Clorox has a credible earnings beat track record and solid peer-relative standing, but the stock has run into a natural ceiling with less than 3% of room remaining to the consensus target, free cash flow conversion is critically weak at 8% of net income, and a confirmed downtrend with a death cross in place argues for patience rather than new exposure.
Thesis pillars
- Free Cash Flow Quality Concern→Stable
- Confirmed Downtrend Blocks Entry↑Improving
- Limited Upside To Consensus Ceiling↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Clorox Company (The) (CLX) Stock Analysis
Recovery setup · Catalyst-Driven edge
Consumer Defensive · Household & Personal Products
Sell if holding. Analyst target reached at $86.20 — A.R:R 0.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.8).
Clorox makes and markets consumer and professional products including cleaning, household, lifestyle and international brands. Walmart Stores and its affiliates were 27% of fiscal 2025 net sales, and the five largest customers accounted for nearly half.
Sell if holding. Analyst target reached at $86.20 — A.R:R 0.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.8). Chart setup: Death cross but MACD improving, RSI 60. Score 4.7/10, high confidence.
Passes 5/8 gates (positive momentum, clean insider activity, earnings proximity 17d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
About Clorox Company (The)
About Clorox Company (The)
The Clorox Company generated $7.1 billion in net sales in fiscal 2025 across four reportable segments - Health and Wellness, Household, Lifestyle, and International - with over 80% of sales from brands holding the No. 1 or No. 2 share position in their categories. Cleaning products made up 44% of consolidated net sales, followed by bags and wraps (15%), food products (12%), and cat litter (10%). U.S. markets generated 86% of net sales, and Walmart accounted for 27% as the largest customer.
Clorox sells its namesake bleach and cleaning products, Pine-Sol and Tilex cleaners, Liquid-Plumr clog removers, Glad bags and wraps, Fresh Step cat litter, Kingsford charcoal, Hidden Valley dressings and sauces, Brita water filters, and Burt's Bees personal care products through mass retailers, grocery outlets, warehouse clubs, dollar stores, home hardware centers, and e-commerce, largely via a direct sales force domestically and through subsidiaries, licensees, distributors, and joint ventures internationally, while CloroxPro and Clorox Healthcare serve professional and institutional customers through a broker network. The Glad bags and wraps joint venture with Procter & Gamble, in which P&G holds a 20% interest, is set to wind down by January 31, 2026, after which Clorox will buy out P&G's stake at a contractually determined fair value while retaining royalty-free rights to P&G's core intellectual property. The company sources raw materials - resin, non-woven fabrics, sodium hypochlorite, corrugated cardboard, soybean oil, and agricultural commodities - from numerous suppliers, some sole- or single-source, and uses supply and forward-purchase contracts to manage price volatility. Clorox is also mid-way through a $570-580 million multi-year ERP and digital transformation, with U.S. implementation beginning in fiscal 2026 after a successful Canada rollout.
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A leadership signal outside the 10-K's numbers: on May 26, 2026, Chair and CEO Linda Rendle asked the Board to launch a CEO search after deciding to step down for health reasons, and will continue serving as Chair and CEO - then in an advisory role - only until a successor is named, meaning Clorox enters this search without an internal successor yet identified. The transition lands as the company is still absorbing its U.S. ERP rollout and the pending Glad joint-venture buyout from P&G, two multi-year initiatives Rendle had been overseeing, so the incoming CEO inherits both a leadership gap and a set of unfinished structural changes rather than a steady-state business.
See also: Consumer Defensive · Household & Personal Products
From Clorox Company (The)'s most recent 10-K filing, extracted October 11, 2026.
Recent developments
updated 2026-10-16Recent Developments — Clorox Company (The)
Latest news
- NEWS Clorox (CLX) Stock May Be 32% Undervalued Despite Margin Risks - Yahoo Finance — Yahoo Finance positive
- NEWS First Trust Advisors LP Cuts Stock Position in The Clorox Company $CLX - MarketBeat — MarketBeat neutral
- NEWS Clorox Co (CLX) Valuation: PE, PB & Fair Value Analysis - TradingKey — TradingKey neutral
- NEWS Clorox Co (CLX) Technical Analysis: Support, Resistance, Indicators & Moving Averages - TradingKey — TradingKey neutral
- NEWS Clorox Co (CLX) Valuation: PE, PB & Fair Value Analysis - tradingkey.com — tradingkey.com neutral
Generated 2026-10-16T11:47:10Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerWalmart Stores27%10-K Item 1: 'Net sales to the Company’s largest customer, Walmart Stores, Inc. and its affiliates, were 27%, 25% and 26% of consolidated net sales'
- MEDIUMCustomerfive largest customers10-K Item 1A: 'The Company’s five largest customers accounted for nearly half of the Company’s consolidated net sales for each of the fiscal years 2025, 2024 and 2023.'
Material Events(8-K, last 90d)
- 2026-05-28Item 5.02HIGHChair and CEO Linda Rendle asked the Board on May 26, 2026 to start a CEO search because she is stepping down for health reasons; she stays as Chair and CEO until a successor is appointed. No successor named.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Revenue shrinking — -2.0% YoY. Growth thesis broken unless recovery story develops.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $86.20 — A.R:R 0.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: V7 low-quality RISK_OFF penalty: -0.5 (Q=4.8). Chart setup: Death cross but MACD improving, RSI 60. Prior stop was $82.38. Score 4.7/10, high confidence.
Take-profit target: $87.72 (+1.8% upside). Prior stop was $82.38. Stop-loss: $82.38.
Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.8); Leverage penalty (D/E 22.2): -1.5.
Clorox Company (The) trades at a P/E of 17.9 (forward 14.0). TrendMatrix value score: 6.6/10. Verdict: Sell.
27 analysts cover CLX with a consensus score of 2.7/5. Average price target: $97.
What does Clorox Company (The) do?Clorox makes and markets consumer and professional products including cleaning, household, lifestyle and international...
Clorox makes and markets consumer and professional products including cleaning, household, lifestyle and international brands. Walmart Stores and its affiliates were 27% of fiscal 2025 net sales, and the five largest customers accounted for nearly half.