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. While showing a medium growth rate, CLX is valued expensive at the moment.
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.
CLX had positive earnings in each of the past 5 years.
CLX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CLX (8.19%) is comparable to the rest of the industry.
CLX has a Return On Invested Capital of 18.50%. This is in the better half of the industry: CLX outperforms 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CLX is below the industry average of 15.71%.
The last Return On Invested Capital (18.50%) for CLX is above the 3 year average (13.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | N/A | ||
| ROIC | 18.5% |
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
CLX has a Profit Margin (6.38%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CLX has declined.
CLX has a Operating Margin of 14.78%. This is comparable to the rest of the industry: CLX outperforms 41.67% of its industry peers.
In the last couple of years the Operating Margin of CLX has declined.
With a decent Gross Margin value of 44.51%, CLX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 | 14.78% | ||
| PM (TTM) | 6.38% | ||
| GM | 44.51% |
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.
CLX has less shares outstanding than it did 5 years ago.
CLX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.86 indicates that CLX is not in any danger for bankruptcy at the moment.
CLX has a Altman-Z score (3.86) which is in line with its industry peers.
The Debt to FCF ratio of CLX is 3.84, which is a good value as it means it would take CLX, 3.84 years of fcf income to pay off all of its debts.
CLX has a worse Debt to FCF ratio (3.84) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.84 | ||
| Altman-Z | 3.86 |
ROIC/WACC2.25
WACC8.22%
2.3 Liquidity
A Current Ratio of 0.94 indicates that CLX may have some problems paying its short term obligations.
CLX has a Current ratio of 0.94. This is in the lower half of the industry: CLX underperforms 66.67% of its industry peers.
A Quick Ratio of 0.60 indicates that CLX may have some problems paying its short term obligations.
CLX has a Quick ratio of 0.60. This is in the lower half of the industry: CLX underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.6 |
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.
CLX shows a decrease in Revenue. In the last year, the revenue decreased by -1.98%.
CLX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.68% yearly.
EPS 1Y (TTM)19.04%
EPS 3Y-7.55%
EPS 5Y-0.51%
EPS Q2Q%-28.24%
Revenue 1Y (TTM)-1.98%
Revenue growth 3Y-1.14%
Revenue growth 5Y2.68%
Sales Q2Q%-15.28%
3.2 Future
The Earnings Per Share is expected to grow by 7.95% on average over the next years.
Based on estimates for the next years, CLX will show a small growth in Revenue. The Revenue will grow by 2.69% on average per year.
EPS Next Y17.56%
EPS Next 2Y9.09%
EPS Next 3Y8.01%
EPS Next 5Y7.95%
Revenue Next Year-0.24%
Revenue Next 2Y0.51%
Revenue Next 3Y1.28%
Revenue Next 5Y2.69%
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 21.76, CLX is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as CLX.
CLX is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.54, which indicates a rather expensive current valuation of CLX.
CLX's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.10. CLX is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 20.54 |
4.2 Price Multiples
CLX's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CLX is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.77 | ||
| EV/EBITDA | 15.96 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.24
PEG (5Y)N/A
EPS Next 2Y9.09%
EPS Next 3Y8.01%
5. Dividend
5.1 Amount
CLX has a Yearly Dividend Yield of 3.29%.
Compared to an average industry Dividend Yield of 2.57, 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 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
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
CLX pays out 131.07% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CLX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP131.07%
EPS Next 2Y9.09%
EPS Next 3Y8.01%
151.03
+2.66 (+1.79%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners82.9%
Inst Owner Change-4.25%
Ins Owners0.17%
Ins Owner Change13.13%
Market Cap18.61B
Analysts55.86
Price Target166.78 (10.43%)
Short Float %3.65%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.29% |
Yearly Dividend4.8
Dividend Growth(5Y)4.43%
DP131.07%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.57%
Min EPS beat(2)9.12%
Max EPS beat(2)32.02%
EPS beat(4)4
Avg EPS beat(4)20.08%
Min EPS beat(4)9.12%
Max EPS beat(4)32.02%
EPS beat(8)8
Avg EPS beat(8)69.7%
EPS beat(12)11
Avg EPS beat(12)55.3%
EPS beat(16)13
Avg EPS beat(16)39.7%
Revenue beat(2)2
Avg Revenue beat(2)4.32%
Min Revenue beat(2)2.62%
Max Revenue beat(2)6.02%
Revenue beat(4)2
Avg Revenue beat(4)0.32%
Min Revenue beat(4)-3.92%
Max Revenue beat(4)6.02%
Revenue beat(8)6
Avg Revenue beat(8)3.29%
Revenue beat(12)8
Avg Revenue beat(12)2.18%
Revenue beat(16)10
Avg Revenue beat(16)1.22%
PT rev (1m)0.08%
PT rev (3m)1.06%
EPS NQ rev (1m)-2.72%
EPS NQ rev (3m)-2.99%
EPS NY rev (1m)5.09%
EPS NY rev (3m)5.02%
Revenue NQ rev (1m)-1.23%
Revenue NQ rev (3m)-1.4%
Revenue NY rev (1m)1.18%
Revenue NY rev (3m)1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.76 | ||
| Fwd PE | 20.54 | ||
| P/S | 2.6 | ||
| P/FCF | 26.77 | ||
| P/OCF | 20.16 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.96 |
EPS(TTM)6.94
EY4.6%
EPS(NY)7.35
Fwd EY4.87%
FCF(TTM)5.64
FCFY3.74%
OCF(TTM)7.49
OCFY4.96%
SpS58.16
BVpS-0.33
TBVpS-14.89
PEG (NY)1.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.19% | ||
| ROE | N/A | ||
| ROCE | 27.53% | ||
| ROIC | 18.5% | ||
| ROICexc | 19.93% | ||
| ROICexgc | 38.23% | ||
| OM | 14.78% | ||
| PM (TTM) | 6.38% | ||
| GM | 44.51% | ||
| FCFM | 9.7% |
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 Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.84 | ||
| Debt/EBITDA | 2.08 | ||
| Cap/Depr | 101.79% | ||
| Cap/Sales | 3.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.94% | ||
| Profit Quality | 152.08% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 3.86 |
F-Score8
WACC8.22%
ROIC/WACC2.25
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 Y17.56%
EPS Next 2Y9.09%
EPS Next 3Y8.01%
EPS Next 5Y7.95%
Revenue 1Y (TTM)-1.98%
Revenue growth 3Y-1.14%
Revenue growth 5Y2.68%
Sales Q2Q%-15.28%
Revenue Next Year-0.24%
Revenue Next 2Y0.51%
Revenue Next 3Y1.28%
Revenue Next 5Y2.69%
EBIT growth 1Y10.89%
EBIT growth 3Y-8.9%
EBIT growth 5Y-3.66%
EBIT Next Year38.36%
EBIT Next 3Y14.95%
EBIT Next 5Y11.14%
FCF growth 1Y-3.61%
FCF growth 3Y-20.05%
FCF growth 5Y-9.28%
OCF growth 1Y-2.94%
OCF growth 3Y-18.33%
OCF growth 5Y-6.87%