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

0.2%

CLX

-0.6%

US Household Products

1.0%

US Market


1 Year Return

-1.2%

CLX

31.6%

US Household Products

8.0%

US Market

Return vs Industry: CLX underperformed the US Household Products industry which returned 31.6% over the past year.

Return vs Market: CLX underperformed the US Market which returned 8% over the past year.


Shareholder returns

CLXIndustryMarket
7 Day0.2%-0.6%1.0%
30 Day-1.8%-2.3%-0.07%
90 Day-9.3%3.3%-1.0%
1 Year1.4%-1.2%35.2%31.6%10.4%8.0%
3 Year35.0%25.6%51.7%39.0%46.2%36.7%
5 Year71.5%51.5%64.2%41.3%64.3%46.2%

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?

23.22x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CLX ($149.07) is trading above our estimate of fair value ($138.28)

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


Price To Earnings Ratio

PE vs Industry: CLX is good value based on its PE Ratio (23.2x) compared to the Household Products industry average (26.6x).

PE vs Market: CLX is poor value based on its PE Ratio (23.2x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: CLX is poor value based on its PEG Ratio (16.8x)


Price to Book Ratio

PB vs Industry: CLX is overvalued based on its PB Ratio (33.5x) compared to the US Household Products industry average (3.5x).


Next Steps

Future Growth

How is Clorox forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLX's forecast earnings growth (1.4% per year) is below the savings rate (2.7%).

Earnings vs Market: CLX's earnings (1.4% per year) are forecast to grow slower 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 (1.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CLX's revenue (1.7% 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 (212%).


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

Earnings Trend: CLX's earnings have grown by 7.9% 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 (-0.4%) over the past year, making it difficult to compare to the Household Products industry average (-13.8%).


Return on Equity

High ROE: Whilst CLX's Return on Equity (146.69%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: CLX has a higher Return on Assets than the Household Products industry average last year.


Return on Capital Employed

ROCE Improving: CLX's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Clorox's financial position?


Financial Position Analysis

Short Term Liabilities: CLX's short term assets ($1.3B) do not cover its short term liabilities ($1.4B)

Long Term Liabilities: CLX's short term assets (1.3B) do not cover its long term liabilities (3.1B)


Debt to Equity History and Analysis

Debt Level: CLX's debt to equity ratio (480%) is considered high

Reducing Debt: CLX's debt to equity ratio has reduced from 1508.2% to 480% over the past 5 years.

Debt Coverage: CLX's debt is well covered by operating cash flow (37%).

Interest Coverage: CLX's interest payments on its debt are well covered by EBIT (11.8x coverage).


Balance Sheet

Inventory Level: CLX has a high level of physical assets or inventory.

Debt Coverage by Assets: CLX's 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?

2.84%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Clorox before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years2.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CLX's dividend (2.84%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CLX's dividend (2.84%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 (64.4% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Benno Dorer (55yo)

4.9yrs

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 ($USD9.36M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

1.5yrs

Average Tenure

53yo

Average Age

Experienced Management: CLX's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

4.3yrs

Average Tenure

62yo

Average Age

Experienced Board: CLX's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: CLX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$162,17109 Sep 19
Diego Barral
EntityIndividual
Shares1,002
Max PriceUS$161.85
SellUS$312,31522 Aug 19
Michael R. Costello
EntityIndividual
Shares1,925
Max PriceUS$162.24
SellUS$526,55108 Aug 19
Allan MacKay
EntityIndividual
Role
Member of the Board of Directors
Independent Director
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

Ownership Breakdown


Management Team

  • Bill Bailey (53yo)

    Senior Vice President of Corporate & Business Development

    • Tenure: 3.8yrs
  • Laura Stein (57yo)

    Executive VP of Corporate Affairs & General Counsel

    • Tenure: 14.8yrs
    • Compensation: US$2.97m
  • Benno Dorer (55yo)

    Chairman & CEO

    • Tenure: 4.9yrs
    • Compensation: US$9.36m
  • Eric Reynolds (49yo)

    Executive Vice President of Household & Lifestyle

    • Tenure: 0.8yrs
    • Compensation: US$1.72m
  • Linda Rendle (41yo)

    Executive Vice President of Cleaning

    • Tenure: 0.8yrs
    • Compensation: US$2.16m
  • Jeff Baker (50yo)

    VP, Chief Accounting Officer & Corporate Controller

    • Tenure: 2.8yrs
  • Kevin Jacobsen (53yo)

    Executive VP & CFO

    • Tenure: 1.5yrs
    • Compensation: US$2.29m
  • Lisah Burhan

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Jay McNulty (63yo)

    Senior VP & Chief Information Officer

    • Tenure: 1.3yrs
  • Stacey Grier (56yo)

    Senior VP & Chief Marketing Officer

    • Tenure: 0.8yrs

Board Members

  • Spencer Fleischer (65yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$265.11k
  • Carolyn Ticknor (72yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$272.50k
  • David MacKay (63yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$252.50k
  • Bob Matschullat (71yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$252.50k
  • Chris Williams (61yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$252.50k
  • Pamela Thomas-Graham (56yo)

    Lead Director

    • Tenure: 3.2yrs
    • Compensation: US$302.50k
  • Amy Banse (61yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$252.50k
  • Esther Lee (60yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$252.50k
  • Benno Dorer (55yo)

    Chairman & CEO

    • Tenure: 4.9yrs
    • Compensation: US$9.36m
  • Rich Carmona (69yo)

    Independent Director

    • Tenure: 12.7yrs
    • Compensation: US$267.50k

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$18.707b
  • Shares outstanding: 125.49m
  • 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
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 Analysis2019/10/21 23:33
End of Day Share Price2019/10/21 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.