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→Stable
- +1 more pillar — see the Why tab for full reasoning
Clorox Company (The) (CLX) Stock Analysis
Falling Knife setup
Consumer Defensive · Household & Personal Products
Sell if holding. At $83.80, A.R:R 1.3:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 8.2%; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.8).
The Clorox Company markets branded consumer products across cleaning, household, health, and lifestyle categories — Clorox bleach, Glad bags, Pine-Sol, Kingsford charcoal, Burt's Bees — sold through retailers and e-commerce. Its largest customer, Walmart and its affiliates,... Read more
Sell if holding. At $83.80, A.R:R 1.3:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 8.2%; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.8). Chart setup: Death cross, below all MAs, RSI 31, MACD bearish. Score 4.7/10, high confidence.
Passes 5/9 gates (clean insider activity, news events none recent, earnings proximity 38d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: moderate.
About Clorox Company (The)
About Clorox Company (The)
Clorox's largest customer, Walmart Stores, Inc. and its affiliates, accounted for 27% of consolidated net sales in fiscal 2025, up from 25% in fiscal 2024 and 26% in fiscal 2023, with Walmart purchases spanning all of the company's reportable segments. The company's five largest customers together accounted for nearly half of consolidated net sales in each of fiscal 2025, 2024, and 2023, while no other single customer reached the 10% disclosure threshold.
Clorox earns revenue selling nationally advertised branded consumer products that compete directly against private-label alternatives across grocery, club, drug, dollar-store, mass-merchandise, and e-commerce channels, with grilling-product sales concentrated in the March-through-September season due to weather-driven demand. The company's patent and trademark portfolio underpins its brand-equity strategy, and it vigorously enforces those rights against infringement as a competitive defense against lower-cost private-label entrants. Because Walmart alone represents roughly a quarter of consolidated net sales and the top five retail customers together approach half, Clorox's trade-promotion spending, shelf-space negotiations, and inventory terms with a small number of large retail buyers carry outsized weight in the company's results relative to a more fragmented customer base. The company's IGNITE strategy ties its purpose and sustainability goals to corporate governance, framing brand reputation and product performance as its primary basis for competing on price and image against both branded and private-label rivals.
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Clorox's clearest concentration risk is retailer-side rather than commodity or geography: Walmart and its affiliates alone represent more than a quarter of consolidated net sales, occurring across every one of Clorox's reportable segments rather than being isolated to one product category, and the top five customers combined approach half of net sales. That breadth of exposure across segments means a pricing dispute, inventory pullback, or shelf-space reallocation at Walmart specifically would ripple through Clorox's entire portfolio simultaneously, rather than being contained to a single brand or category the way a narrower private-label threat might be.
See also: Consumer Defensive · Household & Personal Products
From Clorox Company (The)'s most recent 10-K filing, extracted August 30, 2026.
Recent developments
updated 2026-09-26Recent 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 2026-09-26T16:02:02Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerWalmart Stores, Inc.27%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 for each of the fiscal years ended June 30, 2025, 2024 and 2023, respectively, and occurred across all of the Company’s reportable segments.'
- MEDIUMCustomerfive largest customers10-K Item 1: '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 5.02HIGHClorox Chair and CEO Linda Rendle asked the Board on May 26, 2026 to initiate a CEO search, stepping down for health reasons. She remains Chair and CEO during the search and will serve in an advisory role after a successor is appointed. No successor named yet.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
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $83.80, A.R:R 1.3:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 8.2%; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.8). Chart setup: Death cross, below all MAs, RSI 31, MACD bearish. Prior stop was $79.15. Score 4.7/10, high confidence.
Take-profit target: $90.69 (+8.2% upside). Prior stop was $79.15. Stop-loss: $79.15.
Thin upside margin: 8.2%; 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 13.4). TrendMatrix value score: 6.9/10. Verdict: Sell.
27 analysts cover CLX with a consensus score of 2.7/5. Average price target: $101.
What does Clorox Company (The) do?The Clorox Company markets branded consumer products across cleaning, household, health, and lifestyle categories —...
The Clorox Company markets branded consumer products across cleaning, household, health, and lifestyle categories — Clorox bleach, Glad bags, Pine-Sol, Kingsford charcoal, Burt's Bees — sold through retailers and e-commerce. Its largest customer, Walmart and its affiliates, accounted for 27% of consolidated net sales in fiscal 2025, and its five largest customers together made up nearly half of net sales for three straight years.