CLOROX COMPANY (CLX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CLX - US1890541097 - Common Stock
102.83 USD
+0.31 (+0.3%)
103.33 USD
+0.5 (+0.49%)
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 valuation in line with the averages, but on the other hand it scores bad on growth. Finally CLX also has an excellent dividend rating.
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.
Each year in the past 5 years CLX had a positive operating cash flow.
1.2 Ratios
CLX has a Return On Assets of 14.31%. This is amongst the best in the industry. CLX outperforms 83.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 21.90%, CLX is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CLX is above the industry average of 14.97%.
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 comparable to the rest of the industry.
In the last couple of years the Operating Margin of CLX has declined.
CLX has a better Gross Margin (44.28%) than 66.67% of its industry peers.
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
CLX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, CLX has less shares outstanding
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
CLX has an Altman-Z score of 3.13. This indicates that CLX is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.13, 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.
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 | 3.13 |
ROIC/WACC2.82
WACC7.78%
2.3 Liquidity
A Current Ratio of 0.76 indicates that CLX may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.76, CLX is doing worse than 83.33% of the companies in the same industry.
A Quick Ratio of 0.50 indicates that CLX may have some problems paying its short term obligations.
The Quick ratio of CLX (0.50) is worse than 91.67% of its industry peers.
| 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%.
Measured over the past 5 years, CLX shows a small growth in Earnings Per Share. The EPS has been growing by 1.01% on average per year.
The Revenue has decreased by -9.35% in the past 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
CLX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.55% yearly.
The Revenue is expected to grow by 1.20% on average over the next years.
EPS Next Y-22.55%
EPS Next 2Y-5.91%
EPS Next 3Y-2.06%
EPS Next 5Y1.55%
Revenue Next Year-7.85%
Revenue Next 2Y-1.71%
Revenue Next 3Y-0.2%
Revenue Next 5Y1.2%
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 15.30, the valuation of CLX can be described as correct.
CLX's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.76. CLX is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.03 indicates a correct valuation of CLX.
The rest of the industry has a similar Price/Forward Earnings ratio as CLX.
When comparing the Price/Forward Earnings ratio of CLX to the average of the S&P500 Index (23.96), we can say CLX is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 15.03 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CLX.
The rest of the industry has a similar Price/Free Cash Flow ratio as CLX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.72 | ||
| EV/EBITDA | 11.91 |
4.3 Compensation for Growth
CLX has a very decent profitability rating, which may justify a higher PE ratio.
CLX's earnings are expected to decrease with -2.06% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)15.1
EPS Next 2Y-5.91%
EPS Next 3Y-2.06%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.72%, CLX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.37, 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
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 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
76.11% of the earnings are spent on dividend by CLX. 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-5.91%
EPS Next 3Y-2.06%
102.83
+0.31 (+0.3%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners89.37%
Inst Owner Change-3.68%
Ins Owners0.4%
Ins Owner Change13.55%
Market Cap12.54B
Revenue(TTM)6.77B
Net Income(TTM)791.00M
Analysts54.81
Price Target131.24 (27.63%)
Short Float %5.56%
Short Ratio3.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.72% |
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)-3.62%
PT rev (3m)-7.08%
EPS NQ rev (1m)-0.88%
EPS NQ rev (3m)-6.14%
EPS NY rev (1m)-0.45%
EPS NY rev (3m)-2.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.3 | ||
| Fwd PE | 15.03 | ||
| P/S | 1.85 | ||
| P/FCF | 19.72 | ||
| P/OCF | 14.7 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.91 |
EPS(TTM)6.72
EY6.54%
EPS(NY)6.84
Fwd EY6.66%
FCF(TTM)5.21
FCFY5.07%
OCF(TTM)6.99
OCFY6.8%
SpS55.51
BVpS-0.18
TBVpS-14.84
PEG (NY)N/A
PEG (5Y)15.1
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 | 3.13 |
F-Score6
WACC7.78%
ROIC/WACC2.82
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-22.55%
EPS Next 2Y-5.91%
EPS Next 3Y-2.06%
EPS Next 5Y1.55%
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y-0.01%
Revenue growth 5Y1.11%
Sales Q2Q%-18.9%
Revenue Next Year-7.85%
Revenue Next 2Y-1.71%
Revenue Next 3Y-0.2%
Revenue Next 5Y1.2%
EBIT growth 1Y-13.41%
EBIT growth 3Y18.51%
EBIT growth 5Y-1.39%
EBIT Next Year5.87%
EBIT Next 3Y7.05%
EBIT Next 5Y6.3%
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 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 is the earnings growth outlook for CLOROX COMPANY?
The Earnings per Share (EPS) of CLOROX COMPANY (CLX) is expected to decline by -22.55% 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%.