COLGATE PALMOLIVE CO (CL) Stock Analysis

Analysis from 10-Q filed 2025-10-31. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 24.7%. FCF margin 18.3%. D/E 33.1x. Source: 10-Q filed 2025-10-31.

Metric	Value	Context
ROIC	24.7%	Above industry average
FCF Margin	18.3%	Strong cash generation
Debt/Equity	33.1x	Elevated debt

ROIC 24.7% — Top 5% of sector peers. FCF margin 18.3% — Top 5%.

Explore COLGATE PALMOLIVE CO: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for CL: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: COLGATE PALMOLIVE CO earns 24.7% ROIC, Top 5% in Materials

ROIC TTM 24.7%, sector median 4.6%, Top 5%. DuPont: NOPAT margin 10.9% × asset turnover 1.2x. Gross margin 60.4%. Operating margin 14.9%. Source: 10-Q filed 2025-10-31.

Metric	CL	Rating	Context
Return on Invested Capital (ROIC)	24.7%	Excellent	Above sector median of 4.6%
Return on Equity (ROE)	534.6%	Excellent	Efficient use of shareholder equity
Gross Margin	60.4%	Excellent	Strong pricing power
Operating Margin	14.9%	Good	Moderate operational efficiency

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Cash Flow: COLGATE PALMOLIVE CO generates $3.9B FCF at 18.3% margin, positive NaN/8 quarters

FCF TTM $3.9B. FCF margin 18.3%, Top 5%. OCF/Net income 2.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-31.

Metric	CL	Rating	Context
Free Cash Flow Margin	18.3%	Good	Excellent cash conversion
Free Cash Flow (TTM)	$3.9B	Good	Positive cash generation
OCF/Net Income	2.2x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: COLGATE PALMOLIVE CO at 33.1x leverage

Debt/Equity 33.1x. Total debt $7.8B, cash & investments $1.4B. Source: 10-Q filed 2025-10-31.

Metric	CL	Rating	Context
Debt to Equity	33.1x	Red flag	Elevated leverage
Net Cash Position	$-6.5B	Warning	Net debt position

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Valuation: COLGATE PALMOLIVE CO trades at 36.2x earnings

P/E 36.2x. EV/Sales 3.5x. FCF yield 5.2%. Dividend yield 2.5%. Source: 10-Q filed 2025-10-31.

Metric	CL	Rating	Context
P/E Ratio	36.2x	Adequate	Premium valuation
EV/Sales	3.5x	Good	Growth premium priced in
FCF Yield	5.2%	Good	Attractive cash return
Dividend Yield	2.5%	Adequate	Growth focus over income

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Capital Allocation: COLGATE PALMOLIVE CO returns 4.2% shareholder yield

Total shareholder yield 4.2% (div 2.5% + buyback 1.8%). Capital returned $3.1B TTM. Source: 10-Q filed 2025-10-31.

Metric	CL	Rating	Context
Total Shareholder Yield	4.2%	Good	Dividend + buyback yield combined
Buyback Yield	1.8%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$3.1B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	24.7%	Top 5%	5.4x above
Free Cash Flow Margin	18.3%	Top 5%	14.1x above
Gross Margin	60.4%	Top 10%	2.1x above
Operating Margin	14.9%	Top 50%	2.0x above
Return on Equity (ROE)	534.6%	Top 5%	80.7x above
P/E Ratio	36.2x	N/A	-

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Financial Scorecard

Metric	CL	Rating	Sector Context
Return on Invested Capital (ROIC)	24.7%	Excellent	Top 5% of sector (median: 4.6%)
Free Cash Flow Margin	18.3%	Good	Top 5% of sector (median: 1.3%)
Gross Margin	60.4%	Excellent	Top 10% of sector (median: 28.2%)
Debt to Equity Ratio	33.1x	Red flag	High financial leverage
P/E Ratio (Price-to-Earnings)	36.2x	Adequate	High expectations priced in
Free Cash Flow Yield	5.2%	Good	Solid cash yield

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Frequently Asked Questions

Q: What is COLGATE PALMOLIVE CO's Return on Invested Capital (ROIC)?

COLGATE PALMOLIVE CO (CL) has a trailing twelve-month Return on Invested Capital (ROIC) of 24.7%. Sector median 4.6%. Source: 10-Q filed 2025-10-31.

Q: What is COLGATE PALMOLIVE CO's Free Cash Flow Margin?

COLGATE PALMOLIVE CO (CL) has a free cash flow margin of 18.3%, generating $3.9 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-31.

Q: What is COLGATE PALMOLIVE CO's P/E ratio and how does it compare to peers?

COLGATE PALMOLIVE CO (CL) trades at a P/E ratio of 36.2x, which is above the sector median of N/A. EV/Sales 3.5x. FCF yield 5.2%. Source: 10-Q filed 2025-10-31.

Q: Does COLGATE PALMOLIVE CO pay a dividend?

COLGATE PALMOLIVE CO (CL) currently pays a dividend yield of 2.5%. Total shareholder yield (dividend + buybacks) 4.2%. Source: 10-Q filed 2025-10-31.

Q: How much debt does COLGATE PALMOLIVE CO have?

COLGATE PALMOLIVE CO (CL) has a debt-to-equity ratio of 33.1x with total debt of $7.8 billion. Net debt $6.5 billion. Source: 10-Q filed 2025-10-31.

Q: What is COLGATE PALMOLIVE CO's revenue and earnings growth?

COLGATE PALMOLIVE CO (CL) grew revenue by 5.2% year-over-year. EPS -28.9% YoY. Source: 10-Q filed 2025-10-31.

Q: Is COLGATE PALMOLIVE CO buying back stock?

COLGATE PALMOLIVE CO (CL) repurchased $1.3 billion of stock over the trailing twelve months. This represents a buyback yield of 1.8%. Source: 10-Q filed 2025-10-31.

Q: How does COLGATE PALMOLIVE CO compare to competitors in Materials?

Compared to other companies in Materials, COLGATE PALMOLIVE CO (CL) shows: ROIC 24.7%, sector median 4.6% (Top 5%). FCF margin 18.3%, sector median 1.3% (Top 5%). Gross margin 60.4%, 32.2pp above sector median. These rankings are based on MetricDuck's analysis of all Materials companies with available SEC filings.

Q: What warning signs should I watch for with COLGATE PALMOLIVE CO?

Quantitative warning flags for COLGATE PALMOLIVE CO (CL): 1) ROIC declining -10.2% over 8 quarters; 2) debt/equity 33.1x (above 1.5x threshold). Source: 10-Q filed 2025-10-31.

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Data Source: Data sourced from 10-Q filed 2025-10-31. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.