CLOROX COMPANY (CLX) Stock Fundamental Analysis
USA - NYSE:CLX - US1890541097 - Common Stock
105.03 USD
+0.34 (+0.32%)
105.03 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. There are concerns on the financial health of CLX while its profitability can be described as average. CLX is not valued too expensively and it also shows 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.
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
Looking at the Return On Assets, with a value of 14.31%, CLX belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 21.90%, 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 above the industry average of 14.90%.
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.
In the last couple of years the Profit Margin of CLX has declined.
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.
In the last couple of years the Operating Margin of CLX has declined.
CLX has a Gross Margin of 44.28%. This is in the better half of the industry: CLX outperforms 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.
Compared to 1 year ago, CLX has less shares outstanding
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
An Altman-Z score of 3.15 indicates that CLX is not in any danger for bankruptcy at the moment.
CLX has a Altman-Z score of 3.15. This is comparable to the rest of the industry: CLX outperforms 58.33% of its industry peers.
The Debt to FCF ratio of CLX is 4.25, which is a neutral value as it means it would take CLX, 4.25 years of fcf income to pay off all of its debts.
CLX's Debt to FCF ratio of 4.25 is in line compared to the rest of the industry. CLX outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 3.15 |
ROIC/WACC2.81
WACC7.8%
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.
CLX's Current ratio of 0.76 is on the low side compared to the rest of the industry. CLX is outperformed by 83.33% of its industry peers.
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.
The Quick ratio of CLX (0.50) is worse than 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.
Looking at the last year, CLX shows a decrease in Revenue. The Revenue has decreased by -9.35% in the last year.
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
The Earnings Per Share is expected to grow by 2.83% on average over the next years.
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
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
CLX is valuated correctly with a Price/Earnings ratio of 15.63.
The rest of the industry has a similar Price/Earnings ratio as CLX.
CLX is valuated rather cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.31, CLX is valued correctly.
CLX's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.72, CLX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 15.31 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CLX.
The rest of the industry has a similar Price/Free Cash Flow ratio as CLX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.11 | ||
| EV/EBITDA | 12.07 |
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)15.42
EPS Next 2Y-5.8%
EPS Next 3Y-1.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.62%, CLX is a good candidate for dividend investing.
CLX's Dividend Yield is rather good when compared to the industry average which is at 3.20. CLX pays more dividend than 83.33% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, CLX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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.
CLX's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP76.11%
EPS Next 2Y-5.8%
EPS Next 3Y-1.93%
105.03
+0.34 (+0.32%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners91%
Inst Owner Change-1.53%
Ins Owners0.24%
Ins Owner Change13.55%
Market Cap12.79B
Revenue(TTM)6.77B
Net Income(TTM)791.00M
Analysts54.81
Price Target136.17 (29.65%)
Short Float %5.33%
Short Ratio3.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.62% |
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)-2.93%
PT rev (3m)-3.72%
EPS NQ rev (1m)-9.69%
EPS NQ rev (3m)-30.76%
EPS NY rev (1m)-2.25%
EPS NY rev (3m)-10.86%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-4.52%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-5.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.63 | ||
| Fwd PE | 15.31 | ||
| P/S | 1.89 | ||
| P/FCF | 20.11 | ||
| P/OCF | 14.99 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.07 |
EPS(TTM)6.72
EY6.4%
EPS(NY)6.86
Fwd EY6.53%
FCF(TTM)5.22
FCFY4.97%
OCF(TTM)7.01
OCFY6.67%
SpS55.6
BVpS-0.18
TBVpS-14.86
PEG (NY)N/A
PEG (5Y)15.42
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 | 3.15 |
F-Score6
WACC7.8%
ROIC/WACC2.81
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%.