CLOROX COMPANY (CLX)

US1890541097 - Common Stock

145.97  +0.83 (+0.57%)

After market: 144.311 -1.66 (-1.14%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to CLX. CLX was compared to 12 industry peers in the Household Products industry. While CLX is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, CLX is valued expensive at the moment. CLX also has an excellent dividend rating.



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4

1. Profitability

1.1 Basic Checks

CLX had positive earnings in the past year.
In the past year CLX had a positive cash flow from operations.
In the past 5 years CLX has always been profitable.
Each year in the past 5 years CLX had a positive operating cash flow.

1.2 Ratios

The Return On Assets of CLX (1.35%) is worse than 91.67% of its industry peers.
The Return On Equity of CLX (150.94%) is better than 83.33% of its industry peers.
CLX has a Return On Invested Capital of 16.29%. This is comparable to the rest of the industry: CLX outperforms 58.33% 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 13.81%.
The last Return On Invested Capital (16.29%) for CLX is above the 3 year average (15.45%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.35%
ROE 150.94%
ROIC 16.29%
ROA(3y)7.07%
ROA(5y)10.47%
ROE(3y)107.86%
ROE(5y)114.74%
ROIC(3y)15.45%
ROIC(5y)17.08%

1.3 Margins

CLX has a worse Profit Margin (1.09%) than 91.67% of its industry peers.
In the last couple of years the Profit Margin of CLX has declined.
With a Operating Margin value of 12.68%, CLX is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
CLX's Operating Margin has declined in the last couple of years.
The Gross Margin of CLX (41.98%) is better than 66.67% of its industry peers.
In the last couple of years the Gross Margin of CLX has declined.
Industry RankSector Rank
OM 12.68%
PM (TTM) 1.09%
GM 41.98%
OM growth 3Y-16.55%
OM growth 5Y-9.83%
PM growth 3Y-47.54%
PM growth 5Y-31.57%
GM growth 3Y-4.8%
GM growth 5Y-2.08%

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3

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 more shares outstanding than it did 1 year ago.
CLX has less shares outstanding than it did 5 years ago.
CLX has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.62 indicates that CLX is not in any danger for bankruptcy at the moment.
CLX has a Altman-Z score (3.62) which is comparable to the rest of the industry.
The Debt to FCF ratio of CLX is 3.74, which is a good value as it means it would take CLX, 3.74 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 3.74, CLX is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
CLX has a Debt/Equity ratio of 51.43. This is a high value indicating a heavy dependency on external financing.
CLX has a Debt to Equity ratio of 51.43. This is amonst the worse of the industry: CLX underperforms 91.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 51.43
Debt/FCF 3.74
Altman-Z 3.62
ROIC/WACC1.93
WACC8.43%

2.3 Liquidity

CLX has a Current Ratio of 0.89. 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 Current ratio (0.89) than 75.00% of its industry peers.
CLX has a Quick Ratio of 0.89. 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 (0.57) is worse than 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.89
Quick Ratio 0.57

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4

3. Growth

3.1 Past

CLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.48%, which is quite impressive.
The Earnings Per Share has been decreasing by -2.03% on average over the past years.
The Revenue has been growing slightly by 3.47% in the past year.
Measured over the past years, CLX shows a small growth in Revenue. The Revenue has been growing by 3.83% on average per year.
EPS 1Y (TTM)40.48%
EPS 3Y-11.53%
EPS 5Y-2.03%
EPS growth Q2Q120.41%
Revenue 1Y (TTM)3.47%
Revenue growth 3Y3.21%
Revenue growth 5Y3.83%
Revenue growth Q2Q16.03%

3.2 Future

Based on estimates for the next years, CLX will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.13% on average per year.
The Revenue is expected to grow by 2.39% on average over the next years.
EPS Next Y11.29%
EPS Next 2Y12.97%
EPS Next 3Y11.56%
EPS Next 5Y8.13%
Revenue Next Year0.08%
Revenue Next 2Y1.87%
Revenue Next 3Y2.29%
Revenue Next 5Y2.39%

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 decreasing.

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 25.04, which means the current valuation is very expensive for CLX.
CLX's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CLX to the average of the S&P500 Index (25.20), we can say CLX is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.47, the valuation of CLX can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as CLX.
CLX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 25.04
Fwd PE 22.47

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, CLX is valued a bit more expensive than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CLX is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 24.89
EV/EBITDA 17.34

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.22
PEG (5Y)N/A
EPS Next 2Y12.97%
EPS Next 3Y11.56%

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7

5. Dividend

5.1 Amount

CLX has a Yearly Dividend Yield of 3.35%.
CLX's Dividend Yield is rather good when compared to the industry average which is at 2.60. CLX pays more dividend than 83.33% of the companies in the same industry.
CLX's Dividend Yield is a higher than the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 3.35%

5.2 History

On average, the dividend of CLX grows each year by 6.15%, which is quite nice.
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)6.15%
Div Incr Years19
Div Non Decr Years19

5.3 Sustainability

CLX pays out 737.50% of its income as dividend. This is not a sustainable payout ratio.
CLX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP737.5%
EPS Next 2Y12.97%
EPS Next 3Y11.56%

More info and screens

CLOROX COMPANY

NYSE:CLX (4/23/2024, 7:04:00 PM)

After market: 144.311 -1.66 (-1.14%)

145.97

+0.83 (+0.57%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap18.12B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3.35%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 25.04
Fwd PE 22.47
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.22
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.35%
ROE 150.94%
ROCE
ROIC
ROICexc
ROICexgc
OM 12.68%
PM (TTM) 1.09%
GM 41.98%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.24
Health
Industry RankSector Rank
Debt/Equity 51.43
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.89
Quick Ratio 0.57
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)40.48%
EPS 3Y-11.53%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.47%
Revenue growth 3Y3.21%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y