CLOROX COMPANY (CLX) Stock Fundamental Analysis
USA - NYSE:CLX - US1890541097 - Common Stock
122.25 USD
-0.43 (-0.35%)
121.895 USD
-0.36 (-0.29%)
CLX gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. While CLX has a great profitability rating, there are some minor concerns on its financial health. CLX is valied quite expensively at the moment, while it does show a decent growth rate. Finally CLX also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
CLX had positive earnings in the past year.
CLX had a positive operating cash flow in the past year.
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
The Return On Assets of CLX (14.57%) is better than 83.33% of its industry peers.
CLX has a better Return On Equity (252.34%) than 91.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.94%, CLX belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital 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
The Profit Margin of CLX (11.40%) is better than 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 66.67% of its industry peers.
CLX's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 45.16%, CLX is doing good in the industry, outperforming 75.00% of the companies in the same industry.
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
CLX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CLX has less shares outstanding than it did 1 year ago.
CLX has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CLX is higher compared to a year ago.
2.2 Solvency
CLX has an Altman-Z score of 3.75. This indicates that CLX is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CLX (3.75) is comparable to the rest of the 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.
CLX has a Debt to FCF ratio of 3.27. This is comparable to the rest of the industry: CLX outperforms 58.33% of its industry peers.
A Debt/Equity ratio of 7.75 is on the high side and indicates that CLX has dependencies on debt financing.
CLX has a Debt to Equity ratio of 7.75. This is in the lower half of the industry: CLX underperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.75 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | 3.75 |
ROIC/WACC3.15
WACC7.91%
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.
CLX has a Current ratio of 0.84. This is in the lower half of the industry: CLX underperforms 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.
The Quick ratio of CLX (0.57) is worse 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.
CLX shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.01% yearly.
Looking at the last year, CLX shows a small growth in Revenue. The Revenue has grown by 0.16% 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)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-20.4%
EPS Next 2Y-5.02%
EPS Next 3Y-1.04%
EPS Next 5Y2.83%
Revenue Next Year-7.63%
Revenue Next 2Y-1.81%
Revenue Next 3Y-0.15%
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
With a Price/Earnings ratio of 15.82, CLX is valued correctly.
CLX's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.86. CLX is valued slightly cheaper when compared to this.
CLX is valuated rather expensively with a Price/Forward Earnings ratio of 19.87.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CLX is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.29, CLX is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 19.87 |
4.2 Price Multiples
CLX's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CLX is valued a bit more expensive than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.65 | ||
| EV/EBITDA | 12.05 |
4.3 Compensation for Growth
The decent profitability rating of CLX may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)15.61
EPS Next 2Y-5.02%
EPS Next 3Y-1.04%
5. Dividend
5.1 Amount
CLX has a Yearly Dividend Yield of 4.03%, which is a nice return.
CLX's Dividend Yield is rather good when compared to the industry average which is at 2.99. CLX pays more dividend than 83.33% of the companies in the same industry.
CLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
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
74.32% of the earnings are spent on dividend by CLX. 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-5.02%
EPS Next 3Y-1.04%
122.25
-0.43 (-0.35%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners91%
Inst Owner Change7.62%
Ins Owners0.24%
Ins Owner Change8.88%
Market Cap14.95B
Analysts55.71
Price Target140.29 (14.76%)
Short Float %6.06%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
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)-0.68%
PT rev (3m)-7.26%
EPS NQ rev (1m)-1.89%
EPS NQ rev (3m)-41.7%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-10.15%
Revenue NQ rev (1m)-0.35%
Revenue NQ rev (3m)-12.07%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)-6.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.82 | ||
| Fwd PE | 19.87 | ||
| P/S | 2.1 | ||
| P/FCF | 19.65 | ||
| P/OCF | 15.24 | ||
| P/B | 46.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.05 |
EPS(TTM)7.73
EY6.32%
EPS(NY)6.15
Fwd EY5.03%
FCF(TTM)6.22
FCFY5.09%
OCF(TTM)8.02
OCFY6.56%
SpS58.08
BVpS2.62
TBVpS-12.05
PEG (NY)N/A
PEG (5Y)15.61
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 | 3.75 |
F-Score7
WACC7.91%
ROIC/WACC3.15
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-20.4%
EPS Next 2Y-5.02%
EPS Next 3Y-1.04%
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-7.63%
Revenue Next 2Y-1.81%
Revenue Next 3Y-0.15%
Revenue Next 5Y1.35%
EBIT growth 1Y27.25%
EBIT growth 3Y18.51%
EBIT growth 5Y-1.39%
EBIT Next Year6.95%
EBIT Next 3Y7.74%
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%