NYSE · Consumer Defensive

Colgate-Palmolive Company

CL · Household & Personal Products

$89.48

▼ -1.1 (-1.21%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 60.6%

Operating Margin 18.1%

Net Income Margin 12.1%

Fin. Health

D⤢

Years to Pay Off Debt 12.3 yrs

Working Capital vs Long-Term Debt -$7.8B

Working Capital $148M

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 493.80x

Cash Flow

B⤢

Free Cash Flow $609M

CapEx % of Net Income 21.4%

Owner Earnings $940M

Profitability

Gross Profit Margin 60.6%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 18.1%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 12.1%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 12.3 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$7.8B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $148M

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $609M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 21.4%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $940M

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Colgate-Palmolive Company

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. This segment markets and sells its products under the Colgate, Palmolive, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, EltaMD, Filorga, Irish Spring, Lady Speed Stick, PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Murphy, Soupline, and Suavitel brands to a range of traditional and eCommerce retailers, wholesalers, and distributors, as well as dentists and skin health professionals. It also offers pharmaceutical products for dentists and other oral health professionals. The Pet Nutrition segment offers pet nutrition products for everyday nutritional needs under the Hill's Science Diet brand; and a range of therapeutic pet products to help nutritionally support dogs and cats in different stages of health under the Hill's Prescription Diet brand; and a fresh pet food sold to pet specialty and other retailers in Australia under Prime100 brand. This segment markets and sells its products through pet supply retailers, veterinarians, and eCommerce retailers. Colgate-Palmolive Company was founded in 1806 and is headquartered in New York, New York.

Market Data

Market Cap $71.6B

Enterprise Value $79.4B

P/E (TTM) 34.68

Dividend Yield 2.30%

Exchange NYSE

Key Margins

Gross Profit 60.6%

Operating Margin 18.1%

Net Margin 12.1%

Company Info

Sector Consumer Defensive

Industry Household & Personal Products

Employees 33600

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Colgate-Palmolive Company at $89.48.

The business passes only 2 of 6 of Graham's defensive criteria — well below his required standard.

At $89.48, the stock trades at a 4844% premium to its Graham Number of $1.81. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q3 2024
Gross Profit %	60.6%▲	60.2%•	N/A
Operating Margin %	18.1%▼	19.5%•	N/A
Net Income %	12.1%▲	-0.7%•	N/A
Diluted EPS	0.80▲	-0.05•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$16.6B	$16.3B	N/A
Total Debt	$8.0B▼	$8.6B•	N/A
Working Capital	$148M▲	-$1.1B•	N/A
Years to Pay Debt	12.34	-231.19	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$609M▼	$1.3B•	N/A
Owner Earnings	$940M	$313M	N/A
CapEx % of Net Income	21.4%	N/A	N/A

Income Statement

	2026	2025	2024
Tax Rate For Calcs	0	0
Normalized EBITDA	1,110,000	345,000
Net Income From Continuing Operation Net Minority Interest	646,000	-37,000
Reconciled Depreciation	156,000	173,000
Reconciled Cost Of Revenue	2,098,000	2,084,000
EBITDA	1,110,000	345,000
EBIT	954,000	172,000
Net Interest Income	-46,000	-45,000
Interest Expense	62,000	64,000
Interest Income	16,000	19,000
Normalized Income	646,000	-37,000
Net Income From Continuing And Discontinued Operation	646,000	-37,000
Total Expenses	4,360,000	4,211,000
Total Operating Income As Reported	964,000	92,000
Diluted Average Shares	805,100	804,700
Basic Average Shares	802,300	804,700
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	646,000	-37,000
Net Income Common Stockholders	646,000	-37,000
Net Income	646,000	-37,000
Minority Interests	-35,000	-32,000
Net Income Including Noncontrolling Interests	681,000	-5,000
Net Income Continuous Operations	681,000	-5,000
Tax Provision	211,000	113,000
Pretax Income	892,000	108,000
Other Income Expense	-26,000	-866,000
Other Non Operating Income Expenses	-26,000	43,000
Net Non Operating Interest Income Expense	-46,000	-45,000
Total Other Finance Cost			56,000
Interest Expense Non Operating	62,000	64,000
Interest Income Non Operating	16,000	19,000
Operating Income	964,000	1,019,000
Operating Expense	2,262,000	2,127,000
Other Operating Expenses	186,000		30,000
Selling General And Administration	2,076,000	2,070,000
Gross Profit	3,226,000	3,146,000
Cost Of Revenue	2,098,000	2,084,000
Total Revenue	5,324,000	5,230,000
Operating Revenue	5,324,000	5,230,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	665,517	664,467
Ordinary Shares Number	800,189	801,240
Share Issued	1,465,706	1,465,706
Net Debt	6,638,000	6,700,000
Total Debt	7,973,000	8,554,000
Tangible Book Value	-4,483,000	-4,604,000
Invested Capital	8,118,000	8,042,000
Working Capital	148,000	-1,144,000
Net Tangible Assets	-4,483,000	-4,604,000
Capital Lease Obligations		566,000	563,000
Common Stock Equity	145,000	54,000
Total Capitalization	8,082,000	6,925,000
Total Equity Gross Minority Interest	486,000	365,000
Minority Interest	341,000	311,000
Stockholders Equity	145,000	54,000
Gains Losses Not Affecting Retained Earnings	-3,871,000	-3,879,000
Other Equity Adjustments	-3,871,000	-3,879,000
Treasury Stock	28,656,000	28,450,000
Retained Earnings	26,816,000	26,595,000
Additional Paid In Capital	4,390,000	4,322,000
Capital Stock	1,466,000	1,466,000
Common Stock	1,466,000	1,466,000
Total Liabilities Net Minority Interest	16,124,000	15,965,000
Total Non Current Liabilities Net Minority Interest	10,190,000	9,112,000
Other Non Current Liabilities	2,055,000	362,000
Employee Benefits		1,241,000	1,306,000
Non Current Pension And Other Postretirement Benefit Plans		1,241,000	1,306,000
Non Current Accrued Expenses		9,000	29,000
Non Current Deferred Liabilities	198,000	181,000
Non Current Deferred Taxes Liabilities	198,000	181,000
Long Term Debt And Capital Lease Obligation	7,937,000	7,319,000
Long Term Capital Lease Obligation		448,000	456,000
Long Term Debt	7,937,000	6,871,000
Current Liabilities	5,934,000	6,853,000
Other Current Liabilities		22,000	23,000
Current Debt And Capital Lease Obligation	36,000	1,235,000
Current Capital Lease Obligation		118,000	107,000
Current Debt	36,000	1,117,000
Other Current Borrowings		1,117,000	660,000
Pensionand Other Post Retirement Benefit Plans Current		96,000	93,000
Payables And Accrued Expenses	5,898,000	5,500,000
Current Accrued Expenses	3,358,000	2,356,000
Interest Payable		72,000	72,000
Payables	2,540,000	3,144,000
Dividends Payable		418,000	408,000
Total Tax Payable	444,000	637,000
Income Tax Payable	444,000	383,000
Accounts Payable	2,096,000	2,089,000
Total Assets	16,610,000	16,330,000
Total Non Current Assets	10,528,000	10,621,000
Other Non Current Assets	1,067,000	1,098,000
Non Current Deferred Assets	211,000	205,000
Non Current Deferred Taxes Assets	211,000	205,000
Goodwill And Other Intangible Assets	4,628,000	4,658,000
Other Intangible Assets	1,521,000	1,536,000
Goodwill	3,107,000	3,122,000
Net PPE	4,622,000	4,660,000
Accumulated Depreciation	-6,265,000	-6,196,000
Gross PPE	10,887,000	10,856,000
Other Properties		1,516,000	1,580,000
Machinery Furniture Equipment		6,935,000	6,265,000
Buildings And Improvements		2,171,000	2,056,000
Land And Improvements		234,000	226,000
Current Assets	6,082,000	5,709,000
Other Current Assets	772,000	714,000
Inventory	2,086,000	2,032,000
Inventories Adjustments Allowances	-103,000	-125,000
Finished Goods	1,546,000	1,479,000
Work In Process	50,000	46,000
Raw Materials	593,000	632,000
Receivables	1,889,000	1,675,000
Accounts Receivable	1,889,000	1,675,000
Allowance For Doubtful Accounts Receivable	-89,000	-90,000
Gross Accounts Receivable	1,978,000	1,765,000
Cash Cash Equivalents And Short Term Investments	1,335,000	1,288,000
Cash And Cash Equivalents	1,335,000	1,288,000

Cash Flow

	2026	2025	2024
Free Cash Flow	609,000	1,276,000
Repurchase Of Capital Stock	-306,000	-406,000
Repayment Of Debt	-1,082,000	0
Issuance Of Debt		691,000	0
Capital Expenditure	-138,000	-177,000
Interest Paid Supplemental Data	96,000	35,000
Income Tax Paid Supplemental Data	176,000	201,000
End Cash Position	1,335,000	1,288,000
Beginning Cash Position	1,288,000	1,279,000
Effect Of Exchange Rate Changes	-15,000	20,000
Changes In Cash	62,000	-11,000
Financing Cash Flow	-563,000	-1,361,000
Cash Flow From Continuing Financing Activities	-563,000	-1,361,000
Net Other Financing Charges	-23,000	-13,000
Proceeds From Stock Option Exercised	127,000	18,000
Cash Dividends Paid	-417,000	-523,000
Common Stock Dividend Paid	-417,000	-523,000
Net Common Stock Issuance	-306,000	-406,000
Common Stock Payments	-306,000	-406,000
Net Issuance Payments Of Debt	56,000	-437,000
Net Short Term Debt Issuance	1,138,000	-1,128,000
Net Long Term Debt Issuance	-1,082,000	691,000
Long Term Debt Payments	-1,082,000	0
Long Term Debt Issuance		691,000	0
Investing Cash Flow	-122,000	-103,000
Cash Flow From Continuing Investing Activities	-122,000	-103,000
Net Other Investing Changes	-8,000	-9,000
Net Investment Purchase And Sale	24,000	83,000
Sale Of Investment	94,000	244,000
Purchase Of Investment	-70,000	-161,000
Capital Expenditure Reported	-138,000	-177,000
Operating Cash Flow	747,000	1,453,000
Cash Flow From Continuing Operating Activities	747,000	1,453,000
Change In Working Capital	-277,000	447,000
Change In Other Working Capital			-14,000
Change In Other Current Liabilities	-29,000
Change In Other Current Assets	19,000
Change In Payables And Accrued Expense	-11,000	221,000
Change In Inventory	-41,000	100,000
Change In Receivables	-215,000	164,000
Other Non Cash Items	165,000	8,000
Stock Based Compensation	40,000	28,000
Deferred Tax	-18,000	-117,000
Deferred Income Tax	-18,000	-117,000
Depreciation Amortization Depletion	156,000	173,000
Depreciation And Amortization	156,000	173,000
Net Income From Continuing Operations	681,000	-5,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $4.9B ▲ $5.3B +8.4%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 60.8% ▲ 60.6% -0.2pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 19.6% ▼ 18.1% -1.5pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 14.1% ▼ 12.1% -1.9pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$5.3B/qtr (≈$21.3B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.02x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$609M

vs Positive

Operating Cash Flow

$747M

Latest quarter · Buffett's cash reality check

ROIC

7.1%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

147.3x

Net Assets: $486M

Peers & Industry

No auto-detected peers for Household & Personal Products. You can manually compare CL against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.15%

Low — management has little skin in the game

Return on Equity (ROE)

445.5%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

3.9%

Fair — average asset utilization

Share Buybacks (Latest Year)

$1.2B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-6.8% YoY

Debt is declining — management is deleveraging

Leadership Team

Noel Wallace

Chairman, CEO & President

Age 61

Pay: $4,844,819

0.750% of net income

Stanley Sutula III

Chief Financial Officer

Age 59

Pay: $2,543,434

0.394% of net income

Panagiotis Tsourapas

COO of Global Customer Dev., Europe Middle East Africa, Asia Pacific & Global Skin Health

Age 60

Pay: $2,162,369

0.335% of net income

Shane Grant

Chief Operating Officer of Americas

Age 50

Pay: $3,064,196

0.474% of net income

Claire Ross

Executive Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	9.08%	72,643,002
Vanguard Capital Management LLC	6.53%	52,219,824
State Street Corporation	5.96%	47,719,482
Price (T.Rowe) Associates Inc	4.22%	33,729,165
Vanguard Portfolio Management LLC	2.98%	23,822,746
Geode Capital Management, LLC	2.86%	22,900,290
Morgan Stanley	2.61%	20,881,354
Bank Of New York Mellon Corporation	1.56%	12,521,545

⚠️ Very high debt-to-equity — leverage risk

Risk Analysis

Beta (Market Risk)

0.32

Low volatility — more stable than the market

Short Interest

2.9% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

16.41x

High leverage — significant financial risk

Current Ratio

1.02x

Adequate liquidity

52-Week Price Range

Low: $74.55 Current: $89.48 High: $99.33

Currently at 60% of 52-week range

Colgate-Palmolive Company

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis