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HomeInvesting IdeasTop Value Stock: The Clorox Company (CLX) - 150.75

Top Value Stock: The Clorox Company (CLX) – 150.75

Value Stock Analysis as of 23 March 2024

NYSE: The Clorox Company (CLX)

  • The Clorox Company produces and sells consumer and professional products globally, divided into four segments: Health and Wellness, Household, Lifestyle, and International.
  • The company is globally recognized, operating in 100+ markets across 25 countries, with 80% of its portfolio holding top market positions.
  • The company has faced challenges in revenue per share growth over the past two years, while free cash flow per share has consistently risen over the last decade.
  • Clorox has encountered margin and profitability challenges due to rising input costs. However, the company is taking steps to mitigate these issues through cost-cutting measures and product innovation.
  • The Clorox Company was founded in 1913 and is headquartered in Oakland, California.

Shareholding Patterns of The Clorox Company (CLX)

HolderSharesDate Reported% OutValue
Vanguard Group Inc15,228,948Dec 30, 202312.27%2,295,763,911
Blackrock Inc.10,119,725Dec 30, 20238.15%1,525,548,543
State Street Corporation8,401,550Dec 30, 20236.77%1,266,533,662
FMR, LLC2,986,888Dec 30, 20232.41%450,273,366
Geode Capital Management, LLC2,959,561Dec 30, 20232.38%446,153,820
Morgan Stanley2,345,999Dec 30, 20231.89%353,659,349
Stifel Financial Corporation2,185,941Dec 30, 20231.76%329,530,605
Royal Bank of Canada2,156,874Dec 30, 20231.74%325,148,755
Holocene Advisors, LP1,700,101Dec 30, 20231.37%256,290,225
Champlain Investment Partners, LLC1,600,914Dec 30, 20231.29%241,337,785

List of Brands under The Clorox Company (CLX):

What we think are pros of business:

  • Clorox Company boasts a robust brand reputation and witnessed increased demand during the pandemic.
  • Clorox has maintained a track record of consistent dividend growth, which appeals to income investors.
  • Established over a century ago, Clorox has a highly reputable brand name, which strengthened during the pandemic with increased demand for its hygiene products.
  • Product innovation and brand development have propelled the company to new heights in recent years.

What we think the RISK are:

  • Clorox’s growth expectations and valuation are key considerations, especially given its trading performance amid weak fundamentals.
  • A cyber attack in 2023 significantly impacted logistics, earnings, and revenue, and the company is still in the process of recovery.
  • They also have competition from store brands and other name-brands as well, since Clorox is not the only brand in town.

Fundamentals:

  • Market Cap: 18.71 Billion
  • Revenue: 7.31 Billion
  • 52 Week Range: 114.68 – 178.21
  • Dividend: 4.80 (3.25%)
  • EPS: 0.64
  • PE: 232.54

Technical for a long-term perspective:

  • Breakout of a trendline on weekly time frame charts.
  • Taking support at its multi year support zone and preparing for the next bounce.
  • Price is consolidating in a range and once it crosses above the range then price will shoot up +20%.
  • There is also its EMA levels which will acts as a support after the breakout.
  • If it falls further then you can also add more quantity at lower price.

Entry = 150

Stop Loss = 140

Target = 168 / 185 / 210

Our Final Thought:

This stock is trading at multiyear support levels and company’s pays regular dividends to their investor and its lower price attract the investors and offer higher dividend yield.
CLX is considered overvalued compared to its peers, and there’s a significant risk that management may struggle to enhance margins. Clorox, renowned for its brands and dividend growth history, has encountered recent hurdles such as a cyberattack and weakened consumer demand. In the near future these will be resolved and management is working to get out of this situation and grow their business.

Please note: This is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and  your own due diligence before investing.

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