Clorox Stock Analysis, Valuation (NYSE:CLX)

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$129.83 $1.5 (1.14%) CLX stock closing price Sep 22, 2017 (Closing)
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Clorox
Updated on : Sep 22, 2017
previous close
CLX 129.8 (0%)
S&P 500 2502.2 (0%)
Closing Price On: Sep 22, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Soap and Cleaning Preparations
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
18.9%
Sector Average:
11.3%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.2B
Debt/Equity Ratio:
 4.05
Compared to the industry
Cash Flow
Operating cash flow:
$386M
Net Income:
$201M
Dividend Yield
CLX dividend yield:
2.46%
PROS      CONS
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
FCF Margin
High Debt Burden
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CLX PS :
2.8
Industry PS :
1.6
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
24.7%
Return on Equity:
194.5%
Free Cash Flow Margin:
19.2%
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Clorox Stock Analysis

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View Clorox stock analysis video. This is our analyst opinion covering the buy and sell arguments for CLX stock.

Clorox Co Stock Rating 3.5/5

Our Clorox stock opinion is based on fundamentals of the company. This Clorox stock analysis is based on latest 2017 Q4 earnings. The stock price analysis takes into account the company's valuation metrics.

Should you buy CLX stock?

  • The TTM operating margin was good at 18.9% for Clorox.
  • Net margins stood at a healthy 11.7% (average) for Clorox in the Trailing Twelve Months.
  • The company has an operating cash flow which is 1.9 times the net income. We see this as a positive signal.
  • Clorox's return on invested capital of 24.7% is good.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Clorox at 194.5%.
  • Clorox has a healthy FCF (Free Cash Flow) margin of 19.2%.

Should you sell CLX stock?

  • Clorox has a debt/equity ratio of  4.05, which is worse than the average in the Consumer Staples sector.
  • The company is trading at a price to sales multiple of 2.8, which is higher in comparison to the Soap and Cleaning Preparations industry average of 1.6, making CLX stock expensive.

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