Colgate-Palmolive Company (CL)

Colgate-Palmolive makes stuff that just about everyone uses. Their stock stagnated during the bubble and, along with many other good companies that stagnated then, its price has dropped into the "fire sale" range. Its growth is now tracking nicely along its -2RMS line, which may mean that it'll stay at that new growth level for a while. A 14% CAGR is just fine with me, and it looks like there's some upside potential for more than that. It's worth noting that they've had some earnings trouble, though, so all is not as rosy as I would like. Still, I think they're overall a good bet.

In Colgate-Palmolive, you have an internationally-diversified maker of household products. This financially rock-solid company pays a dividend above 2% that has been - and will continue - growing that dividend at a rate well in excess of inflation. When you approach retirement age (and a lot of baby-boomers are), this company will certainly be on your short list of retirement investments. Are you going to wait for everyone else to get in before you, or are you going to buy this stock now?

Colgate is still coming off a low base and should exceed market for next few years. They have a dominant position in important Oral Care category in many growing internatioinal markets.

This company falls into the "tortise" part of the race, but has been winning for decades. They sell the products that never get cut from the budget, no matter what the economy is doing or how much extra cash people have sitting around. They may be growing only slightly faster than the S&P 500, but it's one of the steadiest growth patterns you can find.

9/2006

91

Earnings Per Share (EPS) Rating
62
Relative Price Strength (RS) Rating
67
Industry Group Relative Strength (Grp RS) Rating
A
Sales + Profit Margins + ROE (SMR) Rating
B
Accumulation/ Distribution (Acc/Dis) Rating
C+

Long-term underperform. Lackluster mgmt. Price in the mid-range with P/E/ a bit high. It may have some room to go up, but long-term won't outperform the S&P500.

I need another solid recognizable brand that will not go quickly down a drain in a bad market. While not currently at a low this stock price is low to middle for now. I have used Colgate for years so I know that product malfunction is not likely. As a company, I like its international exposure. Right now PE ratio and Debt/ Equity ratio is bad, but how bad can toothpaste hurt in a multi billion company? The dividend is still looking respectable. For a long term posture, this should be a steady producer.

Steady growth of this well known company, profit each year but debt is way out there and if I didn't know it I'd think I was looking at a typical consumer in debt, what';s up with Colgate?

This company is well managed and globally diverse. With dividends and drop in price this past month, it is well positioned to move higer in the next few yrs.

The brand name is recognized internationally and prestiguous in Asian countries.

CL will reach the mid 80's within 1 yr.

Smile wide with Colgate!!! Colgate-Palmolive is a leading global consumer products company, tightly focused on Oral Care, Personal Care, Home Care and Pet Nutrition. Colgate sells its products in over 200 countries under major brand names like Colgate, Palmolive, Mennen, Kolynos, Elmex, Ajax, Hill’s Science Diet and Hill’s Prescription Diet.

The company operates in a highly competitive market and faces stiff competition from arch rival Procter and Gamble’s Crest brand. Colgate and Crest fight neck-to-neck for market share in the United States, though globally, Colgate leads with a 40% share. Colgate’s focus on oral care might outwit a much larger diversified Procter and Gamble and its Crest brand. Albeit, Colgate has a leading market share in China, a country which has a potential of absorbing 4.5 billion tubes by 2010, it might have to fight with its larger opponent Procter and Gamble to retain its position, as the latter has the advantage of leveraging its infrastructure there.

Colgate-Palmolive stock has made a dramatic comeback in the past two years, thanks to the must-needed restructuring initiative launched in 2004. The company’s continuous cost-cutting efforts are being reflected in improved gross margin. Record advertising spending boosted the top-line growth. Further purchase of 84% stake in Tom’s of Maine is likely to start showing up in the bottom line in future quarters.

Looking ahead, the company expects gross profit margins to be up during the fourth quarter and the next year as well. Its global new product pipeline is full, and it anticipates double-digit EPS growth for fiscal years 2006 and 2007. Additionally, the company should reap the benefits of the aggressive restructuring program it has planned.

I can see the current volitility in the market running well into 2008. Come of the stocks less effected by economic downturns (CL, PG, JNJ, KMB, KO) could outperform the market. It would be a good strategy to hold a few of these as a small to medium percentage of your portfolio just in case the warnings of a possible recession come to fruition.

Colgate Palmolive is an old company, of course, and owns many products with strong brand loyalty. And they offer a nice dividend, which bears considering. I find the company attractive mainly because they've been expanding into the developing world -- India, China, etc. This gives them good growth potential on top of their other strong points. I don't see explosive growth here, just a steady upward curve for a long time, and very little risk.

Focus is international and developing countries so there is potential for increasing market share.

What can I add to all the others? This is a major player with an outstanding history.

Colgate must be in everyone's portfolio. It has consistently increased dividends. Further it is a great stock to hold if the market ever crashes. Great investor friendly management!

They own 44% of the world toothpaste market and even in a down year people brush their teeth.

Dividend raised every year for 45 years, come retirement in 45 years it'll be paying a huge sum annually. Until the markets smooth out CL will beat the S&P and by the time the economy turns around and the market starts a steady climb the lead is going to be too big to lose with the growing dividend.

strong brands and great ROE's bode well for this as a long term holding

As the world continues to industrialize, Colgate will be there to reap the benefits. China should be a big market for them in the future.