Colgate-Palmolive Company (CL) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Consumer Defensive · Household & Personal Products
Is Colgate-Palmolive Company a safe investment right now?
Colgate-Palmolive Company's Altman Z-Score of 6.6 places it in the safe zone. Our fair value estimate is $82.73 (Watch Zone). Moat rating: 3.7/5 stars.
Could Colgate-Palmolive Company go bankrupt? Altman Z-Score analysis
Z-Score of 6.6 is above 3.0, indicating the company is financially healthy by this metric.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives CL's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | -0.0701 | 1.2 | -0.08 |
| B · Retained Earnings / Total Assets | RE / TA | 1.6286 | 1.4 | 2.28 |
| C · EBIT / Total Assets | EBIT / TA | 0.2037 | 3.3 | 0.67 |
| D · Market Cap / Total Liabilities | MCap / TL | 4.1384 | 0.6 | 2.48 |
| E · Revenue / Total Assets | Rev / TA | 1.2481 | 1.0 | 1.25 |
How has CL's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 6.66 | Safe |
| 2023 | 6.69 | Safe |
| 2024 | 6.93 | Safe |
| 2025 | 6.6 | Safe |
Source: Calculated from CL's latest 10-K filing on SEC EDGAR.
What is Colgate-Palmolive Company actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $3.11 | Proprietary blend of reported actuals + analyst consensus, weighted by α |
| Last Year EPS | $2.63 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $3.84 | 19 analysts consensus |
| Trailing P/E | 31.3x | Current market pricing |
| Fair P/E (β discount) | 26.6x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Accelerating | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $95.63 (19 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Colgate-Palmolive Company have a durable competitive advantage?
Moat rating: 3.7/5.
What makes up CL's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 4/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is CL's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 30.8% | — |
| 2023 | 40.2% | Rising |
| 2024 | 52.0% | Rising |
| 2025 | 41.4% | Declining |
Source: ROIC calculated from SEC EDGAR filings.
Is Colgate-Palmolive Company's dividend safe?
Can Colgate-Palmolive Company afford its dividend?
Payout ratio is 78.3%. FCF covers the dividend 1.1x. 54 consecutive years of payments.
Colgate-Palmolive Company's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $20.4B | $20.1B | $18.0B | Rising |
| Net Income | $2.1B | $2.9B | $1.8B | Rising |
| Free Cash Flow | $3.6B | $3.5B | $1.9B | Rising |
| Gross Margin | 60.1% | 60.5% | 57.0% | Rising |
Recent events that affect our CL analysis
CL earnings report scheduled
Upcoming report. Consensus EPS estimate: $0.94. Revenue estimate: $5.22B. Our current Fair Value: $82.73 — a significant beat or miss could shift this estimate.
CL analyst consensus: 65% bullish (13 of 20 analysts)
6 Strong Buy, 7 Buy, 7 Hold, 0 Sell, 0 Strong Sell. Consensus target: $95.63 (16.1% upside). Compare with our independent Fair Value: $82.73.
CL paid $0.5300/share dividend
Dividend Safety Grade: B. Payout ratio: 78.3%.
CL filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CL filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CL filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CL filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
CL beat EPS estimates by 4.2%
Reported EPS: $0.95 vs estimate $0.91. Earnings strength supports our Fair Value of $82.73 (0.5% above current price).
CL filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CL paid $0.5200/share dividend
Dividend Safety Grade: B. Payout ratio: 78.3%.
CL filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CL beat EPS estimates by 2.4%
Reported EPS: $0.91 vs estimate $0.89. Earnings strength supports our Fair Value of $82.73 (0.5% above current price).
CL filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
CL filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CL paid $0.5200/share dividend
Dividend Safety Grade: B. Payout ratio: 78.3%.
CL beat EPS estimates by 2.8%
Reported EPS: $0.92 vs estimate $0.89. Earnings strength supports our Fair Value of $82.73 (0.5% above current price).
CL filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
CL filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CL paid $0.5200/share dividend
Dividend Safety Grade: B. Payout ratio: 78.3%.
CL filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CL filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CL filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CL beat EPS estimates by 6.1%
Reported EPS: $0.91 vs estimate $0.86. Earnings strength supports our Fair Value of $82.73 (0.5% above current price).
CL filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
CL filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CL paid $0.5200/share dividend
Dividend Safety Grade: B. Payout ratio: 78.3%.
CL filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
CL beat EPS estimates by 2.3%
Reported EPS: $0.91 vs estimate $0.89. Earnings strength supports our Fair Value of $82.73 (0.5% above current price).
CL filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
CL paid $0.5000/share dividend
Dividend Safety Grade: B. Payout ratio: 78.3%.
Common questions about Colgate-Palmolive Company
What is Colgate-Palmolive Company stock price today?
Colgate-Palmolive Company (CL) stock price is $82.35 as of the latest market close, traded on the NYSE exchange.
What does Colgate-Palmolive Company do?
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.
What is Colgate-Palmolive Company market cap?
Colgate-Palmolive Company has a market capitalization of $66.07B, classifying it as a large-cap stock in the Consumer Defensive sector.
What sector and industry is CL in?
Colgate-Palmolive Company operates in the Consumer Defensive sector, specifically within the Household & Personal Products industry. It trades on the NYSE under the ticker symbol CL.
Is CL stock overvalued or undervalued?
Based on our valuation model, Colgate-Palmolive Company trades 0.5% below our fair value estimate — potentially undervalued.
- FairValueLabs Fair Value: $82.73
- Current Price: $82.35
- Valuation Zone: Watch Zone
What is CL stock forecast and analyst target price?
Based on 19 Wall Street analysts, the consensus price target for Colgate-Palmolive Company is $95.63, implying upside of 16.1% from the current price.
- Analyst High Target: $105.00
- Analyst Low Target: $79.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Colgate-Palmolive Company revenue and earnings growing?
Here are the analyst consensus growth estimates for Colgate-Palmolive Company:
- Revenue growth (current year est.): 4.5%
- EPS growth (current year est.): 4.0%
- Revenue growth (next year est.): 3.3%
- EPS growth (next year est.): 6.4%
What are Colgate-Palmolive Company's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $20.4B | Rising |
| Net Income | $2.1B | Rising |
| Free Cash Flow | $3.6B | Rising |
| Gross Margin | 60.1% | Rising |
What is CL's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 31.3x
- Forward P/E (next 12 months est.): 20.2x
- FairValueLabs Fair P/E: 26.6x
How volatile is CL stock?
Colgate-Palmolive Company has a beta of 0.33, meaning it is less volatile than the broader market. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Colgate-Palmolive Company have?
Colgate-Palmolive Company's balance sheet shows:
- Total Cash: $1.40B
- Total Debt: $8.55B
- Net Cash Position: $-7.16B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Colgate-Palmolive Company's free cash flow?
Colgate-Palmolive Company generated $3.08B in trailing twelve-month free cash flow (from $4.20B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Colgate-Palmolive Company pay a dividend, and is it safe?
Yes, Colgate-Palmolive Company pays a regular dividend. Here are the key metrics:
- Dividend Yield: 2.5%
- Payout Ratio: 78.3%
- Consecutive Years Paid: 54
- 5-Year Dividend Growth: -10.1%
- FairValueLabs Safety Grade: B
Is Colgate-Palmolive Company at risk of going bankrupt?
Colgate-Palmolive Company's Altman Z-Score is 6.60, placing it in the safe zone (above 3.0) — bankruptcy risk is low. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Colgate-Palmolive Company have a durable competitive advantage?
Colgate-Palmolive Company scores 3.7/5 stars (Solid moat · eroding) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 4/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
What is CL's return on equity (ROE)?
Colgate-Palmolive Company's return on equity is 497.5%. ROE measures how efficiently a company generates profits from shareholder equity. An ROE above 15% is generally considered strong, while below 10% may signal inefficiency.
How do I buy CL stock?
CL shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol CL
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is CL a value stock or speculative?
FairValueLabs classifies Colgate-Palmolive Company as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Colgate-Palmolive Company?
The current CEO of Colgate-Palmolive Company is Mr. Noel R. Wallace.
What is CL's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $2.63
- Forward EPS (next 12 months est.): $4.07
- Analyst consensus EPS (this year): $3.84
- Analyst consensus EPS (next year): $4.09
Other Consumer Defensive companies analyzed by FairValueLabs
FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
CL analysis methodology: How we calculate fair value, Z-Scores, and moat ratings