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1. Company Snapshot

1.a. Company Description

Colgate-Palmolive Company, together with its subsidiaries, manufactures and sells consumer products worldwide.The company 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 various brands, which include Colgate, Darlie, elmex, hello, meridol, Sorriso, Tom's of Maine, Irish Spring, Palmolive, Protex, Sanex, Softsoap, Lady Speed Stick, Speed Stick, EltaMD, Filorga, PCA SKIN, Ajax, Axion, Fabuloso, Murphy, Suavitel, Soupline, and Cuddly to a range of traditional and eCommerce retailers, wholesalers, and distributors.It also includes 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 products to manage disease conditions in dogs and cats under the Hill's Prescription Diet 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.

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1.b. Last Insights on CL

Breaking News: Colgate-Palmolive Company reported Q4 earnings on January 30 2026, with quarterly earnings of $0.95 per share, beating the Zacks Consensus Estimate of $0.91 per share. Organic sales growth was achieved in all four categories, with sequential improvement in every division except North America. Net sales added $5 billion. Strong pricing and brand leadership lifted sales, with solid gains in Latin America. Zacks recommends a buy. RBC Capital Markets and Deutsche Bank have a hold rating. The company navigated challenges with strategic growth and innovation.

1.c. Company Highlights

2. Colgate-Palmolive's Q4 Results Exceed Expectations

Colgate-Palmolive reported a strong Q4 2025, with actual EPS coming in at $0.95, beating analyst estimates of $0.912. The company's organic sales growth, net sales, gross profit, base business earnings per share, and free cash flow all saw growth despite a challenging environment. Revenue growth was robust, driven by a good balance between price and volume, particularly in emerging markets where organic growth reached 4.5% in Q4.

Publication Date: Feb -01

📋 Highlights
  • Emerging Markets Outperform: Q4 organic growth of 4.5% driven by Latin America's high single-digit gains in Mexico/Brazil.
  • 2026 Guidance Adjusted: Organic sales growth projected at 1-4%, with emerging markets expected to outpace developed regions.
  • FX Impact in 2026: Low single-digit revenue boost from currency, prioritized for reinvestment in growth initiatives.
  • Hill's Strong Performance: Underlying volume growth of 2% achieved despite challenging category conditions.
  • Balance Sheet Strength: Record operating cash flow of $4.2 billion supports reinvestment, dividends, and M&A discipline.

Segment Performance

The company's performance varied across regions, with Latin America standing out with high single-digit growth in Mexico and Brazil. North America, however, presented a tougher picture, although there was an improvement from Q3. The category growth continues to lag, but the company is gearing up with a stronger innovation pipeline for 2026, focusing on driving premium innovation and revenue growth management strategies. Hill's had a strong quarter with 2% volume growth on an underlying basis, despite a challenging category backdrop.

Guidance and Outlook

For 2026, Colgate-Palmolive expects organic sales growth between 1% to 4% and net sales growth between 1% to 4%, with emerging markets anticipated to outperform developed markets. The guidance range is wider than normal to account for various levels of category growth, reflecting the uncertainty in the current environment. The company plans to continue executing its strategy, focusing on investing in growth markets and driving growth through innovation and premiumization.

Valuation

With a P/E Ratio of 25.09 and an EV/EBITDA of 16.62, the market seems to have priced in a certain level of growth and profitability for Colgate-Palmolive. Analysts estimate next year's revenue growth at 3.6%, which is within the company's guided range. The Dividend Yield stands at 2.3%, indicating a relatively stable return for shareholders. The company's strong balance sheet, with low leverage and record operating cash flow of $4.2 billion, supports its ability to invest in the business, return value to shareholders, and engage in disciplined M&A activity.

Strategy and Initiatives

Colgate-Palmolive is focusing on its new 2030 strategy, which includes five key areas: strong brands with global reach, accelerating investment in innovation models, harnessing best-in-class omnichannel demand generation, investing in scale capabilities, and developing a high-impact culture. The company is also optimizing its advertising spend to drive market share and penetration, with a focus on science-driven innovation to drive premiumization and growth across multiple price points.

3. NewsRoom

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Colgate-Palmolive Analysts Boost Their Forecasts Following Better-Than-Expected Q4 Results

Feb -02

Source: benzinga.com

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Colgate-Palmolive Q4 Earnings Call Highlights

Feb -01

Source: defenseworld.net

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Best Dividend Aristocrats For February 2026

Jan -31

Source: seekingalpha.com

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Colgate-Palmolive Co (CL) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic Growth and Innovation

Jan -30

Source: gurufocus.com

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Colgate-Palmolive Company (CL) Q4 2025 Earnings Call Transcript

Jan -30

Source: seekingalpha.com

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Colgate Q4 Earnings Top Estimates, Strong Pricing Drives Results

Jan -30

Source: zacks.com

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Pre-market in Red

Jan -30

Source: zacks.com

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Colgate-Palmolive (CL) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Jan -30

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.86%)

6. Segments

Oral, Personal and Home Care - Latin America

Expected Growth: 5.3%

Strong brand recognition, increasing demand for personal care products, and expanding distribution channels drive growth in oral, personal, and home care products in Latin America, supported by Colgate-Palmolive’s strong presence in the region.

Oral, Personal and Home Care - North America

Expected Growth: 4.5%

Increasing demand for premium oral care products, growing popularity of naturals and organics, and rising awareness about personal hygiene drive growth in Colgate-Palmolive’s North American oral, personal and home care segment.

Oral, Personal and Home Care - Asia Pacific

Expected Growth: 4.6%

Increasing demand for premium oral care products, growing awareness of personal hygiene, and rising middle-class population driving home care products in the Asia Pacific region contribute to Colgate-Palmolive’s Oral, Personal and Home Care division’s growth.

Oral, Personal and Home Care - Europe

Expected Growth: 4.5%

Steady demand for oral and personal care products, driven by consumers' increasing focus on health and wellness, coupled with Colgate-Palmolive's strong brand portfolio and innovation capabilities, will fuel growth in Europe.

Oral, Personal and Home Care - Africa/Eurasia

Expected Growth: 4.5%

Growing middle class, increasing awareness of oral and personal hygiene, and urbanization drive demand for Colgate-Palmolive’s oral, personal and home care offerings in Africa and Eurasia.

Pet Nutrition

Expected Growth: 5.2%

Growing pet humanization, increasing adoption of premium pet food, and expanding distribution channels drive Colgate-Palmolive’s growth in the pet nutrition segment.

7. Detailed Products

Colgate Toothpaste

A range of toothpastes for oral care, including whitening, sensitivity, and cavity protection

Palmolive Dish Soap

A line of dish soaps for cleaning dishes and utensils

Irish Spring Body Wash

A range of body washes for personal hygiene

Softsoap Body Wash

A line of body washes for moisturizing and cleansing

Colgate Mouthwash

A range of mouthwashes for oral care and fresh breath

Palmolive Laundry Detergent

A line of laundry detergents for washing clothes

Fabuloso Cleaning Products

A range of cleaning products for home and surfaces

Murphy Oil Soap

A line of cleaning products for wood and surfaces

8. Colgate-Palmolive Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Colgate-Palmolive Company is medium due to the presence of alternative products in the market, such as private label brands and natural/organic products.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand portfolio and wide distribution network, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the company's dependence on a few large suppliers for raw materials, but the company's scale and negotiating power mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the consumer goods industry, including significant capital requirements and the need for a strong distribution network.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several large competitors in the industry, including Procter & Gamble and Unilever, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 93.42%
Debt Cost 4.56%
Equity Weight 6.58%
Equity Cost 5.92%
WACC 4.65%
Leverage 1419.38%

11. Quality Control: Colgate-Palmolive Company passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Kimberly-Clark

A-Score: 5.5/10

Value: 4.3

Growth: 4.3

Quality: 6.1

Yield: 8.0

Momentum: 1.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Procter & Gamble

A-Score: 5.4/10

Value: 3.0

Growth: 4.4

Quality: 7.5

Yield: 5.0

Momentum: 2.5

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Colgate-Palmolive

A-Score: 5.2/10

Value: 3.1

Growth: 4.8

Quality: 6.7

Yield: 5.0

Momentum: 1.5

Volatility: 10.0

1-Year Total Return ->

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Church & Dwight Co

A-Score: 4.9/10

Value: 2.7

Growth: 4.9

Quality: 6.9

Yield: 3.0

Momentum: 2.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Kenvue

A-Score: 4.5/10

Value: 4.1

Growth: 3.3

Quality: 6.1

Yield: 8.0

Momentum: 1.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Estee Lauder

A-Score: 3.6/10

Value: 3.1

Growth: 1.7

Quality: 2.4

Yield: 2.0

Momentum: 8.0

Volatility: 4.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

91.89$

Current Price

91.89$

Potential

-0.00%

Expected Cash-Flows