| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 1/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
CLX Stock Overview
The Clorox Company manufactures and markets consumer and professional products worldwide.
Clorox Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$144.61 |
| 52 Week High | US$186.86 |
| 52 Week Low | US$120.50 |
| Beta | 0.17 |
| 1 Month Change | 0.50% |
| 3 Month Change | -8.64% |
| 1 Year Change | -13.28% |
| 3 Year Change | -9.02% |
| 5 Year Change | 5.42% |
| Change since IPO | 1,245.21% |
Recent News & Updates
Clorox: Party Is Over - Nothing Exciting To See Here
The COVID-19 party has peaked and crashed post-reopening cadence, leaving Clorox with poorer margins for the next few quarters. Nonetheless, the stock seems to be trading near bottom, with potential recovery in the horizon. In the meantime, we do not recommend anyone to add CLX to their portfolio since it is neither a high-growth nor an excellent dividend stock. Investment Thesis The Clorox Company (CLX) had a rare unicorn moment during the COVID-19 stock market party then. The stock rallied from $146.83 in November 2019 to $227.42 in July 2020. The peak would have been the perfect time for traders to cash in and collect their party goods. For those who had not, it is evident that Mr. Market woke up with a hangover and vengefully reversed all gains to the current levels of $143.41. Nonetheless, given the relatively sideways price action for the past six months, it is potentially safe to surmise that we are seeing a sustainable support level now. However, since CLX is neither a high growth stock nor an excellent dividend stock, we do not recommend anyone to add this to their portfolio. Clorox Continues To Underperform Due To Supply Chain And Logistics Issues S&P Capital IQ CLX had obviously benefited from the pandemic, given the improvement in its sales and meteoric rise in its stock prices then. However, its margins have also suffered in the past five quarters, given the global supply chain issues impacting the cost of goods sold. By FQ4'22, the company reported revenues of $1.8B and gross margins of 37.1%, representing in-line YoY, respectively. However, it is a massive decline of -9.1% and -9.7 percentage points from FQ4'20 levels. Otherwise, an increase of 10.6% though a decline of -8 percentage points from pre-pandemic levels in FQ4'19. Drivers Affecting CLX's Gross Margins Seeking Alpha These drivers were cleverly addressed in CLX's financial report thus far, which highlighted the massive increase in costs, especially in the raw materials, manufacturing, and logistics segment. It is no wonder then that CLX reported a lower net income of $101M and net income margins of 5.6% in FQ4'22, representing in-line YoY though a tremendous decline of -67.4% and -10 percentage points from FQ4'20 levels. Otherwise, a decline of -58% and -9.2 percentage points from FQ4'19 levels. S&P Capital IQ CLX's management had obviously tried to keep a lid on its operating expenses at $485M in FQ4'22, representing a moderation of -8.3% YoY, -7.4% from FQ'20 levels, and a minimal increase of 13.3% from FQ4'19 levels. Nonetheless, these have directly impacted the ratio to its decelerating revenues at 26.9% and to its gross profits at 72.6% in FQ4'22, compared to 27.3% and 58.3% in FQ4'20, respectively. Thereby, highlighting the other reason for CLX's lowered profitability. S&P Capital IQ Therefore, it is no wonder that CLX reported a lower Free Cash Flow ((FCF)) generation thus far, with an FCF of $256M and an FCF margin of 14.2%, representing a decrease of -9.8% and -1.6 percentage points YoY. Otherwise, a decrease of -60.2% and -18.3 percentage points from the peak in FQ4'20. These issues were further exacerbated by CLX's constantly increasing dividend payouts, which continue to bleed its cash and equivalents on its balance sheet to $183M in FQ4'22, compared to the peak of $879M in FQ4'20. CLX Stock Recovery Is Possible By Mid FY2023 S&P Capital IQ Over the next three years, CLX is expected to report revenue and net income growth at a CAGR of 2.16% and 20.58%, respectively. It is evident that consensus estimates are optimistic about the company's capability in reversing its profitability to pre-pandemic levels, from net income margins of 13.2% in FY2019, to 6.5% in FY2022, and to a projected 10.7% in FY2025, once the supply chain issues are alleviated then. In the meantime, consensus estimates that CLX will report revenues of $7.09B and net incomes of $0.54B in FY2023, representing in-line and an increase of 16.8% YoY, respectively. Assuming similar FCF margins of 14.2% then, we expect to see the company maintain its dividend payouts in FY2023, if not a marginal increase. This should alleviate investors' fears for now. Things will likely normalize over time, with more sideways price action in the short term. Once the market sees improved earnings, we will probably see the stock reverting to its previously slow but steady pace of growth from mid-FY2023 onwards. So, Is CLX Stock A Buy, Sell, or Hold? CLX 5Y EV/Revenue and P/E Valuations S&P Capital IQ CLX is currently trading at an EV/NTM Revenue of 2.92x and NTM P/E of 33.55x, lower than its 5Y EV/Revenue mean of 3.44x though elevated from its 5Y P/E mean of 25.63x. The stock is also trading at $143.41, down 23.2% from its 52 weeks high of $186.86, though at a premium of 19% from its 52 weeks low of $120.50. CLX 5Y Dividend Payouts & Yield S&P Capital IQ In the past five years, CLX has been regularly increasing its dividend payouts, from $3.36 in FY2018 to $4.72 in FY2022, at a CAGR of 8.87%. Thereby, highlighting the stock's strength as a decent dividend stock. However, it is also evident that the stock has had a rough plunge since hitting the peak in 2021, triggering a temporary weakness in its dividend yields then.
Clorox Non-GAAP EPS of $0.93 in-line, revenue of $1.8B misses by $60M
Clorox press release (NYSE:CLX): Q4 Non-GAAP EPS of $0.93 in-line. Revenue of $1.8B (flat Y/Y) misses by $60M. Gross margin of 37.1% was flat versus the year-ago quarter, due mainly to ongoing elevated commodity costs and manufacturing and logistics costs, offset by the benefits of pricing and cost savings initiatives. 2023 Outlook: Net sales are expected to be down 4% to up 2% compared to the prior year. Organic sales are expected to be down 3% to up 3%. Gross margin is expected to increase by about 200 basis points, primarily due to the combined benefit of pricing, cost savings and supply chain optimization, offset by continued cost inflation. Diluted EPS is expected to be between $3.10 and $3.47, or a decrease between 17% and 7%, respectively. Adjusted EPS is expected to be between $3.85 and $4.22, or a decrease of 6% to an increase of 3%, respectively. Shares -6.5%.
Clorox (NYSE:CLX) Is Paying Out A Larger Dividend Than Last Year
The board of The Clorox Company ( NYSE:CLX ) has announced that the dividend on 12th of August will be increased to...
Shareholder Returns
| CLX | US Household Products | US Market | |
|---|---|---|---|
| 7D | 5.0% | 0.7% | 1.3% |
| 1Y | -13.3% | 0.3% | -11.7% |
Return vs Industry: CLX underperformed the US Household Products industry which returned 1.2% over the past year.
Return vs Market: CLX underperformed the US Market which returned -11.6% over the past year.
Price Volatility
| CLX volatility | |
|---|---|
| CLX Average Weekly Movement | 5.1% |
| Household Products Industry Average Movement | 5.1% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: CLX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: CLX's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1913 | 9,000 | Linda Rendle | https://www.thecloroxcompany.com |
The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Health and Wellness, Household, Lifestyle, and International. The Health and Wellness segment offers cleaning products, such as laundry additives and home care products primarily under the Clorox, Clorox2, Scentiva, Pine-Sol, Liquid-Plumr, Tilex, and Formula 409 brands; professional cleaning and disinfecting products under the CloroxPro and Clorox Healthcare brands; professional food service products under the Hidden Valley brand; and vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell, and Rainbow Light brands in the United States.
Clorox Fundamentals Summary
| CLX fundamental statistics | |
|---|---|
| Market Cap | US$17.81b |
| Earnings (TTM) | US$462.00m |
| Revenue (TTM) | US$7.11b |
38.6x
P/E Ratio2.5x
P/S RatioIs CLX overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CLX income statement (TTM) | |
|---|---|
| Revenue | US$7.11b |
| Cost of Revenue | US$4.56b |
| Gross Profit | US$2.55b |
| Other Expenses | US$2.08b |
| Earnings | US$462.00m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 3.75 |
| Gross Margin | 35.81% |
| Net Profit Margin | 6.50% |
| Debt/Equity Ratio | 395.3% |
How did CLX perform over the long term?
See historical performance and comparisonDividends
3.2%
Current Dividend Yield124%
Payout RatioValuation
Is CLX undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for CLX?
Other financial metrics that can be useful for relative valuation.
| What is CLX's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$17.81b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.9x |
| Enterprise Value/EBITDA | 24.3x |
| PEG Ratio | 2.2x |
Price to Earnings Ratio vs Peers
How does CLX's PE Ratio compare to its peers?
| CLX PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 27.2x | ||
CHD Church & Dwight | 27.3x | 5.6% | US$21.3b |
KMB Kimberly-Clark | 25.5x | 9.2% | US$45.5b |
REYN Reynolds Consumer Products | 22x | 11.5% | US$6.0b |
CL Colgate-Palmolive | 34.1x | 9.5% | US$66.3b |
CLX Clorox | 38.6x | 17.2% | US$17.8b |
Price-To-Earnings vs Peers: CLX is expensive based on its Price-To-Earnings Ratio (38.6x) compared to the peer average (27.2x).
Price to Earnings Ratio vs Industry
How does CLX's PE Ratio compare vs other companies in the Global Household Products Industry?
Price-To-Earnings vs Industry: CLX is expensive based on its Price-To-Earnings Ratio (38.6x) compared to the US Household Products industry average (24.8x)
Price to Earnings Ratio vs Fair Ratio
What is CLX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 38.6x |
| Fair PE Ratio | 32x |
Price-To-Earnings vs Fair Ratio: CLX is expensive based on its Price-To-Earnings Ratio (38.6x) compared to the estimated Fair Price-To-Earnings Ratio (32x).
Share Price vs Fair Value
What is the Fair Price of CLX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: CLX ($144.61) is trading below our estimate of fair value ($291.35)
Significantly Below Fair Value: CLX is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is lower than the current share price.
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Future Growth
How is Clorox forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score
3/6Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
17.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CLX's forecast earnings growth (17.2% per year) is above the savings rate (1.9%).
Earnings vs Market: CLX's earnings (17.2% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: CLX's earnings are forecast to grow, but not significantly.
Revenue vs Market: CLX's revenue (2.8% per year) is forecast to grow slower than the US market (8% per year).
High Growth Revenue: CLX's revenue (2.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CLX's Return on Equity is forecast to be very high in 3 years time (71%).
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Past Performance
How has Clorox performed over the past 5 years?
Past Performance Score
1/6Past Performance Score 1/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-6.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CLX has high quality earnings.
Growing Profit Margin: CLX's current net profit margins (6.5%) are lower than last year (9.7%).
Past Earnings Growth Analysis
Earnings Trend: CLX's earnings have declined by 6% per year over the past 5 years.
Accelerating Growth: CLX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CLX had negative earnings growth (-34.9%) over the past year, making it difficult to compare to the Household Products industry average (-25.2%).
Return on Equity
High ROE: Whilst CLX's Return on Equity (64.61%) is outstanding, this metric is skewed due to their high level of debt.
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Financial Health
How is Clorox's financial position?
Financial Health Score
3/6Financial Health Score 3/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: CLX's short term assets ($1.7B) do not cover its short term liabilities ($1.8B).
Long Term Liabilities: CLX's short term assets ($1.7B) do not cover its long term liabilities ($3.6B).
Debt to Equity History and Analysis
Debt Level: CLX's net debt to equity ratio (370.2%) is considered high.
Reducing Debt: CLX's debt to equity ratio has reduced from 449.2% to 395.3% over the past 5 years.
Debt Coverage: CLX's debt is well covered by operating cash flow (28.9%).
Interest Coverage: CLX's interest payments on its debt are well covered by EBIT (7.3x coverage).
Balance Sheet
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Dividend
What is Clorox current dividend yield, its reliability and sustainability?
Dividend Score
3/6Dividend Score 3/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
3.21%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CLX's dividend (3.21%) is higher than the bottom 25% of dividend payers in the US market (1.5%).
High Dividend: CLX's dividend (3.21%) is low compared to the top 25% of dividend payers in the US market (4.05%).
Stability and Growth of Payments
Stable Dividend: CLX's dividends per share have been stable in the past 10 years.
Growing Dividend: CLX's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its high payout ratio (123.6%), CLX's dividend payments are not well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (101.5%), CLX's dividend payments are not well covered by cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
2.2yrs
Average management tenure
CEO
Linda Rendle (44 yo)
1.92yrs
Tenure
US$7,899,309
Compensation
Ms. Linda Rendle serves as Chief Executive Officer and Director of The Clorox Company since September 14 2020. Ms. Rendle served as President of The Clorox Company from May 4, 2020 to September 14, 2020. S...
CEO Compensation Analysis
Compensation vs Market: Linda's total compensation ($USD7.90M) is below average for companies of similar size in the US market ($USD12.88M).
Compensation vs Earnings: Linda's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: CLX's management team is considered experienced (2.2 years average tenure).
Board Members
Experienced Board: CLX's board of directors are considered experienced (5.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CLX insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
The Clorox Company's employee growth, exchange listings and data sources
Key Information
- Name: The Clorox Company
- Ticker: CLX
- Exchange: NYSE
- Founded: 1913
- Industry: Household Products
- Sector: Household
- Implied Market Cap: US$17.811b
- Shares outstanding: 123.16m
- Website: https://www.thecloroxcompany.com
Number of Employees
Location
- The Clorox Company
- 1221 Broadway
- Oakland
- California
- 94612-1888
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/11 00:00 |
| End of Day Share Price | 2022/08/11 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2022/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.