CL Colgate-Palmolive Co

Colgate-Palmolive is a global consumer goods company best known for oral care, personal care, home care, and pet nutrition products sold across 200 countries. Sector: Consumer Staples.

Colgate-Palmolive Co (CL) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

On a capital return basis, ROIC is 32.59%, WACC is 5.70%, and the economic spread is 26.89%. On balance, the company is compounding at rates that meaningfully exceed what capital costs would otherwise allow. Supporting metrics show ROE at 492.33% and ROA at 14.52%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company with credible compounding capacity if current operating execution persists.

On an earnings multiple basis, trailing P/E of 32.44, forward P/E of 21.96, PEG of 6.40. Forward P/E sits materially below trailing P/E, which supports the view that earnings expectations are improving and the company looks cheaper on forward numbers. The PEG ratio is elevated, suggesting investors are paying a premium for the growth embedded in current earnings estimates. A current ratio of 0.83 signals that short-term coverage is tighter than typical across the company. Combining multiples and liquidity, the company appears adequately priced for its current earnings trajectory, with balance sheet health providing a degree of downside resilience.

Stripping to unit economics, gross margin sits at 60.11%, operating margin at 20.78%, and free cash flow margin at 17.83%. Gross margins are exceptional, reflecting strong pricing power and a defensible cost structure. The operating margin reading is constructive, suggesting management teams are managing overhead costs effectively. At this FCF margin level, the company demonstrate good cash generation relative to the revenue base. Read in combination, these margins suggest a business model that protects profitability across multiple cost layers.

Connecting operational trends with market expectations, TTM revenue growth of 5.76% indicating steady top-line growth at the company level, while the estimated 12-month price change of 13.27%, where consensus targets suggest reasonable upside rather than a step-change rerating. At 47.7%, the projected 12-month EPS growth rate is strong enough to be a primary driver of the forward investment case rather than a peripheral supporting detail. Operating momentum and analyst expectations are related but distinct — the former is backward-looking by nature, the latter inherently speculative. Against that backdrop, the more durable question is whether operating trends can be sustained long enough for analyst expectations to be validated. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Overall, the fundamentals support a constructive stance — execution remains the key driver of whether the forward case is fully validated.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.