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. While CLX is still in line with the averages on profitability rating, there are concerns on its financial health. CLX has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years CLX has been profitable.
In the past 5 years CLX always reported a positive cash flow from operatings.
1.2 Ratios
CLX has a better Return On Assets (12.59%) than 66.67% of its industry peers.
CLX has a better Return On Equity (2570.37%) than 100.00% of its industry peers.
CLX has a Return On Invested Capital of 21.97%. This is amongst the best in the industry. CLX outperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CLX is below the industry average of 15.74%.
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
CLX has a Profit Margin (9.89%) which 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 (15.14%) which is in line with its industry peers.
CLX's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 45.08%, CLX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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.
Compared to 1 year ago, CLX has more shares outstanding
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 3.58. This indicates that CLX is financially healthy and has little risk of bankruptcy at the moment.
CLX has a Altman-Z score of 3.58. 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 3.17. This is a good value and a sign of high solvency as CLX would need 3.17 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.17, CLX perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
CLX has a Debt/Equity ratio of 93.96. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 93.96, CLX is doing worse than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 93.96 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 3.58 |
ROIC/WACC2.68
WACC8.2%
2.3 Liquidity
A Current Ratio of 0.74 indicates that CLX may have some problems paying its short term obligations.
The Current ratio of CLX (0.74) is worse than 83.33% of its industry peers.
A Quick Ratio of 0.44 indicates that CLX may have some problems paying its short term obligations.
CLX has a Quick ratio of 0.44. This is amonst the worse of the industry: CLX underperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
CLX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.78%, which is quite good.
The Earnings Per Share has been decreasing by -0.51% on average over the past years.
CLX shows a decrease in Revenue. In the last year, the revenue decreased by -2.64%.
Measured over the past years, CLX shows a small growth in Revenue. The Revenue has been growing by 2.68% on average per year.
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
CLX is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.54% yearly.
CLX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.15% yearly.
EPS Next Y15.3%
EPS Next 2Y4.49%
EPS Next 3Y5.89%
EPS Next 5Y7.54%
Revenue Next Year-1.38%
Revenue Next 2Y-1.66%
Revenue Next 3Y0.04%
Revenue Next 5Y2.15%
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
With a Price/Earnings ratio of 19.58, CLX is valued on the expensive side.
CLX's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.04, CLX is valued a bit cheaper.
The Price/Forward Earnings ratio is 19.39, which indicates a rather expensive current valuation of CLX.
The rest of the industry has a similar Price/Forward Earnings ratio as CLX.
CLX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 19.39 |
4.2 Price Multiples
CLX's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as CLX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.13 | ||
| EV/EBITDA | 14.31 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CLX has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.28
PEG (5Y)N/A
EPS Next 2Y4.49%
EPS Next 3Y5.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.71%, CLX has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.91, CLX pays a bit more dividend than its industry peers.
CLX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
5.2 History
The dividend of CLX has a limited annual growth rate of 4.43%.
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)4.43%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
86.60% of the earnings are spent on dividend by CLX. This is not a sustainable payout ratio.
The dividend of CLX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP86.6%
EPS Next 2Y4.49%
EPS Next 3Y5.89%
130.81
-0.61 (-0.46%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners83.51%
Inst Owner Change-0.1%
Ins Owners0.17%
Ins Owner Change-0.37%
Market Cap16.12B
Analysts55.71
Price Target144.37 (10.37%)
Short Float %5.43%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
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)-4.56%
PT rev (3m)-8.52%
EPS NQ rev (1m)-0.19%
EPS NQ rev (3m)1.26%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.58 | ||
| Fwd PE | 19.39 | ||
| P/S | 2.3 | ||
| P/FCF | 20.13 | ||
| P/OCF | 15.7 | ||
| P/B | 597.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.31 |
EPS(TTM)6.68
EY5.11%
EPS(NY)6.75
Fwd EY5.16%
FCF(TTM)6.5
FCFY4.97%
OCF(TTM)8.33
OCFY6.37%
SpS56.95
BVpS0.22
TBVpS-14.31
PEG (NY)1.28
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 | 3.58 |
F-Score7
WACC8.2%
ROIC/WACC2.68
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 Y15.3%
EPS Next 2Y4.49%
EPS Next 3Y5.89%
EPS Next 5Y7.54%
Revenue 1Y (TTM)-2.64%
Revenue growth 3Y-1.14%
Revenue growth 5Y2.68%
Sales Q2Q%-8.05%
Revenue Next Year-1.38%
Revenue Next 2Y-1.66%
Revenue Next 3Y0.04%
Revenue Next 5Y2.15%
EBIT growth 1Y12.13%
EBIT growth 3Y-8.9%
EBIT growth 5Y-3.66%
EBIT Next Year35.88%
EBIT Next 3Y12.92%
EBIT Next 5Y10.13%
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%