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
Pillars as of Jul 3, 2026, based on the 10-K filed Aug 7, 2026
Clorox Company (The) (CLX) Stock Analysis
Recovery setup
Consumer Defensive · Household & Personal Products
Sell if holding. Analyst target reached at $86.84 — A.R:R is negative (-0.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: sole source or single-source suppliers.
The Clorox Company, founded in Oakland in 1913, makes consumer and professional products including Clorox, Pine-Sol, Glad, Fresh Step, Kingsford, Hidden Valley, Brita and Burt's Bees, plus Purell after the April 2026 GOJO acquisition. It reported fiscal 2026 net sales of $6.7... Read more
Sell if holding. Analyst target reached at $86.84 — A.R:R is negative (-0.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: sole source or single-source suppliers. Chart setup: Death cross but MACD improving, RSI 63. Score 4.6/10, high confidence.
Passes 6/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 4d<=7d. Suitability: moderate.
About Clorox Company (The)
About Clorox Company (The)
The Clorox Company reported fiscal 2026 net sales of $6.7 billion, with Walmart Stores, Inc. and its affiliates at 26% of consolidated net sales and the five largest customers together at about half. The company employs about 9,200 people, operates in approximately 25 countries or territories, and sells in approximately 95 markets. Over 80% of its sales come from brands holding the No. 1 or No. 2 market share position in their categories, and cleaning products were 44% of net sales in each of fiscal 2026 and 2025.
Clorox sells through mass retailers, grocery outlets, warehouse clubs, dollar stores, home hardware centers, drug, pet and military stores, e-commerce channels and distributors. The portfolio includes Clorox cleaning and disinfecting products, Pine-Sol, Liquid-Plumr, Glad bags and wraps, Fresh Step cat litter, Kingsford grilling products, Hidden Valley dressings, Brita water filtration and Burt's Bees, plus professional lines such as CloroxPro and Clorox Healthcare. In April 2026 the company completed the acquisition of GOJO, which now operates as Clorox Purell and adds a B2B distribution network and a large installed base of dispensing systems. Diluted EPS fell 26% in fiscal 2026 on lower net sales and higher manufacturing and logistics costs, after an ERP system implementation, completed in January 2026, pulled certain sales into the prior year. The venture agreement with Procter & Gamble for Glad expired January 31, 2026, requiring the company to purchase P&G's 20% interest at fair value. Key raw materials include resins, non-woven fabrics for wipes and sodium hypochlorite, and the filing says some suppliers are sole source or single-source.
Show full overview
Retailer and supplier concentration form the central lens. The 10-K shows Walmart at 26%, 27% and 25% of net sales across fiscal 2026, 2025 and 2024, spread across all reportable segments, and no other customer reached 10%. Because the five largest customers account for about half of net sales, shifts in their shelf space, pricing demands or inventory timing could weigh on results, as the ERP-related retailer pre-orders in fiscal 2025 illustrated. Interruptions in deliveries from sole-source or single-source suppliers could adversely impact the company.
See also: Consumer Defensive · Household & Personal Products
From Clorox Company (The)'s most recent 10-K filing, extracted October 18, 2026.
Recent developments
updated 2026-10-29Recent 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 2026-10-29T11:08:50Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerWalmart Stores largest customer26%10-K Item 1: 'Walmart Stores, Inc. and its affiliates, were 26%, 27% and 25% of consolidated net sales for each of the fiscal years ended June 30, 2026, 2025 and 2024'
- MEDIUMCustomerfive largest customers10-K Item 1: 'five largest customers accounted for about half of the'
- HIGHSuppliersole source or single-source suppliers10-K Item 1: 'some of which are sole source or single-source suppliers'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
3 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
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 $86.84 — A.R:R is negative (-0.0) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: sole source or single-source suppliers. Chart setup: Death cross but MACD improving, RSI 63. Prior stop was $82.54. Score 4.6/10, high confidence.
Analyst target $86.72 reached (−0.1% from $86.84); no take-profit level is published. Prior stop was $82.54. Stop-loss: $82.54.
Concentration risk — Supplier: sole source or single-source suppliers; Analyst target reached - limited upside remaining; V7 low-quality RISK_OFF penalty: -0.5 (Q=4.8).
Clorox Company (The) trades at a P/E of 18.1 (forward 14.2). TrendMatrix value score: 6.4/10. Verdict: Sell.
27 analysts cover CLX with a consensus score of 2.7/5. Average price target: $96.
What does Clorox Company (The) do?The Clorox Company, founded in Oakland in 1913, makes consumer and professional products including Clorox, Pine-Sol,...
The Clorox Company, founded in Oakland in 1913, makes consumer and professional products including Clorox, Pine-Sol, Glad, Fresh Step, Kingsford, Hidden Valley, Brita and Burt's Bees, plus Purell after the April 2026 GOJO acquisition. It reported fiscal 2026 net sales of $6.7 billion and sells in approximately 95 markets, mainly through mass retailers. Walmart was 26% of net sales, and the five largest customers about half.