CLOROX COMPANY (CLX) Stock Fundamental Analysis
USA - NYSE:CLX - US1890541097 - Common Stock
122.82 USD
-0.69 (-0.56%)
122.82 USD
0 (0%)
Overall CLX gets a fundamental rating of 5 out of 10. We evaluated CLX against 12 industry peers in the Household Products industry. While CLX belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 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.
CLX had a positive operating cash flow in the past year.
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
CLX has a better Return On Assets (14.57%) than 83.33% of its industry peers.
Looking at the Return On Equity, with a value of 252.34%, CLX belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
The Return On Invested Capital of CLX (24.94%) is better than 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CLX is above the industry average of 15.56%.
The last Return On Invested Capital (24.94%) for CLX is above the 3 year average (18.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.57% | ||
| ROE | 252.34% | ||
| ROIC | 24.94% |
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
CLX has a Profit Margin of 11.40%. This is in the better half of the industry: CLX outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of CLX has declined.
CLX's Operating Margin of 17.09% is fine compared to the rest of the industry. CLX outperforms 66.67% of its industry peers.
CLX's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 45.16%, CLX is doing good in the industry, outperforming 75.00% 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 | 17.09% | ||
| PM (TTM) | 11.4% | ||
| GM | 45.16% |
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.
CLX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CLX has been reduced compared to 5 years ago.
The debt/assets ratio for CLX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.77 indicates that CLX is not in any danger for bankruptcy at the moment.
CLX has a Altman-Z score (3.77) which is in line with its industry peers.
The Debt to FCF ratio of CLX is 3.27, which is a good value as it means it would take CLX, 3.27 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CLX (3.27) is comparable to the rest of the industry.
A Debt/Equity ratio of 7.75 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 7.75, CLX is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.75 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 3.77 |
ROIC/WACC3.17
WACC7.86%
2.3 Liquidity
A Current Ratio of 0.84 indicates that CLX may have some problems paying its short term obligations.
With a Current ratio value of 0.84, CLX is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.57 indicates that CLX may have some problems paying its short term obligations.
The Quick ratio of CLX (0.57) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.08% over the past year.
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 small growth in Revenue. The Revenue has grown by 0.16% in the last year.
The Revenue has been growing slightly by 1.11% on average over the past years.
EPS 1Y (TTM)25.08%
EPS 3Y23.44%
EPS 5Y1.01%
EPS Q2Q%57.69%
Revenue 1Y (TTM)0.16%
Revenue growth 3Y-0.01%
Revenue growth 5Y1.11%
Sales Q2Q%4.47%
3.2 Future
Based on estimates for the next years, CLX will show a small growth in Earnings Per Share. The EPS will grow by 2.83% on average per year.
CLX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.35% yearly.
EPS Next Y-20.41%
EPS Next 2Y-4.61%
EPS Next 3Y-0.9%
EPS Next 5Y2.83%
Revenue Next Year-7.63%
Revenue Next 2Y-1.81%
Revenue Next 3Y-0.15%
Revenue Next 5Y1.35%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.89, the valuation of CLX can be described as correct.
CLX's Price/Earnings ratio is in line with the industry average.
CLX is valuated rather cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.96, which indicates a rather expensive current 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.
CLX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 19.96 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CLX.
CLX's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.74 | ||
| EV/EBITDA | 12.16 |
4.3 Compensation for Growth
CLX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)15.68
EPS Next 2Y-4.61%
EPS Next 3Y-0.9%
5. Dividend
5.1 Amount
CLX has a Yearly Dividend Yield of 3.99%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.86, CLX pays a better dividend. On top of this CLX pays more dividend than 91.67% of the companies listed in the same industry.
CLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
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 74.32% 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.
DP74.32%
EPS Next 2Y-4.61%
EPS Next 3Y-0.9%
122.82
-0.69 (-0.56%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners83.88%
Inst Owner Change7.61%
Ins Owners0.17%
Ins Owner Change0.54%
Market Cap15.02B
Analysts55.71
Price Target140.29 (14.22%)
Short Float %5.56%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.99% |
Yearly Dividend4.88
Dividend Growth(5Y)2.88%
DP74.32%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.21%
Min EPS beat(2)-8.29%
Max EPS beat(2)28.7%
EPS beat(4)3
Avg EPS beat(4)15.39%
Min EPS beat(4)-8.29%
Max EPS beat(4)32.02%
EPS beat(8)7
Avg EPS beat(8)64.51%
EPS beat(12)11
Avg EPS beat(12)54.3%
EPS beat(16)13
Avg EPS beat(16)42.35%
Revenue beat(2)1
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-4.3%
Max Revenue beat(2)1.58%
Revenue beat(4)3
Avg Revenue beat(4)1.53%
Min Revenue beat(4)-4.3%
Max Revenue beat(4)6.21%
Revenue beat(8)5
Avg Revenue beat(8)1.62%
Revenue beat(12)9
Avg Revenue beat(12)2.33%
Revenue beat(16)11
Avg Revenue beat(16)1.85%
PT rev (1m)-0.81%
PT rev (3m)-7.33%
EPS NQ rev (1m)-16.5%
EPS NQ rev (3m)-41.7%
EPS NY rev (1m)-8.81%
EPS NY rev (3m)-10.17%
Revenue NQ rev (1m)-1.38%
Revenue NQ rev (3m)-12.07%
Revenue NY rev (1m)-5.08%
Revenue NY rev (3m)-6.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.89 | ||
| Fwd PE | 19.96 | ||
| P/S | 2.11 | ||
| P/FCF | 19.74 | ||
| P/OCF | 15.31 | ||
| P/B | 46.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.16 |
EPS(TTM)7.73
EY6.29%
EPS(NY)6.15
Fwd EY5.01%
FCF(TTM)6.22
FCFY5.07%
OCF(TTM)8.02
OCFY6.53%
SpS58.08
BVpS2.62
TBVpS-12.05
PEG (NY)N/A
PEG (5Y)15.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.57% | ||
| ROE | 252.34% | ||
| ROCE | 33.33% | ||
| ROIC | 24.94% | ||
| ROICexc | 26.14% | ||
| ROICexgc | 54% | ||
| OM | 17.09% | ||
| PM (TTM) | 11.4% | ||
| GM | 45.16% | ||
| FCFM | 10.71% |
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%
ROICexcg growth 3Y25.21%
ROICexcg 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-Score7
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.75 | ||
| Debt/FCF | 3.27 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 100.46% | ||
| Cap/Sales | 3.1% | ||
| Interest Coverage | 12.52 | ||
| Cash Conversion | 68.46% | ||
| Profit Quality | 93.95% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 3.77 |
F-Score7
WACC7.86%
ROIC/WACC3.17
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)25.08%
EPS 3Y23.44%
EPS 5Y1.01%
EPS Q2Q%57.69%
EPS Next Y-20.41%
EPS Next 2Y-4.61%
EPS Next 3Y-0.9%
EPS Next 5Y2.83%
Revenue 1Y (TTM)0.16%
Revenue growth 3Y-0.01%
Revenue growth 5Y1.11%
Sales Q2Q%4.47%
Revenue Next Year-7.63%
Revenue Next 2Y-1.81%
Revenue Next 3Y-0.15%
Revenue Next 5Y1.35%
EBIT growth 1Y27.25%
EBIT growth 3Y18.51%
EBIT growth 5Y-1.39%
EBIT Next Year8.6%
EBIT Next 3Y7.53%
EBIT Next 5Y6.75%
FCF growth 1Y57.56%
FCF growth 3Y12.46%
FCF growth 5Y-10.05%
OCF growth 1Y41.15%
OCF growth 3Y7.67%
OCF growth 5Y-8.7%