CLOROX COMPANY (CLX) Stock Fundamental Analysis
NYSE:CLX - New York Stock Exchange, Inc. - US1890541097 - Common Stock - Currency: USD
CLX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. There are concerns on the financial health of CLX while its profitability can be described as average. CLX is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CLX had positive earnings in the past year.
In the past year CLX had a positive cash flow from operations.
Each year in the past 5 years CLX has been profitable.
CLX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 6.49%, CLX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
With an excellent Return On Equity value of 595.00%, CLX belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
CLX has a better Return On Invested Capital (21.32%) than 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CLX is below the industry average of 15.62%.
The last Return On Invested Capital (21.32%) for CLX is above the 3 year average (13.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 595% | ||
| ROIC | 21.32% |
ROA(3y)4.96%
ROA(5y)8.24%
ROE(3y)78.73%
ROE(5y)102.47%
ROIC(3y)13.49%
ROIC(5y)15.84%
1.3 Margins
Looking at the Profit Margin, with a value of 4.78%, CLX is in line with its industry, outperforming 41.67% of the companies in the same industry.
CLX's Profit Margin has declined in the last couple of years.
CLX has a Operating Margin of 15.88%. This is comparable to the rest of the industry: CLX outperforms 58.33% of its industry peers.
In the last couple of years the Operating Margin of CLX has declined.
CLX's Gross Margin of 44.56% is fine compared to the rest of the industry. CLX outperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of CLX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.88% | ||
| PM (TTM) | 4.78% | ||
| GM | 44.56% |
OM growth 3Y-7.85%
OM growth 5Y-6.18%
PM growth 3Y-25.82%
PM growth 5Y-21.44%
GM growth 3Y-0.28%
GM growth 5Y-0.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CLX is creating value.
The number of shares outstanding for CLX has been increased compared to 1 year ago.
Compared to 5 years ago, CLX has less shares outstanding
The debt/assets ratio for CLX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.26 indicates that CLX is not in any danger for bankruptcy at the moment.
CLX has a better Altman-Z score (4.26) than 66.67% of its industry peers.
The Debt to FCF ratio of CLX is 3.72, which is a good value as it means it would take CLX, 3.72 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.72, CLX is doing worse than 66.67% of the companies in the same industry.
A Debt/Equity ratio of 41.43 is on the high side and indicates that CLX has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 41.43, CLX is doing worse than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 41.43 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 4.26 |
ROIC/WACC2.53
WACC8.44%
2.3 Liquidity
CLX has a Current Ratio of 1.00. This is a bad value and indicates that CLX is not financially healthy enough and could expect problems in meeting its short term obligations.
CLX's Current ratio of 1.00 is on the low side compared to the rest of the industry. CLX is outperformed by 75.00% of its industry peers.
A Quick Ratio of 0.62 indicates that CLX may have some problems paying its short term obligations.
CLX has a worse Quick ratio (0.62) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
CLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.04%, which is quite good.
Measured over the past years, CLX shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.51% on average per year.
The Revenue has decreased by -4.01% in the past year.
The Revenue has been growing slightly by 2.68% on average over the past years.
EPS 1Y (TTM)19.04%
EPS 3Y-7.55%
EPS 5Y-0.51%
EPS Q2Q%-28.24%
Revenue 1Y (TTM)-4.01%
Revenue growth 3Y-1.14%
Revenue growth 5Y2.68%
Sales Q2Q%-15.28%
3.2 Future
CLX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.95% yearly.
The Revenue is expected to grow by 2.69% on average over the next years.
EPS Next Y11.87%
EPS Next 2Y9.09%
EPS Next 3Y7.83%
EPS Next 5Y7.95%
Revenue Next Year-1.4%
Revenue Next 2Y0.46%
Revenue Next 3Y1.26%
Revenue Next 5Y2.69%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.46, the valuation of CLX can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CLX is on the same level as its industry peers.
When comparing the Price/Earnings ratio of CLX to the average of the S&P500 Index (28.36), we can say CLX is valued slightly cheaper.
With a Price/Forward Earnings ratio of 20.25, CLX is valued on the expensive side.
CLX's Price/Forward Earnings is on the same level as the industry average.
CLX's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.46 | ||
| Fwd PE | 20.25 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CLX is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, CLX is valued a bit more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.56 | ||
| EV/EBITDA | 15.55 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
CLX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.81
PEG (5Y)N/A
EPS Next 2Y9.09%
EPS Next 3Y7.83%
5. Dividend
5.1 Amount
CLX has a Yearly Dividend Yield of 3.08%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.48, CLX pays a bit more dividend than its industry peers.
CLX's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
5.2 History
The dividend of CLX has a limited annual growth rate of 4.43%.
CLX has paid a dividend for at least 10 years, which is a reliable track record.
CLX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.43%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
167.23% of the earnings are spent on dividend by CLX. This is not a sustainable payout ratio.
The dividend of CLX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP167.23%
EPS Next 2Y9.09%
EPS Next 3Y7.83%
CLOROX COMPANY
NYSE:CLX (2/4/2025, 1:45:58 PM)
148.95
-10.83 (-6.78%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners84.04%
Inst Owner Change-2.12%
Ins Owners0.19%
Ins Owner Change13.13%
Market Cap18.44B
Analysts55.17
Price Target166.64 (11.88%)
Short Float %3.22%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.08% |
Yearly Dividend4.8
Dividend Growth(5Y)4.43%
DP167.23%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.72%
Min EPS beat(2)15.42%
Max EPS beat(2)32.02%
EPS beat(4)4
Avg EPS beat(4)41.48%
Min EPS beat(4)15.42%
Max EPS beat(4)94.7%
EPS beat(8)8
Avg EPS beat(8)74.77%
EPS beat(12)10
Avg EPS beat(12)52.66%
EPS beat(16)13
Avg EPS beat(16)39.92%
Revenue beat(2)1
Avg Revenue beat(2)1.28%
Min Revenue beat(2)-3.45%
Max Revenue beat(2)6.02%
Revenue beat(4)2
Avg Revenue beat(4)1.97%
Min Revenue beat(4)-3.92%
Max Revenue beat(4)9.22%
Revenue beat(8)6
Avg Revenue beat(8)3.27%
Revenue beat(12)8
Avg Revenue beat(12)2.02%
Revenue beat(16)10
Avg Revenue beat(16)1.32%
PT rev (1m)0.01%
PT rev (3m)4.79%
EPS NQ rev (1m)0.78%
EPS NQ rev (3m)-13.87%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)2.54%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-6.75%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.46 | ||
| Fwd PE | 20.25 | ||
| P/S | 2.47 | ||
| P/FCF | 27.56 | ||
| P/OCF | 20.58 | ||
| P/B | 307.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.55 |
EPS(TTM)6.94
EY4.66%
EPS(NY)7.36
Fwd EY4.94%
FCF(TTM)5.4
FCFY3.63%
OCF(TTM)7.24
OCFY4.86%
SpS60.34
BVpS0.48
TBVpS-14.17
PEG (NY)1.81
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 595% | ||
| ROCE | 30.27% | ||
| ROIC | 21.32% | ||
| ROICexc | 22.95% | ||
| ROICexgc | 45.69% | ||
| OM | 15.88% | ||
| PM (TTM) | 4.78% | ||
| GM | 44.56% | ||
| FCFM | 8.96% |
ROA(3y)4.96%
ROA(5y)8.24%
ROE(3y)78.73%
ROE(5y)102.47%
ROIC(3y)13.49%
ROIC(5y)15.84%
ROICexc(3y)14.36%
ROICexc(5y)17.52%
ROICexgc(3y)29.81%
ROICexgc(5y)41.93%
ROCE(3y)19.5%
ROCE(5y)22.69%
ROICexcg growth 3Y-18.79%
ROICexcg growth 5Y-10.19%
ROICexc growth 3Y-9.05%
ROICexc growth 5Y-3.75%
OM growth 3Y-7.85%
OM growth 5Y-6.18%
PM growth 3Y-25.82%
PM growth 5Y-21.44%
GM growth 3Y-0.28%
GM growth 5Y-0.32%
F-Score8
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 41.43 | ||
| Debt/FCF | 3.72 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 99.56% | ||
| Cap/Sales | 3.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.37% | ||
| Profit Quality | 187.4% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 4.26 |
F-Score8
WACC8.44%
ROIC/WACC2.53
Cap/Depr(3y)99.63%
Cap/Depr(5y)119.37%
Cap/Sales(3y)3.2%
Cap/Sales(5y)3.58%
Profit Quality(3y)304.15%
Profit Quality(5y)236.63%
High Growth Momentum
Growth
EPS 1Y (TTM)19.04%
EPS 3Y-7.55%
EPS 5Y-0.51%
EPS Q2Q%-28.24%
EPS Next Y11.87%
EPS Next 2Y9.09%
EPS Next 3Y7.83%
EPS Next 5Y7.95%
Revenue 1Y (TTM)-4.01%
Revenue growth 3Y-1.14%
Revenue growth 5Y2.68%
Sales Q2Q%-15.28%
Revenue Next Year-1.4%
Revenue Next 2Y0.46%
Revenue Next 3Y1.26%
Revenue Next 5Y2.69%
EBIT growth 1Y57.92%
EBIT growth 3Y-8.9%
EBIT growth 5Y-3.66%
EBIT Next Year35.88%
EBIT Next 3Y14.74%
EBIT Next 5Y11.14%
FCF growth 1Y-1.33%
FCF growth 3Y-20.05%
FCF growth 5Y-9.28%
OCF growth 1Y-2.93%
OCF growth 3Y-18.33%
OCF growth 5Y-6.87%