CLOROX CO/DE's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales have remained unchanged, but net income increased. CLOROX CO/DE has weak liquidity. Currently, the Quick Ratio is 0.64 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has significantly decreased by 29.53% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||1345.0||1345.0|
|Net Income ($mil)||149.0||125.0|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||390.0||819.0|
|Total Assets ($mil)||4175.0||4674.0|
|Total Debt ($mil)||2296.0||2672.0|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||47.66||45.5|
|Return on Assets||16.43||11.16|
|Return on Equity||331.81||211.74|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||128.79||130.97|
|Div / share||0.77||0.74|
|Book value / share||1.54||2.15|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1112178.0||933440.0|
BUY. The current P/E ratio indicates a discount compared to an average of 32.14 for the Household Products industry and a premium compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 81.12 indicates a significant premium versus the S&P 500 average of 2.51 and a significant premium versus the industry average of 8.63. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. The valuation analysis reveals that, CLOROX CO/DE seems to be trading at a discount to investment alternatives within the industry.
|CLX 25.04||Peers 32.14||CLX NA||Peers 16.18|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
CLX is trading at a discount to its peers.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|CLX 23.98||Peers 22.60||CLX 3.82||Peers 1.62|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
CLX is trading at a premium to its peers.
Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
CLX trades at a significant premium to its peers.
|CLX 81.12||Peers 8.63||CLX 10.42||Peers -20.68|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
CLX is trading at a significant premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
CLX is expected to have an earnings growth rate that significantly exceeds its peers.
|CLX 2.82||Peers 3.08||CLX 2.39||Peers -7.14|
Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
CLX is trading at a valuation on par with its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
CLX has a sales growth rate that significantly exceeds its peers.
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