Colgate-Palmolive (CL)
NYSEConsumer StaplesHousehold & Personal ProductsSnapshot 2026-09-04
$88.77-1.47%
Close 2026-09-04 · 1-day change
NYSEConsumer StaplesHousehold & Personal ProductsSnapshot 2026-09-04
Intact: The reason to own it still holds.
Colgate-Palmolive grows revenue about 4.4% yearly as analysts expect. Profit margins remain stable despite some pressure. The company executes a productivity program to support growth. Free cash flow yield is steady at 5%.
Revenue growth could slow below 2% if productivity gains lag. Margins may compress further given lowered gross margin guidance. The CEO transition creates some uncertainty in management execution.
The price is about 8% above our fair value near $88, reflecting roughly 4% revenue growth. Our fair value is 10% below the Street median, indicating some caution versus consensus.
Breaks if: Program progress stalls or reverses over next year
Breaks if: Gross margin falls significantly below mid-cycle levels
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder, as CL has shown consistent revenue growth and strong financial performance recently. The current thesis state is intact, supported by recent earnings beats and ongoing management initiatives.
The market seems to have priced in a low level of fragility, reflecting weak execution quality but not a full concentration of risk. The valuation appears justified, with a durable premium compared to peers.
Management is focused on achieving revenue growth and optimizing the supply chain, which could support continued performance. Recent financial results have been strong, but there is a moderate risk of missing future targets, given past performance.
The thesis hinges on management's ability to maintain guidance and execute on strategic initiatives. Additionally, external factors like inflation trends and performance of sector peers will be crucial for future momentum.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports the thesis. Colgate-Palmolive's Q2 EPS of $0.99 exceeded expectations, indicating strong gross margins. The company is on track to achieve revenue growth of 2% to 6% in 2026.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: YoY revenue growth falls below 2% in FY26
Over the next 1 to 3 years, CL's performance will depend on effective management execution and external economic conditions. Not investment advice.