Clorox
CLX
$97.68
-4.73%
The Clorox Company is a leading multinational manufacturer and marketer of consumer and professional products, with a portfolio spanning cleaning supplies, laundry care, trash bags, cat litter, charcoal, food dressings, water filtration, and natural personal care. Its iconic brands include Clorox, Pine-Sol, Glad, Kingsford, Hidden Valley, Brita, and Burt's Bees, making it a dominant player in the household and personal care industry. The company is currently navigating a challenging period marked by declining sales and margin pressures, but it remains a dividend aristocrat with a strong brand portfolio. Investors are closely watching its turnaround efforts, including cost-saving initiatives and portfolio optimization, as the stock trades near multi-year lows, presenting both risks and potential contrarian opportunities.…
CLX
Clorox
$97.68
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 $101.65 and implied upside of +4.1% versus the current price.
Average Target
$101.65
0 analysts
Implied Upside
+4.1%
vs. current price
Analyst Count
—
covering this stock
Price Range
$77 - $154
Analyst target range
Clorox is covered by 17 analysts, with a consensus recommendation of 'hold' and a mean rating of 3.21 (where 1 is strong buy and 5 is sell). The average target price is $101.65, which is slightly below the current price of $102.53, implying a marginal downside of -0.9%. The distribution of ratings is not provided, but the consensus leans neutral, with recent actions from major firms like Wells Fargo (Equal Weight), Barclays (Underweight), and JP Morgan (Underweight) indicating a cautious stance. The target price range is wide, from a low of $77.00 to a high of $154.00, reflecting significant uncertainty about the company's turnaround prospects. The high target assumes a successful recovery with margin expansion and revenue growth, while the low target prices in continued market share losses and margin compression. The wide spread suggests low conviction among analysts, and the recent downgrades (e.g., JP Morgan from Neutral to Underweight) highlight negative sentiment.
Bulls vs Bears: CLX Investment Factors
Clorox presents a classic value trap versus contrarian opportunity. The bull case rests on a cheap valuation (12% discount to peers), a high dividend yield, and defensive characteristics, while the bear case is driven by stagnant revenue, negative momentum, and analyst skepticism. Currently, the bearish evidence is stronger due to the lack of growth catalysts and the stock's persistent underperformance. The most critical tension is whether the company's cost-saving initiatives and portfolio optimization can reignite revenue growth; if they succeed, the stock could re-rate higher, but if they fail, the dividend may be at risk.
Bullish
- Attractive Valuation with 12% Discount to Peers: CLX trades at a trailing PE of 19.80x, which is 12% below the industry average of 22.5x. This discount, combined with a forward PE of 16.30x, suggests the market is pricing in earnings growth, making the stock potentially undervalued relative to its sector.
- High Dividend Yield of 5.18%: The stock offers a dividend yield of 5.18%, well above the S&P 500 average of ~1.3%. As a dividend aristocrat with a 5.7% yield at recent lows, income investors are provided with a substantial income stream while waiting for a turnaround.
- Strong Gross Margin of 42.3%: Clorox maintains a robust gross margin of 42.3%, indicating solid pricing power and brand strength. This margin provides a buffer against input cost inflation and supports profitability even during revenue stagnation.
- Low Beta of 0.541 Provides Defensive Characteristics: With a beta of 0.541, CLX is significantly less volatile than the market, offering portfolio stability. This defensive nature is appealing for risk-averse investors, especially during economic uncertainty.
Bearish
- Stagnant Revenue Growth of 0.12% YoY: The most recent quarter (Q3 FY2026) reported revenue of $1.67 billion, essentially flat year-over-year with a growth rate of just 0.12%. This lack of top-line growth signals market share losses and limited pricing power, undermining the investment thesis.
- Negative Relative Strength vs. S&P 500: Over the past year, CLX has declined 13.07% while the S&P 500 gained 18.56%, resulting in a relative strength of -31.63%. This significant underperformance indicates persistent selling pressure and a lack of investor confidence.
- Analyst Consensus is 'Hold' with Downside to Target: The average analyst target price is $101.65, which is 0.9% below the current price of $102.53. With a mean rating of 3.21 (hold) and recent downgrades from JP Morgan and Barclays, the sell-side sees limited upside.
- High Payout Ratio of 102.6%: The dividend payout ratio is 102.6%, meaning the company is paying out more than its earnings. This is unsustainable in the long run and could force a dividend cut if earnings do not recover, posing a significant risk to income investors.
CLX Technical Analysis
The stock is in a clear downtrend over the past year, with a 1-year price change of -13.07%, significantly underperforming the S&P 500's +18.56% gain. The current price of $102.53 sits at 28.4% of its 52-week range (between $84.70 and $128.90), indicating it is closer to the low end, which often suggests either a value opportunity or a falling knife. The stock has been range-bound between roughly $85 and $108 over the last six months, with a recent recovery from the May low of $86.12, but it remains well below its 52-week high of $128.90.
Beta
0.54
0.54x market volatility
Max Drawdown
-32.3%
Largest decline past year
52-Week Range
$85-$129
Price range past year
Annual Return
-17.4%
Cumulative gain past year
| Period | CLX Return | S&P 500 |
|---|---|---|
| 1m | +2.3% | +2.7% |
| 3m | +9.0% | +1.0% |
| 6m | -16.8% | +12.0% |
| 1y | -17.4% | +18.9% |
| ytd | -3.1% | +12.5% |
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CLX Fundamental Analysis
Revenue has been stagnant, with the most recent quarter (Q3 FY2026) showing $1.67 billion, essentially flat YoY with a growth rate of 0.12%. Over the past year, revenue has fluctuated between $1.43 billion and $1.99 billion, with the latest quarter showing a slight sequential increase from Q2's $1.673 billion but a decline from Q4 FY2025's $1.988 billion. The company's revenue growth has been decelerating, with the most recent quarter's growth rate of 0.12% down from 0.12% in the prior quarter, indicating a stagnation in top-line growth. Segment-wise, Health and Wellness is the largest segment at $629 million, followed by Household at $482 million, International at $285 million, and Lifestyle at $277 million, but growth data is not available for these segments.
Quarterly Revenue
$1.7B
2026-03
Revenue YoY Growth
+0.1%
YoY Comparison
Gross Margin
43.2%
Latest Quarter
Free Cash Flow
$380000000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is CLX Overvalued?
Given that Clorox has positive net income, the PE ratio is the most appropriate valuation metric. The trailing PE is 19.80x, while the forward PE is 16.30x, indicating that the market expects earnings growth. The gap between trailing and forward PE suggests an expected earnings increase of about 17.7% over the next year. Compared to the industry average PE of 22.5x (from valuation data), Clorox trades at a discount of 12%, which could be justified by its lower growth prospects relative to peers. Historically, the stock's PE has ranged from 11.12x to 182.03x over the past few years, with the current trailing PE of 19.80x being near the lower end of that range, suggesting the stock is relatively cheap compared to its own history.
PE
19.8x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 11x~78x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
18.5x
Enterprise Value Multiple
Investment Risk Disclosure
Financial risks are significant. The company's debt-to-equity ratio stands at 61.3%, indicating a moderate leverage level, but the current ratio of 0.66 suggests potential liquidity concerns. Free cash flow is only $380 million TTM, which barely covers the dividend (payout ratio 102.6%), leaving little room for error. If earnings decline further, the dividend could be cut, which would likely trigger a sell-off. Additionally, the operating margin of 24.7% is healthy, but it has been volatile, and any input cost inflation could compress margins further.