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↓Deteriorating
- Confirmed Downtrend Blocks Entry→Stable
- Limited Upside To Consensus Ceiling→Stable
- +1 more pillar — see the Why tab for full reasoning
Clorox Company (The) (CLX) Stock Analysis
Momentum Cont setup
Consumer Defensive · Household & Personal Products
Sell if holding. Analyst target reached at $105.70 — A.R:R is negative (-1.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 22.2): -1.5.
The Clorox Company is a multinational manufacturer and marketer of consumer and professional products, with fiscal 2025 net sales of $7.1 billion across four segments — Health and Wellness, Household, Lifestyle, and International — including brands like Clorox, Glad, Kingsford,... Read more
Sell if holding. Analyst target reached at $105.70 — A.R:R is negative (-1.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 22.2): -1.5. Chart setup: Trend continuation, RSI 69, MACD bullish. Score 4.5/10, high confidence.
Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 81d 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)
Walmart accounted for 27% of The Clorox Company's $7.1 billion in fiscal 2025 net sales, consistent with its 25-26% share in prior years; the five largest customers collectively represented approximately half of annual consolidated sales across all four reporting segments. Clorox generated 86% of net sales from U.S. markets in fiscal 2025 and employed about 7,600 people worldwide. Cleaning products contributed 44% of consolidated net sales — the single largest category — with bags and wraps at 15%, food products at 12%, and cat litter at 10%.
Clorox sells branded products through mass retailers, grocery chains, warehouse clubs, dollar stores, hardware centers, and e-commerce channels. Over 80% of sales come from brands holding the No. 1 or No. 2 market share position in their categories. Key raw material inputs include resin, non-woven fabrics, sodium hypochlorite, corrugated cardboard, soybean oil, and agricultural commodities sourced from U.S. and international suppliers — some of which are sole source or single-source, introducing supply disruption risk. The company uses supply contracts and forward-purchase agreements to manage commodity price volatility, though it acknowledges being highly exposed to changes in commodity prices including as a result of new tariffs. In February 2025, Clorox announced the wind-down of its Glad bags and wraps joint venture with The Procter & Gamble Company, with Clorox acquiring P&G's 20% interest at termination by January 31, 2026. A planned ERP system upgrade is expected to complete in the U.S. during fiscal 2026, with total transformational investment estimated at $570 to $580 million.
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Walmart's 27% share of fiscal 2025 net sales — combined with the five largest customers accounting for approximately half of total revenue — concentrates Clorox in a small number of mass retailers with substantial shelf-space and pricing influence. The 10-K warns changes in large-customer strategies, such as shifting shelf space to private-label or demanding lower prices, may harm net sales or margins. In May 2026, the company disclosed via Form 8-K that CEO and Chair Linda Rendle will step down for health reasons, with the Board initiating a full CEO search while Ms. Rendle remains in role until a successor is named, adding leadership transition risk coinciding with the U.S. ERP implementation.
See also: Consumer Defensive · Household & Personal Products
From Clorox Company (The)'s most recent 10-K filing, extracted June 9, 2026.
Recent developments
updated 2026-08-15Recent 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 2026-08-15T10:44:19Z.
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Rating Breakdown
3 floor-breakers
Revenue shrinking — -2.0% YoY. Growth thesis broken unless recovery story develops.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.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 $105.70 — A.R:R is negative (-1.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 22.2): -1.5. Chart setup: Trend continuation, RSI 69, MACD bullish. Prior stop was $99.32. Score 4.5/10, high confidence.
Take-profit target: $121.55 (-13.4% upside). Prior stop was $99.32. Stop-loss: $99.32.
Analyst target reached - limited upside remaining; Leverage penalty (D/E 22.2): -1.5; Weak overall score: 4.5/10.
Clorox Company (The) trades at a P/E of 22.0 (forward 16.7). TrendMatrix value score: 5.2/10. 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, with fiscal 2025...
The Clorox Company is a multinational manufacturer and marketer of consumer and professional products, with fiscal 2025 net sales of $7.1 billion across four segments — Health and Wellness, Household, Lifestyle, and International — including brands like Clorox, Glad, Kingsford, Brita, Hidden Valley, and Burt's Bees. About 86% of net sales come from U.S. markets, and Walmart is the company's largest customer at 27% of consolidated net sales in fiscal 2025, with the top five customers together accounting for nearly half.