2024-04-21 13:13:19 ET
Summary
- Clorox is struggling in the last three years and while revenue is rather stagnating, earnings per share collapsed completely.
- While Clorox still has strong brands, we have to question the moat as margins and RoIC were not great in the last three years.
- Clorox will probably grow only in the mid single digits and is probably still slightly overvalued.
It has been more than three years ago when I published my last and only article about The Clorox Company ( CLX ). In my conclusion I wrote:
Without any doubt, Clorox is a great company with a wide economic moat around its business, high levels of consistency and a recession-proof business. It is also interesting for its dividend as Clorox is one of the US dividend aristocrats. Nevertheless, the stock seems to be overvalued at this point and not a good investment.
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For further details see:
Clorox: Still A Little Bit Too Expensive