NYSE:CLX

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with mediocre balance sheet.


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


Market Performance


7 Day Return

1.7%

NYSE:CLX

2.1%

US Household Products

-1.0%

US Market


1 Year Return

9.1%

NYSE:CLX

35.9%

US Household Products

-0.4%

US Market

CLX underperformed the Household Products industry which returned 35.9% over the past year.

CLX outperformed the Market in United States of America which returned -0.4% over the past year.


Share holder returns

CLXIndustryMarket
7 Day1.7%2.1%-1.0%
30 Day-0.7%2.8%-3.3%
90 Day9.4%9.9%0.8%
1 Year11.9%9.1%39.7%35.9%1.9%-0.4%
3 Year33.1%23.0%46.7%34.3%39.4%30.4%
5 Year105.7%80.4%71.7%47.5%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

25.06x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Clorox's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Clorox's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Clorox is good value based on earnings compared to the US Household Products industry average.

Clorox is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Clorox is poor value based on expected growth next year.


Price Based on Value of Assets

Clorox is overvalued based on assets compared to the US Household Products industry average.


Next Steps

Future Growth

How is Clorox expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Clorox's revenue is expected to grow by 2.2% yearly, however this is not considered high growth (20% yearly).

Clorox's earnings are expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).

Clorox's revenue growth is positive but not above the United States of America market average.

Clorox's earnings growth is positive but not above the United States of America market average.

Clorox's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Clorox is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Clorox performed over the past 5 years?

7.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Clorox's year on year earnings growth rate has been positive over the past 5 years.

Clorox's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Clorox's 1-year earnings growth is negative, it can't be compared to the US Household Products industry average.


Return on Equity

Whilst Clorox made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Clorox used its assets more efficiently than the US Household Products industry average last year based on Return on Assets.


Return on Capital Employed

Clorox's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Clorox's financial position?


Financial Position Analysis

Clorox's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Clorox's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Clorox's level of debt (480%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (1508.2% vs 480% today).

Debt is well covered by operating cash flow (37%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.5x debt.


Next Steps

Dividend

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

2.68%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Clorox's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Clorox's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


Next Steps

Management

What is the CEO of Clorox's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Benno Dorer (55yo)

4.8yrs

Tenure

US$8,133,067

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

Benno's remuneration is about average for companies of similar size in United States of America.

Benno's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.4yrs

Average Tenure

54yo

Average Age

The average tenure for the Clorox management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.1yrs

Average Tenure

62yo

Average Age

The tenure for the Clorox board of directors is about average.


Insider Trading

Clorox individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$526,55108 Aug 19
Allan MacKay
EntityIndividual
Role
Member of the Board of Directors
Shares3,400
Max PriceUS$154.87
SellUS$313,13006 Aug 19
Diego Barral
EntityIndividual
Shares1,987
Max PriceUS$157.59
SellUS$1,098,54110 Dec 18
Denise Garner
EntityIndividual
Shares6,751
Max PriceUS$162.72
SellUS$56,65710 Sep 18
Linda Rendle
EntityIndividual
Role
Executive Vice President of Cleaning
Shares382
Max PriceUS$148.32
SellUS$501,30907 Sep 18
Dawn Willoughby
EntityIndividual
Shares3,387
Max PriceUS$148.01
SellUS$485,40930 Aug 18
Jon Balousek
EntityIndividual
Shares3,354
Max PriceUS$144.73

Ownership Breakdown


Management Team

  • Bill Bailey (53yo)

    Senior Vice President of Corporate & Business Development

    • Tenure: 3.6yrs
  • Jay McNulty (63yo)

    Senior VP & Chief Information Officer

    • Tenure: 1.1yrs
  • Lisah Burhan

    Vice President of Investor Relations

  • Kevin Jacobsen (53yo)

    Executive VP & CFO

    • Tenure: 1.3yrs
    • Compensation: $1.37m
  • Steve Robb (54yo)

    • Tenure: 1.4yrs
    • Compensation: $3.32m
  • Stacey Grier (56yo)

    Senior VP & Chief Marketing Officer

    • Tenure: 0.6yrs
  • Benno Dorer (55yo)

    Chairman & CEO

    • Tenure: 4.8yrs
    • Compensation: $8.13m
  • Linda Rendle (41yo)

    Executive Vice President of Cleaning

    • Tenure: 0.6yrs
    • Compensation: $1.70m
  • Jeff Baker (50yo)

    VP, Chief Accounting Officer & Corporate Controller

    • Tenure: 2.6yrs
  • Laura Stein (57yo)

    Executive VP of Corporate Affairs & General Counsel

    • Tenure: 14.6yrs
    • Compensation: $2.11m

Board Members

  • Carolyn Ticknor (72yo)

    Independent Director

    • Tenure: 14.6yrs
    • Compensation: $270.63k
  • Bob Matschullat (71yo)

    Independent Director

    • Tenure: 20.6yrs
    • Compensation: $250.63k
  • Esther Lee (60yo)

    Independent Director

    • Tenure: 6.0yrs
    • Compensation: $250.63k
  • Pamela Thomas-Graham (56yo)

    Lead Director

    • Tenure: 3.0yrs
    • Compensation: $300.63k
  • Rich Carmona (69yo)

    Independent Director

    • Tenure: 12.5yrs
    • Compensation: $265.63k
  • Chris Williams (61yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: $250.63k
  • David MacKay (63yo)

    Independent Director

    • Tenure: 3.0yrs
    • Compensation: $250.63k
  • Amy Banse (61yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: $250.63k
  • Benno Dorer (55yo)

    Chairman & CEO

    • Tenure: 3.0yrs
    • Compensation: $8.13m
  • Spencer Fleischer (65yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: $250.63k

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$20.232b
  • Shares outstanding: 125.74m
  • Website: Click here

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
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 Analysis2019/08/17 23:35
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.