Core Viewpoint - Clorox, a consumer staples company, is currently undervalued with shares down 22% year-to-date and 47% from all-time highs, presenting a potential investment opportunity in a market dominated by high-beta stocks [3][10]. Group 1: Company Performance and Challenges - Clorox has faced significant challenges, including a cyberattack in 2023 and the ongoing replacement of its enterprise resource planning (ERP) system, which has led to sales and inventory fluctuations [5][6]. - Despite these challenges, Clorox's brands remain strong, with the company maintaining a healthy consumer value metric and growing household penetration in fiscal year '25 [6][7]. Group 2: Financial Metrics and Valuation - Clorox is expected to generate approximately $6.10 in adjusted earnings per share (EPS) in 2026, trading at a reasonable 20 times forward earnings, which is below the S&P 500 average of around 30 [10]. - The company boasts a return on invested capital (ROIC) of 25%, indicating strong profitability and the potential for market-beating returns over the long term [11]. - Clorox has returned its free cash flow (FCF) margin to 11%, with expectations to reach 13% after ERP system changes and divesting from lower-margin businesses [12]. Group 3: Dividend and Share Buybacks - Clorox offers a dividend yield of 3.9%, near a decade-long high, and has sufficient FCF to cover these payments despite recent challenges [12][14]. - The company has reduced its shares outstanding by 0.6% annually over the last decade, with a more significant reduction of 1.3% in the past year, enhancing per-share metrics [17]. Group 4: Investment Outlook - While Clorox may not provide multibagger returns in the near term, its strong brand moat, attractive dividend yield, and potential for margin improvement suggest it could deliver market-matching returns and consistent passive income with lower risk [18].

Core Insights - The article emphasizes the importance of understanding macro trends and their influence on asset prices and investor behavior [1] - It highlights the author's extensive experience in asset management, particularly in equity analysis and research [1] - The goal of sharing insights is to empower investors and promote confidence in long-term investing [1] Company and Industry Analysis - The author has a background in both institutional and private client asset management, focusing on multi-asset strategies with an emphasis on equities and derivatives [1] - The analysis includes close monitoring of EU and US central bank policies, sector rotation, and sentiment dynamics [1] - The article aims to provide actionable investment strategies based on the author's research and insights [1]

Core Points - The Clorox Company has declared a quarterly dividend of $1.24 per share, payable on November 6, 2025, to shareholders of record as of October 22, 2025 [1] - Clorox has a history of providing value to shareholders through regular dividend payments and annual increases [1] - The company was ranked No. 1 on Barron's 100 Most Sustainable Companies list for the third consecutive year in 2025 [2] Company Overview - Clorox is headquartered in Oakland, California, and has been in operation since 1913 [2] - The company offers a range of trusted brands including Brita®, Burt's Bees®, Clorox®, Fresh Step®, Glad®, Hidden Valley®, Kingsford®, Liquid-Plumr®, and Pine-Sol® [2] - Clorox was one of the first companies in the U.S. to integrate sustainability into its business reporting [2]

Group 1 - Blue Origin has appointed Christopher Fuller as the new head of marketing and communications, starting this week [1] - Fuller previously served as chief communications officer for Inspire Brands, overseeing multiple restaurant brands, and has extensive experience in communications [2][3] - The company has seen a series of leadership changes in its communications department, with Linda Mills being the first head of communications in 2020 and Bill Kircos serving as VP of marketing and communications since 2023 [4] Group 2 - Blue Origin was founded by Jeff Bezos in 2000 and is headquartered in Kent, Washington, focusing on suborbital and heavy-lift rocket operations [5]

Group 1 - The Clorox Company (NYSE: CLX) is rated as a "Hold" as its current price reflects the fair value of the business considering its profile and prospects [1] - The analysis indicates that Clorox's valuation is aligned with its market position and future outlook [1] Group 2 - The analyst has no stock, option, or similar derivative position in Clorox and does not plan to initiate any positions in the near future [1]

Group 1 - The Clorox Company (NYSE: CLX) is rated as a "Hold" as its current price reflects the fair value of the business considering its profile and prospects [1] - The analysis indicates that Clorox's valuation is aligned with its market position and future outlook [1] Group 2 - The analyst has no stock, option, or similar derivative position in Clorox and does not plan to initiate any positions in the near future [1]

Core Viewpoint - The company remains optimistic about its business despite challenging market conditions, highlighting the positive impact of past investments on growth and performance [2]. Financial Performance - For the fiscal year 2025, the company experienced mixed results, with lower-than-expected top-line growth but exceeding expectations in margin and earnings due to a strong margin transformation program [2]. - The fourth quarter mirrored this trend, showcasing strong margin and earnings performance while falling short on revenue expectations [3].

Core Insights - CloroxPro has launched Clorox Screen+ Sanitizing Wipes, designed specifically for cleaning and sanitizing electronic devices, effectively killing 99.9% of bacteria and removing dirt without damaging screens [1][3] Product Features - The wipes are engineered with optimal wetness to clean and sanitize in one step, leaving no drips, streaks, or scratches, and are safe for sensitive electronics [3] - The product is bleach-free, ensuring safety on screens while being effective against bacteria [3] Market Need - A study indicates that 55% of people consider screens among the most important items to be regularly cleaned in workplaces, highlighting the growing need for effective cleaning solutions for electronics [2][8] - As workplaces become more tech-centric, the demand for high-quality cleaning solutions for electronics is increasing [2] Cost Implications - Replacing a laptop can cost up to $3,000, while professional cleaning can cost around $100 per device, emphasizing the importance of maintaining electronic devices to prolong their lifespan [3] Availability - Clorox Screen+ Sanitizing Wipes are now available for purchase, with additional information accessible on CloroxPro's website [4]

Financial Data and Key Metrics Changes - The company experienced a mixed fiscal year 2025, delivering less than expected top-line growth but exceeding expectations on margin and earnings due to a strong margin transformation program [1][2] - In Q4, the company delivered strong margin and earnings performance but underperformed on top-line growth [2] - The company expects to be at the low end of its range for Q1, with shipments rebounding and consumption expected to improve in September [3][4] Business Line Data and Key Metrics Changes - The U.S. business, which constitutes 85% of the company's operations, is undergoing a greenfield implementation of a new ERP system, which has faced some initial challenges but is expected to stabilize [3][4] - The company noted volatility in category growth, particularly in food, which has historically been steady, indicating a shift in consumer behavior [11][12] Market Data and Key Metrics Changes - The company anticipates U.S. retail growth to average 0% to 1% through the year, with category growth expected to be lower than historical averages [52][53] - The consumer is under stress, leading to cautious spending behavior, which is impacting category growth [13][25] Company Strategy and Development Direction - The company is focused on transforming its capabilities through significant investments, including over $550 million in rebuilding its digital foundation [21][22] - The strategy includes a strong emphasis on innovation, with plans to launch new platforms and expand existing ones in the back half of the year [35][55] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by a volatile consumer environment and competitive activity, but remains optimistic about the company's ability to recover and grow [20][25] - The company expects sequential improvements in consumption and market share, particularly in the back half of the year [54][55] Other Important Information - The company is currently in a stabilization phase following a cyber attack in 2023, which impacted operations but demonstrated the strength of its brands [23][24] - The company is committed to ensuring that its categories grow again and is focused on innovation and consumer insights to drive this growth [25][48] Q&A Session Summary Question: What are the long-term category growth expectations? - The company expects its categories to grow about 2% to 2.5% in the U.S., with recent volatility noted but stabilization expected [11][12] Question: Why is Clorox losing share in several categories? - Management indicated that while some categories are performing well, execution issues in certain areas, such as Kingsford, have led to share loss [16][19] Question: How is the organization managing the transformation amidst operational challenges? - Management clarified that the organization is not distracted but is focused on building strong capabilities to better respond to consumer needs [20][24] Question: What is the outlook for promotional activity in the current competitive environment? - The company sees a rational promotional environment overall but acknowledges heightened competitive activity in specific categories like litter and trash [47][49] Question: Can you discuss the guidance for the upcoming quarters? - The company anticipates a year-over-year decline of 7% to 8% due to ERP implementation noise, with organic sales growth expected to be between -1% to +2% [52][54]

Financial Data and Key Metrics Changes - The fiscal year 2025 was mixed for the company, with top-line performance falling short of expectations, but margins and earnings exceeding expectations due to a strong margin transformation program [1][2] - The company expects to be at the low end of its range for Q1, but anticipates a rebound in shipments and consumption in September [3][4] Business Line Data and Key Metrics Changes - The U.S. business, which constitutes 85% of the company's operations, is undergoing a greenfield implementation of a new ERP system, which has caused some initial disruptions but is expected to stabilize [3][4] - The company has seen volatility in category growth, particularly in food, which has historically been steady, but is now expected to be flattish to slightly growing this year [11][12] Market Data and Key Metrics Changes - The company noted that consumer behavior is under stress, leading to cautious spending and a tendency to trade down to larger sizes or value SKUs, which compresses category growth [13][14] - The company expects U.S. retail growth to average 0% to 1% through the year, with category growth anticipated to be lower than historical averages [55] Company Strategy and Development Direction - The company is focused on strong category investments and winning market share, aiming to return category growth to the historical range of 2% to 2.5% [14][27] - The company is investing over $550 million in rebuilding its digital foundation to enhance capabilities and respond more effectively to consumer needs [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by a volatile consumer environment and the need for rapid adjustments to plans in response to changing consumer behavior [21][20] - The company is optimistic about its innovation pipeline and plans to launch new platforms in the back half of the year, which are expected to drive growth [36][37] Other Important Information - The company experienced a significant cyber attack in 2023, which impacted operations but highlighted the strength of its brands as it regained distribution and share [24][25] - The company is currently in a stabilization phase following the ERP implementation, with expectations for productivity improvements and cost savings in the future [59][60] Q&A Session Summary Question: What are the long-term category growth expectations? - The company expects U.S. categories to grow about 2% to 2.5% on average, with recent volatility noted [11][12] Question: Why is Clorox losing share in many categories? - The company identified execution issues and rapid changes in consumer behavior as key factors for losing share in certain categories [15][20] Question: How is the organization managing the transformation and operational challenges? - Management emphasized that the organization is not distracted but is focused on building strong capabilities while navigating various challenges [21][26] Question: What is the outlook for promotional activity in the current environment? - The company noted a rational promotional environment overall, but acknowledged increased competitive activity in specific categories like litter and trash [48][50] Question: What are the key assumptions in the guidance for the balance of the year? - The guidance includes a significant impact from the ERP implementation, with expectations for organic sales growth to be between -1% to +2% [54][55]