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Home
Stocks
Colgate-Palmolive Company
EL7 Factor Analysis
How we score this
Overall72
Strong — clearly above market medianHigh FlyerF 4/9SafeBetter than 72% of Market stocks, per EL7's model
FactorScoreDistributionValueAvgRank
▸
Valuation
35
34.4x▼17.8xBottom tier
▸
Growth
47
5.2%▼7.1%Around median
▸
Quality
96
27.6%▲4.5%Top tier
▸
Safety
68
1.9x▲2.6xTop tier
▸
Capital Return
41
2.42%▲2.12%Around median
▸
Momentum
56
10.6%▲2.9%Around median
▸
Sentiment
43
12▲3Around median
CL

CL Colgate-Palmolive Company

Colgate-Palmolive Company · NYSE
Market Closed
86.80
▼ ⁦-1.25%⁩ (-1.10)
Market Cap$69.5B
Beta0.33
52w Low52w High
74.5599.33
Last Week
⁦-3.66%⁩
Last Month
⁦-5.97%⁩
Last 3 Months
⁦-3.50%⁩
Last Year
⁦+2.99%⁩
Fair Value
Current price$87
Analyst target · 6 analysts
$100
⁦+15%⁩
See it undervalued
Range ⁦$79–$109⁩
vs
DCF (estimate)
$78
⁦-11%⁩
Sees it slightly overvalued
⁦7.9⁩% discount · ⁦1⁩% growth
Bottom lineThe two methods disagree — estimate range ⁦$78–$100⁩.

Estimates — analyst targets and a simplified DCF, not investment advice.

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Analyst Consensus

This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.

Price Target· 6 analysts setting price target
$97.78
⁦+12.6%⁩
Current Price $86.80·Median $100.00
Low
$79.00
High
$109.00
Current price
$86.80
Average target
$97.78
Street summary

Clear Divergence in Analysts’ Outlook on CL Stock

Consensus estimates remained at $97.78 over the last 7 days, with no change in the number of analysts, while they declined marginally by $0.22, or 0.22%, over the last 30 days from $98. The target range is between $79 and $109, with a median average of $100, reflecting notable dispersion compared with the current price of $86.8.

As of 2026-09-11
Revisions momentum · 30d
⁦-0.2%⁩
Average rating
★ 3.90
Buy
Analyst coverage
21
Buy conviction
62%
Mixed
Rating activity · 30d
1↑ · 2↓
Target dispersion
35%
Wide
Analyst ratings over time21 analysts rating
6
7
8
Strong BuyBuyHoldSellStrong Sell
Rating trend — last 12 months3.81 → 3.90
Recent analyst moves
  • ⬆ Upgrade2026-09-11
    Bernstein
    Market PerformBuy
  • ⬇ Downgrade2026-09-11
    UBS
    BuySell
  • = Reiterate2026-09-11
    RBC Capital
    Outperform
Premium content
Key Financials

Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.

StockSector medianSector averagetypical sector range
MetricValuePosition within sectorVerdict
  • P/E (TTM)
    34.39x
    4.61x36.85x
    Above average
  • Forward P/E
    22.43x
    3.86x30.86x
    Above average
  • EV / EBITDA
    20.29x
    2.86x22.90x
    Above average
  • FCF Yield
    5.6%
    -37.4%14.9%
    Strong
  • Revenue Growth YoY
    5.2%
    -16.7%29.2%
    Near median
  • EPS Growth YoY
    -29.3%
    -135.4%136.3%
    Near median
  • Gross Margin
    60.4%
    9.2%67.5%
    Strong
  • ROIC
    27.6%
    -29.3%20.8%
    Exceptional
  • Net Debt / EBITDA
    1.86x
    0.61x4.86x
    Low debt
  • Dividend Yield
    2.4%
    0.9%8.3%
    Low
  • Payout Ratio
    83.2%
    15.9%176.6%
    Moderate
  • Altman Z-Score
    6.70
    -4.825.90
    Exceptional
Financial Analysis
|

Stock Analysis

AI-generated
Based on 2026-07-31 data

Company Overview

Colgate-Palmolive operates through a portfolio of oral care, personal care, and home care products, alongside premium science-based pet nutrition under the Hill's Pet Nutrition brand. Growth is generated through a combination of sales volume, pricing, and premiumization, with distribution spanning traditional retail stores, e-commerce, and professional and veterinary channels; brands and products such as Colgate Total, Optic White Pro Series, Fabuloso, Elmex, Meridol, and Hill's have featured prominently in its innovation and premium-category expansion strategy.

In Q2 FY2026, the company recorded revenue of approximately $5.4 billion, gross profit of $3.3 billion, net income of $693 million, and reported earnings per share of $0.86. Reported net sales reached $5.36 billion, up 4.9%, while organic net sales grew 2.4%, and gross profit margin reached 61.5% after expanding by 140 basis points, according to the earnings report published on July 31, 2026.

Growth was broad-based, with four of five divisions and three of four categories delivering organic growth, led by emerging markets, Europe, and Hill's. Regionally, Latin America rose by approximately 5%, with volume growth of 2.6% and pricing growth of 2.8%; Brazil posted high-single-digit growth and Mexico recorded mid-single-digit growth, while North America remained weaker because of volume declines and retailer inventory reductions. Revenue for the twelve months ended in 2026 was approximately $21.0 billion, with gross profit of $12.7 billion and net income of $2.0 billion, compared with revenue of $20.4 billion and net income of $2.1 billion in FY2025.

What's Driving the Stock

  • Colgate-Palmolive raised its FY2026 earnings outlook following its Q2 FY2026 results and now expects mid-single-digit growth in base business earnings, supported by sales of $5.36 billion and a gross margin of 61.5%.
  • International markets support growth; India, Brazil, Mexico, and China led emerging-market performance in Q2 FY2026, with India delivering double-digit growth, while Greater China rose at a mid-single-digit rate despite the Chinese market contracting by approximately 1% to 2%.
  • Hill's continues to outperform the nearly stagnant pet food category, with organic growth excluding the private-label business reaching 4%, and its U.S. business growing at the same rate, supported by strength in cat food, wet products, Small Paws, and therapeutic diets.
  • The company is driving premium innovation through Optic White Pro Series with ActivShine technology and expansions of Fabuloso and Optic White Purple, in addition to launching three fresh single-protein diets from Hill's through professional channels, pet stores, and veterinary clinics during the second half of FY2026.
  • Free cash flow increased 18% during the first half of FY2026, and the company returned $1.4 billion to shareholders, alongside a double-digit increase in advertising spending and continued investment in innovation, data and analytics, and artificial intelligence.
  • Expanded use of Promo AI, revenue growth management tools, and productivity programs supported pricing, mix, and margins in Q2 FY2026, while management reported that approximately 70% of employees at the vice president level had received advanced artificial intelligence training.

Buying & Selling Case

▲ Buying Case4 pts

  • +Colgate-Palmolive's global model combines growth in emerging markets with strength in Europe and Hill's; in Q2 FY2026, four of five divisions delivered organic growth, mitigating the impact of weakness in North America.
  • +Improved profitability demonstrated the company's ability to balance inflation and investment, with gross profit margin reaching 61.5% and rising by 140 basis points according to the July 31, 2026 report, despite a double-digit increase in advertising.
  • +Hill's is outperforming its category through a higher-value mix, with organic growth of 4% excluding the impact of exiting private label, strong growth in therapeutic diets, cat food, wet products, and Small Paws, alongside the launch of fresh single-protein diets.
  • +Premium categories provide additional room for growth, as demonstrated by Elmex and Meridol in Europe, Optic White globally, and the premiumization strategy in India, China, and North America.

▼ Selling Case6 pts

  • −

Valuation

The average analyst price target is $97.78, versus a wide range of $79 to $109 and a neutral consensus, reflecting meaningful disagreement over the impact of improving margins relative to weakness in North America and cost pressures. The average target is approximately $1.55 below the 52-week range high of $99.33, while the stock's 52-week range extends from $74.55 to $99.33; therefore, the consensus alone does not present a decisive bullish case.

HoldAnalyst target: $97.78(+12.6%)

Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.

FAQ

What were CL's key results in Q2 FY2026?

Colgate-Palmolive generated revenue of approximately $5.4 billion, gross profit of $3.3 billion, and net income of $693 million in Q2 FY2026. Reported earnings per share were $0.86, while the earnings report cited base earnings per share of $0.99 versus estimates of $0.95. Net sales also grew 4.9% to $5.36 billion, and gross profit margin increased to 61.5%.

What supports Colgate-Palmolive's growth outside the United States?

India, Brazil, Mexico, and China led emerging-market growth in Q2 FY2026, while Europe made a strong contribution through innovation and premium products. Brazil posted high-single-digit growth, Mexico recorded mid-single-digit growth, and India delivered double-digit growth. Greater China also rose at a mid-single-digit rate, and Colgate China continued to deliver similar growth despite the domestic market contracting by approximately 1% to 2%.

How did Hill's Pet Nutrition perform in Q2 FY2026?

Hill's delivered organic growth of 4% after excluding the private-label business, outperforming a category that was approximately flat, while its U.S. business also grew 4%. The exit from private label negatively affected volume by approximately 200 basis points, but volume was approximately flat after excluding this impact. Strength came from cat food, wet products, Small Paws, and therapeutic diets, with three fresh single-protein diets launched through professional and veterinary channels during the second half of FY2026.

Earnings callEDGAR filings30-day newsInsider activity

Automated analysis for informational purposes only — not investment advice.

Weakness in North America represents the most significant operational risk; shipments declined 3% versus consumption growth of approximately 1% in Q2 FY2026, and the company lost some market share amid inventory reductions by major retailers and increased competitive activity.
  • −Raw materials and tariffs could pressure profitability in the second half of FY2026, as management expects both to increase compared with Q2, and although it raised its full-year gross margin outlook, guidance still indicates that it will remain approximately flat during FY2026.
  • −Hill's faces a nearly stagnant U.S. category, while the exit from the private-label business reduced its sales volume by approximately 200 basis points in Q2 FY2026, and sales volume remained approximately flat after excluding this impact.
  • −The company operates in a volatile and competitive Chinese market; management estimated that the overall market contracted by approximately 1% to 2%, with traditional retail stores declining, sales shifting to e-commerce, and intense competition, while also acknowledging that Hawley & Hazel still requires additional work.
  • −The neutral analyst consensus and wide variation in targets reflect valuation risk, with target prices ranging from $79 to $109 around an average of $97.78, while that average is only $1.55 below the 52-week range high of $99.33.
  • −Net insider activity during the three months ended August 24, 2026 consisted of approximately $920 thousand in sales from one sale transaction with no purchases; this is a weak standalone signal because insider sales may be prearranged unless the data states otherwise.
  • Why was North American performance a weakness for CL stock?

    North America experienced category weakness during May 2026, followed by improvement in June and July 2026, but remained below historical levels. Shipments declined 3% versus consumption growth of approximately 1%, because of retailer inventory reductions alongside some market share loss and intensifying competition. The company aims to improve performance through Optic White Pro Series, Fabuloso expansions, increased brand support, and efforts to address specific pricing gaps by category and channel.

    What is Colgate-Palmolive's outlook for FY2026?

    The company raised its outlook for base business earnings growth in FY2026 to the mid-single digits following its Q2 FY2026 performance. It also raised its full-year gross margin outlook from a decline to approximately flat, supported by pricing, mix, productivity, and Promo AI tools. However, it maintained cautious organic sales guidance because of demand volatility, weakness in North America, and expectations of higher raw material costs and tariffs in the second half of FY2026.

    How does Colgate-Palmolive use artificial intelligence in its business?

    The company spent three years through July 2026 training its employees and building a secure internal artificial intelligence hub, with advanced training reaching approximately 70% of employees at the vice president level. It uses Promo AI to manage promotions and improve revenue growth, while also building data products and agents to automate complex manual processes and accelerate analysis. The company also integrates artificial intelligence into product discovery, research and development, marketing content creation, and content reuse across markets.