Colgate-Palmolive CompanyCL

Morningstar Rating

Stock Research and Analysis

by Lauren DeSanto

Colgate-Palmolive has long been one of the most focused consumer products companies on the planet, dominating the oral care category with a worldwide toothpaste market share of almost 45%. The firm's expertise extends beyond toothpaste, however, as Read more

Bulls Say

Colgate has 200 years of experience selling toothpaste and oral-care products. It is the leading toothpaste brand, with worldwide market share of 45%. The firm holds a 30% worldwide market share in manual toothbrushes, where growth has been powered by its 360 Degree toothbrush.

Building consumption over time comes quite naturally to Colgate, and partnerships with dentists, as well as work in developing markets, help the firm drive awareness about oral care and build market share of its core brands over time.

Colgate strikes us as one of the most focused and efficient consumer product firms around. It was an early adopter of SAP software, and its promotional tool is also integrated with SAP. Read more

Bears Say

Colgate operates in only a handful of product categories, limiting the foundation from which it can generate new products. It uses brand extensions so much that it risks numbing consumers to innovation.

The firm has enjoyed a prosperous run in its Latin American markets, but it also has outsized exposure to the region. Slightly more than 25% of total sales are generated in Latin America but roughly 32% of operating profits before corporate expenses derive from the region.

Despite strong U.S. market share positions in toothpaste and toothbrushes, Colgate still has some holes in its oral-care portfolio. It lacks a strong mouthwash brand or power toothbrush system.

Strategy

Colgate is focused on gaining and maintaining leading market share wherever it competes. The firm's oral-care business is the primary driver of sales and profits with new product introductions, primarily Read more

Management

Colgate chairman and CEO Ian Cook has been at the helm since 2007, but he has been with the firm since the mid-1970s. Colgate's board might benefit from some new blood because a number of the directors have tenures stretching back more than 10 years. Read more

Profile

Colgate-Palmolive is one of the world's largest consumer product companies. In addition to its namesake toothpaste and detergents, the firm manufactures shampoos, shower Read more

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