Clorox Co CLX

Morningstar Rating
$80.41 −0.24 (0.30%)
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Company Report

Clorox Works To Free Up Resources To Support Its Stout Brand Intangible Assets

With its entrenched retail standing and unrelenting focus on investing in its leading brand mix, Clorox has withstood the onslaught of pressures from covid, supply chain angst, rampant inflation, and an August 2023 cybersecurity attack. More recently, it has acknowledged a step-up in industrywide promotional spending, particularly in litter, bags, and wraps. Still, we don't believe this suggests an irrational competitive landscape or that the firm is pursuing a volume-over-value strategy. Instead, we believe Clorox remains committed to long-term investments to maintain its competitive edge.

Price vs Fair Value

CLX is trading at a LOCK|$kl?&J premium.
Price
$80.65
Fair Value
LOCK|SP
Uncertainty
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1-Star Price
LOCK|^.L
5-Star Price
LOCK|z.G
Economic Moat
LOCK|bM
Capital Allocation
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Bulls Say, Bears Say

Bulls

Covid highlighted the necessity of Clorox’s disinfecting products. Demand for its cleaning fare (which accounts for around one third of Clorox's consolidated sales base) may persist.

Bears

Beyond stepped-up promotional spending, cat litter remains Clorox's Achilles' heel, with share down 100 basis points to 16% since 2020 (Euromonitor).

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Trading Information

Previous Close Price
$80.65
Day Range
$79.78–81.46
52-Week Range
$79.12–128.90
Bid/Ask
$80.20 / $80.70
Shares Outstanding
120.93M
Market Cap
$9.72B
Volume/Avg
2M / 3M

Key Statistics

Price/Earnings (Normalized)
14.56
Price/Sales
1.47
Dividend Yield (Trailing)
6.16%
Dividend Yield (Forward)
6.20%
Dividend Payment Schedule
Feb, May, Aug, Nov
Total Yield
8.79%

Company Profile

Since its inception more than 100 years ago, Clorox has expanded to operate in an array of consumer product categories, including cleaning supplies, laundry care, trash bags, cat litter, charcoal, food dressings, water filtration products, and natural personal-care products. Beyond its namesake brand, the firm’s portfolio includes Liquid-Plumr, Pine-Sol, S.O.S, Tilex, Kingsford, Fresh Step, Glad, Hidden Valley, KC Masterpiece, Brita, and Burt’s Bees. Nearly 85% of Clorox’s sales come from its home turf.
Sector
Consumer Defensive
Industry
Household & Personal Products
Stock Style Box
Small Value
Total Number of Employees
9,200

Competitors

Valuation

Metric
CLX
UL
PG
Price/Earnings (Normalized)
14.5617.5821.21
Price/Book Value
108.366.946.20
Price/Sales
1.472.434.01
Price/Cash Flow
19.9419.2118.17
Price/Earnings
CLX
UL
PG

Financial Strength

Metric
CLX
UL
PG
Quick Ratio
0.340.570.41
Current Ratio
0.660.740.68
Interest Coverage
7.02—23.74
Quick Ratio
CLX
UL
PG

Profitability

Metric
CLX
UL
PG
Return on Assets (Normalized)
10.93%—13.14%
Return on Equity (Normalized)
1,715.74%—31.34%
Return on Invested Capital (Normalized)
19.05%—19.01%
Return on Assets
CLX
UL
PG

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