NYSE:CLX

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Established dividend payer with proven track record.


Similar Companies

Share Price & News

How has Clorox's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CLX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.5%

CLX

4.1%

US Household Products

1.3%

US Market


1 Year Return

50.3%

CLX

18.1%

US Household Products

14.9%

US Market

Return vs Industry: CLX exceeded the US Household Products industry which returned 18.1% over the past year.

Return vs Market: CLX exceeded the US Market which returned 14.9% over the past year.


Shareholder returns

CLXIndustryMarket
7 Day1.5%4.1%1.3%
30 Day4.4%8.3%4.7%
90 Day16.1%13.9%17.1%
1 Year54.0%50.3%21.0%18.1%17.3%14.9%
3 Year86.1%72.3%50.5%38.7%38.9%29.9%
5 Year123.9%97.1%85.3%61.3%71.3%52.8%

Price Volatility Vs. Market

How volatile is Clorox's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

33.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CLX ($231.96) is trading above our estimate of fair value ($149.03)

Significantly Below Fair Value: CLX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CLX is poor value based on its PE Ratio (33.6x) compared to the US Household Products industry average (25.7x).

PE vs Market: CLX is poor value based on its PE Ratio (33.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CLX is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: CLX is overvalued based on its PB Ratio (42x) compared to the US Household Products industry average (6.9x).


Next Steps

Future Growth

How is Clorox forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLX's forecast earnings growth (7.3% per year) is above the savings rate (2.2%).

Earnings vs Market: CLX's earnings (7.3% per year) are forecast to grow slower than the US market (22.3% 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 (9.3% 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 (106.1%).


Next Steps

Past Performance

How has Clorox performed over the past 5 years?

7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLX has high quality earnings.

Growing Profit Margin: CLX's current net profit margins (13.7%) are higher than last year (12.7%).


Past Earnings Growth Analysis

Earnings Trend: CLX's earnings have grown by 7.2% per year over the past 5 years.

Accelerating Growth: CLX's earnings growth over the past year (9.3%) exceeds its 5-year average (7.2% per year).

Earnings vs Industry: CLX earnings growth over the past year (9.3%) underperformed the Household Products industry 16.9%.


Return on Equity

High ROE: Whilst CLX's Return on Equity (125.18%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Clorox's financial position?


Financial Position Analysis

Short Term Liabilities: CLX's short term assets ($1.8B) do not cover its short term liabilities ($1.8B).

Long Term Liabilities: CLX's short term assets ($1.8B) do not cover its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: CLX's debt to equity ratio (421%) is considered high.

Reducing Debt: CLX's debt to equity ratio has reduced from 727.1% to 421% over the past 5 years.

Debt Coverage: CLX's debt is well covered by operating cash flow (40.8%).

Interest Coverage: CLX's interest payments on its debt are well covered by EBIT (12.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CLX's dividend (1.91%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: CLX's dividend (1.91%) is low compared to the top 25% of dividend payers in the US market (4.51%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (61.4%), CLX's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CLX's dividends in 3 years are forecast to be covered by earnings (54.6% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Benno Dorer (56 yo)

5.75yrs

Tenure

US$9,362,715

Compensation

Mr. Benno O. Dorer has been the Chairman of The Clorox Company since August 15, 2016 and has been its Chief Executive Officer since November 20, 2014. Mr. Dorer served as an Executive Vice President and Ch ...


CEO Compensation Analysis

Compensation vs Market: Benno's total compensation ($USD9.36M) is about average for companies of similar size in the US market ($USD11.35M).

Compensation vs Earnings: Benno's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Benno Dorer
Chairman & CEO5.75yrsUS$9.36m0.083%
$ 24.3m
Linda Rendle
President0.25yrUS$2.16m0.0065%
$ 1.9m
Kevin Jacobsen
Executive VP & CFO2.33yrsUS$2.29m0.0077%
$ 2.3m
Laura Stein
Executive VP of Corporate Affairs & General Counsel15.58yrsUS$2.97m0.024%
$ 6.9m
Eric Reynolds
Executive Vice President of Household & Lifestyle1.58yrsUS$1.72m0.0091%
$ 2.7m
Jeff Baker
VP, Chief Accounting Officer & Corporate Controller3.58yrsno data0.0037%
$ 1.1m
Chau Banks
Senior VP & Chief Information Officer0.17yrno datano data
Lisah Burhan
Vice President of Investor Relationsno datano datano data
William Bailey
Senior Vice President of Corporate & Business Development4.58yrsno data0.0057%
$ 1.7m
Stacey Grier
Senior VP & Chief Marketing Officer1.58yrsno data0.00059%
$ 172.3k
Kirsten Marriner
Executive VP & Chief People Officer4.42yrsno data0.0035%
$ 1.0m
Erbie Foster
Chief Diversity Officer14.17yrsno datano data

3.6yrs

Average Tenure

54yo

Average Age

Experienced Management: CLX's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Benno Dorer
Chairman & CEO5.75yrsUS$9.36m0.083%
$ 24.3m
Spencer Fleischer
Independent Director5.08yrsUS$265.11k0.00025%
$ 73.0k
Allan MacKay
Independent Director4yrsUS$252.50k0.0013%
$ 371.0k
Robert Matschullat
Independent Director21.58yrsUS$252.50k0.0010%
$ 306.7k
Christopher Williams
Independent Director5.08yrsUS$252.50kno data
Pamela Thomas-Graham
Lead Independent Director4yrsUS$302.50k0.0014%
$ 411.9k
Amy Banse
Independent Director3.92yrsUS$252.50kno data
Esther Lee
Independent Director7yrsUS$252.50kno data
Matthew Shattock
Independent Director2yrsUS$205.68kno data
Kathryn Tesija
Director0.25yrno datano data
Richard Carmona
Independent Director13.5yrsUS$267.50kno data
Russell Weiner
Independent Director3.5yrsUS$252.50kno data

4.0yrs

Average Tenure

61.5yo

Average Age

Experienced Board: CLX's board of directors are considered experienced (4 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Clorox Company
  • Ticker: CLX
  • Exchange: NYSE
  • Founded: 1913
  • Industry: Household Products
  • Sector: Household
  • Market Cap: US$29.212b
  • Shares outstanding: 125.93m
  • Website: https://www.thecloroxcompany.com

Number of Employees


Location

  • The Clorox Company
  • 1221 Broadway
  • Oakland
  • California
  • 94612
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLXNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1968
CXXDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1968
0I0JLSE (London Stock Exchange)YesCommon StockGBUSDAug 1968
CXXETLX (Eurotlx)YesCommon StockITEURAug 1968
CLX *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 1968
CLXC34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 0.25 COM USD1.00BRBRLMay 2019

Biography

The Clorox Company manufactures and markets consumer and professional products worldwide. It operates through four segments: Cleaning, Household, Lifestyle, and International. The company offers laundry ad ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 00:21
End of Day Share Price2020/08/03 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.