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↓Deteriorating
- Limited Upside To Consensus Ceiling↑Improving
- +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. Analyst target reached at $94.26 — A.R:R is negative (-0.5) — price has exceeded the analyst target. 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).
The Clorox Company is a multinational manufacturer and marketer of consumer and professional products, reporting fiscal 2025 net sales of $7.1 billion across four segments -- Health and Wellness, Household, Lifestyle, and International -- selling brands including Clorox, Glad,... Read more
Sell if holding. Analyst target reached at $94.26 — A.R:R is negative (-0.5) — price has exceeded the analyst target. 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, below all MAs, RSI 20, MACD bearish. Score 4.4/10, high confidence.
Passes 6/9 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 60d 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)
Walmart Stores and its affiliates accounted for 27% of The Clorox Company's $7.1 billion in fiscal 2025 net sales, spanning all four of the company's reportable segments. Cleaning products made up 44% of consolidated net sales, followed by bags and wraps at 15%, food products at 12%, and cat litter at 10%. The company employed about 7,600 people worldwide as of June 30, 2025, with 73% based in the United States.
Clorox generates revenue primarily through branded consumer products sold to mass retailers, grocery outlets, warehouse clubs, dollar stores, and e-commerce channels, supplemented by professional cleaning and food-service lines under the CloroxPro, Clorox Healthcare, and Hidden Valley brands. The company organizes its business into Health and Wellness (cleaning and disinfecting, sold in the U.S.), Household (Glad bags and wraps, Fresh Step and Scoop Away cat litter, Kingsford charcoal), Lifestyle (Hidden Valley dressings, Brita filtration, Burt's Bees personal care), and International. Raw materials -- including resin, non-woven fabrics, sodium hypochlorite, corrugated cardboard, and soybean oil -- are sourced from numerous U.S. and international suppliers, some of which are sole- or single-source, with pricing partly offset through forward-purchase contracts. Clorox is winding down its Glad joint venture with Procter & Gamble by January 2026, after which it will acquire P&G's 20% interest, and is mid-way through a $570-580 million multi-year ERP and digital transformation.
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Retailer concentration is a defining structural exposure: Walmart represented 27% of consolidated net sales in fiscal 2025, versus 25% in fiscal 2024 and 26% in fiscal 2023, and the five largest customers together accounted for nearly half of net sales in each of those years, with no other single customer above 10%. Clorox's 10-K notes the company sells largely on individual purchase orders rather than long-term contracts, so continued retailer consolidation or a shift in shelf space toward private-label products could pressure net sales without a contractual floor. The steadiness of the Walmart share across three fiscal years suggests this concentration is structural to the business rather than a one-year anomaly.
See also: Consumer Defensive · Household & Personal Products
From Clorox Company (The)'s most recent 10-K filing, extracted August 23, 2026.
Recent developments
updated 2026-09-04Recent 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 2026-09-04T13:27:38Z.
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Rating Breakdown
3 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
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $94.26 — A.R:R is negative (-0.5) — price has exceeded the analyst target. 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, below all MAs, RSI 20, MACD bearish. Prior stop was $90.44. Score 4.4/10, high confidence.
Take-profit target: $107.23 (-3.0% upside). Prior stop was $90.44. Stop-loss: $90.44.
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 19.6 (forward 15.0). TrendMatrix value score: 6.1/10. Verdict: Sell.
27 analysts cover CLX with a consensus score of 2.7/5. Average price target: $102.
What does Clorox Company (The) do?The Clorox Company is a multinational manufacturer and marketer of consumer and professional products, reporting fiscal...
The Clorox Company is a multinational manufacturer and marketer of consumer and professional products, reporting fiscal 2025 net sales of $7.1 billion across four segments -- Health and Wellness, Household, Lifestyle, and International -- selling brands including Clorox, Glad, Kingsford, Hidden Valley, Brita, and Burt's Bees through mass retailers, grocery outlets, warehouse clubs, and e-commerce in about 100 markets. Over 80% of sales come from brands holding the No. 1 or No. 2 market share position in their categories, and Walmart alone represented 27% of fiscal 2025 net sales.