Clorox Stock Analysis, Valuation (NYSE:CLX)
Clorox Stock Analysis
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.