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Colgate-Palmolive Company
🇺🇸 CL · NYSE/NASDAQ · US1941621039
Consumer
USD 93.94 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
36.5
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 93.94 ÷ 2.57 = 36.5
TTM period through: 2026-03-31
Forward P/E (estimated): 24.0
Based on analyst estimates
Reference: Provider P/E (Trailing): 36.9
Net Debt/EBITDA (TTM)
1.7x
Latest quarter: 5.9x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 5.9x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
ROE
36.4%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
20.7x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
2.26%
TTM: 2.24%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Forward Yield (estimated): 2.26%
Trailing Yield (TTM, last 12 months): 2.24%
Payout Ratio (Fwd)
82.4%
TTM: 87.9%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (Fwd): 82.4%
Payout (TTM): 87.9%
Cash Flow Payout (TTM): 42.2%
FCF Coverage (TTM): 2.05x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
3.3%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 20 Apr 2027 | — | USD | 0.53 |
| Forecast* | Quarterly | — | 21 Jan 2027 | — | USD | 0.52 |
| Forecast* | Quarterly | — | 17 Oct 2026 | — | USD | 0.52 |
| Declared | Quarterly | 11 Jun 2026 | 20 Jul 2026 | 14 Aug 2026 | USD | 0.53 |
| Paid | Quarterly | 12 Mar 2026 | 20 Apr 2026 | 15 May 2026 | USD | 0.53 |
| Paid | Quarterly | 10 Dec 2025 | 21 Jan 2026 | 13 Feb 2026 | USD | 0.52 |
| Paid | Quarterly | 11 Sep 2025 | 17 Oct 2025 | 14 Nov 2025 | USD | 0.52 |
| Paid | Quarterly | 12 Jun 2025 | 18 Jul 2025 | 15 Aug 2025 | USD | 0.52 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Colgate-Palmolive is a dominant global leader in consumer staples with an exceptional economic moat and robust free cash flow generation. While a recent non-cash impairment charge temporarily depressed headline earnings, existing shareholders should maintain positions given the strong underlying business fundamentals and excellent dividend coverage. However, current valuation levels with a Forward P/E above 24 and a low 2.26% yield offer limited upside, making this a poor entry point for new positions.
Sector Context
Colgate-Palmolive is a dominant global consumer staples company manufacturing household, healthcare, and personal care products, particularly known for its oral care brands. In the context of dividend investing, consumer staples typically offer highly defensive, predictable cash flows, though this stability often commands a valuation premium that can limit initial yields.
Temporary Opportunity Identified
A substantial $794 million non-cash impairment charge on the skin health business (Filorga) caused a GAAP net loss in Q4, temporarily skewing TTM profitability metrics despite core base business EPS rising 4%.
📊 Strategy Analysis
- • Exceptional economic moat in consumer staples, providing highly defensive, recession-resistant cash flows driven by dominance in global oral care.
- • Strong balance sheet with Net Debt/EBITDA of 1.69x, providing ample flexibility and ensuring financial stability.
- • The dividend is extremely well-covered by free cash flow, with a cash flow payout ratio of just 42.21% and FCF coverage of 2.05x.
- • Underlying business remains resilient despite a recent optical earnings hit, with net sales increasing 5.8% and organic sales growing 2.2%.
⚠ What to Watch
- • Valuation remains significantly stretched, with a Forward P/E of 24.04x and a TTM P/E of 36.50x, both exceeding the strategy's target 8-15x range.
- • The current dividend yield of 2.26% falls below the 3.0% minimum threshold typically preferred for new income-focused positions.
- • Exposure to ongoing structural and legal liabilities, including legacy asbestos-talc litigation, evolving global environmental packaging regulations, and recent PFAS/heavy metals contaminant claims.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.