CLX : NYSE : Consumer Goods
$130.54 -0.49 | -0.37%
Today's Range: 129.54 - 131.18
Avg. Daily Volume: 990,100
07/28/16 - 3:29 PM ET

Financial Analysis


CLOROX CO/DE's gross profit margin for the third 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 0.68 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 decreased by 14.23% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)1426.01401.0
EBITDA ($mil)301.0280.0
EBIT ($mil)261.0239.0
Net Income ($mil)162.0174.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)414.0378.0
Total Assets ($mil)4284.04228.0
Total Debt ($mil)2228.02166.0
Equity ($mil)259.0302.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin48.1145.97
EBITDA Margin21.119.98
Operating Margin18.317.06
Sales Turnover1.331.32
Return on Assets15.7313.22
Return on Equity259.45194.7
Debt Q3 FY16 Q3 FY15
Current Ratio1.151.15
Debt/Capital0.90.88
Interest Expense22.025.0
Interest Coverage11.869.56


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)129.3131.01
Div / share0.770.74
EPS1.211.08
Book value / share2.02.31
Institutional Own % n/a n/a
Avg Daily Volume1024191.01236315.0

Valuation


BUY. CLOROX CO/DE's P/E ratio indicates a discount compared to an average of 34.18 for the Household Products industry and a value on par with the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 67.22 indicates a significant premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 73.14. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. Upon assessment of these and other key valuation criteria, CLOROX CO/DE proves to trade 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 26.35 Peers 34.18   CLX 20.80 Peers 16.96

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.

 

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 25.74 Peers 24.09   CLX 3.17 Peers 1.29

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 67.22 Peers 73.14   CLX 14.83 Peers -15.39

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CLX is trading at a valuation on par with 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CLX 3.04 Peers 3.34   CLX 2.19 Peers -4.16

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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