CLOROX COMPANY (CLX)

US1890541097 - Common Stock

165.16  +2.39 (+1.47%)

After market: 165.2 +0.04 (+0.02%)

Fundamental Rating

4

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. While showing a medium growth rate, CLX is valued expensive at the moment.



6

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.
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 6.49%, CLX is in line with its industry, outperforming 50.00% of the companies in the same industry.
With an excellent Return On Equity value of 595.00%, CLX belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
The Return On Invested Capital of CLX (21.32%) is better than 75.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CLX is in line with the industry average of 15.29%.
The 3 year average ROIC (13.49%) for CLX is below the current ROIC(21.32%), indicating increased profibility in the last year.
Industry RankSector 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

The Profit Margin of CLX (4.78%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CLX has declined.
CLX has a Operating Margin of 15.88%. This is comparable 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.
CLX has a better Gross Margin (44.56%) than 66.67% of its industry peers.
CLX's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%

3

2. Health

2.1 Basic Checks

CLX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for CLX has been increased compared to 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

CLX has an Altman-Z score of 4.33. This indicates that CLX is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.33, CLX is in line with its industry, outperforming 58.33% of the companies in the same industry.
The Debt to FCF ratio of CLX is 3.72, which is a good value as it means it would take CLX, 3.72 years of fcf income to pay off all of its debts.
CLX has a Debt to FCF ratio (3.72) which is comparable to the rest of the 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 RankSector Rank
Debt/Equity 41.43
Debt/FCF 3.72
Altman-Z 4.33
ROIC/WACC2.58
WACC8.27%

2.3 Liquidity

CLX has a Current Ratio of 1.00. 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 Current ratio of CLX (1.00) is worse than 75.00% of its industry peers.
CLX has a Quick Ratio of 1.00. 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 Quick ratio of 0.62 is on the low side compared to the rest of the industry. CLX is outperformed by 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1
Quick Ratio 0.62

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 62.37% over the past year.
The Earnings Per Share has been decreasing by -0.51% on average over the past years.
CLX shows a small growth in Revenue. In the last year, the Revenue has grown by 6.17%.
The Revenue has been growing slightly by 2.68% on average over the past years.
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

CLX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.27% yearly.
The Revenue is expected to grow by 3.65% on average over the next years.
EPS Next Y11.94%
EPS Next 2Y9.12%
EPS Next 3Y7.83%
EPS Next 5Y7.27%
Revenue Next Year-1.32%
Revenue Next 2Y0.54%
Revenue Next 3Y1.33%
Revenue Next 5Y3.65%

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 accelerating.

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 21.88 indicates a rather expensive valuation of CLX.
The rest of the industry has a similar Price/Earnings ratio as CLX.
Compared to an average S&P500 Price/Earnings ratio of 29.17, CLX is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 22.44, 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's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.71.
Industry RankSector Rank
PE 21.88
Fwd PE 22.44

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 a bit more expensive than 75.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 30.56
EV/EBITDA 16.02

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)1.83
PEG (5Y)N/A
EPS Next 2Y9.12%
EPS Next 3Y7.83%

6

5. Dividend

5.1 Amount

CLX has a Yearly Dividend Yield of 3.00%. Purely for dividend investing, there may be better candidates out there.
CLX's Dividend Yield is a higher than the industry average which is at 2.42.
Compared to an average S&P500 Dividend Yield of 2.21, CLX pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3%

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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)4.43%
Div Incr Years33
Div Non Decr Years33

5.3 Sustainability

CLX pays out 167.23% 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.
DP167.23%
EPS Next 2Y9.12%
EPS Next 3Y7.83%

CLOROX COMPANY

NYSE:CLX (11/8/2024, 8:04:00 PM)

After market: 165.2 +0.04 (+0.02%)

165.16

+2.39 (+1.47%)

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 Cap20.44B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 3%
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)
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Revenue beat(2)
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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 21.88
Fwd PE 22.44
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)1.83
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 6.49%
ROE 595%
ROCE
ROIC
ROICexc
ROICexgc
OM 15.88%
PM (TTM) 4.78%
GM 44.56%
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 Turnover1.36
Health
Industry RankSector Rank
Debt/Equity 41.43
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1
Quick Ratio 0.62
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)
High Growth Momentum
Growth
EPS 1Y (TTM)62.37%
EPS 3Y-7.55%
EPS 5Y
EPS Q2Q%
EPS Next Y11.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.17%
Revenue growth 3Y-1.14%
Revenue growth 5Y
Sales 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