CLOROX COMPANY (CLX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CLX - US1890541097 - Common Stock
100.83 USD
+0.02 (+0.02%)
100.83 USD
0 (0%)
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. CLX is valued correctly, but it does not seem to be growing. Finally CLX also has an excellent dividend rating.
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.
In the past 5 years CLX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of CLX (14.31%) is better than 83.33% of its industry peers.
CLX's Return On Invested Capital of 21.90% is fine compared to the rest of the industry. CLX outperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CLX is above the industry average of 14.85%.
The 3 year average ROIC (18.59%) for CLX is below the current ROIC(21.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.31% | ||
| ROE | N/A | ||
| ROIC | 21.9% |
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 11.68%, CLX is in the better half of 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's Operating Margin of 15.17% is in line compared to the rest of the industry. CLX outperforms 50.00% of its industry peers.
CLX's Operating Margin has declined in the last couple of years.
CLX has a better Gross Margin (44.28%) than 66.67% of its industry peers.
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 | 15.17% | ||
| PM (TTM) | 11.68% | ||
| GM | 44.28% |
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.
CLX has less shares outstanding than it did 1 year ago.
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 3.10 indicates that CLX is not in any danger for bankruptcy at the moment.
CLX has a Altman-Z score of 3.10. This is comparable to the rest of the industry: CLX outperforms 50.00% of its industry peers.
CLX has a debt to FCF ratio of 4.25. This is a neutral value as CLX would need 4.25 years to pay back of all of its debts.
The Debt to FCF ratio of CLX (4.25) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.25 | ||
| Altman-Z | 3.1 |
ROIC/WACC2.82
WACC7.78%
2.3 Liquidity
CLX has a Current Ratio of 0.76. This is a bad value and indicates that CLX is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.76, CLX is doing worse than 83.33% of the companies in the same industry.
CLX has a Quick Ratio of 0.76. 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 (0.50) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.5 |
3. Growth
3.1 Past
CLX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.99%.
Measured over the past 5 years, CLX shows a small growth in Earnings Per Share. The EPS has been growing by 1.01% on average per year.
The Revenue has decreased by -9.35% in the past 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)-10.99%
EPS 3Y23.44%
EPS 5Y1.01%
EPS Q2Q%-54.3%
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y-0.01%
Revenue growth 5Y1.11%
Sales Q2Q%-18.9%
3.2 Future
Based on estimates for the next years, CLX will show a small growth in Earnings Per Share. The EPS will grow by 1.55% on average per year.
The Revenue is expected to grow by 1.20% on average over the next years.
EPS Next Y-22.5%
EPS Next 2Y-6.04%
EPS Next 3Y-2.23%
EPS Next 5Y1.55%
Revenue Next Year-7.88%
Revenue Next 2Y-1.74%
Revenue Next 3Y-0.22%
Revenue Next 5Y1.2%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.00 indicates a correct valuation of CLX.
The rest of the industry has a similar Price/Earnings ratio as CLX.
When comparing the Price/Earnings ratio of CLX to the average of the S&P500 Index (26.51), we can say CLX is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.78, CLX is valued correctly.
CLX's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.13. CLX is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
CLX's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 19.34 | ||
| EV/EBITDA | 11.71 |
4.3 Compensation for Growth
CLX has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as CLX's earnings are expected to decrease with -2.23% in the coming years.
PEG (NY)N/A
PEG (5Y)14.81
EPS Next 2Y-6.04%
EPS Next 3Y-2.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.05%, CLX is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.80, CLX pays a better dividend. On top of this CLX pays more dividend than 91.67% of the companies listed in the same industry.
CLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
5.2 History
The dividend of CLX has a limited annual growth rate of 2.88%.
CLX has been paying a dividend for at least 10 years, so it has 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
CLX pays out 76.11% 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.
DP76.11%
EPS Next 2Y-6.04%
EPS Next 3Y-2.23%
100.83
+0.02 (+0.02%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners89.37%
Inst Owner Change-3.69%
Ins Owners0.4%
Ins Owner Change13.39%
Market Cap12.30B
Revenue(TTM)6.77B
Net Income(TTM)791.00M
Analysts54.81
Price Target125.4 (24.37%)
Short Float %5.81%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.05% |
Yearly Dividend4.88
Dividend Growth(5Y)2.88%
DP76.11%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.83%
Min EPS beat(2)6.97%
Max EPS beat(2)28.7%
EPS beat(4)3
Avg EPS beat(4)9.13%
Min EPS beat(4)-8.29%
Max EPS beat(4)28.7%
EPS beat(8)7
Avg EPS beat(8)25.3%
EPS beat(12)11
Avg EPS beat(12)52.89%
EPS beat(16)13
Avg EPS beat(16)41.78%
Revenue beat(2)2
Avg Revenue beat(2)1.32%
Min Revenue beat(2)1.06%
Max Revenue beat(2)1.58%
Revenue beat(4)3
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-4.3%
Max Revenue beat(4)2.62%
Revenue beat(8)5
Avg Revenue beat(8)1.13%
Revenue beat(12)9
Avg Revenue beat(12)2.28%
Revenue beat(16)11
Avg Revenue beat(16)1.58%
PT rev (1m)-4.45%
PT rev (3m)-10.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.56%
EPS NY rev (1m)-0.38%
EPS NY rev (3m)-2.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.66%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15 | ||
| Fwd PE | 14.78 | ||
| P/S | 1.82 | ||
| P/FCF | 19.34 | ||
| P/OCF | 14.42 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.71 |
EPS(TTM)6.72
EY6.66%
EPS(NY)6.82
Fwd EY6.77%
FCF(TTM)5.21
FCFY5.17%
OCF(TTM)6.99
OCFY6.94%
SpS55.51
BVpS-0.18
TBVpS-14.84
PEG (NY)N/A
PEG (5Y)14.81
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.31% | ||
| ROE | N/A | ||
| ROCE | 31.18% | ||
| ROIC | 21.9% | ||
| ROICexc | 22.99% | ||
| ROICexgc | 49.37% | ||
| OM | 15.17% | ||
| PM (TTM) | 11.68% | ||
| GM | 44.28% | ||
| FCFM | 9.39% |
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%
ROICexgc growth 3Y25.21%
ROICexgc 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-Score6
Asset Turnover1.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.25 | ||
| Debt/EBITDA | 2.17 | ||
| Cap/Depr | 98.19% | ||
| Cap/Sales | 3.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.35% | ||
| Profit Quality | 80.4% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.5 | ||
| Altman-Z | 3.1 |
F-Score6
WACC7.78%
ROIC/WACC2.82
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)-10.99%
EPS 3Y23.44%
EPS 5Y1.01%
EPS Q2Q%-54.3%
EPS Next Y-22.5%
EPS Next 2Y-6.04%
EPS Next 3Y-2.23%
EPS Next 5Y1.55%
Revenue 1Y (TTM)-9.35%
Revenue growth 3Y-0.01%
Revenue growth 5Y1.11%
Sales Q2Q%-18.9%
Revenue Next Year-7.88%
Revenue Next 2Y-1.74%
Revenue Next 3Y-0.22%
Revenue Next 5Y1.2%
EBIT growth 1Y-13.41%
EBIT growth 3Y18.51%
EBIT growth 5Y-1.39%
EBIT Next Year5.87%
EBIT Next 3Y7.02%
EBIT Next 5Y6.3%
FCF growth 1Y-19.9%
FCF growth 3Y12.46%
FCF growth 5Y-10.05%
OCF growth 1Y-14.7%
OCF growth 3Y7.67%
OCF growth 5Y-8.7%
CLOROX COMPANY / CLX FAQ
Can you provide the ChartMill fundamental rating for CLOROX COMPANY?
ChartMill assigns a fundamental rating of 4 / 10 to CLX.
What is the valuation status for CLX stock?
ChartMill assigns a valuation rating of 4 / 10 to CLOROX COMPANY (CLX). This can be considered as Fairly Valued.
What is the profitability of CLX stock?
CLOROX COMPANY (CLX) has a profitability rating of 6 / 10.
What are the PE and PB ratios of CLOROX COMPANY (CLX) stock?
The Price/Earnings (PE) ratio for CLOROX COMPANY (CLX) is 15 and the Price/Book (PB) ratio is -559.06.
How sustainable is the dividend of CLOROX COMPANY (CLX) stock?
The dividend rating of CLOROX COMPANY (CLX) is 7 / 10 and the dividend payout ratio is 76.11%.