CLOROX COMPANY (CLX) Stock Fundamental Analysis
USA - NYSE:CLX - US1890541097 - Common Stock
106.28 USD
-2.64 (-2.42%)
106.28 USD
0 (0%)
CLX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. CLX has an excellent profitability rating, but there are some minor 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.
In the past 5 years CLX always reported a positive cash flow from operatings.
1.2 Ratios
CLX's Return On Assets of 14.57% is amongst the best of the industry. CLX outperforms 83.33% of its industry peers.
CLX has a Return On Equity of 252.34%. This is amongst the best in the industry. CLX outperforms 91.67% of its industry peers.
CLX has a Return On Invested Capital of 24.94%. This is amongst the best in the industry. CLX outperforms 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CLX is above the industry average of 15.14%.
The last Return On Invested Capital (24.94%) for CLX is above the 3 year average (18.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.57% | ||
| ROE | 252.34% | ||
| ROIC | 24.94% |
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 11.40%. 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.
CLX has a better Operating Margin (17.09%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of CLX has declined.
The Gross Margin of CLX (45.16%) is better than 75.00% 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 | 17.09% | ||
| PM (TTM) | 11.4% | ||
| GM | 45.16% |
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.
CLX has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CLX has been reduced compared to 5 years ago.
Compared to 1 year ago, CLX has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.56 indicates that CLX is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.56, CLX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Debt to FCF ratio of CLX is 3.27, which is a good value as it means it would take CLX, 3.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.27, CLX is in line with its industry, outperforming 58.33% of the companies in the same industry.
CLX has a Debt/Equity ratio of 7.75. This is a high value indicating a heavy dependency on external financing.
CLX has a worse Debt to Equity ratio (7.75) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.75 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 3.56 |
ROIC/WACC3.18
WACC7.84%
2.3 Liquidity
A Current Ratio of 0.84 indicates that CLX may have some problems paying its short term obligations.
CLX's Current ratio of 0.84 is on the low side compared to the rest of the industry. CLX is outperformed by 75.00% of its industry peers.
CLX has a Quick Ratio of 0.84. 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 0.57, CLX is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for CLX have decreased strongly by -10.99% in the last year.
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.
Looking at the last year, CLX shows a small growth in Revenue. The Revenue has grown by 0.16% in the last year.
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)0.16%
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.
Based on estimates for the next years, CLX will show a small growth in Revenue. The Revenue will grow by 1.40% on average per year.
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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.82 indicates a correct valuation of CLX.
Compared to the rest of the industry, the Price/Earnings ratio of CLX is on the same level as its industry peers.
CLX is valuated rather cheaply when we compare the Price/Earnings ratio to 25.67, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.50, the valuation of CLX can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as CLX.
The average S&P500 Price/Forward Earnings ratio is at 31.86. CLX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 15.5 |
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 a bit cheaper when compared to the industry. CLX is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.01 | ||
| EV/EBITDA | 10.87 |
4.3 Compensation for Growth
CLX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)15.61
EPS Next 2Y-5.8%
EPS Next 3Y-1.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.49%, CLX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.20, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
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 74.32% 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.
DP74.32%
EPS Next 2Y-5.8%
EPS Next 3Y-1.93%
106.28
-2.64 (-2.42%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners91%
Inst Owner Change-0.93%
Ins Owners0.24%
Ins Owner Change13.92%
Market Cap12.94B
Revenue(TTM)7.10B
Net Income(TTM)810.00M
Analysts54.81
Price Target136.17 (28.12%)
Short Float %5.33%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.49% |
Yearly Dividend4.88
Dividend Growth(5Y)2.88%
DP74.32%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)10.21%
Min EPS beat(2)-8.29%
Max EPS beat(2)28.7%
EPS beat(4)3
Avg EPS beat(4)15.39%
Min EPS beat(4)-8.29%
Max EPS beat(4)32.02%
EPS beat(8)7
Avg EPS beat(8)64.51%
EPS beat(12)11
Avg EPS beat(12)54.3%
EPS beat(16)13
Avg EPS beat(16)42.35%
Revenue beat(2)1
Avg Revenue beat(2)-1.36%
Min Revenue beat(2)-4.3%
Max Revenue beat(2)1.58%
Revenue beat(4)3
Avg Revenue beat(4)1.53%
Min Revenue beat(4)-4.3%
Max Revenue beat(4)6.21%
Revenue beat(8)5
Avg Revenue beat(8)1.62%
Revenue beat(12)9
Avg Revenue beat(12)2.33%
Revenue beat(16)11
Avg Revenue beat(16)1.85%
PT rev (1m)-2.93%
PT rev (3m)-5.68%
EPS NQ rev (1m)-9.69%
EPS NQ rev (3m)-44.54%
EPS NY rev (1m)-2.19%
EPS NY rev (3m)-10.81%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-10.79%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-5.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 15.5 | ||
| P/S | 1.82 | ||
| P/FCF | 17.01 | ||
| P/OCF | 13.19 | ||
| P/B | 40.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.87 |
EPS(TTM)6.72
EY6.32%
EPS(NY)6.86
Fwd EY6.45%
FCF(TTM)6.25
FCFY5.88%
OCF(TTM)8.06
OCFY7.58%
SpS58.34
BVpS2.64
TBVpS-12.1
PEG (NY)N/A
PEG (5Y)15.61
Graham Number19.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.57% | ||
| ROE | 252.34% | ||
| ROCE | 33.33% | ||
| ROIC | 24.94% | ||
| ROICexc | 26.14% | ||
| ROICexgc | 54% | ||
| OM | 17.09% | ||
| PM (TTM) | 11.4% | ||
| GM | 45.16% | ||
| FCFM | 10.71% |
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-Score7
Asset Turnover1.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.75 | ||
| Debt/FCF | 3.27 | ||
| Debt/EBITDA | 1.74 | ||
| Cap/Depr | 100.46% | ||
| Cap/Sales | 3.1% | ||
| Interest Coverage | 12.52 | ||
| Cash Conversion | 68.46% | ||
| Profit Quality | 93.95% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 3.56 |
F-Score7
WACC7.84%
ROIC/WACC3.18
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)0.16%
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 1Y27.25%
EBIT growth 3Y18.51%
EBIT growth 5Y-1.39%
EBIT Next Year6.95%
EBIT Next 3Y6.71%
EBIT Next 5Y6.75%
FCF growth 1Y57.56%
FCF growth 3Y12.46%
FCF growth 5Y-10.05%
OCF growth 1Y41.15%
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 7 / 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 74.32%.