The Clorox Company
The Clorox Company Fundamental Analysis
The Clorox Company (CLX) shows moderate financial fundamentals with a PE ratio of 20.42, profit margin of 11.17%, and ROE of 15.02%. The company generates $6.8B in annual revenue with weak year-over-year growth of 0.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 314.2/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze CLX's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCLX demonstrates superior asset utilization.
Valuation Score
ExcellentCLX trades at attractive valuation levels.
Growth Score
WeakCLX faces weak or negative growth trends.
Financial Health Score
ModerateCLX shows balanced financial health with some risks.
Profitability Score
ModerateCLX maintains healthy but balanced margins.
Key Financial Metrics
Is CLX Expensive or Cheap?
P/E Ratio
CLX trades at 20.42 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CLX's PEG of -4.86 indicates potential undervaluation.
Price to Book
The market values The Clorox Company at -123.35 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.49 times EBITDA. This is generally considered low.
How Well Does CLX Make Money?
Net Profit Margin
For every $100 in sales, The Clorox Company keeps $11.17 as profit after all expenses.
Operating Margin
Core operations generate 15.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.02 in profit for every $100 of shareholder equity.
ROA
The Clorox Company generates $13.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Clorox Company produces operating cash flow of $987.06M, showing steady but balanced cash generation.
Free Cash Flow
The Clorox Company generates strong free cash flow of $780.42M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.40 in free cash annually.
FCF Yield
CLX converts 5.02% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-4.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
-123.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.29
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-25.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
15.02
vs 25 benchmark
ROA
Return on assets percentage
0.13
vs 25 benchmark
ROCE
Return on capital employed
0.31
vs 25 benchmark
How CLX Stacks Against Its Sector Peers
| Metric | CLX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.42 | 23.01 | Better (Cheaper) |
| ROE | 1502.49% | 1228.00% | Excellent |
| Net Margin | 11.17% | -4010.00% (disorted) | Strong |
| Debt/Equity | -25.74 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 0.74 | 2.35 | Weak Liquidity |
| ROA | 13.45% | -157546.00% (disorted) | Strong |
CLX outperforms its industry in 5 out of 6 key metrics, particularly excelling in ROE, but lagging in Current Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Clorox Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
7.67%
Industry Style: Defensive, Dividend, Low Volatility
GrowingEPS CAGR
-12.13%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
-35.36%
Industry Style: Defensive, Dividend, Low Volatility
Declining