Clorox Stock Analysis, Valuation (NYSE:CLX)

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$116.42 $1.46 (1.27%) CLX stock closing price Apr 25, 2018 (Closing)
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Clorox
Updated on : Apr 25, 2018
previous close
CLX 116.4 (0%)
S&P 500 2639.4 (0%)
Closing Price On: Apr 25, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Soap and Cleaning Preparations
Sector :
Consumer Staples
5 Quarter Revenue
Revenue Growth
2018-Q2
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
1.5%
Operating Profit
Operating Margin:
18.5%
Sector Average:
11.9%
5 Quarter Net Profit
Net Margins
2018-Q2
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
2.19B
Debt/Equity Ratio:
 2.88
Compared to the industry
Cash Flow
Operating cash flow:
$64M
Net Income:
$233M
Dividend Yield
CLX dividend yield:
2.82%
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
Long Term Growth
High Debt Burden
Cash Flow
FCF Margin
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
CLX PS :
2.5
Industry PS :
1.6
Sector:   Consumer Staples.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
26.7%
Return on Equity:
155.4%
Free Cash Flow Margin:
1.7%
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Clorox Stock Analysis

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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 3.5/5

Amigobulls CLX stock analysis uses latest quarter 2018 Q2 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 had a healthy average operating margin of 18.5% over the last 4 quarters.
  • Net margins came in at average 13.2% for Clorox over the last twelve months.
  • Clorox has an attractive ROIC (Return on Invested Capital) of 26.7%
  • The LTM ROE of 155.4% for Clorox is attractive.

Should you sell CLX stock?

  • Over the last 5 years, the company registered a poor revenue growth of 1.5%.
  • With a debt/equity ratio of  2.88, Clorox is highly leveraged in comparison to Consumer Staples peers.
  • Cash flow from operations is 0.3 times net income which is a negative signal.
  • CLX stock is trading at a PS multiple of 2.5, which is a negative when compared to the Soap and Cleaning Preparations industry average multiple of 1.6.
  • Clorox has a low FCF (Free Cash Flow) margin 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.