Clorox Stock Analysis, Valuation (NYSE:CLX)
Clorox Stock Analysis
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%.
Clorox Related Company Stock Videos
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.