Clorox (CLX)
Consumer Staples · $12.8B market cap · SEC CIK 0000021076
ahead of 29% of the S&P 500 · #26 of 36 in Consumer Staples
Next reports on Feb 1, 2027, with analysts expecting $0.99 in earnings per share.
52-week range $79.12 to $128.90. 17% below its 52-week high and 35% above its low.
The case for CLX
- Pays a 3.4% dividend while you wait.
- Moves less than the market (beta 0.55).
The case against
- Pricey for its growth: 18.9× earnings, where 1% a year of growth plus a 3.4% dividend would justify about 14×.
- Revenue has shrunk 1.8% a year over five years.
- Earnings per share fell 12.9%.
- Current liabilities exceed current assets (ratio 0.65).
- Dividend takes 89% of earnings, leaving little cushion.
- Long-term debt of $2.5B against $167M of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Staples companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 56 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 23 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 58 |
| Momentumhow the price has behaved lately | 48 |
| Stabilityhow violently it moves, what it owes and what it pays you | 62 |
- Equity is a sliver of assets, so return on assets stands in for return on equity, and price-to-book and debt-to-equity are left out.
- Each factor except momentum is half fixed thresholds, half rank among the 36 Consumer Staples companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +6.3% |
|---|---|
| Over 5 years | −1.8% a year |
| FY2025 revenue | $7.1B (0%) |
Free cash flow
Is it generating real cash? Yes
| FY2025 free cash flow | $761M |
|---|---|
| Of revenue | 11% |
| Of profit | 94% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 42% |
|---|---|
| Operating margin | 12% |
| Net margin, FY24 → FY25 → now | 3.9% → 11.4% → 9.4% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $167M |
|---|---|
| Long-term debt | $2.5B |
| Net debt | $2.3B |
| Years to repay | 2.5 yrs |
Valuation
Is the stock price reasonable? A bit pricey
| P/E | 18.9× |
|---|---|
| Fair P/E for its growth | 14× |
| P/FCF | 16.8× |
| Forward P/E | 15.1× |
| EV / EBITDA | 19.2× |
At 18.9× earnings it trades above the 14× that 1% a year of growth plus a 3.4% dividend would justify. At 16.8× free cash flow it trades above that same mark.
The financials, five years deep
Pulled from Clorox's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $7.1B | $7.1B | $7.4B | $7.1B | $7.3B |
| Change on the year | 0% | −4% | +4% | −3% | — |
| Free cash flow | |||||
| Free cash flow | $761M | $483M | $930M | $535M | $945M |
| Of revenue | 11% | 7% | 13% | 8% | 13% |
| Profit margins | |||||
| Gross margin | 45.2% | 43.0% | 39.4% | 35.8% | 43.6% |
| Net margin | 11.4% | 3.9% | 2.0% | 6.5% | 9.7% |
| Debt vs. cash | |||||
| Cash | $167M | $202M | $367M | $183M | $319M |
| Long-term debt | $2.5B | $2.5B | $2.5B | $2.5B | $2.5B |
| Net cash (debt) | −$2.3B | −$2.3B | −$2.1B | −$2.3B | −$2.2B |
What Clorox says it does
Overview of Business The Clorox Company is a leading multinational manufacturer and marketer of consumer and professional products with fiscal year 2026 net sales of $6.7 billion and about 9,200 employees worldwide as of June 30, 2026. The Company has operations in approximately 25 countries or territories and sells its products in approximately 95 markets, primarily through mass retailers; grocery outlets; warehouse clubs; dollar stores; home hardware centers; drug, pet and military stores; third-party and owned e-commerce channels; and distributors. Clorox markets some of the most trusted and recognized consumer brand names, including Clorox ® cleaning and disinfecting products; Pine-Sol ® cleaner; Liquid-Plumr ® clog removers; Poett ® home care products; Glad ® bags and wraps; Fresh Step ® cat litter; Kingsford ® grilling products; Hidden Valley ® dressings, dips, seasonings and sauces; Brita ® water-filtration products; and Burt’s…
Risk factors CLX lists in its 10-K
- Unfavorable or uncertain global macroeconomic and geopolitical conditions beyond the Company's control could negatively impact its financial results
- Market and category declines and the Company’s product and geographic mix may adversely impact the Company’s ability to meet sales growth targets, profitability and financial results
- The Company faces intense competition in its markets, which could lead to reduced net sales, net earnings and cash flow
- The changing retail environment and changing consumer preferences could adversely affect the Company’s business, financial condition and results of operations
- The Company may not successfully execute or realize the anticipated benefits of its strategic or transformational initiatives
- Acquisitions, joint ventures, new venture investments and divestitures may not be successful, which could have an adverse effect on the Company’s business
- Harm to the Company’s reputation or the reputation of one or more of its leading brands or products could have an adverse effect on its business, financial condition and results of operations
- The Company may not be able to attract, develop or retain the highly skilled personnel needed to support its business
- Dependence on key customers could adversely affect the Company’s business, financial condition and results of operations
- Failure of key technology systems, cyberattacks, privacy breaches or data breaches could have a material adverse effect on the Company’s business, financial condition, results of operations and reputation
- Supply chain issues can result in product shortages or disruptions to the Company’s business
- The Company is subject to risks related to its international operations and international trade
- Reliance on third-party service providers could have an adverse effect on the Company's business
- Changes in government and tax regulations could have a material effect on the Company’s financial results
- Climate change and other sustainability issues may have an adverse effect on the Company's business, financial condition and results of operations and could damage its reputation
- Product liability and labeling claims, commercial claims or other legal proceedings could adversely affect the Company’s financial condition and results of operations
- Environmental matters create potential liabilities that could adversely affect the Company’s financial condition and results of operations
- The Company’s business could be negatively impacted as a result of shareholder activism or an unsolicited takeover proposal or a proxy contest