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CLX

Clorox NYSE:CLX Stock Report

Last Price

US$138.30

Market Cap

US$17.0b

7D

-12.6%

1Y

-22.5%

Updated

21 May, 2022

Data

Company Financials +
CLX fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance1/6
Financial Health3/6
Dividends3/6

CLX Stock Overview

The Clorox Company manufactures and markets consumer and professional products worldwide.

Clorox Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Clorox
Historical stock prices
Current Share PriceUS$138.30
52 Week HighUS$191.75
52 Week LowUS$127.02
Beta0.17
1 Month Change-6.65%
3 Month Change-8.14%
1 Year Change-22.46%
3 Year Change-7.57%
5 Year Change2.45%
Change since IPO1,186.51%

Recent News & Updates

May 03

Clorox May Be At Risk Of Cutting Its Dividend

Clorox is a highly profitable and well-managed company. This is underscored by consistently high margins, excellent working capital management, and return on invested capital. Due to inflationary pressures and pandemic-related excess capacities, the company's gross margin has fallen dramatically. Free cash flow followed suit and is now barely able to cover the dividend. The company will likely need to tap the capital markets to bolster its near-term cash flow, in addition to refinancing more than $1 billion over the next 18 months at potentially unfavorable rates. It will take a few years for the issues to resolve, and investors will likely continue to scrutinize Clorox's premium valuation.

Apr 21

Clorox Can Teach Investors A Lot About Booms, Busts, Story Stocks, And Overvaluation

Clorox has been extremely overvalued for the past two or three years. Heading into the 2020 pandemic, investors seeking yield and earnings stability bought the stock. They were soon followed by investors who liked Clorox's pandemic story. But just like nearly all other overvalued story stocks, Clorox stock has been heading lower recently. Investors can learn a lot about Booms, Busts, and Story Stocks by examining Clorox's recent history. Even after the stock's recent sell-off, it remains unattractive at today's price.

Shareholder Returns

CLXUS Household ProductsUS Market
7D-12.6%-8.0%-2.7%
1Y-22.5%0.09%-12.9%

Return vs Industry: CLX underperformed the US Household Products industry which returned 0.1% over the past year.

Return vs Market: CLX underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is CLX's price volatile compared to industry and market?
CLX volatility
CLX Average Weekly Movement4.5%
Household Products Industry Average Movement4.7%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

Stable Share Price: CLX is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CLX's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19139,000Linda Rendlehttps://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 brand names; professional cleaning and disinfecting products under the CloroxPro, Clorox Healthcare, and Clorox Total 360 brand names; professional food service products under the Hidden Valley brand name; and vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell, and Rainbow Light brand names in the United States.

Clorox Fundamentals Summary

How do Clorox's earnings and revenue compare to its market cap?
CLX fundamental statistics
Market CapUS$17.02b
Earnings (TTM)US$458.00m
Revenue (TTM)US$7.11b

37.2x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CLX income statement (TTM)
RevenueUS$7.11b
Cost of RevenueUS$4.56b
Gross ProfitUS$2.55b
Other ExpensesUS$2.09b
EarningsUS$458.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.72
Gross Margin35.80%
Net Profit Margin6.44%
Debt/Equity Ratio500.3%

How did CLX perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

125%

Payout Ratio

Valuation

Is Clorox undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


42.4%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CLX ($138.3) is trading below our estimate of fair value ($240.18)

Significantly Below Fair Value: CLX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CLX is poor value based on its PE Ratio (37.2x) compared to the US Household Products industry average (21.2x).

PE vs Market: CLX is poor value based on its PE Ratio (37.2x) compared to the US market (15.3x).


Price to Earnings Growth Ratio

PEG Ratio: CLX is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: CLX is overvalued based on its PB Ratio (42.6x) compared to the US Household Products industry average (4x).


Future Growth

How is Clorox forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLX's forecast earnings growth (16.4% per year) is above the savings rate (1.9%).

Earnings vs Market: CLX's earnings (16.4% per year) are forecast to grow faster than the US market (12.5% per year).

High Growth Earnings: CLX's earnings are forecast to grow, but not significantly.

Revenue vs Market: CLX's revenue (3.5% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: CLX's revenue (3.5% 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 (330.9%).


Past Performance

How has Clorox performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-3.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CLX has high quality earnings.

Growing Profit Margin: CLX's current net profit margins (6.4%) are lower than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: CLX's earnings have declined by 3% 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 (-50.4%) over the past year, making it difficult to compare to the Household Products industry average (-7.7%).


Return on Equity

High ROE: Whilst CLX's Return on Equity (81.08%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Clorox's financial position?

Financial Health Score

3/6

Financial 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 ($1.9B) do not cover its short term liabilities ($2.6B).

Long Term Liabilities: CLX's short term assets ($1.9B) do not cover its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: CLX's net debt to equity ratio (447.6%) is considered high.

Reducing Debt: CLX's debt to equity ratio has reduced from 601% to 500.3% 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


Dividend

What is Clorox current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.36%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CLX's dividend (3.36%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: CLX's dividend (3.36%) is low compared to the top 25% of dividend payers in the US market (4.11%).


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 (124.9%), CLX's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (101.4%), CLX's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Linda Rendle (43 yo)

1.67yrs

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 ($USD7.90M) is below average for companies of similar size in the US market ($USD13.34M).

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 (4.1 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: Insufficient data to determine if insiders have bought more shares than they have sold 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$17.022b
  • Shares outstanding: 123.08m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/21 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/03/31
Annual Earnings2021/06/30


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.