CL
COLGATE PALMOLIVE CO
Materials • CIK: 0000021665
Loading...
Market Cap
$63.90B
P/E (TTM)
29.9x
Rev Growth (TTM)
+1.4%
Net Margin (TTM)
10.5%
FCF Yield (TTM)
5.7%
FCF Margin (TTM)
17.8%
What Changed
10-Q Q3 2025 vs 10-Q Q2 2025
Raw Material Cost Headwind420bps drag on gross margin (Q2 2025 vs Q2 2024)→600bps drag on gross margin (Q3 2025 vs Q3 2024)
Pet Nutrition Organic Growth+2.0% organic (Q2 2025), private label drag 310bps→-1.3% organic (Q3 2025), private label drag 370bps
Worldwide Sales Volumeflat (Q2 2025 vs Q2 2024)→-1.5% (Q3 2025 vs Q3 2024)
Gross Margin (sequential)60.1% (Q2 2025)→59.4% (Q3 2025)
ERISA Litigation Risk Statusde_escalated — settlement in principle reached (Q2...→resolved — $65M charge recorded Q1 2025, Second Circuit...
Gross margin trajectory Q4 2025 — monitor if raw material headwind exceeds...·Hill's Pet Nutrition organic growth — if private label drag persists above...·Worldwide volume in Q4 2025 — if volume declines worsen beyond -1.5%,...
Filing Intelligence
6.0/10
10-Q filed Oct 31, 2025 • Q3 2025
Executive Summary
Gross and operating margins declined due to significantly higher raw and packaging material costs, partially offset by cost savings and pricing actions.. Global net sales saw modest growth driven by...
Key Concerns
- ●Gross and operating margins declined due to significantly higher raw and packaging material costs, partially offset by cost savings and...
- ●Global net sales saw modest growth driven by pricing and favorable foreign exchange, but were constrained by volume declines across key...
- ●The company has significant unquantified contingent liabilities related to general litigation and environmental matters, with a potential...
Key Strengths
- ●Global net sales saw modest growth driven by pricing and favorable foreign exchange, but were constrained by volume declines across key...
- ●The Hill's Pet Nutrition segment experienced a decrease in organic sales, impacted by lower private label volume, despite overall pricing...
- ●North America sales declined due to volume decreases, while Europe demonstrated strong sales growth and improved operating profit margin.
Cash Flow Health
Free Cash Flow8/8 positive
TTM$3.6B
Q4 '25
$1.3B+15%
Q3 '25
$1.1B+43%
FCF Margin
TTM17.8%
Q4 '2524.4%+13%
Sector: 0.4%Top 10%
OCF Margin20.6%
OCF/NI1.97x
CapEx Coverage7.4x
FCF Yield5.7%
FCF Growth (2Y)+25%
Cash Conversion Cycle
42 days
DSO: 31+DIO: 94−DPO: 83
Capital Allocation & Returns
Shareholder Friendly
Total Shareholder YieldTTM
TTM4.5%
Div Yield2.6%
+Buyback (TTM)1.9%
Strong capital returns to shareholders
Dividend & Payout Metrics
Dividend Yield (TTM)2.6%
FCF Payout Ratio46.3%
Free Cash Flow (TTM)$3.6B
Stock Repurchases (TTM)$1.2B
Capital Return / FCF83.5%
Est. Dividends Paid (TTM)$1.7B
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
26.7%
Moderate
-0.1% YoY-16.4%
P25MedianP75
75th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
12.0%
8Q: 16.3%
Asset Turnover
1.20x
8Q: 1.21x
Leverage (1+D/E)
148.89x
D/E: 147.89x
DuPont: 2144.9% ≈ 26.7% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
4.52x
8Q:4.53x
+2.7%
Invested Cap Turn
2.22x
8Q:2.10x
+31.8%
CapEx Intensity
6.2%
8Q:5.5%
CapEx/Depreciation
0.90x
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $20.4B | $5.2B↑1.9% | $5.1B↑0.4% | $5.1B↑4.1% | $4.9B↓0.7% | $4.9B↓1.7% | $5.0B↓0.5% | $5.1B↓0.1% | $5.1B |
Operating Income | $3.3B | $92.0M↓91.3% | $1.1B↓1.9% | $1.1B↑0.4% | $1.1B↑1.2% | $1.1B↓0.2% | $1.1B↓2.5% | $1.1B↑4.3% | $1.0B |
Net Income | $2.1B | $-37.0M↓105.0% | $735.0M↓1.1% | $743.0M↑7.7% | $690.0M↓6.6% | $739.0M↑0.3% | $737.0M↑0.8% | $731.0M↑7.0% | $683.0M |
Operating Cash Flow | $4.2B | $1.5B↑15.2% | $1.3B↑42.6% | $884.0M↑47.3% | $600.0M↓52.7% | $1.3B↑8.7% | $1.2B↑17.9% | $990.0M↑45.4% | $681.0M |
Free Cash Flow | $3.6B | $1.3B↑15.4% | $1.1B↑42.5% | $776.0M↑63.0% | $476.0M↓56.1% | $1.1B↑5.0% | $1.0B↑18.3% | $873.0M↑57.3% | $555.0M |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
29.9x
Volatile
8Q: 104.2x-122777%
Valuation Lenses
Earnings
29.9x
vs – sector
Cash Flow
19.4x
EV/FCF vs –
Growth-Adj
–PEG
N/A
Quality-Adj
1.1P/E per %ROIC
ROIC: 26.7%
Shareholder Returns
Dividend
2.6%
Buyback
1.9%
Total Yield
4.5%
Market Cap$63.90B
EV$70.34B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
81/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 10%
4.1%
8Q:–
Return on Invested Capital (ROIC)Top 25%
26.7%
8Q:–
-16.4%
vs Sector:0.0%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 12.0%
Asset Turnover: 1.20x
Earnings Quality
Cash Conversion
1.97x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin60.1%
Capital Efficiency
Invested Capital Turnover2.22x
Working Capital
Cash Conversion Cycle42 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
61/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
1.4%
OpInc Growth YoY
-91.3%
EPS Growth YoY
-25.3%
FCF 3Y CAGR
25.0%
Growth Quality Analysis
✓Efficient Growth: Free cash flow growing faster than revenue
Margin Quality & Sustainability
Low Quality
Profitability Cascade
Gross
60.1%
Operating
16.2%
Above Avg in sector
Net
10.5%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+7.4 pts
FCF: 17.8% | Net: 10.5%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Leveraged
Net Debt / EBITDA
–Net Debt: $6.59B
Interest Coverage
–
Balance sheet risk & solvency analysis