| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 48.54 | -62 |
| Intrinsic value (DCF) | 0.00 | -100 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 9.71 | -92 |
The Clorox Company (NYSE: CLX) is a leading global manufacturer and marketer of consumer and professional products, operating in the Household & Personal Products sector. Founded in 1913 and headquartered in Oakland, California, Clorox is renowned for its iconic brands such as Clorox bleach, Pine-Sol cleaners, Glad bags, Brita water filters, and Burt's Bees natural personal care products. The company operates through four key segments: Health and Wellness (cleaning, disinfecting, and supplements), Household (cat litter, grilling, and storage products), Lifestyle (food, personal care, and water filtration), and International. Clorox distributes its products through mass retailers, grocery chains, e-commerce platforms, and direct sales, serving a broad consumer base with essential household and wellness products. With a market cap exceeding $16 billion, Clorox maintains a strong presence in the consumer defensive sector, benefiting from brand loyalty and recurring demand for its staple goods. The company's diversified portfolio and global reach position it as a resilient player in both stable and volatile economic environments.
Clorox presents a stable investment opportunity in the consumer defensive sector, supported by its strong brand portfolio and recurring revenue streams. The company's diversified product mix, including essential cleaning and household items, provides resilience against economic downturns. However, Clorox faces challenges such as inflationary pressures on raw materials, supply chain disruptions, and intense competition from private-label alternatives. With a beta of 0.598, the stock exhibits lower volatility compared to the broader market, appealing to risk-averse investors. The company's dividend yield (~3.0% based on a $4.88 annual payout) adds to its attractiveness for income-focused portfolios. That said, muted revenue growth (~$7.1B in FY2023) and margin pressures due to rising costs may limit near-term upside. Investors should weigh Clorox's defensive qualities against its exposure to cost inflation and competitive threats.
Clorox competes in the highly fragmented household and personal care industry, where it differentiates itself through strong brand equity and a diversified product lineup. Its competitive advantage lies in its portfolio of trusted, market-leading brands (e.g., Clorox disinfectants, Brita filters, Glad bags), which command premium pricing and customer loyalty. The company's Health and Wellness segment benefits from heightened demand for cleaning and disinfecting products post-pandemic, though growth has normalized. Clorox's direct-to-consumer and e-commerce capabilities provide an edge in reaching evolving consumer preferences. However, the company faces stiff competition from lower-cost private-label products, particularly in commoditized categories like trash bags and bleach. Procter & Gamble (PG) and Unilever (UL) outscale Clorox in R&D and global distribution, while niche players like Seventh Generation (owned by Unilever) challenge its natural product offerings. Clorox's smaller international presence (~16% of sales) limits its growth potential compared to global peers. To maintain competitiveness, the company must continue innovating (e.g., eco-friendly formulations) and optimizing costs while defending its core brands against private-label encroachment.