Buy CL Stock At $80?

Core Viewpoint - Colgate-Palmolive stock has decreased by 12% in 2023, underperforming the S&P 500, which has risen by 13% due to slowing sales growth and weak demand in its pet care segment [2][3] Group 1: Financial Performance - The company projects only about 2% organic sales growth for 2025, indicating a slowdown in revenue growth [2] - Colgate-Palmolive's revenues have decreased over the past few years, with a 0.1% increase from $20 billion to $20 billion in the past 12 months [7][14] - The company's quarterly revenues grew 1.0% to $5.1 billion in the most recent quarter, compared to a 6.1% improvement for the S&P 500 [14] - Operating income over the last four quarters was $4.3 billion, with a high operating margin of 21.7% [14] - Net income for the four-quarter period was $2.9 billion, signifying a moderate net income margin of 14.5% [14] Group 2: Valuation Metrics - Colgate-Palmolive has a price-to-sales (P/S) ratio of 3.2, slightly below the S&P 500's 3.3 [8] - The price-to-earnings (P/E) ratio stands at 22.2, compared to the benchmark's 23.7 [8] - The current price-to-sales ratio of 3.4 is slightly below its five-year average of 3.8, indicating potential upside [13] Group 3: Financial Stability - Colgate-Palmolive's balance sheet appears strong, with a debt of $8.8 billion and a market capitalization of $64 billion [10][14] - The debt-to-equity ratio is 13.6%, significantly lower than the S&P 500's 21.1%, indicating strong financial stability [14] Group 4: Resilience During Downturns - Colgate-Palmolive stock has shown greater resilience than the S&P 500 during several recent downturns, recovering fully from past declines [11][15] - The company is expected to regain momentum in its pet care business by 2026, which could enhance overall growth [16]