
NYSE:CLX
This summary was created by AI, based on 4 opinions in the last 12 months.
Clorox Company, symbol CLX-N, is a dividend aristocrat that has faced various challenges in recent years, including a notable -11.83% decline this year and a 30% drop since the beginning of the year. The company's 5% dividend yield is a positive aspect, as it has a history of increasing dividends for 24 consecutive years, reflecting its commitment to shareholder returns. Analysts note its current trading at 17x PE, which is lower than historical valuations of 18-20x, suggesting potential upside. The normalization of supply chains and return to pre-war pricing in petrochemicals is encouraging, yet concerns over inflation and consumer preferences may impact their sales. The company’s earnings are finally finding a consistent upward trajectory, with expected growth of 6-8%, but its reliance on oil prices adds uncertainty amid geopolitical tensions.
This has done well and they’ve had some positive earnings revisions. In the “staples” category it has a few things going right for it. It is a higher payor, so you get a nice dividend. Earnings growth should be in the high to mid single digits. The catch is, any valuation is quite rich. It’s come off a little since the peak, but staples, as a whole, is trading expensive. Interest rates going higher will put pressure on the stock.
The Fair Market Value is 41% below the current price. It is currently trading at the Price to Book of 25X. This stock is simply not investment grade anymore.