Heightened Promotional Spending Weighs on Clorox's First-Quarter Results, But Wide Moat Unwavering
We don’t intend to change our $118 fair value for Clorox following mixed first-quarter results. Organic sales edged up 4%, reflecting higher volumes; however, profitability eroded modestly, as gross margins contracted 60 basis points to 44.4%, and operating margins pulled back 110 basis points to 19.5%. This retraction partly reflects the intensely competitive environment in which Clorox plays, as management qualitatively cited that promotional spending jumped at a double-digit rate relative to ...Clorox is a manufacturer and marketer of consumer products. The company sells its products through mass retailers, grocery outlets, warehouse clubs, dollar stores, home hardware centers, drug, pet and military stores, third-party and owned e-commerce channels, and distributors. The company has four reportable segments: Cleaning, which consists of laundry, home care and other products; Household, which consists of charcoal, bags, wraps and containers, cat litter, and digestive health products; Lifestyle, which consists of food products, water-filtration systems and filters, natural personal care products, and dietary supplements; and International, which consists of products sold outside the United States.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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