📊 CL Key Takeaways
Is Colgate Palmolive Co (CL) a Good Investment?
Colgate exhibits strong operational fundamentals with healthy 60%+ gross margins and solid free cash flow generation of 609M, but is severely overleveraged with a debt-to-equity ratio of 54.74x and stockholders' equity of only 145M, creating substantial financial risk despite manageable 3.2x interest coverage.
Colgate-Palmolive shows strong underlying profitability and cash generation, with 60.1% gross margin, 16.2% operating margin, and $3.63B of free cash flow on modest 1.4% revenue growth. However, growth quality is only moderate because net income was flat, diluted EPS fell sharply, and the balance sheet is stretched with very low equity, sub-1.0 liquidity, and elevated leverage. The business appears fundamentally resilient, but financial flexibility is a key constraint.
Colgate Palmolive Co Key Strengths (CL)
- Exceptional gross margin of 60.6% reflects strong pricing power and brand value
- Robust free cash flow of 609M (11.4% FCF margin) provides debt servicing capacity
- Stable operating margin of 18.1% demonstrates consistent operational efficiency
- High and durable profitability with strong gross, operating, and net margins
- Robust cash generation with $4.20B operating cash flow and 17.8% free cash flow margin
- Solid debt servicing capacity with 11.1x interest coverage
CL Stock Risks: Colgate Palmolive Co Investment Risks
- Extreme leverage with debt-to-equity of 54.74x and minimal equity cushion (145M) poses significant financial distress risk
- Tight liquidity with current ratio of 1.02x and quick ratio of 0.67x limits financial flexibility for downturns
- EPS declined 25.1% YoY despite flat net income, signaling shareholder dilution or increased share count
- Extremely thin equity base makes leverage metrics and capital structure risk unusually high
- Weak liquidity profile with 0.83x current ratio and 0.54x quick ratio
- Low growth quality as revenue growth is modest, net income is flat, and diluted EPS declined 25.1%
Key Metrics to Watch
- Debt-to-equity ratio trend and refinancing risk given long-term debt of 7.9B
- Free cash flow sustainability and ability to deleverage
- Revenue growth acceleration beyond 1.4% YoY to offset leverage concerns
- Free cash flow conversion and operating cash flow trend
- Net income and diluted EPS trend relative to debt levels and equity position
Colgate Palmolive Co (CL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Colgate Palmolive Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CL Profit Margin, ROE & Profitability Analysis
CL vs Consumer Sector: How Colgate Palmolive Co Compares
How Colgate Palmolive Co compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Colgate Palmolive Co Stock Overvalued? CL Valuation Analysis 2026
Based on fundamental analysis, Colgate Palmolive Co has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Colgate Palmolive Co Balance Sheet: CL Debt, Cash & Liquidity
CL Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Colgate Palmolive Co's revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.77 reflects profitable operations.
CL Revenue Growth, EPS Growth & YoY Performance
CL Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $4.9B | $646.0M | $0.80 |
| Q3 2025 | $5.0B | $735.0M | $0.90 |
| Q2 2025 | $5.1B | $731.0M | $0.89 |
| Q1 2025 | $4.9B | $683.0M | $0.83 |
| Q3 2024 | $4.9B | $708.0M | $0.86 |
| Q2 2024 | $4.8B | $502.0M | $0.60 |
| Q1 2024 | $4.8B | $372.0M | $0.45 |
| Q3 2023 | $4.5B | $618.0M | $0.74 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Colgate Palmolive Co Dividends, Buybacks & Capital Allocation
CL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Colgate Palmolive Co (CIK: 0000021665)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CL
What is the AI rating for CL?
Colgate Palmolive Co (CL) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CL's key strengths?
Claude: Exceptional gross margin of 60.6% reflects strong pricing power and brand value. Robust free cash flow of 609M (11.4% FCF margin) provides debt servicing capacity. ChatGPT: High and durable profitability with strong gross, operating, and net margins. Robust cash generation with $4.20B operating cash flow and 17.8% free cash flow margin.
What are the risks of investing in CL?
Claude: Extreme leverage with debt-to-equity of 54.74x and minimal equity cushion (145M) poses significant financial distress risk. Tight liquidity with current ratio of 1.02x and quick ratio of 0.67x limits financial flexibility for downturns. ChatGPT: Extremely thin equity base makes leverage metrics and capital structure risk unusually high. Weak liquidity profile with 0.83x current ratio and 0.54x quick ratio.
What is CL's revenue and growth?
Colgate Palmolive Co reported revenue of $5.3B.
Does CL pay dividends?
Colgate Palmolive Co does not currently pay dividends.
Where can I find CL SEC filings?
Official SEC filings for Colgate Palmolive Co (CIK: 0000021665) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CL's EPS?
Colgate Palmolive Co has a diluted EPS of $0.80.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CL's fundamental grade?
Based on our AI fundamental analysis in June 2026, Colgate Palmolive Co has a B grade with 68% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CL stock overvalued or undervalued?
Valuation metrics for CL: ROE of 445.5% (sector avg: 18%), net margin of 12.1% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.
What is CL's AI grade for 2026?
Our dual AI analysis gives Colgate Palmolive Co a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CL's free cash flow?
Colgate Palmolive Co's operating cash flow is $747.0M, with capital expenditures of $138.0M. FCF margin is 11.4%.
How does CL compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 12.1% (avg: 8%), ROE 445.5% (avg: 18%), current ratio 1.02 (avg: 1.5).
Is Colgate Palmolive Co carrying too much debt?
CL has a debt-to-equity ratio of 54.74x, which is above the Consumer sector average of 0.8x. However, the current ratio of 1.02 suggests adequate short-term liquidity.
Why is CL's return on equity (ROE) so high?
Colgate Palmolive Co has a return on equity of 445.5%, significantly above the Consumer sector average of 18%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 12.1% net margin.