Money and Finance
For Christmas, my gift to everyone is some stock analysis reports. In this one we'll look at consumer staple giant The Clorox Company (CLX). I would like to add some more defensive and consumer staples companies to my portfolio so let's see where Clorox stands.The Clorox Company closed trading on Monday, December 24th at $73.63.
Company Background:
The Clorox Company manufactures and markets consumer and professional products worldwide. The companys Cleaning segment offers laundry additives, including bleach products under the Clorox brand, and Clorox 2 stain fighter and color booster; home-care products primarily under the Clorox, Formula 409, Liquid-Plumr, Pine-Sol, S.O.S, and Tilex brands; naturally derived home care products under the Green Works brand; and cleaning and disinfecting products under the Clorox, Dispatch, Aplicare, HealthLink, and Clorox Healthcare brands. Its Household segment offers plastic bags, wraps, and containers under the Glad brand; cat litter products under the Fresh Step, Scoop Away, and Ever Clean brands; and charcoal products under the Kingsford and Match Light brands. The companys Lifestyle segment provides dressings and sauces primarily under the Hidden Valley, K C Masterpiece, and Soy Vay brands; water-filtration systems and filters under the Brita brand; and natural personal care products under the Burts Bees and güd brands. The Clorox Company also markets its products primarily under the Javex, Glad, PinoLuz, Ayudin, Limpido, Clorinda, Poett, Mistolin, Lestoil, Bon Bril, Nevex, Agua Jane, and Chux brands. The company sells its products primarily through mass merchandisers, warehouse clubs, grocery stores, other retail outlets, distributors, and medical supply providers, as well as a direct sales force, combination of direct sales teams, and network of brokers.
DCF Valuation:
Analysts expect Clorox to grow earnings 8.04% per year for the next five years and I've assumed they can continue to grow at 3.50% per year thereafter, right around the long term inflation rate. Running these numbers through a two stage DCF analysis with a 10% discount rate yields a fair value price of $78.83. This means that at $73.63 the shares are undervalued by 6.6%.
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Money and Finance
Clorox Stock Analysis
For Christmas, my gift to everyone is some stock analysis reports. In this one we'll look at consumer staple giant The Clorox Company (CLX). I would like to add some more defensive and consumer staples companies to my portfolio so let's see where Clorox stands.The Clorox Company closed trading on Monday, December 24th at $73.63.
Company Background:
The Clorox Company manufactures and markets consumer and professional products worldwide. The companys Cleaning segment offers laundry additives, including bleach products under the Clorox brand, and Clorox 2 stain fighter and color booster; home-care products primarily under the Clorox, Formula 409, Liquid-Plumr, Pine-Sol, S.O.S, and Tilex brands; naturally derived home care products under the Green Works brand; and cleaning and disinfecting products under the Clorox, Dispatch, Aplicare, HealthLink, and Clorox Healthcare brands. Its Household segment offers plastic bags, wraps, and containers under the Glad brand; cat litter products under the Fresh Step, Scoop Away, and Ever Clean brands; and charcoal products under the Kingsford and Match Light brands. The companys Lifestyle segment provides dressings and sauces primarily under the Hidden Valley, K C Masterpiece, and Soy Vay brands; water-filtration systems and filters under the Brita brand; and natural personal care products under the Burts Bees and güd brands. The Clorox Company also markets its products primarily under the Javex, Glad, PinoLuz, Ayudin, Limpido, Clorinda, Poett, Mistolin, Lestoil, Bon Bril, Nevex, Agua Jane, and Chux brands. The company sells its products primarily through mass merchandisers, warehouse clubs, grocery stores, other retail outlets, distributors, and medical supply providers, as well as a direct sales force, combination of direct sales teams, and network of brokers.
DCF Valuation:
Analysts expect Clorox to grow earnings 8.04% per year for the next five years and I've assumed they can continue to grow at 3.50% per year thereafter, right around the long term inflation rate. Running these numbers through a two stage DCF analysis with a 10% discount rate yields a fair value price of $78.83. This means that at $73.63 the shares are undervalued by 6.6%.
Read more »
- Church & Dwight (chd) Dividend Stock Analysis
We all know about Johnson & Johnson, Proctor & Gamble, Clorox, Colgate-Palmolive and the like and what they have done in terms of building wealth and continually producing rising dividend streams. While I still expect continued growth in all...
- Proctor & Gamble Dividend Stock Analysis
I'm going to revisit my previous dividend stock analysis on Procter & Gamble. It's been about a year so it's time for an update. I've learned so much more about stock analysis in that time so this will be more thorough and hopefully...
- Colgate-palmolive Dividend Stock Analysis
I still owe a stock analysis from February, so today we'll look at Colgate-Palmolive (CL). They are a dividend champion announcing their 50th consecutive year of dividend increases last week. Colgate-Palmolive closed trading on Friday, March 8th...
- V.f. Corporation Stock Analysis
It's time for another stock analysis report so I figured we'd look at clothing and apparel giant V.F. Corporation (VFC). They are a dividend champion with 40 consecutive years of increasing their dividend. VFC closed trading on Tuesday, January...
- 3m Stock Analysis
It's time for another stock analysis report and this time I'll look at another dividend champion, 3M (MMM). 3M closed trading on Friday, January 11th at $96.28. Company Background: 3M Company operates as a diversified technology company worldwide....