Clorox Stock Analysis, Valuation (NYSE:CLX)

Add to My Stocks
$134.46 $1.01 (0.76%) CLX stock closing price Jul 13, 2018 (Closing)

Take a look at Amigobulls Clorox stock analysis video. This is our analyst opinion covering the buy and sell arguments for CLX stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Clorox Co Stock Rating 3.6/5

Amigobulls CLX stock analysis uses latest quarter 2018 Q3 financial data like Clorox revenue growth, profit margins and cash flows. We compare Clorox valuation with its sector peers to gauge relative attractiveness of CLX stock. Clorox stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy CLX stock?

  • Clorox's average operating margin of 18.49 was exceptional.
  • LTM Net margins were good at 13.3% for Clorox.
  • Clorox generates a high return on invested capital of 27.2.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Clorox at 128.7.
  • The company has a good Free Cash Flow (FCF) margin of 14.2.

Should you sell CLX stock?

  • Clorox has a debt/equity ratio of 2.62, which is worse than the average in the Consumer Staples sector.
  • The company is trading at a price to sales multiple of 2.9, which is overvalued in comparison to the Consumer Staples sector average multiple of 1.7.

Comments on this video and Clorox stock

Amigobulls Clorox stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. The fundamentals of a company are vital to identify long-term investment opportunities.

While doing a study of the company financials, Clorox revenue growth and profit or net income are two main metrics which help in identifying whether CLX stock is overvalued or undervalued. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.