Monday, September 28, 2015

You Can't Clean Up A Messy Valuation: The Clorox Company Dividend Stock Analysis

Consumer staple companies make for excellent defensive investments and dividend growth candidates due to the rather inelastic demand for their products. For those companies that have established brands and market share they can typically pass along input costs to consumers which leads to rather consistent growth over any five to ten year period. The Clorox Company (NYSE:CLX) is a fine example of an excellent company with lots of brands holding the number one or two positions in their respective categories. While the company is excellent the valuation leaves a lot to be desired. Shares of Clorox Company closed trading on Friday, September 26th at $116.24 giving a current yield of 2.65%.

The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from The Clorox Company's investor relations page, Morningstar, and Yahoo Finance.

Historic Growth Rates:

You'll be hard pressed to find owners of the Clorox Company that have been disappointed with their returns over the last decade. According to longrundata.com, CLX has earned investors a total return of 280.0% or 10.8% annualized returns over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that Clorox has delivered.

Continue reading The Clorox Company stock analysis on Seeking Alpha.

Also, check out other stock analyses at my Stock Analysis page.

2 comments:

  1. You pay a dear price for a cheery consensus.

    ReplyDelete
  2. Excellent write up!!!

    DGI Novice

    ReplyDelete