CLX : NYSE : Consumer Goods
$130.63 | %
Today's Range: 130.49 - 132.14
Avg. Daily Volume: 914,500
08/26/16 - 4:00 PM ET

Financial Analysis


CLOROX CO/DE's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. CLOROX CO/DE has weak liquidity. Currently, the Quick Ratio is 0.62 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 greatly increased by 151.69% 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 FY16 Q4 FY15
Net Sales ($mil)1600.01557.0
EBITDA ($mil)311.0340.0
EBIT ($mil)268.0297.0
Net Income ($mil)165.0191.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)401.0382.0
Total Assets ($mil)4518.04164.0
Total Debt ($mil)2326.02200.0
Equity ($mil)297.0118.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin48.1348.23
EBITDA Margin19.4321.83
Operating Margin16.7519.08
Sales Turnover1.281.36
Return on Assets14.3413.92
Return on Equity218.18513.55
Debt Q4 FY16 Q4 FY15
Current Ratio0.951.02
Debt/Capital0.890.95
Interest Expense21.023.0
Interest Coverage12.7612.91


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)129.36128.61
Div / share0.770.74
EPS1.261.44
Book value / share2.30.92
Institutional Own % n/a n/a
Avg Daily Volume907573.01107707.0

Valuation


BUY. CLOROX CO/DE's P/E ratio indicates a discount compared to an average of 29.18 for the Household Products industry and a value on par with the S&P 500 average of 25.13. For additional comparison, its price-to-book ratio of 57.08 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 39.75. The price-to-sales ratio is well above the S&P 500 average, but well 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CLX 26.58 Peers 29.18   CLX 21.79 Peers 16.64

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 significant 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 22.56 Peers 23.51   CLX 2.26 Peers 1.75

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.

 

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 57.08 Peers 39.75   CLX 7.40 Peers 36.99

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 2.94 Peers 3.46   CLX 1.87 Peers -4.92

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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