CLOROX COMPANY (CLX) Stock Fundamental Analysis
USA - NYSE:CLX - US1890541097 - Common Stock
123.51 USD
-0.9 (-0.72%)
123.51 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 scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, CLX is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CLX was profitable.
CLX had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 14.57%, CLX belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
With an excellent Return On Equity value of 252.34%, CLX belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 24.94%, CLX belongs to the best of the industry, outperforming 83.33% 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 15.56%.
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
Looking at the Profit Margin, with a value of 11.40%, CLX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CLX's Profit Margin has declined in the last couple of years.
CLX's Operating Margin of 17.09% is fine compared to the rest of the industry. CLX outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of CLX has declined.
CLX has a Gross Margin of 45.16%. This is in the better half of the industry: CLX outperforms 75.00% of its industry peers.
CLX's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, CLX has less shares outstanding
The number of shares outstanding for CLX has been reduced compared to 5 years ago.
The debt/assets ratio for CLX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.78 indicates that CLX is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.78, CLX perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
CLX has a debt to FCF ratio of 3.27. This is a good value and a sign of high solvency as CLX would need 3.27 years to pay back of 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.
The Debt to Equity ratio of CLX (7.75) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.75 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 3.78 |
ROIC/WACC3.19
WACC7.83%
2.3 Liquidity
CLX has a Current 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.
With a Current ratio value of 0.84, CLX is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
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.
CLX has a worse Quick ratio (0.57) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.08% over the past year.
The Earnings Per Share has been growing slightly by 1.01% on average over the past years.
CLX shows a small growth in Revenue. In the last year, the Revenue has grown by 0.16%.
Measured over the past years, CLX shows a small growth in Revenue. The Revenue has been growing by 1.11% on average per year.
EPS 1Y (TTM)25.08%
EPS 3Y23.44%
EPS 5Y1.01%
EPS Q2Q%57.69%
Revenue 1Y (TTM)0.16%
Revenue growth 3Y-0.01%
Revenue growth 5Y1.11%
Sales Q2Q%4.47%
3.2 Future
The Earnings Per Share is expected to grow by 2.83% on average over the next years.
Based on estimates for the next years, CLX will show a small growth in Revenue. The Revenue will grow by 1.35% on average per year.
EPS Next Y-20.41%
EPS Next 2Y-4.61%
EPS Next 3Y-0.9%
EPS Next 5Y2.83%
Revenue Next Year-7.36%
Revenue Next 2Y-1.66%
Revenue Next 3Y-0.03%
Revenue Next 5Y1.35%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
CLX is valuated correctly with a Price/Earnings ratio of 15.98.
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 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.08 indicates a rather expensive valuation of CLX.
CLX's Price/Forward Earnings ratio is in line with the industry average.
CLX's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 20.08 |
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 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.85 | ||
| EV/EBITDA | 12.24 |
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)15.77
EPS Next 2Y-4.61%
EPS Next 3Y-0.9%
5. Dividend
5.1 Amount
CLX has a Yearly Dividend Yield of 3.98%.
CLX's Dividend Yield is rather good when compared to the industry average which is at 2.86. CLX pays more dividend than 91.67% of the companies in the same industry.
CLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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-4.61%
EPS Next 3Y-0.9%
123.51
-0.9 (-0.72%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners83.88%
Inst Owner Change7.61%
Ins Owners0.17%
Ins Owner Change-0.37%
Market Cap15.11B
Analysts55.71
Price Target141.25 (14.36%)
Short Float %5.56%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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)1.48%
Min Revenue beat(4)-4.3%
Max Revenue beat(4)6.02%
Revenue beat(8)5
Avg Revenue beat(8)1.6%
Revenue beat(12)9
Avg Revenue beat(12)2.32%
Revenue beat(16)11
Avg Revenue beat(16)1.84%
PT rev (1m)-0.13%
PT rev (3m)-6.7%
EPS NQ rev (1m)-21.09%
EPS NQ rev (3m)-45.99%
EPS NY rev (1m)-8.81%
EPS NY rev (3m)-10.17%
Revenue NQ rev (1m)-3.24%
Revenue NQ rev (3m)-17.69%
Revenue NY rev (1m)-4.81%
Revenue NY rev (3m)-6.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.98 | ||
| Fwd PE | 20.08 | ||
| P/S | 2.13 | ||
| P/FCF | 19.85 | ||
| P/OCF | 15.4 | ||
| P/B | 47.06 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.24 |
EPS(TTM)7.73
EY6.26%
EPS(NY)6.15
Fwd EY4.98%
FCF(TTM)6.22
FCFY5.04%
OCF(TTM)8.02
OCFY6.49%
SpS58.08
BVpS2.62
TBVpS-12.05
PEG (NY)N/A
PEG (5Y)15.77
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%
ROICexcg growth 3Y25.21%
ROICexcg 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 | 3.78 |
F-Score7
WACC7.83%
ROIC/WACC3.19
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)25.08%
EPS 3Y23.44%
EPS 5Y1.01%
EPS Q2Q%57.69%
EPS Next Y-20.41%
EPS Next 2Y-4.61%
EPS Next 3Y-0.9%
EPS Next 5Y2.83%
Revenue 1Y (TTM)0.16%
Revenue growth 3Y-0.01%
Revenue growth 5Y1.11%
Sales Q2Q%4.47%
Revenue Next Year-7.36%
Revenue Next 2Y-1.66%
Revenue Next 3Y-0.03%
Revenue Next 5Y1.35%
EBIT growth 1Y27.25%
EBIT growth 3Y18.51%
EBIT growth 5Y-1.39%
EBIT Next Year8.6%
EBIT Next 3Y7.53%
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%