Clorox
CLX
$0.00
-0.06%
The Clorox Company is a leading global manufacturer and marketer of consumer products in the Household & Personal Products industry, operating through a diversified portfolio of well-known brands including its namesake bleach, Pine-Sol, Glad, Hidden Valley, Brita, and Burt's Bees. The company is a classic defensive consumer staples player, known for its strong brand equity and dominant market share in categories like cleaning, trash bags, and charcoal. The current investor narrative is dominated by a challenging turnaround story following a significant cyberattack and persistent inflationary pressures, which has led to a sharp stock price decline and questions about the company's ability to restore growth and margins, though its high dividend yield and status as a dividend aristocrat are attracting contrarian value and income investors.…
CLX
Clorox
$0.00
Related headlines
CLX 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Clorox's 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
5 analysts
Implied Upside
—
vs. current price
Analyst Count
5
covering this stock
Price Range
$0 - $0
Analyst target range
Analyst coverage for Clorox is limited, with only five analysts providing estimates, signaling reduced institutional interest which can contribute to higher volatility. The consensus sentiment is neutral to cautious, as evidenced by recent institutional ratings which are predominantly 'Hold', 'Neutral', or 'Equal-Weight', with one 'Underperform'. The average analyst target price is not provided in the dataset, so the implied upside or downside cannot be calculated, but the prevailing 'Hold' stance suggests analysts see limited near-term catalysts for outperformance. The target price range is also not specified, but the lack of bullish upgrades and the presence of an 'Underperform' rating indicate a wide dispersion of views, reflecting high uncertainty around the company's recovery timeline and the sustainability of its dividend amidst its high debt load. The minimal analyst coverage itself is a signal, often associated with stocks facing significant challenges, and it implies that investors must conduct deeper due diligence as the stock may be prone to inefficient price discovery.
Bulls vs Bears: CLX Investment Factors
The investment debate for Clorox is a classic battle between deep-value contrarianism and fundamental deterioration. The bear case currently holds stronger evidence, anchored by an unsustainable debt load (D/E of 8.97), stagnant revenue growth, and severe negative price momentum. However, the bull case is supported by compelling valuation compression (forward P/E of 15.1x), strong brand-driven cash flow ($778M FCF), and a high dividend yield near multi-year lows. The single most important tension is whether the company's robust free cash flow can be deployed effectively to reduce its crippling debt burden before a downturn threatens its liquidity or dividend, or whether operational challenges will continue to consume cash and perpetuate the downward spiral.
Bullish
- Strong Free Cash Flow Generation: The company generated $778 million in trailing twelve-month free cash flow, demonstrating its underlying ability to convert sales into cash. This robust cash flow supports the dividend and provides capital for debt reduction or reinvestment, a key positive in a turnaround scenario.
- Valuation at Multi-Year Lows: The stock trades at a forward P/E of 15.1x, near the lower end of its own volatile historical range. With the price down 27.34% over the past year and near an 11-year low, significant pessimism is already priced in, offering a potential margin of safety for contrarian investors.
- Resilient Brand Portfolio & Dividend: Clorox maintains a portfolio of leading household brands with over 80% of sales in the U.S., providing a stable revenue base. The company continues its dividend aristocrat status with a $1.24 quarterly payout, offering a yield of approximately 5.2% at the current price, which attracts income-focused investors.
- Significant Relative Underperformance: The stock's severe underperformance relative to the S&P 500 (-55.2% over one year) and its deep oversold condition suggest the potential for a technical rebound. The price is only 12.3% above its 52-week low of $84.70, indicating limited near-term downside if the low holds as support.
Bearish
- Extremely High Financial Leverage: The debt-to-equity ratio of 8.97 is alarmingly high, indicating a heavily leveraged balance sheet. This elevates financial risk, increases interest expense (most recent quarter: $28 million), and constrains strategic flexibility in a higher-rate environment.
- Stagnant Revenue & Growth Challenges: Recent quarterly revenue of $1.673 billion declined 0.77% year-over-year, following a volatile pattern. The lack of consistent top-line growth questions the company's ability to regain market share and pricing power post-cyberattack and amid competitive pressures.
- Poor Shareholder Returns & Liquidity Strain: Return on equity is a dismal 2.52%, reflecting the impact of high debt and compressed earnings. Furthermore, the current ratio of 0.84 indicates potential liquidity constraints, which could pressure operations and the dividend if cash flow weakens.
- Negative Momentum & Analyst Skepticism: The stock is down 23.05% over the past three months, showing persistent selling pressure. Analyst sentiment is cautious, with only five covering the stock and ratings predominantly 'Hold' or 'Neutral', signaling a lack of near-term catalysts and high uncertainty.
CLX Technical Analysis
The stock is in a pronounced and sustained downtrend, with a one-year price change of -27.34%, significantly underperforming the S&P 500's +27.88% gain over the same period. The current price of $95.11 is near the lower end of its 52-week range, trading approximately 28% above its 52-week low of $84.70 and 28% below its high of $132.03, indicating the stock is deeply oversold but has yet to find a durable bottom. Short-term momentum remains negative but shows signs of potential stabilization; the stock is down 1.80% over the past month and 23.05% over the past three months, though the 1-month decline is less severe than the 3-month drop, hinting at a possible deceleration in selling pressure. The stock's beta of 0.575 indicates it has been about 43% less volatile than the broader market, which is typical for a defensive staple but has not shielded it from severe fundamental-driven declines. Key technical support is firmly established at the 52-week low of $84.70, while initial resistance lies near the $110-$115 area from recent failed rallies; a sustained break below support could trigger another leg down, while a recovery above $110 would be the first sign of a potential trend reversal.
Beta
0.57
0.57x market volatility
Max Drawdown
-39.5%
Largest decline past year
52-Week Range
$85-$132
Price range past year
Annual Return
-27.3%
Cumulative gain past year
| Period | CLX Return | S&P 500 |
|---|---|---|
| 1m | -1.8% | +4.4% |
| 3m | -23.1% | +8.5% |
| 6m | -8.5% | +9.7% |
| 1y | -27.3% | +28.8% |
| ytd | -5.7% | +9.3% |
Bobby - Your AI Investment Partner
Get real-time data, AI-driven personalized investment analysis to make smarter investment decisions
CLX Fundamental Analysis
Revenue growth remains challenged, with the most recent quarterly revenue of $1.673 billion representing a slight year-over-year decline of -0.77%. This follows a volatile pattern, with revenue dipping to $1.429 billion in the prior quarter before recovering, indicating ongoing instability in the business's top-line recovery from prior disruptions. Profitability is under significant pressure, as evidenced by a trailing twelve-month net margin of 11.4% and a quarterly net income of $157 million; however, the quarterly gross margin of 43.16% and operating margin of 14.4% show some resilience, though they remain below historical peaks for the company. The balance sheet and cash flow present a mixed picture: the company generated $778 million in trailing twelve-month free cash flow, which is a positive sign of underlying cash generation, but this is overshadowed by a dangerously high debt-to-equity ratio of 8.97, indicating a heavily leveraged capital structure that elevates financial risk, especially in a higher interest rate environment. The current ratio of 0.84 suggests potential liquidity constraints, and the return on equity of 2.52% is exceptionally low, reflecting the impact of high debt and compressed earnings on shareholder returns.
Quarterly Revenue
$1.7B
2025-12
Revenue YoY Growth
+0.00%
YoY Comparison
Gross Margin
+0.43%
Latest Quarter
Free Cash Flow
$778000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
Open an Account, get $2 TSLA now!
Valuation Analysis: Is CLX Overvalued?
Given the company's positive net income, the primary valuation metric is the Price-to-Earnings (P/E) ratio. The stock trades at a trailing P/E of 18.3x and a forward P/E of 15.1x, with the forward multiple being lower, indicating the market expects some earnings recovery. Compared to the broader consumer defensive sector, which typically trades at lower multiples, Clorox's current P/E is not excessively high, but it must be weighed against its weak growth profile and high leverage. Historically, the stock's own valuation has compressed significantly; the current trailing P/E of 18.3x is near the lower end of its own historical range observed in recent quarters, which has seen extreme volatility with P/E ratios swinging from negative values to over 670x due to earnings volatility. Trading near the bottom of its historical P/E band suggests the market has already priced in substantial pessimism, potentially offering a value opportunity if the company can execute its turnaround, but it also reflects real fundamental deterioration that justifies a lower multiple.
PE
18.3x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range -98x~185x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
12.7x
Enterprise Value Multiple
Investment Risk Disclosure
Financial & Operational Risks are severe and center on balance sheet fragility. The debt-to-equity ratio of 8.97 is extreme for a consumer staples company, creating vulnerability to rising interest rates and limiting financial flexibility. While free cash flow of $778 million is positive, it must service this debt, fund the dividend (payout ratio ~74%), and cover capital expenditures. The current ratio of 0.84 signals potential liquidity strain, and revenue volatility—with a recent quarterly decline of 0.77% YoY—highlights an unstable recovery, increasing the risk that cash generation could falter.
Market & Competitive Risks include valuation compression and sector neglect. Although the forward P/E of 15.1x is not excessive, the stock's beta of 0.575 has not prevented a 27.34% annual decline, showing it is trading on idiosyncratic, fundamental risks rather than market movements. The stock faces competitive disruption from private label and newer entrants in its core categories, which could pressure the pricing power of its branded portfolio. Furthermore, reduced institutional interest, evidenced by only five analyst coverages, contributes to higher volatility and inefficient price discovery.
Worst-Case Scenario involves a failure of the turnaround, leading to a dividend cut and a liquidity crisis. A sequence of further market share loss, margin compression, and an earnings miss could trigger credit rating downgrades, making debt refinancing prohibitively expensive. This could force a dividend reduction—shattering the dividend aristocrat narrative—and lead to a fire-sale of assets. The realistic downside in this scenario is a retest and break of the 52-week low of $84.70, implying a potential loss of approximately -11% from the current price of $95.11. A more severe bear case, considering the stock's historical max drawdown of -39.5%, could see prices fall toward the $70s.
