CLOROX COMPANY (CLX) Stock Fundamental Analysis
NYSE:CLX - New York Stock Exchange, Inc. - US1890541097 - Common Stock - Currency: USD
Overall CLX gets a fundamental rating of 4 out of 10. We evaluated CLX against 12 industry peers in the Household Products industry. CLX has a medium profitability rating, but doesn't score so well on its financial health evaluation. CLX is quite expensive at the moment. It does show a decent growth rate. CLX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CLX was profitable.
In the past year CLX had a positive cash flow from operations.
In the past 5 years CLX has always been profitable.
In the past 5 years CLX always reported a positive cash flow from operatings.
1.2 Ratios
CLX's Return On Assets of 12.59% is fine compared to the rest of the industry. CLX outperforms 66.67% of its industry peers.
With an excellent Return On Equity value of 2570.37%, CLX belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 21.97%, CLX is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CLX is below the industry average of 15.82%.
The 3 year average ROIC (13.49%) for CLX is below the current ROIC(21.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.59% | ||
| ROE | 2570.37% | ||
| ROIC | 21.97% |
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 (9.89%) which is in line with its industry peers.
CLX's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 15.14%, CLX perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Operating Margin of CLX has declined.
CLX has a better Gross Margin (45.08%) 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 | 15.14% | ||
| PM (TTM) | 9.89% | ||
| GM | 45.08% |
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.
Compared to 1 year ago, CLX has a worse debt to assets ratio.
2.2 Solvency
CLX has an Altman-Z score of 3.49. This indicates that CLX is financially healthy and has little risk of bankruptcy at the moment.
CLX's Altman-Z score of 3.49 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 3.17. This is a good value and a sign of high solvency as CLX would need 3.17 years to pay back of all of its debts.
The Debt to FCF ratio of CLX (3.17) is comparable to the rest of the industry.
A Debt/Equity ratio of 93.96 is on the high side and indicates that CLX has dependencies on debt financing.
CLX has a worse Debt to Equity ratio (93.96) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 93.96 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 3.49 |
ROIC/WACC2.74
WACC8.03%
2.3 Liquidity
A Current Ratio of 0.74 indicates that CLX may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.74, CLX is doing worse than 83.33% of the companies in the same industry.
CLX has a Quick Ratio of 0.74. This is a bad value and indicates that CLX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.44, CLX is doing worse than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
CLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.78%, 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.
Looking at the last year, CLX shows a decrease in Revenue. The Revenue has decreased by -2.64% in the last year.
Measured over the past years, CLX shows a small growth in Revenue. The Revenue has been growing by 2.68% on average per year.
EPS 1Y (TTM)10.78%
EPS 3Y-7.55%
EPS 5Y-0.51%
EPS Q2Q%-15.2%
Revenue 1Y (TTM)-2.64%
Revenue growth 3Y-1.14%
Revenue growth 5Y2.68%
Sales Q2Q%-8.05%
3.2 Future
CLX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.54% yearly.
CLX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.15% yearly.
EPS Next Y15.11%
EPS Next 2Y5.26%
EPS Next 3Y6.18%
EPS Next 5Y7.54%
Revenue Next Year-1.38%
Revenue Next 2Y-1.33%
Revenue Next 3Y0.21%
Revenue Next 5Y2.15%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.69 indicates a rather expensive valuation of CLX.
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 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.23, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, CLX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 18.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CLX is on the same level as its industry peers.
CLX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.21 | ||
| EV/EBITDA | 13.72 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CLX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.24
PEG (5Y)N/A
EPS Next 2Y5.26%
EPS Next 3Y6.18%
5. Dividend
5.1 Amount
CLX has a Yearly Dividend Yield of 4.14%, which is a nice return.
CLX's Dividend Yield is rather good when compared to the industry average which is at 3.11. CLX pays more dividend than 83.33% of the companies in the same industry.
CLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.43%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
CLX pays out 86.60% 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.
DP86.6%
EPS Next 2Y5.26%
EPS Next 3Y6.18%
124.84
+0.18 (+0.14%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners83.51%
Inst Owner Change1.53%
Ins Owners0.17%
Ins Owner Change-0.15%
Market Cap15.39B
Analysts55.71
Price Target151.27 (21.17%)
Short Float %3.94%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.14% |
Yearly Dividend4.8
Dividend Growth(5Y)4.43%
DP86.6%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.42%
Min EPS beat(2)-8.29%
Max EPS beat(2)9.12%
EPS beat(4)3
Avg EPS beat(4)12.07%
Min EPS beat(4)-8.29%
Max EPS beat(4)32.02%
EPS beat(8)7
Avg EPS beat(8)65.88%
EPS beat(12)10
Avg EPS beat(12)51.83%
EPS beat(16)12
Avg EPS beat(16)38.65%
Revenue beat(2)1
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-4.3%
Max Revenue beat(2)2.62%
Revenue beat(4)2
Avg Revenue beat(4)0.22%
Min Revenue beat(4)-4.3%
Max Revenue beat(4)6.02%
Revenue beat(8)5
Avg Revenue beat(8)2.22%
Revenue beat(12)8
Avg Revenue beat(12)1.84%
Revenue beat(16)10
Avg Revenue beat(16)1.3%
PT rev (1m)-3%
PT rev (3m)-9.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.96%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-2.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.69 | ||
| Fwd PE | 18.23 | ||
| P/S | 2.19 | ||
| P/FCF | 19.21 | ||
| P/OCF | 14.98 | ||
| P/B | 569.87 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.72 |
EPS(TTM)6.68
EY5.35%
EPS(NY)6.85
Fwd EY5.49%
FCF(TTM)6.5
FCFY5.21%
OCF(TTM)8.33
OCFY6.67%
SpS56.95
BVpS0.22
TBVpS-14.31
PEG (NY)1.24
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.59% | ||
| ROE | 2570.37% | ||
| ROCE | 31.67% | ||
| ROIC | 21.97% | ||
| ROICexc | 23.53% | ||
| ROICexgc | 53.77% | ||
| OM | 15.14% | ||
| PM (TTM) | 9.89% | ||
| GM | 45.08% | ||
| FCFM | 11.41% |
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-Score7
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 93.96 | ||
| Debt/FCF | 3.17 | ||
| Debt/EBITDA | 1.98 | ||
| Cap/Depr | 102.26% | ||
| Cap/Sales | 3.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.98% | ||
| Profit Quality | 115.42% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 3.49 |
F-Score7
WACC8.03%
ROIC/WACC2.74
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)10.78%
EPS 3Y-7.55%
EPS 5Y-0.51%
EPS Q2Q%-15.2%
EPS Next Y15.11%
EPS Next 2Y5.26%
EPS Next 3Y6.18%
EPS Next 5Y7.54%
Revenue 1Y (TTM)-2.64%
Revenue growth 3Y-1.14%
Revenue growth 5Y2.68%
Sales Q2Q%-8.05%
Revenue Next Year-1.38%
Revenue Next 2Y-1.33%
Revenue Next 3Y0.21%
Revenue Next 5Y2.15%
EBIT growth 1Y12.13%
EBIT growth 3Y-8.9%
EBIT growth 5Y-3.66%
EBIT Next Year35.88%
EBIT Next 3Y12.92%
EBIT Next 5Y10.13%
FCF growth 1Y-4.64%
FCF growth 3Y-20.05%
FCF growth 5Y-9.28%
OCF growth 1Y-3.39%
OCF growth 3Y-18.33%
OCF growth 5Y-6.87%