Care - North America

Expected Growth: 4.5%

Increasing demand for premium oral care products, growing popularity of naturals and organics, and rising awareness about personal hygiene drive growth in Colgate-Palmolive’s North American oral, personal and home care segment.

Oral, Personal and Home Care - Asia Pacific

Expected Growth: 4.6%

Increasing demand for premium oral care products, growing awareness of personal hygiene, and rising middle-class population driving home care products in the Asia Pacific region contribute to Colgate-Palmolive’s Oral, Personal and Home Care division’s growth.

Oral, Personal and Home Care - Europe

Expected Growth: 4.5%

Steady demand for oral and personal care products, driven by consumers' increasing focus on health and wellness, coupled with Colgate-Palmolive's strong brand portfolio and innovation capabilities, will fuel growth in Europe.

Oral, Personal and Home Care - Africa/Eurasia

Expected Growth: 4.5%

Growing middle class, increasing awareness of oral and personal hygiene, and urbanization drive demand for Colgate-Palmolive’s oral, personal and home care offerings in Africa and Eurasia.

Pet Nutrition

Expected Growth: 5.2%

Growing pet humanization, increasing adoption of premium pet food, and expanding distribution channels drive Colgate-Palmolive’s growth in the pet nutrition segment.

7. Detailed Products

Colgate Toothpaste

A range of toothpastes for oral care, including whitening, sensitivity, and cavity protection

Palmolive Dish Soap

A line of dish soaps for cleaning dishes and utensils

Irish Spring Body Wash

A range of body washes for personal hygiene

Softsoap Body Wash

A line of body washes for moisturizing and cleansing

Colgate Mouthwash

A range of mouthwashes for oral care and fresh breath

Palmolive Laundry Detergent

A line of laundry detergents for washing clothes

Fabuloso Cleaning Products

A range of cleaning products for home and surfaces

Murphy Oil Soap

A line of cleaning products for wood and surfaces

8. Colgate-Palmolive Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Colgate-Palmolive Company is medium due to the presence of alternative products in the market, such as private label brands and natural/organic products.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand portfolio and wide distribution network, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the company's dependence on a few large suppliers for raw materials, but the company's scale and negotiating power mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the consumer goods industry, including significant capital requirements and the need for a strong distribution network.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several large competitors in the industry, including Procter & Gamble and Unilever, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 93.42%
Debt Cost 4.56%
Equity Weight 6.58%
Equity Cost 5.92%
WACC 4.65%
Leverage 1419.38%

11. Quality Control: Colgate-Palmolive Company passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Kimberly-Clark

A-Score: 5.6/10

Value: 3.2

Growth: 4.4

Quality: 6.0

Yield: 8.0

Momentum: 2.0

Volatility: 10.0

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Procter & Gamble

A-Score: 5.3/10

Value: 2.8

Growth: 4.4

Quality: 7.4

Yield: 5.0

Momentum: 2.0

Volatility: 10.0

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Colgate-Palmolive

A-Score: 5.1/10

Value: 3.1

Growth: 4.9

Quality: 6.7

Yield: 5.0

Momentum: 1.0

Volatility: 10.0

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Church & Dwight Co

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Value: 2.4

Growth: 5.0

Quality: 6.9

Yield: 2.0

Momentum: 2.0

Volatility: 9.7

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Kenvue

A-Score: 4.6/10

Value: 4.3

Growth: 3.4

Quality: 6.2

Yield: 8.0

Momentum: 1.5

Volatility: 4.0

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Estee Lauder

A-Score: 2.9/10

Value: 3.3

Growth: 1.7

Quality: 2.7

Yield: 2.0

Momentum: 4.0

Volatility: 4.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

77.92$

Current Price

77.92$

Potential

-0.00%

Expected Cash-Flows