The Analyst Verdict: Colgate-Palmolive In The Eyes Of 6 Experts

Providing a diverse range of perspectives from bullish to bearish, 6 analysts have published ratings on Colgate-Palmolive CL in the last three months.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts have recently evaluated Colgate-Palmolive and provided 12-month price targets. The average target is $102.0, accompanied by a high estimate of $114.00 and a low estimate of $83.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 5.27%.

Diving into Analyst Ratings: An In-Depth Exploration

The perception of Colgate-Palmolive by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Colgate-Palmolive. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Colgate-Palmolive compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Colgate-Palmolive's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Colgate-Palmolive's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Colgate-Palmolive analyst ratings.

Unveiling the Story Behind Colgate-Palmolive

Since its founding in 1806, Colgate-Palmolive has grown to become a leading player in the household and personal care arena. In addition to its namesake oral care line (which accounts for more than 40% of its total sales), the firm manufactures shampoos, shower gels, deodorants, and homecare products that are sold in over 200 countries. International sales account for about 70% of its total business, including approximately 45% from emerging regions. It also owns specialty pet food maker Hill's (around one fifth of sales), which primarily sells its products through veterinarians and specialty pet retailers.

Financial Insights: Colgate-Palmolive

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Positive Revenue Trend: Examining Colgate-Palmolive's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.4% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Consumer Staples sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Colgate-Palmolive's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 14.64% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Colgate-Palmolive's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 264.16%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Colgate-Palmolive's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 4.43%, the company showcases efficient use of assets and strong financial health.

Debt Management: Colgate-Palmolive's debt-to-equity ratio stands notably higher than the industry average, reaching 19.39. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Understanding the Relevance of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.