The Clorox Company
CLXClorox wins by owning trusted brands in boring but essential categories that households repurchase year after year.
Because the strength of those brands will determine whether this remains a steady compounder or slowly commoditized.
Business Model
Branded household staples
It sells everyday cleaning, disinfecting, and lifestyle products through retailers worldwide.
Economic Engine
Strong gross margins
A 45.0% gross margin shows customers pay up for brands, not just basic chemicals.
Long-Term Lens
Pricing power vs private label
The key question is whether brand loyalty can offset store brands over decades.
On this page
Company Story
How do The Clorox Company's business model and economics hold up on a closer read?
Start with the business itself, then go one layer deeper into the model, the economics, and the long-term case.
“Clorox is a durable cash machine built on iconic brands, but long-term returns hinge on pricing power and defending shelf space against cheaper private labels.”
What does The Clorox Company actually do?
Clorox makes and sells branded household and personal products that people use every day.
- Cleaning and disinfecting products like bleach and wipes
- Household items such as trash bags and cat litter
- Lifestyle brands in food and personal care
Why it matters
Everyday demand
Products tied to cleaning and hygiene tend to be repeat purchases, which supports steady long-term sales.
How does The Clorox Company make money?
Clorox earns money by selling branded products at a premium price through major retailers.
- 45.0% gross margin shows strong pricing over production cost
- 16.6% operating margin reflects efficiency after marketing and distribution
- Free cash flow equals about 0.94 times net income, meaning profits mostly turn into cash
Economic clue
Brand-driven margins
Higher margins than generic competitors suggest customers trust and recognize its brands.
Why do long-term investors keep The Clorox Company on the radar?
Clorox sits in defensive categories that households rarely cut, even during recessions.
- Five year average revenue growth of negative 0.8% shows stability but limited expansion
- Five year average earnings per share growth of 3.8% reflects slow but steady compounding
- Expanding margins suggest pricing actions are working
Investor takeaway
Stability over speed
This is a business built for durability and cash, not rapid growth.
Based on company financial statements.
Benchmark Comparison
How has The Clorox Company performed against common long-term benchmarks?
Once the business case is clear, compare the stock against broad market and alternative long-term baselines.
$622.00
-37.8% total return
$1,753
+75.3% total return
$2,975
+197.5% total return
$1,393
+39.3% total return
| Asset | Total Return | Dollar Value |
|---|---|---|
| CLX | -37.8% | $622.00 |
| S&P 500 | +75.3% | $1,753 |
| Gold | +197.5% | $2,975 |
| Bitcoin | +39.3% | $1,393 |
From Mar 5, 2021 to Mar 6, 2026. Historical price data based on company financial statements and market indices. Each card uses the same starting amount so the comparison stays apples-to-apples.
Investor Fit
How a first-time investor could frame The Clorox Company
Before going deeper, decide what kind of business this is, what it tends to suit, and what deserves monitoring over time.
This Can Fit If You Want
- A defensive consumer staples holding
- Steady cash generation rather than rapid growth
- Exposure to trusted household brands
Be Careful If You Expect
- Double digit annual revenue growth
- Technology-like margins that expand endlessly
- Global dominance without competition from store brands
What To Watch Over Time
- Whether gross margin stays near or above 45%
- Long-term revenue growth returning to positive territory
- Ability to raise prices without losing volume
Key Metrics
Which metrics matter most for The Clorox Company right now?
Three durable business metrics that matter more than day-to-day price moves.
-0.8% per year (5 year average)
3.8% per year (5 year average)
45.0% gross margin
| Metric | Value | Context |
|---|---|---|
| Revenue Growth | -0.8% per year (5 year average) | Shows that sales have been slightly shrinking on average, highlighting limited expansion. |
| EPS Growth | 3.8% per year (5 year average) | Shows slow but positive compounding in earnings per share for owners. |
| Margin Quality | 45.0% gross margin | Shows strong pricing power compared with many basic household product peers. |
Based on company financial statements.
Fundamentals
What do The Clorox Company's fundamentals say right now?
Core financial markers that explain how the business is performing beneath the stock price.
23.5% ROIC
45.0% gross margin
10.7% FCF margin
Stable to shrinking
| Metric | Value | Interpretation |
|---|---|---|
| Capital Efficiency | 23.5% ROIC | The business is currently showing excellent capital efficiency. |
| Profitability | 45.0% gross margin | Healthy gross margins give the company room to invest, price competitively, and absorb shocks. |
| Cash Generation | 10.7% FCF margin | Free cash flow margin shows how much real cash the business keeps after funding operations and investment. |
| Ownership Trend | Stable to shrinking | The company is not currently diluting owners and may be buying back shares instead. |
Based on company financial statements.
Included In Funds
Which ETFs and funds currently hold The Clorox Company?
The Clorox Company currently appears in these ETF and fund proxies.
SPY
SPDR S&P 500 ETF Trust
IWB
iShares Russell 1000 ETF
Questions & Answers
What questions come up most often about The Clorox Company?
Company-specific questions readers often ask about The Clorox Company.
Each entry answers a direct question about the business, the long-term thesis, or the risks that matter over time.
Clorox makes and sells branded household and personal care products such as bleach, disinfecting wipes, trash bags, and other everyday essentials.
Decision Framing
Secondary context after the long-term thesis
Shorter-horizon context and comparison tools, after the core long-term read.
Shorter-horizon price moves, two-sided debate, and comparison tools live here so the page stays anchored on business quality, durability, and BinaPrint fit first.
Investment Thesis
Bull vs Bear
Two-sided framing before any decision.
Current argument weight is balanced.
Bull case
What can work
Iconic brands in cleaning and disinfecting create habitual purchasing, especially in health-related categories where trust matters more than price.
A 45.0% gross margin gives room to invest in marketing, absorb cost swings, and still earn healthy profits.
Defensive demand means households keep buying bleach, wipes, and trash bags even during recessions, supporting durable cash flow over decades.
Margin expansion shows management can adjust pricing and costs, which may slowly lift earnings even if revenue growth is modest.
Bear case
What can break
Private label products from large retailers can undercut branded bleach and cleaning supplies, squeezing both market share and pricing power over time.
If consumers trade down permanently in a lower income environment, brand premiums may erode, pushing gross margin below 45%.
Retail concentration means large chains can demand lower prices or better terms, reducing operating margin from the current 16.6%.
Limited long-term revenue growth, negative 0.8% on average over five years, raises the risk of stagnation if innovation does not improve.
Risk Radar
Key Risks
Where downside pressure can build.
Margin compression risk: Gross margin at 45.0% could fall several percentage points if commodity input costs spike, directly reducing the 11.4% net margin.
Growth stagnation: Five year average revenue growth of negative 0.8% signals risk of long-term flat sales if pricing cannot offset volume declines.
Retail concentration: Heavy reliance on large retailers increases exposure to pricing pressure and shelf space loss.
Sizing matters
Risks should be read as scenario inputs, not certainties. Position size and time horizon determine how much of this downside profile is acceptable.
Market Snapshot
Tactical context after the core long-term read.
- Price
- $114.66
- Daily move
- +0.84%
Peer Set
A compact peer list for side-by-side context.
- BF-BBrown-Forman Corporation$11.9B
- BWBJBJ's Wholesale Club Holdings, Inc.$12.8B
- CHDChurch & Dwight Co., Inc.$24.2B
- CCCOKECoca-Cola Consolidated, Inc.$17.1B
- HRLHormel Foods Corporation$13.4B
- MKCMcCormick & Company, Incorporated$17.4B
- PFPFGCPerformance Food Group Company$13.7B
- SISGISomnigroup International Inc$16.8B
+1 additional peers
Next Actions
Explore planning scenarios or keep browsing similar companies.