The Clorox Company
CLXBusiness Overview
ticker: CLX step: 01 generated: 2026-05-13 source: quick-research
The Clorox Company (CLX) — Business Overview
Business Description
The Clorox Company is a leading consumer products manufacturer best known for its bleach and cleaning products but operating a diversified portfolio of household brands across cleaning, grilling, cat litter, water filtration, food, and personal care. Founded in 1913, Clorox holds dominant market positions in several categories — notably ~61% U.S. bleach market share — and sells through all major retail channels. The company is in recovery mode following a disastrous $580M ERP (Oracle Fusion) implementation that triggered supply-chain disruptions in FY2023–2024 and a 17% organic sales decline at its worst point.
Revenue Model
Revenue is generated across four segments: (1) Health and Wellness (~38% of revenue) — cleaning/disinfecting products, professional cleaning under CloroxPro; (2) Household (~27%) — Glad trash bags/wraps, Fresh Step cat litter, Kingsford charcoal; (3) Lifestyle (~19%) — Hidden Valley dressings, Brita water filtration, Burt's Bees personal care; (4) International (~16%) — Clorox and local brands across Latin America, Europe, Australia, and Asia. Revenue is meaningfully tied to household consumption and retailer stocking decisions, with cleaning representing ~44% of total sales.
Products & Services
- Clorox Bleach & Cleaners: Flagship ~61% U.S. bleach share; Clorox disinfecting wipes, sprays, toilet bowl cleaners
- Pine-Sol: Multi-surface household cleaner
- Liquid-Plumr: Drain declogger and plumbing maintenance
- Glad: Trash bags, food storage bags, wraps — significant HPC category
- Fresh Step / Ever Clean: Cat litter with odor-eliminating technology
- Kingsford: #1 charcoal brand in the U.S. (~80% share)
- Hidden Valley: Ranch dressing and dips (~60% category share)
- Brita: Water filtration pitchers and filters
- Burt's Bees: Natural personal care (lip balm, skin care, baby)
- CloroxPro: Professional-grade disinfecting products for healthcare and commercial cleaning
Customer Base & Go-to-Market
Mass retailers (Walmart, Target, Costco, Amazon — 12.4% of sales) and grocery chains are primary channels. Products are purchased by U.S. households for routine cleaning, food, and personal care needs — largely non-discretionary. The professional channel (CloroxPro) serves hospitals, schools, and commercial facilities. International operations serve local markets through regional distribution.
Competitive Position
Clorox dominates in several niche categories (bleach, charcoal, ranch dressing) where brand equity and retailer shelf position have been built over decades. However, the broader cleaning and household products space faces intensifying private-label competition — particularly at value-focused retailers serving lower-income consumers. The ERP implementation crisis (FY2023–2024) temporarily impaired fill rates and market share in core categories; management targeted full stabilization by March 2026. Returns on invested capital remain 35%+, a testament to brand strength and capital-light manufacturing.
Key Facts
- Founded: 1913
- Headquarters: Oakland, California
- Employees: ~9,000
- Exchange: NYSE
- Sector / Industry: Consumer Staples / Household Products
- Market Cap: ~$15B
Financial Snapshot
ticker: CLX step: 04 generated: 2026-05-13 source: quick-research
The Clorox Company (CLX) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $7.10B | $7.39B | $7.09B | -4.0% |
| Gross Margin | ~38% | ~37% | ~44% | |
| Operating Margin | ~9% | ~3% | ~6% | |
| Net Income | $462M | $149M | $280M | +88% |
| EPS (diluted) | ~$3.72 | ~$1.20 | ~$2.25 | +88% |
FY2022–2023 were deeply impacted by commodity cost inflation (resins, diesel, pulp) and the catastrophic ERP implementation failure that caused supply-chain breakdowns and a 17% organic sales decline at peak disruption. FY2024 showed recovery — gross margin expanded to ~44% as commodity costs normalized and pricing actions flowed through. FY2025 revenue reached $7.1B with EPS recovery continuing; Health & Wellness segment grew 8.5% YoY.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$800M |
| Free Cash Flow | ~$650M |
| Capital Expenditures | ~$150M |
| Cash & Equivalents | ~$350M |
| Total Debt | ~$2.8B |
FCF recovered strongly as gross margins normalized. Dividend currently $1.22/quarter ($4.88/year), yielding ~4.8% — maintained through the ERP crisis, signaling management confidence. Debt elevated but manageable given FCF generation.
Key Ratios (approximate)
- P/E: ~30–35x (trailing, on recovering EPS) | EV/EBITDA: ~18x | Dividend Yield: ~4.8%
- Revenue Growth (FY2024): -4.0% | FY2025: ~flat to slight positive
- Return on Invested Capital: ~35%+ (brand moat indicator)
- Bleach market share: ~61% U.S.
Growth Profile
Clorox is a slow-growth staples compounder under normal conditions (2–4% organic growth) disrupted by two major shocks: FY2022 commodity inflation and FY2023–2024 ERP disaster. The recovery path involves: (1) fill rate normalization (target 92%+ by early 2026), (2) gross margin recovery toward 44–45% as commodity headwinds ease, (3) market share recapture in categories where stockouts caused switching. FY2025 and FY2026 should show above-trend EPS growth driven by recovery, not fundamental acceleration. The structural long-term thesis is brand moat + pricing power in essential categories.
Forward Estimates
- FY2026: Revenue growth of 2–4% organic; EPS recovery toward $6–7 adjusted as margins stabilize
- Dividend: $4.88/year (FY2025); consistent annual increases expected
- Analyst consensus: Mixed — majority Hold/Neutral; some Underweight (JPMorgan downgrade April 2026 citing private-label pressure and consumer weakness)
- Private-label risk: Key watch item — share erosion in cleaning products vs. store brands at Walmart/Target
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $CLX.