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1. Company Snapshot

1.a. Company Description

The Clorox Company manufactures and markets consumer and professional products worldwide.It operates through four segments: Health and Wellness, Household, Lifestyle, and International.The Health and Wellness segment offers cleaning products, such as laundry additives and home care products primarily under the Clorox, Clorox2, Scentiva, Pine-Sol, Liquid-Plumr, Tilex, and Formula 409 brands; professional cleaning and disinfecting products under the CloroxPro and Clorox Healthcare brands; professional food service products under the Hidden Valley brand; and vitamins, minerals and supplement products under the RenewLife, Natural Vitality, NeoCell, and Rainbow Light brands in the United States.


The Household segment provides cat litter products under the Fresh Step and Scoop Away brands; bags and wraps under the Glad brand; and grilling products under the Kingsford brand in the United States.The Lifestyle segment offers dressings, dips, seasonings, and sauces primarily under the Hidden Valley brand; natural personal care products under the Burt's Bees brand; and water-filtration products under the Brita brand in the United States.The International segment provides laundry additives; home care products; water-filtration systems; digestive health products; grilling products; cat litter products; food products; bags and wraps; natural personal care products; and professional cleaning and disinfecting products internationally primarily under the Clorox, Ayudin, Clorinda, Poett, Pine-Sol, Glad, Brita, RenewLife, Ever Clean and Burt's Bees brands.


The Clorox Company sells its products primarily 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, as well as a direct sales force The company was founded in 1913 and is headquartered in Oakland, California.

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1.b. Last Insights on CLX

The Clorox Company's recent momentum is driven by its brand strength, ERP-driven efficiencies, and innovation. Despite cost headwinds and private label pressure, the company's Q2 earnings report showed key metrics worth noting. With a solid brand portfolio and ongoing investments, Clorox is poised to offset cautious consumers and competition. Institutional investors, such as Assenagon Asset Management S.A. and Ferguson Wellman Capital Management Inc., have increased their stakes, demonstrating confidence in the company's prospects.

1.c. Company Highlights

2. The Clorox Company Delivers Mixed Results Amidst Dynamic Environment

The Clorox Company reported revenues that were largely in line with expectations, despite external pressures. The company's EPS came in at $1.39, slightly below analyst estimates of $1.43. Gross margin was impacted by various factors, including higher-than-expected shipments ahead of consumption, which is expected to reverse in the third quarter. The company's pricing strategy was also a headwind, with price-mix expected to be around a percent for the full year.

Publication Date: Feb -09

📋 Highlights
  • Acquisition of Gojo Industries: planned to expand leadership in health and hygiene, unlocking long-term growth opportunities.
  • ERP implementation impact: caused a 1% inventory favorability reversal in Q3, with costs to phase out by Q4.
  • Innovation pipeline: drives Q3/Q4 growth, with 25-50 bps EBIT margin expansion from productivity and cost savings.
  • Pricemix headwind: of 1% for FY26, offset by volume growth and margin work amid value-channel shifts.
  • Category growth: expected at 0-1% in H2, supported by innovation, distribution, and demand initiatives.

Operational Highlights

The company's digital transformation and innovation efforts are advancing, with a focus on upgrading digital infrastructure, which is expected to be completed in Q3. The company is also strengthening its foundation through various initiatives, including the planned acquisition of Gojo Industries, which is expected to unlock long-term growth opportunities. As Linda Rendle noted, "We're excited about the innovation we have slated, which includes new platforms, builds on existing platforms, and addresses consumer needs."

Category Performance

The company's categories are experiencing flat growth, with expectations of 0-1% growth in the back half of the year. The company is responding by innovating and ensuring the right fundamentals are in place. The litter business is expected to see a relaunch, with plans to invest in better consumer experiences. The company's margin transformation efforts are also expected to drive growth.

Valuation

Using the provided valuation metrics, we can see that the company's P/E Ratio is 19.22, indicating a relatively high valuation. The EV/EBITDA ratio is 12.12, which is more reasonable. The company's ROE is 1502.49, which is extremely high, but this is likely due to a very low equity base. The Dividend Yield is 4.14%, which is attractive for income investors. Analysts estimate next year's revenue growth at 6.5%, which is slightly higher than the current P/S Ratio of 2.15. Overall, the valuation metrics suggest that the company's stock is fairly priced, but with a high P/E Ratio, there may be limited upside potential.

3. NewsRoom

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Why More BDCs Are Likely To Cut Their Dividends

Feb -10

Source: seekingalpha.com

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My Top 2 Picks for 2026

Feb -07

Source: etftrends.com

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Clorox: Solid Q2 Results And Cheap Valuation MakesThis Defensive Dividend Stock A Strong Buy

Feb -06

Source: seekingalpha.com

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The Smartest Dividend Stocks to Buy With $250 Right Now

Feb -06

Source: fool.com

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The Clorox Company (NYSE:CLX) Receives Average Rating of “Reduce” from Analysts

Feb -06

Source: defenseworld.net

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Clorox to Present at 2026 CAGNY Conference

Feb -04

Source: prnewswire.com

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3 Dividend Stocks I'm Piling Into in 2026 For Reliable Income

Feb -04

Source: fool.com

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Clorox Q2 Earnings Miss Estimates, Lower Organic Sales Hurt

Feb -04

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.26%)

6. Segments

Health and Wellness

Expected Growth: 2.5%

The 2.5% growth in Health and Wellness segment of The Clorox Company is driven by increasing consumer focus on healthy living, rising demand for nutritional supplements, and expansion of e-commerce channels. Additionally, the company's strategic acquisitions and product innovations in the vitamins and supplements space have contributed to the growth.

Household

Expected Growth: 1.8%

The 1.8% growth in Clorox's Household segment is driven by increasing demand for cleaning and disinfecting products, particularly in the wake of the pandemic. Additionally, the company's focus on innovation, such as the introduction of new product lines and scents, has helped to drive sales. Furthermore, Clorox's strong brand recognition and distribution network have enabled the company to maintain its market share and capitalize on growth opportunities.

Lifestyle

Expected Growth: 2.2%

The 2.2% growth in Lifestyle segment of The Clorox Company is driven by increasing demand for premium and sustainable products, particularly in the cat litter and charcoal businesses. Additionally, the company's focus on innovation, brand renovation, and e-commerce expansion are contributing to the segment's growth.

International

Expected Growth: 2.8%

The 2.8% international growth of The Clorox Company is driven by increasing demand for its cleaning and disinfecting products, particularly in emerging markets. Expansion into new geographies, strategic partnerships, and effective supply chain management also contribute to this growth. Additionally, the company's focus on innovation and product diversification helps to drive sales and revenue in international markets.

Corporate and Other

Expected Growth: 1.5%

The 1.5% growth in Corporate and Other segment of The Clorox Company is driven by increased demand for water filtration systems, expansion of the company's digital platform, and cost savings initiatives. Additionally, strategic investments in e-commerce and innovation are expected to contribute to the segment's growth.

7. Detailed Products

Bleach

A strong disinfectant used for cleaning and sanitizing surfaces

Pine-Sol

A multi-purpose cleaner used for cleaning and disinfecting surfaces

Glad Trash Bags

A line of trash bags used for waste management

Kingsford Charcoal

A line of charcoal products used for outdoor grilling and barbecuing

Brita Water Filters

A line of water filtration systems used for purifying drinking water

Liquid-Plumr

A line of drain cleaning products used for unclogging drains

POETT Home Care

A line of home care products used for cleaning and organizing

Tilex

A line of mold and mildew removers used for cleaning and disinfecting

8. The Clorox Company's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Clorox is moderate due to the presence of alternative cleaning products and personal care items from other manufacturers.

Bargaining Power Of Customers

The bargaining power of customers is low for Clorox as the company has a diverse customer base and no single customer accounts for a significant portion of its revenue.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Clorox as the company relies on a few key suppliers for raw materials, but has some flexibility to negotiate prices.

Threat Of New Entrants

The threat of new entrants is low for Clorox as the company has a strong brand presence and significant barriers to entry in the cleaning products and personal care industries.

Intensity Of Rivalry

The intensity of rivalry is high for Clorox as the company operates in a highly competitive market with several established players, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 93.00%
Debt Cost 4.55%
Equity Weight 7.00%
Equity Cost 6.08%
WACC 4.66%
Leverage 1329.09%

11. Quality Control: The Clorox Company passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Inter Parfums

A-Score: 6.0/10

Value: 5.5

Growth: 8.0

Quality: 8.1

Yield: 6.0

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Clorox

A-Score: 5.7/10

Value: 6.2

Growth: 3.9

Quality: 7.1

Yield: 7.0

Momentum: 0.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Newell Brands

A-Score: 4.0/10

Value: 8.8

Growth: 1.4

Quality: 2.3

Yield: 9.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
e.l.f. Beauty

A-Score: 3.5/10

Value: 1.6

Growth: 9.6

Quality: 5.7

Yield: 0.0

Momentum: 2.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Coty

A-Score: 2.9/10

Value: 7.3

Growth: 3.1

Quality: 2.8

Yield: 0.0

Momentum: 0.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Helen of Troy

A-Score: 2.6/10

Value: 7.7

Growth: 3.2

Quality: 2.1

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

121.45$

Current Price

121.45$

Potential

-0.00%

Expected Cash-Flows