CLX : NYSE : Consumer Goods
$133.69 | %
Today's Range: 132.34 - 133.86
Avg. Daily Volume: 914200.0
04/28/17 - 4:02 PM ET

Financial Analysis


CLOROX CO/DE's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. While sales increased, net income has remained unchanged. CLOROX CO/DE has very weak liquidity. Currently, the Quick Ratio is 0.46 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 36.36% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)1406.01345.0
EBITDA ($mil)313.0290.0
EBIT ($mil)272.0249.0
Net Income ($mil)149.0149.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)414.0390.0
Total Assets ($mil)4568.04175.0
Total Debt ($mil)2549.02296.0
Equity ($mil)270.0198.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin47.6547.66
EBITDA Margin22.2621.56
Operating Margin19.3518.51
Sales Turnover1.291.36
Return on Assets14.3316.43
Return on Equity241.85331.81
Debt Q2 FY17 Q2 FY16
Current Ratio0.761.1
Debt/Capital0.90.92
Interest Expense22.022.0
Interest Coverage12.3611.32


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)128.18129.36
Div / share0.80.77
EPS1.141.14
Book value / share2.111.53
Institutional Own % n/a n/a
Avg Daily Volume912546.01041056.0

Valuation


BUY. CLOROX CO/DE's P/E ratio indicates a premium compared to an average of 26.52 for the Household Products industry and a premium compared to the S&P 500 average of 24.92. For additional comparison, its price-to-book ratio of 64.40 indicates a significant premium versus the S&P 500 average of 2.99 and a significant premium versus the industry average of 10.90. 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 27.29 Peers 26.52   CLX 20.27 Peers 17.38

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.

 

Premium. 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 premium 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 23.72 Peers 23.38   CLX 3.45 Peers 3.37

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

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

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CLX 64.40 Peers 10.90   CLX -0.21 Peers 276.96

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 2.96 Peers 3.39   CLX 3.19 Peers -2.05

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.

 

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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