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TheStreet Open House
Clorox Co
CLX : NYSE : Consumer Goods
$97.73 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 1,120,600
10/20/14 - 4:01 PM ET

Financial Analysis


CLOROX CO/DE's gross profit margin for the fourth quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. CLOROX CO/DE has weak liquidity. Currently, the Quick Ratio is 0.54 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 5.47% 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 Q4 FY14 Q4 FY13
Net Sales ($mil)1511.01547.0
EBITDA ($mil)325.0349.0
EBIT ($mil)278.0303.0
Net Income ($mil)170.0183.0


Balance Sheet Q4 FY14 Q4 FY13
Cash & Equiv. ($mil)338.0312.0
Total Assets ($mil)4258.04311.0
Total Debt ($mil)2313.02372.0
Equity ($mil)154.0146.0


Profitability Q4 FY14 Q4 FY13
Gross Profit Margin45.446.93
EBITDA Margin21.522.55
Operating Margin18.419.59
Sales Turnover1.311.3
Return on Assets13.113.26
Return on Equity364.93393.15
Debt Q4 FY14 Q4 FY13
Current Ratio0.851.25
Debt/Capital0.940.94
Interest Expense26.026.0
Interest Coverage10.6911.65


Share Data Q4 FY14 Q4 FY13
Shares outstanding (mil)128.8130.37
Div / share0.710.64
EPS1.31.38
Book value / share1.21.12
Institutional Own % n/a n/a
Avg Daily Volume1115240.01053380.0

Valuation


BUY. CLOROX CO/DE's P/E ratio indicates a premium compared to an average of 21.67 for the Household Products industry and a premium compared to the S&P 500 average of 18.06. For additional comparison, its price-to-book ratio of 80.40 indicates a significant premium versus the S&P 500 average of 2.49 and a significant premium versus the industry average of 11.29. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. After reviewing these and other key valuation criteria, CLOROX CO/DE proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CLX 22.51 Peers 21.67   CLX 16.14 Peers 15.80

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

CLX is trading at a valuation on par with its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CLX is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CLX 20.45 Peers 19.11   CLX 6.00 Peers 1.94

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CLX 80.40 Peers 11.29   CLX -1.16 Peers 16.60

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.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, CLX is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CLX 2.21 Peers 2.63   CLX -0.57 Peers -0.44

Discount. 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 discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

CLX significantly trails its peers on the basis of sales growth

 

 

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