| 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$158.28 |
| 52 Week High | US$191.75 |
| 52 Week Low | US$127.02 |
| Beta | 0.17 |
| 1 Month Change | 8.73% |
| 3 Month Change | 10.72% |
| 1 Year Change | -12.71% |
| 3 Year Change | 7.64% |
| 5 Year Change | 19.76% |
| Change since IPO | 1,372.37% |
Recent News & Updates
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.
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
| CLX | US Household Products | US Market | |
|---|---|---|---|
| 7D | 2.8% | -0.9% | -2.5% |
| 1Y | -12.7% | 8.3% | -10.4% |
Return vs Industry: CLX underperformed the US Household Products industry which returned 8.3% over the past year.
Return vs Market: CLX underperformed the US Market which returned -10.4% over the past year.
Price Volatility
| CLX volatility | |
|---|---|
| CLX Average Weekly Movement | 4.0% |
| Household Products Industry Average Movement | 4.5% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.7% |
| 10% least volatile stocks in US Market | 2.8% |
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
| 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 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
| CLX fundamental statistics | |
|---|---|
| Market Cap | US$19.48b |
| Earnings (TTM) | US$458.00m |
| Revenue (TTM) | US$7.11b |
42.5x
P/E Ratio2.7x
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$2.09b |
| Earnings | US$458.00m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 3.72 |
| Gross Margin | 35.80% |
| Net Profit Margin | 6.44% |
| Debt/Equity Ratio | 500.3% |
How did CLX perform over the long term?
See historical performance and comparisonDividends
2.9%
Current Dividend Yield125%
Payout RatioValuation
Is Clorox undervalued compared to its fair value and its price relative to the market?
Valuation Score
2/6Valuation Score 2/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
34.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CLX ($158.28) 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 (42.5x) compared to the US Household Products industry average (22.9x).
PE vs Market: CLX is poor value based on its PE Ratio (42.5x) compared to the US market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: CLX is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: CLX is overvalued based on its PB Ratio (48.7x) compared to the US Household Products industry average (4.3x).
Future Growth
How is Clorox forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Future Growth Score
3/6Future 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 (12.6% 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 (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 (179.7%).
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
-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
3/6Financial 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 ($1.9B) 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
4/6Dividend Score 4/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
2.93%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CLX's dividend (2.93%) is higher than the bottom 25% of dividend payers in the US market (1.54%).
High Dividend: CLX's dividend (2.93%) 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 (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.
Next Steps
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 ($USD13.26M).
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$19.481b
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/15 00:00 |
| End of Day Share Price | 2022/05/13 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/06/30 |
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.