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Clorox (CLX) Stock Analysis
Clorox Dividend
Sector: Consumer Defensive
Industry: Household & Personal Products
The Clorox (CLX) dividend has been paid continuously since 1968 and increased for 47 consecutive years; qualifying the company as a Dividend Aristocrat and Dividend Champion.
Clorox has a large moat due to its brands and cost advantages. This is demonstrated by the fact the vast majority of their sales come from brands ranked #1 or #2.
Current Dividend Annualized: $4.88
Clorox (CLX) Intrinsic Value – Margin of Safety Analysis
(updated March 2025)
Normalized Diluted Earnings Per Share (TTM): $3.67
Free Cash Flow Per Share (TTM): $5.57
Cash Flow From Operations Per Share (TTM): $7.39
Estimated Intrinsic Value: $128
Target Buy Price Based on Required Margin of Safety = $107
(Required Margin of Safety Based On Risk Stability Grade:
A = 0%, B = 20%, C = 40%, D = 60%, F = 80%)
Target SELL Price Based on Estimated Intrinsic Value = $160
(Allow Overvaluation Adjusted by Risk Stability Grade:
A = 40%, B = 25%, C = 15%, D = 5%, F = 0%)
Risk / Stability Grade: B
A grade indicates a quality company with a strong balance sheet, high earnings quality, and a positive business environment. These stocks require the slimmest margin of safety within the stock universe.
B grade indicates a company with a good balance sheet, good earning quality, and a stable business environment. The margin of safety required should be greater than stocks with an A grade but less than the average stock.
C grade indicates a company with a sufficient balance sheet, at least average earnings quality, and a reasonably stable business environment. The margin of safety required is greater than A & B stocks, but less than D & F stocks.
D grade indicates a company in good standing but has issues that could affect its stability and long term risks. D rated stocks should require a large margin of safety when purchased.
F grade indicates a company with significant issues that are currently affecting its stability and long term risks. Require an extremely large margin of safety for F rated stocks when purchased.
Financial Risk Grade: B
A grade indicates an extremely low probability of a dividend cut. This rating is reserved for companies with strong balance sheets and/or excellent dividend histories.
B grade indicates a very low probability for a dividend cut.
C grade indicates a low probability for a dividend cut and/or average safety risk.
D grade indicates there are issues that should be considered concerning future dividend payments.
F grade indicates serious dividend safety risks. Investors should complete comprehensive due diligence before investing.
Business Quality Grade: A
A grade indicates earnings quality is high or far above average.
B grade indicates earnings quality is good and/or above average.
C grade indicates earnings quality is acceptable or average.
D grade indicates earnings quality is poor and requires thoughtful due diligence.
F grade indicates the quality of the earnings is poor or far below average requiring serious due diligence.
Earnings Report: 12/31/24
AAAMP Portfolios Position Disclosures:
Treasure Trove Dividend (TTD) – None
Global Dividend Value (GDV) – None
Dividend Growth & Income (DGI) – None
Global Value (GV) – None
Global Value Aggressive (GVA) – None
Global Conservative Income (GCI) – None
Global High Income (GHI)- None
Company Description
Sector: Consumer Defensive
Industry: Household & Personal Products
Company Overview:
The Clorox Company (NYSE: CLX) is a leading manufacturer of household and professional cleaning products, personal care items, and food products. Best known for its Clorox-branded bleach and disinfecting wipes, the company also owns brands like Pine-Sol, Glad trash bags, Burt’s Bees personal care products, Kingsford charcoal, and Hidden Valley dressings. Clorox operates in over 100 countries, with a strong focus on health, hygiene, and sustainability.
Company Strengths:
Clorox benefits from strong brand loyalty, particularly in the cleaning and disinfecting segment, where it holds a dominant market position. Its diverse product portfolio spans multiple categories, providing steady revenue streams. The company has also capitalized on increased consumer awareness of hygiene, and its commitment to sustainability and ESG initiatives enhances its reputation with environmentally conscious consumers.
Company Challenges:
Clorox faces challenges from rising raw material and transportation costs, which put pressure on margins. Intense competition from both private-label and established brands, as well as shifting consumer preferences toward natural and eco-friendly alternatives, pose risks to growth. Additionally, supply chain disruptions and inflationary pressures can impact production efficiency and pricing power.
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Disclaimer:
While Arbor Investment Planner has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability, or completeness of third-party information presented herein. The sole purpose of this analysis is information. Nothing presented herein is, or is intended to constitute investment advice. Consult your financial advisor before making investment decisions.