Price movement of Clorox
Clorox (CLX) fell by 2.4% to close at $128.83 per share at the end of the third week of May 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -2.4%, 6.4%, and 2.8%, respectively. This means that CLX is trading 0.23% above its 20-day moving average, 1.3% above its 50-day moving average, and 5.4% above its 200-day moving average.
Related ETF and peers
The SPDR S&P Dividend ETF (SDY) invests 1.1% of its holdings in Clorox. The ETF tracks a yield-weighted index of 50 dividend-paying companies from the S&P 1500 Composite Index that have increased dividends for at least 20 consecutive years. The YTD price movement of SDY was 9.0% as of May 20, 2016.
The market caps of Clorox’s competitors are as follows:
Clorox declared dividend
Clorox has declared a quarterly cash dividend of $0.80 per share on its common stock. The dividend will be paid on August 12, 2016, to shareholders of record at the close of business on July 27, 2016.
Performance of Clorox in fiscal 3Q16
Clorox reported fiscal 3Q16 net sales of ~$1.4 billion, which is 1.8% higher than its $1.4 billion in net sales in fiscal 3Q15. Sales from its Cleaning, Household, and Lifestyle segments rose 5.2%, 3.5%, and 4.5%, respectively. But sales from its International segment fell 9.4% in fiscal 3Q16 compared to fiscal 3Q15. The company’s cost of products sold as a percentage of net sales fell 3.9% in fiscal 3Q16 compared to 3Q15.
Net income and EPS
Clorox’s net income and EPS (earnings per share) fell to $162 million and $1.23, respectively, in fiscal 3Q16 compared to $174 million and $1.30, respectively, in fiscal 3Q15.
Clorox’s cash and cash equivalents and inventories rose by 8.4% and 19.5%, respectively, in fiscal 3Q16, compared to fiscal 4Q15. Its current ratio rose to 1.2x in fiscal 3Q16 compared to 1.0x in fiscal 4Q15.
The company has acquired Renew Life Holdings for ~$290 million. The transaction, which closed on May 2, 2016, will contribute ~2% to the company’s sales in fiscal 2017. Through the end of fiscal 2017, the acquisition will likely dilute EPS by a mid-point estimate of $0.10, with $0.03–$0.05 in fiscal 2016 and $0.05–$0.07 in fiscal 2017.
Clorox has made the following projections for fiscal 2016:
- sales growth of 1%–2% and 4%–5% on a currency-neutral basis
- EPS of $4.85–$4.95
- EBIT (earnings before interest and tax) margin expansion of about 0.50%
Next, let’s take a look at Gentex (GNTX).