CLOROX COMPANY (CLX)
US1890541097 - Common Stock
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 is quite expensive at the moment. It does show a decent growth rate.
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.
CLX had positive earnings in each of the past 5 years.
Each year in the past 5 years CLX had a positive operating cash flow.
1.2 Ratios
CLX has a Return On Assets of 6.49%. This is comparable to the rest of the industry: CLX outperforms 50.00% of its industry peers.
The Return On Equity of CLX (595.00%) is better than 91.67% of its industry peers.
CLX's Return On Invested Capital of 21.32% is fine compared to the rest of the industry. CLX outperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CLX is in line with the industry average of 15.22%.
The last Return On Invested Capital (21.32%) for CLX is above the 3 year average (13.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 595% | ||
| ROIC | 21.32% |
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's Profit Margin of 4.78% is in line compared to the rest of the industry. CLX outperforms 41.67% of its industry peers.
CLX's Profit Margin has declined in the last couple of years.
CLX's Operating Margin of 15.88% is in line compared to the rest of the industry. CLX outperforms 58.33% of its industry peers.
CLX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 44.56%, CLX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CLX's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.88% | ||
| PM (TTM) | 4.78% | ||
| GM | 44.56% |
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.
CLX has more shares outstanding than it did 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 4.31. This indicates that CLX is financially healthy and has little risk of bankruptcy at the moment.
CLX's Altman-Z score of 4.31 is in line compared to the rest of the industry. CLX outperforms 58.33% of its industry peers.
CLX has a debt to FCF ratio of 3.72. This is a good value and a sign of high solvency as CLX would need 3.72 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.72, CLX is doing worse than 66.67% of the companies in the same industry.
A Debt/Equity ratio of 41.43 is on the high side and indicates that CLX has dependencies on debt financing.
CLX has a Debt to Equity ratio of 41.43. This is amonst the worse of the industry: CLX underperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 41.43 | ||
| Debt/FCF | 3.72 | ||
| Altman-Z | 4.31 |
ROIC/WACC2.5
WACC8.52%
2.3 Liquidity
A Current Ratio of 1.00 indicates that CLX may have some problems paying its short term obligations.
With a Current ratio value of 1.00, CLX is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.62 indicates that CLX may have some problems paying its short term obligations.
The Quick ratio of CLX (0.62) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 62.37% over the past year.
CLX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.51% yearly.
Looking at the last year, CLX shows a small growth in Revenue. The Revenue has grown by 6.17% in the last year.
CLX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.68% yearly.
EPS 1Y (TTM)62.37%
EPS 3Y-7.55%
EPS 5Y-0.51%
EPS Q2Q%279.59%
Revenue 1Y (TTM)6.17%
Revenue growth 3Y-1.14%
Revenue growth 5Y2.68%
Sales Q2Q%27.13%
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 7.95% on average per year.
The Revenue is expected to grow by 2.83% on average over the next years.
EPS Next Y11.92%
EPS Next 2Y9.08%
EPS Next 3Y7.84%
EPS Next 5Y7.95%
Revenue Next Year-1.33%
Revenue Next 2Y0.52%
Revenue Next 3Y1.32%
Revenue Next 5Y2.83%
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
CLX is valuated rather expensively with a Price/Earnings ratio of 21.74.
Compared to the rest of the industry, the Price/Earnings ratio of CLX is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.54, CLX is valued a bit cheaper.
CLX is valuated rather expensively with a Price/Forward Earnings ratio of 22.32.
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 similar valuation than the S&P500 average which is at 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 22.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CLX.
Based on the Price/Free Cash Flow ratio, CLX is valued more expensive than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.37 | ||
| EV/EBITDA | 15.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of CLX may justify a higher PE ratio.
PEG (NY)1.82
PEG (5Y)N/A
EPS Next 2Y9.08%
EPS Next 3Y7.84%
5. Dividend
5.1 Amount
CLX has a Yearly Dividend Yield of 2.97%.
Compared to an average industry Dividend Yield of 2.40, 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
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 167.23% 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.
DP167.23%
EPS Next 2Y9.08%
EPS Next 3Y7.84%
CLOROX COMPANY
NYSE:CLX (12/26/2024, 11:54:03 AM)
164.13
+0.7 (+0.43%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners84.04%
Inst Owner Change3.43%
Ins Owners0.19%
Ins Owner Change15.44%
Market Cap20.32B
Analysts54.48
Price Target165.44 (0.8%)
Short Float %2.72%
Short Ratio2.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Dividend Growth(5Y)4.43%
DP167.23%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.72%
Min EPS beat(2)15.42%
Max EPS beat(2)32.02%
EPS beat(4)4
Avg EPS beat(4)41.48%
Min EPS beat(4)15.42%
Max EPS beat(4)94.7%
EPS beat(8)8
Avg EPS beat(8)74.77%
EPS beat(12)10
Avg EPS beat(12)52.66%
EPS beat(16)13
Avg EPS beat(16)39.92%
Revenue beat(2)1
Avg Revenue beat(2)1.28%
Min Revenue beat(2)-3.45%
Max Revenue beat(2)6.02%
Revenue beat(4)2
Avg Revenue beat(4)1.97%
Min Revenue beat(4)-3.92%
Max Revenue beat(4)9.22%
Revenue beat(8)6
Avg Revenue beat(8)3.27%
Revenue beat(12)8
Avg Revenue beat(12)2.02%
Revenue beat(16)10
Avg Revenue beat(16)1.32%
PT rev (1m)4.04%
PT rev (3m)11.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.54%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.7%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.74 | ||
| Fwd PE | 22.32 | ||
| P/S | 2.72 | ||
| P/FCF | 30.37 | ||
| P/OCF | 22.67 | ||
| P/B | 338.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.87 |
EPS(TTM)7.55
EY4.6%
EPS(NY)7.35
Fwd EY4.48%
FCF(TTM)5.4
FCFY3.29%
OCF(TTM)7.24
OCFY4.41%
SpS60.34
BVpS0.48
TBVpS-14.17
PEG (NY)1.82
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.49% | ||
| ROE | 595% | ||
| ROCE | 30.27% | ||
| ROIC | 21.32% | ||
| ROICexc | 22.95% | ||
| ROICexgc | 45.69% | ||
| OM | 15.88% | ||
| PM (TTM) | 4.78% | ||
| GM | 44.56% | ||
| FCFM | 8.96% |
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 Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 41.43 | ||
| Debt/FCF | 3.72 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 99.56% | ||
| Cap/Sales | 3.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.37% | ||
| Profit Quality | 187.4% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 4.31 |
F-Score8
WACC8.52%
ROIC/WACC2.5
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)62.37%
EPS 3Y-7.55%
EPS 5Y-0.51%
EPS Q2Q%279.59%
EPS Next Y11.92%
EPS Next 2Y9.08%
EPS Next 3Y7.84%
EPS Next 5Y7.95%
Revenue 1Y (TTM)6.17%
Revenue growth 3Y-1.14%
Revenue growth 5Y2.68%
Sales Q2Q%27.13%
Revenue Next Year-1.33%
Revenue Next 2Y0.52%
Revenue Next 3Y1.32%
Revenue Next 5Y2.83%
EBIT growth 1Y57.92%
EBIT growth 3Y-8.9%
EBIT growth 5Y-3.66%
EBIT Next Year35.88%
EBIT Next 3Y14.74%
EBIT Next 5Y11.14%
FCF growth 1Y-1.33%
FCF growth 3Y-20.05%
FCF growth 5Y-9.28%
OCF growth 1Y-2.93%
OCF growth 3Y-18.33%
OCF growth 5Y-6.87%