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The Clorox Company (NYSE:CLX) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of CLX, it is a dependable dividend-paying company that has been able to sustain great financial health over the past. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Clorox here.
Established dividend payer with adequate balance sheet
CLX's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that CLX manages its cash and cost levels well, which is an important determinant of the company’s health. CLX's has produced operating cash levels of 0.44x total debt over the past year, which implies that CLX's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
CLX is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For Clorox, there are three pertinent factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for CLX’s future growth? Take a look at our free research report of analyst consensus for CLX’s outlook.
- Historical Performance: What has CLX's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CLX? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.