Assessing Colgate-Palmolive: Insights From 8 Financial Analysts

In the preceding three months, 8 analysts have released ratings for Colgate-Palmolive CL, presenting a wide array of perspectives from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $97.62, a high estimate of $112.00, and a low estimate of $83.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 7.25%.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Colgate-Palmolive among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Colgate-Palmolive. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Colgate-Palmolive's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Colgate-Palmolive analyst ratings.

Discovering Colgate-Palmolive: A Closer Look

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.

Key Indicators: Colgate-Palmolive's Financial Health

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 14.64%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Colgate-Palmolive's ROE excels beyond industry benchmarks, reaching 264.16%. This signifies robust financial management and efficient use of shareholder equity capital.

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: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 19.39, caution is advised due to increased financial risk.

What Are 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.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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