CLOROX COMPANY (CLX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CLX - US1890541097 - Common Stock
109.2 USD
-2.75 (-2.46%)
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. There are concerns on the financial health of CLX while its profitability can be described as average. 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.
- In the past year CLX had a positive cash flow from operations.
- 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's Return On Assets of 14.31% is amongst the best of the industry. CLX outperforms 83.33% of its industry peers.
- The Return On Invested Capital of CLX (21.90%) is better than 75.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CLX is above the industry average of 14.84%.
- 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.
- Looking at the Operating Margin, with a value of 15.17%, CLX is in line with its industry, outperforming 50.00% of the companies in the same industry.
- CLX's Operating Margin has declined in the last couple of years.
- With a decent Gross Margin value of 44.28%, 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 | 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.
- Compared to 1 year ago, CLX has less shares outstanding
- 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 3.26. This indicates that CLX is financially healthy and has little risk of bankruptcy at the moment.
- CLX's Altman-Z score of 3.26 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.
- Looking at the Debt to FCF ratio, with a value of 4.25, CLX is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 3.26 |
ROIC/WACC2.76
WACC7.94%
2.3 Liquidity
- CLX has a Current 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.
- With a Current ratio value of 0.76, CLX is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
- 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.
- Looking at the Quick ratio, with a value of 0.50, CLX is doing worse than 91.67% of the companies in the same industry.
| 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%.
- 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%.
- CLX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.11% yearly.
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-22.72%
EPS Next 2Y-6.07%
EPS Next 3Y-2.39%
EPS Next 5Y1.36%
Revenue Next Year-7.96%
Revenue Next 2Y-1.41%
Revenue Next 3Y0.07%
Revenue Next 5Y1.1%
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
- A Price/Earnings ratio of 16.25 indicates a correct valuation of CLX.
- The rest of the industry has a similar Price/Earnings ratio as CLX.
- CLX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.82.
- A Price/Forward Earnings ratio of 16.01 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 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.25 | ||
| Fwd PE | 16.01 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as CLX.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CLX indicates a slightly more expensive valuation: CLX is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.94 | ||
| EV/EBITDA | 12.92 |
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 -2.39% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)16.04
EPS Next 2Y-6.07%
EPS Next 3Y-2.39%
5. Dividend
5.1 Amount
- CLX has a Yearly Dividend Yield of 4.42%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.65, CLX pays a better dividend. On top of this CLX pays more dividend than 83.33% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, CLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.42% |
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-6.07%
EPS Next 3Y-2.39%
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 3 / 10 to CLOROX COMPANY (CLX). This can be considered as Overvalued.
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 16.25 and the Price/Book (PB) ratio is -605.46.
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%.