CL changes
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- Price
- $97.94
- Discount category
- Far above intrinsic value
- Next earnings
- 2027-01-29
- Next earnings is estimate
- Yes
- Company name
- Colgate-Palmolive
- Sector
- Household and personal products
- About
- Colgate-Palmolive (Colgate) makes and sells oral care, personal care, home care and pet nutrition products in more than 200 countries and territories. Its brands include Colgate, Palmolive, Ajax, Darlie, elmex, EltaMD, Filorga, Irish Spring, Protex, Softsoap, Speed Stick, Suavitel and Tom's of Maine. Hill's Pet Nutrition sells Hill's Prescription Diet and Hill's Science Diet pet food, mainly through pet supply retailers and veterinarians. In Q3 2026, Latin America gave 25% of net sales, Hill's 22%, Europe, Middle East and Africa 21%, North America 17% and Asia Pacific 15%. The company says that its global market share in toothpaste was 41.4% and in manual toothbrushes 33.1% in 2026 to date. The head office is in New York. Noel Wallace is Chairman, President and Chief Executive Officer.
- Thesis
- Colgate trades at a premium because investors pay for its steady sales, its strong brands in oral care and pet food, and its strong cash flow. In Q3 2026, net sales rose 4.6% to $5,369 million and organic sales rose 3.6%, with growth in volume and in price. Base Business EPS rose 7% to $0.97, and the company now expects Base Business EPS growth of 5% to 7% for 2026, against $3.69 in 2025. But North America sales fell 1.7% in the quarter, and the company spends more on advertising and on its Strategic Growth and Productivity Program, which it expects to cost $350 million to $550 million before tax through 2028. For the premium to be earned, three things must be true. Organic sales growth must stay near 3% or more while category growth in many markets is slow. Gross margin must keep rising while tariffs and costs change. North America and the skin health business must return to growth. The Q4 2026 report with the 2027 outlook, expected in late January 2027, is the next test. Steady growth over several years can hold the price, and a slowdown can make the premium smaller.
- Risks
- Category growth is slow in many markets, and competitors and private label products can take share. North America net sales fell 1.7% and its operating profit fell 11% in Q3 2026. Latin America, Europe, Middle East and Africa and Asia Pacific gave 61% of net sales in Q3 2026. A strong U.S. dollar lowers sales and profit in dollars, and currencies in Latin America change a lot. Tariffs and changes in trade rules can raise the cost of raw and packaging materials. The company may not be able to pass all of the costs to customers. The skin health business, mainly Filorga, caused impairment charges in 2025, and the company has not yet shown a return to growth there. Shareholders' equity was only $288 million at September 30, 2026, because of many years of buybacks. Debt is moderate against cash flow, but the company has less room for a large purchase.
- Balance sheet
- Cash: $1.5B Debt: $7.7B Net debt: $6.2B Interest cover: 17× Debt due within 12 months: $532M Colgate funds itself with fixed-rate notes, commercial paper and cash flow. At September 30, 2026, total debt was $7,716 million: $532 million due within one year and $7,184 million of long-term debt. Commercial paper was $1,037 million, against $147 million at the end of 2025, because the company paid notes that matured in Q1 2026 with commercial paper. Interest cover is operating profit divided by interest expense for the first nine months of 2026 ($3,069 million against $186 million). Operating cash flow was $2,913 million in the first nine months of 2026, and free cash flow before dividends was $2,513 million. The company paid $1,308 million of dividends and bought $927 million of its own shares in the same period. The quarterly dividend is $0.53 per share. Total Colgate shareholders' equity was $288 million. As of 2026-09-30.
- Checkpoints
- Oct 30, 2026: Q3 2026 results: organic growth. Passed. Watch: Organic sales growth near 3% or more with higher margins passes; a decrease in volume fails. Outcome: Organic sales rose 3.6% with volume up 1.7%, and the company raised its Base Business EPS guidance for 2026. Jan 29, 2027 (estimate): Q4 2026 results and 2027 outlook. Pending. Watch: Base Business EPS growth of 5% to 7% in 2026 and a 2027 outlook with organic growth pass; a lower outlook fails. Q2 2027 (estimate): North America returns to growth. Pending. Watch: Positive organic sales growth in North America passes; a further decrease fails.
- Recent events
- 2026-10-30: Colgate reported Q3 2026 results. Net sales rose 4.6% to $5,369 million, organic sales rose 3.6% and GAAP EPS rose 3% to $0.94. Base Business EPS rose 7% to $0.97. The company narrowed its 2026 net sales guidance to growth of 4% to 5% and raised its Base Business EPS guidance to growth of 5% to 7%. 2026-04-30: The Board approved an expansion of the Strategic Growth and Productivity Program. The company expects pre-tax charges of $350 million to $550 million in total, mostly for employee costs, and expects to complete the program by the end of 2028. 2026-04-08: The Board elected Betsy Fishbone as Chief Legal Officer and Secretary from June 1, 2026. Jennifer Daniels, who held the role since 2014, became Vice Chair before her retirement in 2026. 2026-01-30: Colgate reported full-year 2025 results. Net sales and organic sales rose 1.4%. GAAP EPS fell 25% to $2.63 because of impairment charges for goodwill and intangible assets of the skin health business, mainly Filorga. Base Business EPS rose 3% to $3.69, and operating cash flow was a record $4,198 million.