CLOROX COMPANY (CLX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CLX - US1890541097 - Common Stock
103.92 USD
+3.85 (+3.85%)
104.325 USD
+0.41 (+0.39%)
CLX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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 correct valuation and a medium growth rate. Finally 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.
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
With an excellent Return On Assets value of 14.31%, CLX belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
CLX has a better Return On Invested Capital (21.90%) than 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CLX is above the industry average of 14.82%.
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's Profit Margin of 11.68% is fine compared to the rest of the industry. CLX outperforms 66.67% of its industry peers.
CLX's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 15.17%, CLX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CLX has declined.
The Gross Margin of CLX (44.28%) is better 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
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 reduced compared to 1 year ago.
Compared to 5 years ago, CLX has less shares outstanding
Compared to 1 year ago, CLX has a worse debt to assets ratio.
2.2 Solvency
CLX has an Altman-Z score of 3.14. This indicates that CLX is financially healthy and has little risk of bankruptcy at the moment.
CLX's Altman-Z score of 3.14 is in line compared to the rest of the industry. CLX outperforms 50.00% of its industry peers.
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's Debt to FCF ratio of 4.25 is on the low side compared to the rest of the industry. CLX is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 3.14 |
ROIC/WACC2.83
WACC7.73%
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.
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.
CLX shows a decrease in Revenue. In the last year, the revenue decreased by -9.35%.
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.
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
A Price/Earnings ratio of 15.46 indicates a correct valuation of CLX.
CLX's Price/Earnings ratio is in line with the industry average.
CLX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.47.
With a Price/Forward Earnings ratio of 15.15, CLX is valued correctly.
CLX's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CLX to the average of the S&P500 Index (34.42), we can say CLX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.46 | ||
| Fwd PE | 15.15 |
4.2 Price Multiples
CLX's Enterprise Value to EBITDA ratio is in line with 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 | 19.9 | ||
| EV/EBITDA | 12 |
4.3 Compensation for Growth
The decent profitability rating of CLX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)15.26
EPS Next 2Y-5.8%
EPS Next 3Y-1.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.96%, CLX is a good candidate for dividend investing.
CLX's Dividend Yield is rather good when compared to the industry average which is at 3.41. CLX pays more dividend than 91.67% of the companies in the same industry.
CLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
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
76.11% of the earnings are spent on dividend by CLX. 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-5.8%
EPS Next 3Y-1.93%
103.92
+3.85 (+3.85%)
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 Cap12.65B
Revenue(TTM)6.77B
Net Income(TTM)791.00M
Analysts54.81
Price Target131.24 (26.29%)
Short Float %5.44%
Short Ratio3.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.96% |
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 | 15.46 | ||
| Fwd PE | 15.15 | ||
| P/S | 1.87 | ||
| P/FCF | 19.9 | ||
| P/OCF | 14.84 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12 |
EPS(TTM)6.72
EY6.47%
EPS(NY)6.86
Fwd EY6.6%
FCF(TTM)5.22
FCFY5.03%
OCF(TTM)7.01
OCFY6.74%
SpS55.6
BVpS-0.18
TBVpS-14.86
PEG (NY)N/A
PEG (5Y)15.26
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 | 3.14 |
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 5 / 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 -22.2% 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%.