CLOROX COMPANY (CLX) Stock Fundamental Analysis
NYSE:CLX - New York Stock Exchange, Inc. - US1890541097 - Common Stock - Currency: USD
CLX gets a fundamental rating of 4 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CLX was profitable.
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
CLX has a Return On Assets of 12.59%. This is in the better half of the industry: CLX outperforms 75.00% of its industry peers.
CLX's Return On Equity of 2570.37% is amongst the best of the industry. CLX outperforms 100.00% of its industry peers.
The Return On Invested Capital of CLX (21.97%) is better than 75.00% of its industry peers.
CLX had an Average Return On Invested Capital over the past 3 years of 13.49%. This is below the industry average of 15.79%.
The 3 year average ROIC (13.49%) for CLX is below the current ROIC(21.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.59% | ||
| ROE | 2570.37% | ||
| ROIC | 21.97% |
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
With a decent Profit Margin value of 9.89%, CLX is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of CLX has declined.
CLX has a Operating Margin (15.14%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of CLX has declined.
CLX has a Gross Margin of 45.08%. 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 | 15.14% | ||
| PM (TTM) | 9.89% | ||
| GM | 45.08% |
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%
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.
The debt/assets ratio for CLX is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.59 indicates that CLX is not in any danger for bankruptcy at the moment.
CLX's Altman-Z score of 3.59 is in line compared to the rest of the industry. CLX outperforms 50.00% of its industry peers.
The Debt to FCF ratio of CLX is 3.17, which is a good value as it means it would take CLX, 3.17 years of fcf income to pay off all of its debts.
CLX has a Debt to FCF ratio of 3.17. This is comparable to the rest of the industry: CLX outperforms 50.00% of its industry peers.
CLX has a Debt/Equity ratio of 93.96. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of CLX (93.96) is worse than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 93.96 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 3.59 |
ROIC/WACC2.66
WACC8.27%
2.3 Liquidity
CLX has a Current Ratio of 0.74. 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 0.74, CLX is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
CLX has a Quick Ratio of 0.74. 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 Quick ratio value of 0.44, CLX is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.78% over the past year.
Measured over the past years, CLX shows a decrease in Earnings Per Share. The EPS has been decreasing by -0.51% on average per year.
CLX shows a decrease in Revenue. In the last year, the revenue decreased by -2.64%.
CLX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.68% yearly.
EPS 1Y (TTM)10.78%
EPS 3Y-7.55%
EPS 5Y-0.51%
EPS Q2Q%-15.2%
Revenue 1Y (TTM)-2.64%
Revenue growth 3Y-1.14%
Revenue growth 5Y2.68%
Sales Q2Q%-8.05%
3.2 Future
The Earnings Per Share is expected to grow by 8.40% on average over the next years. This is quite good.
CLX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.11% yearly.
EPS Next Y15.07%
EPS Next 2Y5.27%
EPS Next 3Y5.96%
EPS Next 5Y8.4%
Revenue Next Year-1.44%
Revenue Next 2Y-1.41%
Revenue Next 3Y0.08%
Revenue Next 5Y3.11%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.74 indicates a rather expensive valuation of CLX.
CLX's Price/Earnings is on the same level as the industry average.
CLX is valuated rather cheaply when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.25, the valuation of CLX can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CLX is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of CLX to the average of the S&P500 Index (21.94), we can say CLX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 19.25 |
4.2 Price Multiples
CLX's Enterprise Value to EBITDA ratio is in line with the industry average.
CLX's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.28 | ||
| EV/EBITDA | 14.41 |
4.3 Compensation for Growth
CLX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of CLX may justify a higher PE ratio.
PEG (NY)1.31
PEG (5Y)N/A
EPS Next 2Y5.27%
EPS Next 3Y5.96%
5. Dividend
5.1 Amount
CLX has a Yearly Dividend Yield of 3.62%.
CLX's Dividend Yield is a higher than the industry average which is at 2.82.
CLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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 Years34
Div Non Decr Years34
5.3 Sustainability
CLX pays out 86.60% 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.
DP86.6%
EPS Next 2Y5.27%
EPS Next 3Y5.96%
131.87
-3.64 (-2.69%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners82.9%
Inst Owner Change1.51%
Ins Owners0.17%
Ins Owner Change-0.48%
Market Cap16.25B
Analysts55.71
Price Target155.95 (18.26%)
Short Float %3.39%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
Yearly Dividend4.8
Dividend Growth(5Y)4.43%
DP86.6%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.42%
Min EPS beat(2)-8.29%
Max EPS beat(2)9.12%
EPS beat(4)3
Avg EPS beat(4)12.07%
Min EPS beat(4)-8.29%
Max EPS beat(4)32.02%
EPS beat(8)7
Avg EPS beat(8)65.88%
EPS beat(12)10
Avg EPS beat(12)51.83%
EPS beat(16)12
Avg EPS beat(16)38.65%
Revenue beat(2)1
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-4.3%
Max Revenue beat(2)2.62%
Revenue beat(4)2
Avg Revenue beat(4)0.22%
Min Revenue beat(4)-4.3%
Max Revenue beat(4)6.02%
Revenue beat(8)5
Avg Revenue beat(8)2.22%
Revenue beat(12)8
Avg Revenue beat(12)1.84%
Revenue beat(16)10
Avg Revenue beat(16)1.3%
PT rev (1m)-6.08%
PT rev (3m)-6.42%
EPS NQ rev (1m)1.46%
EPS NQ rev (3m)0.17%
EPS NY rev (1m)-1.21%
EPS NY rev (3m)-2.12%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)-0.85%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.74 | ||
| Fwd PE | 19.25 | ||
| P/S | 2.31 | ||
| P/FCF | 20.28 | ||
| P/OCF | 15.82 | ||
| P/B | 601.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.41 |
EPS(TTM)6.68
EY5.07%
EPS(NY)6.85
Fwd EY5.19%
FCF(TTM)6.5
FCFY4.93%
OCF(TTM)8.34
OCFY6.32%
SpS56.98
BVpS0.22
TBVpS-14.32
PEG (NY)1.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.59% | ||
| ROE | 2570.37% | ||
| ROCE | 31.67% | ||
| ROIC | 21.97% | ||
| ROICexc | 23.53% | ||
| ROICexgc | 53.77% | ||
| OM | 15.14% | ||
| PM (TTM) | 9.89% | ||
| GM | 45.08% | ||
| FCFM | 11.41% |
ROA(3y)4.96%
ROA(5y)8.24%
ROE(3y)78.73%
ROE(5y)102.47%
ROIC(3y)13.49%
ROIC(5y)15.84%
ROICexc(3y)14.36%
ROICexc(5y)17.52%
ROICexgc(3y)29.81%
ROICexgc(5y)41.93%
ROCE(3y)19.5%
ROCE(5y)22.69%
ROICexcg growth 3Y-18.79%
ROICexcg growth 5Y-10.19%
ROICexc growth 3Y-9.05%
ROICexc growth 5Y-3.75%
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%
F-Score7
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 93.96 | ||
| Debt/FCF | 3.17 | ||
| Debt/EBITDA | 1.98 | ||
| Cap/Depr | 102.26% | ||
| Cap/Sales | 3.22% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.98% | ||
| Profit Quality | 115.42% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 3.59 |
F-Score7
WACC8.27%
ROIC/WACC2.66
Cap/Depr(3y)99.63%
Cap/Depr(5y)119.37%
Cap/Sales(3y)3.2%
Cap/Sales(5y)3.58%
Profit Quality(3y)304.15%
Profit Quality(5y)236.63%
High Growth Momentum
Growth
EPS 1Y (TTM)10.78%
EPS 3Y-7.55%
EPS 5Y-0.51%
EPS Q2Q%-15.2%
EPS Next Y15.07%
EPS Next 2Y5.27%
EPS Next 3Y5.96%
EPS Next 5Y8.4%
Revenue 1Y (TTM)-2.64%
Revenue growth 3Y-1.14%
Revenue growth 5Y2.68%
Sales Q2Q%-8.05%
Revenue Next Year-1.44%
Revenue Next 2Y-1.41%
Revenue Next 3Y0.08%
Revenue Next 5Y3.11%
EBIT growth 1Y12.13%
EBIT growth 3Y-8.9%
EBIT growth 5Y-3.66%
EBIT Next Year39.03%
EBIT Next 3Y14.95%
EBIT Next 5Y11.55%
FCF growth 1Y-4.64%
FCF growth 3Y-20.05%
FCF growth 5Y-9.28%
OCF growth 1Y-3.39%
OCF growth 3Y-18.33%
OCF growth 5Y-6.87%