Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Colgate Palmolive Co

CL · NYSE · Consumer

Fundamental quality

REASONABLE

66

out of 100

Colgate Palmolive Co earns a fundamental-quality score of 66 out of 100, profiling it as a company of reasonable quality. Its score rests mainly on its financial strength (net debt 2.01× EBITDA). Its weakest area is its growth (revenue +4.6%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Colgate-Palmolive sells hygiene and household products in over 200 countries: Colgate toothpaste (the clear global leader), Palmolive soaps and Hill's pet food. The classic defensive business: people brush their teeth in any crisis.

What will shape its future

  • Its brand power to raise prices without losing volume, the lever of all consumer staples.
  • Emerging markets, more than half its sales: extra growth in exchange for currency risk.
  • Hill's (pet food) growth, its most dynamic category against a mature core.

Breakdown by area

I.Growth
29

EPS growth: -3.8% · Revenue growth: 4.6%

II.Profitability
77

Net margin: 9.7% · ROIC: 29.5%

III.Financial health
81

Net debt/EBITDA: 2.01x · FCF: 18.3%

Source: SEC EDGAR · TTM through 30/06/2026

The score includes +4 for dividend strength: 63 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 69%
Growthbeats 29%
Cash generationbeats 87%
Less debtbeats 40%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Colgate Palmolive Co strengths

  • High gross margin (60.4%), pointing to pricing power.
  • Strong free-cash-flow generation (FCF margin of 18.3%): profit turns into real cash.
  • Revenue rising without interruption since 2020.
  • Solid net margin (9.7%): the business is clearly profitable.

Colgate Palmolive Co risks and weaknesses

  • Shrinking margins: net margin has fallen from 16% to 10% in recent years.
  • Declining earnings per share (-3.8% annualized).

Colgate Palmolive Co historical evolution

YearRevenueNet incomeFree cash flowNet debt
202016,4712,6953,3106,455
202117,4212,1662,7586,374
202217,9671,7851,8607,980
202319,4572,3003,0407,273
202420,1012,8893,5466,845
202520,3822,1323,6346,698

Between 2020 and 2025, revenue went from $16,471M to $20,382M (+24%) and net income went from $2,695M to $2,132M (-21%). Meanwhile, its margins have narrowed (from 16% to 10%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+6.6%
  • Net income-6.6%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$2.08

per share, yearly

63 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Colgate Palmolive Co cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Colgate Palmolive Co a good company to invest in?

In terms of business quality, Colgate Palmolive Co scores 66 out of 100 in our analysis, placing it as a company of reasonable quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Colgate Palmolive Co a profitable company?

Colgate Palmolive Co is profitable, with a net margin of 9.7%, though a thin one.

Does Colgate Palmolive Co have a lot of debt?

A moderate level: its net debt is 2.01 times its EBITDA.

Is Colgate Palmolive Co growing?

Its revenue has grown 4.6% annualized in recent years, and without interruption since 2020.

Does Colgate Palmolive Co generate cash?

Yes. It converts about 18.3% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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