CLOROX COMPANY (CLX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CLX - US1890541097 - Common Stock
107.94 USD
+0.19 (+0.18%)
107.94 USD
0 (0%)
Taking everything into account, CLX scores 4 out of 10 in our fundamental rating. CLX was compared to 12 industry peers in the Household Products industry. While CLX is still in line with the averages on profitability rating, there are concerns on its financial health. CLX is valied quite expensively at the moment, while it does show a decent growth rate. CLX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CLX was profitable.
CLX had a positive operating cash flow in the past year.
Each year in the past 5 years CLX has been profitable.
Each year in the past 5 years CLX had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.31%, CLX belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
CLX has a Return On Invested Capital of 21.90%. This is in the better half of the industry: CLX outperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CLX is above the industry average of 14.94%.
The 3 year average ROIC (18.59%) for CLX is below the current ROIC(21.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.31% | ||
| ROE | N/A | ||
| ROIC | 21.9% |
ROA(3y)7.31%
ROA(5y)8.13%
ROE(3y)135.14%
ROE(5y)132.26%
ROIC(3y)18.59%
ROIC(5y)17.73%
1.3 Margins
Looking at the Profit Margin, with a value of 11.68%, CLX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CLX's Profit Margin has declined in the last couple of years.
CLX has a Operating Margin (15.17%) which is in line with its industry peers.
In the last couple of years the Operating Margin of CLX has declined.
With a decent Gross Margin value of 44.28%, CLX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
CLX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.17% | ||
| PM (TTM) | 11.68% | ||
| GM | 44.28% |
OM growth 3Y18.52%
OM growth 5Y-2.48%
PM growth 3Y20.6%
PM growth 5Y-3.98%
GM growth 3Y8.04%
GM growth 5Y-0.18%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CLX is creating value.
The number of shares outstanding for CLX has been reduced 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 3.19 indicates that CLX is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.19, CLX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
CLX has a debt to FCF ratio of 4.25. This is a neutral value as CLX would need 4.25 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.25, CLX is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 3.19 |
ROIC/WACC2.83
WACC7.73%
2.3 Liquidity
CLX has a Current Ratio of 0.76. 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 0.76 is on the low side compared to the rest of the industry. CLX is outperformed by 83.33% of its industry peers.
A Quick Ratio of 0.50 indicates that CLX may have some problems paying its short term obligations.
With a Quick ratio value of 0.50, CLX is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
CLX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.99%.
The Earnings Per Share has been growing slightly by 1.01% on average over the past years.
Looking at the last year, CLX shows a decrease in Revenue. The Revenue has decreased by -9.35% in the last year.
The Revenue has been growing slightly by 1.11% on average over the past years.
EPS 1Y (TTM)-10.99%
EPS 3Y23.44%
EPS 5Y1.01%
EPS Q2Q%-54.3%
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y-0.01%
Revenue growth 5Y1.11%
Sales Q2Q%-18.9%
3.2 Future
CLX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.83% yearly.
The Revenue is expected to grow by 1.40% on average over the next years.
EPS Next Y-22.2%
EPS Next 2Y-5.8%
EPS Next 3Y-1.93%
EPS Next 5Y2.83%
Revenue Next Year-7.81%
Revenue Next 2Y-1.89%
Revenue Next 3Y-0.24%
Revenue Next 5Y1.4%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.06 indicates a correct valuation of CLX.
Compared to the rest of the industry, the Price/Earnings ratio of CLX is on the same level as its industry peers.
CLX is valuated rather cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.74, which indicates a correct valuation of CLX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CLX is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, CLX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.06 | ||
| Fwd PE | 15.74 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CLX indicates a slightly more expensive valuation: CLX is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.67 | ||
| EV/EBITDA | 12.37 |
4.3 Compensation for Growth
The decent profitability rating of CLX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)15.85
EPS Next 2Y-5.8%
EPS Next 3Y-1.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.60%, CLX is a good candidate for dividend investing.
CLX's Dividend Yield is rather good when compared to the industry average which is at 3.42. CLX pays more dividend than 91.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, CLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
5.2 History
The dividend of CLX has a limited annual growth rate of 2.88%.
CLX has been paying a dividend for at least 10 years, so it has 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)2.88%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
CLX pays out 76.11% of its income as dividend. This is not a sustainable payout ratio.
CLX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP76.11%
EPS Next 2Y-5.8%
EPS Next 3Y-1.93%
107.94
+0.19 (+0.18%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners91%
Inst Owner Change-3.75%
Ins Owners0.24%
Ins Owner Change13.55%
Market Cap13.17B
Revenue(TTM)6.77B
Net Income(TTM)791.00M
Analysts54.81
Price Target131.24 (21.59%)
Short Float %5.44%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
Yearly Dividend4.88
Dividend Growth(5Y)2.88%
DP76.11%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.83%
Min EPS beat(2)6.97%
Max EPS beat(2)28.7%
EPS beat(4)3
Avg EPS beat(4)9.13%
Min EPS beat(4)-8.29%
Max EPS beat(4)28.7%
EPS beat(8)7
Avg EPS beat(8)25.3%
EPS beat(12)11
Avg EPS beat(12)52.89%
EPS beat(16)13
Avg EPS beat(16)41.78%
Revenue beat(2)2
Avg Revenue beat(2)1.32%
Min Revenue beat(2)1.06%
Max Revenue beat(2)1.58%
Revenue beat(4)3
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-4.3%
Max Revenue beat(4)2.62%
Revenue beat(8)5
Avg Revenue beat(8)1.13%
Revenue beat(12)9
Avg Revenue beat(12)2.28%
Revenue beat(16)11
Avg Revenue beat(16)1.58%
PT rev (1m)-6.45%
PT rev (3m)-7.08%
EPS NQ rev (1m)-3.76%
EPS NQ rev (3m)-6.14%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-2.25%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.06 | ||
| Fwd PE | 15.74 | ||
| P/S | 1.94 | ||
| P/FCF | 20.67 | ||
| P/OCF | 15.41 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.37 |
EPS(TTM)6.72
EY6.23%
EPS(NY)6.86
Fwd EY6.35%
FCF(TTM)5.22
FCFY4.84%
OCF(TTM)7.01
OCFY6.49%
SpS55.6
BVpS-0.18
TBVpS-14.86
PEG (NY)N/A
PEG (5Y)15.85
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.31% | ||
| ROE | N/A | ||
| ROCE | 31.18% | ||
| ROIC | 21.9% | ||
| ROICexc | 22.99% | ||
| ROICexgc | 49.37% | ||
| OM | 15.17% | ||
| PM (TTM) | 11.68% | ||
| GM | 44.28% | ||
| FCFM | 9.39% |
ROA(3y)7.31%
ROA(5y)8.13%
ROE(3y)135.14%
ROE(5y)132.26%
ROIC(3y)18.59%
ROIC(5y)17.73%
ROICexc(3y)19.75%
ROICexc(5y)18.87%
ROICexgc(3y)40.28%
ROICexgc(5y)41.99%
ROCE(3y)24.92%
ROCE(5y)23.9%
ROICexgc growth 3Y25.21%
ROICexgc growth 5Y-4.26%
ROICexc growth 3Y28.43%
ROICexc growth 5Y1.01%
OM growth 3Y18.52%
OM growth 5Y-2.48%
PM growth 3Y20.6%
PM growth 5Y-3.98%
GM growth 3Y8.04%
GM growth 5Y-0.18%
F-Score6
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.25 | ||
| Debt/EBITDA | 2.17 | ||
| Cap/Depr | 98.19% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.35% | ||
| Profit Quality | 80.4% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 3.19 |
F-Score6
WACC7.73%
ROIC/WACC2.83
Cap/Depr(3y)95.76%
Cap/Depr(5y)111.24%
Cap/Sales(3y)3.06%
Cap/Sales(5y)3.44%
Profit Quality(3y)296.87%
Profit Quality(5y)227.9%
High Growth Momentum
Growth
EPS 1Y (TTM)-10.99%
EPS 3Y23.44%
EPS 5Y1.01%
EPS Q2Q%-54.3%
EPS Next Y-22.2%
EPS Next 2Y-5.8%
EPS Next 3Y-1.93%
EPS Next 5Y2.83%
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y-0.01%
Revenue growth 5Y1.11%
Sales Q2Q%-18.9%
Revenue Next Year-7.81%
Revenue Next 2Y-1.89%
Revenue Next 3Y-0.24%
Revenue Next 5Y1.4%
EBIT growth 1Y-13.41%
EBIT growth 3Y18.51%
EBIT growth 5Y-1.39%
EBIT Next Year6.95%
EBIT Next 3Y6.71%
EBIT Next 5Y6.75%
FCF growth 1Y-19.9%
FCF growth 3Y12.46%
FCF growth 5Y-10.05%
OCF growth 1Y-14.7%
OCF growth 3Y7.67%
OCF growth 5Y-8.7%
CLOROX COMPANY / CLX FAQ
Can you provide the ChartMill fundamental rating for CLOROX COMPANY?
ChartMill assigns a fundamental rating of 4 / 10 to CLX.
What is the valuation status of CLOROX COMPANY (CLX) stock?
ChartMill assigns a valuation rating of 3 / 10 to CLOROX COMPANY (CLX). This can be considered as Overvalued.
What is the profitability of CLX stock?
CLOROX COMPANY (CLX) has a profitability rating of 6 / 10.
What is the earnings growth outlook for CLOROX COMPANY?
The Earnings per Share (EPS) of CLOROX COMPANY (CLX) is expected to decline by -22.2% in the next year.
Is the dividend of CLOROX COMPANY sustainable?
The dividend rating of CLOROX COMPANY (CLX) is 7 / 10 and the dividend payout ratio is 76.11%.