CLOROX COMPANY (CLX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CLX - US1890541097 - Common Stock
106.19 USD
+1.94 (+1.86%)
106.08 USD
-0.11 (-0.1%)
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 has a expensive valuation and it also scores bad on growth. 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.
In the past 5 years CLX has always been profitable.
CLX had a positive operating cash flow in each of the past 5 years.
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.
CLX had an Average Return On Invested Capital over the past 3 years of 18.59%. This is above the industry average of 14.87%.
The last Return On Invested Capital (21.90%) for CLX is above the 3 year average (18.59%), which is a sign of increasing profitability.
| 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
CLX has a Profit Margin of 11.68%. This is in the better half of the industry: CLX outperforms 66.67% of its industry peers.
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.
CLX's Operating Margin has declined in the last couple of years.
CLX has a better Gross Margin (44.28%) than 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 | 15.17% | ||
| 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.
CLX has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CLX has less shares outstanding
CLX has a worse debt/assets ratio than last year.
2.2 Solvency
CLX has an Altman-Z score of 3.17. This indicates that CLX is financially healthy and has little risk of bankruptcy at the moment.
CLX has a Altman-Z score (3.17) which is comparable to the rest of the 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.
CLX has a worse Debt to FCF ratio (4.25) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 3.17 |
ROIC/WACC2.79
WACC7.85%
2.3 Liquidity
A Current Ratio of 0.76 indicates that CLX may have some problems paying its short term obligations.
CLX has a worse Current ratio (0.76) than 83.33% of its industry peers.
CLX has a Quick 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 has a Quick ratio of 0.50. This is amonst the worse of the industry: CLX underperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
The earnings per share for CLX have decreased strongly by -10.99% in the last 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 decrease in Revenue. The Revenue has decreased by -9.35% in the last year.
Measured over the past years, CLX shows a small growth in Revenue. The Revenue has been growing by 1.11% on average per year.
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
Based on estimates for the next years, CLX will show a small growth in Earnings Per Share. The EPS will grow by 1.36% on average per year.
CLX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.10% yearly.
EPS Next Y-22.5%
EPS Next 2Y-6.04%
EPS Next 3Y-2.23%
EPS Next 5Y1.36%
Revenue Next Year-7.88%
Revenue Next 2Y-1.74%
Revenue Next 3Y-0.22%
Revenue Next 5Y1.1%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 15.80, CLX is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as CLX.
The average S&P500 Price/Earnings ratio is at 27.19. CLX is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.56 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.
CLX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.8 | ||
| Fwd PE | 15.56 |
4.2 Price Multiples
CLX's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CLX is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.37 | ||
| EV/EBITDA | 12.24 |
4.3 Compensation for Growth
CLX has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CLX's earnings are expected to decrease with -2.23% in the coming years.
PEG (NY)N/A
PEG (5Y)15.6
EPS Next 2Y-6.04%
EPS Next 3Y-2.23%
5. Dividend
5.1 Amount
CLX has a Yearly Dividend Yield of 4.76%, which is a nice return.
Compared to an average industry Dividend Yield of 2.75, CLX pays a better dividend. On top of this CLX pays more dividend than 83.33% 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 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
5.2 History
The dividend of CLX has a limited annual growth rate of 2.88%.
CLX has paid a dividend for at least 10 years, which is a reliable track record.
CLX has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of CLX is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP76.11%
EPS Next 2Y-6.04%
EPS Next 3Y-2.23%
106.19
+1.94 (+1.86%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners89.77%
Inst Owner Change0%
Ins Owners0.4%
Ins Owner Change13.39%
Market Cap12.95B
Revenue(TTM)6.77B
Net Income(TTM)791.00M
Analysts54.81
Price Target125.4 (18.09%)
Short Float %5.81%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
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)-4.45%
PT rev (3m)-10.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.61%
EPS NY rev (1m)0.07%
EPS NY rev (3m)-2.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.8 | ||
| Fwd PE | 15.56 | ||
| P/S | 1.91 | ||
| P/FCF | 20.37 | ||
| P/OCF | 15.19 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.24 |
EPS(TTM)6.72
EY6.33%
EPS(NY)6.82
Fwd EY6.43%
FCF(TTM)5.21
FCFY4.91%
OCF(TTM)6.99
OCFY6.59%
SpS55.51
BVpS-0.18
TBVpS-14.84
PEG (NY)N/A
PEG (5Y)15.6
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 | 3.17 |
F-Score6
WACC7.85%
ROIC/WACC2.79
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-22.5%
EPS Next 2Y-6.04%
EPS Next 3Y-2.23%
EPS Next 5Y1.36%
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y-0.01%
Revenue growth 5Y1.11%
Sales Q2Q%-18.9%
Revenue Next Year-7.88%
Revenue Next 2Y-1.74%
Revenue Next 3Y-0.22%
Revenue Next 5Y1.1%
EBIT growth 1Y-13.41%
EBIT growth 3Y18.51%
EBIT growth 5Y-1.39%
EBIT Next Year5.87%
EBIT Next 3Y7.02%
EBIT Next 5Y6.13%
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 for CLX stock?
ChartMill assigns a valuation rating of 4 / 10 to CLOROX COMPANY (CLX). This can be considered as Fairly Valued.
What is the profitability of CLX stock?
CLOROX COMPANY (CLX) has a profitability rating of 6 / 10.
What are the PE and PB ratios of CLOROX COMPANY (CLX) stock?
The Price/Earnings (PE) ratio for CLOROX COMPANY (CLX) is 15.8 and the Price/Book (PB) ratio is -588.78.
How sustainable is the dividend of CLOROX COMPANY (CLX) stock?
The dividend rating of CLOROX COMPANY (CLX) is 7 / 10 and the dividend payout ratio is 76.11%.