Clorox Co /De/ (CLX) Stock Analysis and Metrics

Clorox

NYSE: CLX

$97.43 ▲ +1.88 (+1.96%)

At close: Jul 27, 2026 · 3:59 PM UTC

Financial Ratios

Market Cap11.85 Bn

P/E15.38

P/S1.75

Div. Yield0.05

Total Debt (Qtr)2.49 Bn

Revenue Growth (1y) (Qtr)0.12

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About

The Clorox Company is a leading multinational manufacturer and marketer of consumer and professional products. It reported fiscal year 2025 net sales of $7.1 billion and employed approximately 7,600 people worldwide as of June 30, 2025. The company operates in about 25 countries and sells its products in roughly 100 markets through mass retailers, grocery outlets, warehouse clubs, dollar stores, home hardware centers, drug, pet and military stores, ecommerce channels and distributors. Clorox markets a broad portfolio of trusted brands spanning cleaning, disinfecting, household, lifestyle and professional categories.

The company generates revenue primarily from the sale of its well known brands across cleaning, household, lifestyle and professional categories. In fiscal year 2025, cleaning products accounted for 44% of net sales, bags and wraps for 15%, food products for 12% and cat litter for 10%. Key product lines include Clorox bleach and disinfectants, Pine‑Sol and Tilex cleaners, Liquid‑Plumr clog removers, Glad bags and wraps, Fresh Step and Scoop Away cat litter, Kingsford grilling products, Hidden Valley dressings and sauces, Brita water filtration systems and Burt’s Bees natural personal care items. The company also sells professional cleaning and disinfecting solutions under the CloroxPro and Clorox Healthcare brands to institutional, janitorial, food service and healthcare customers. Its products are distributed through mass retailers, grocery outlets, warehouse clubs, dollar stores, home hardware centers, drug, pet and military stores, ecommerce channels and distributors.

The company operates through three non geographic reportable segments: Health and Wellness, Household and Lifestyle. These segments are defined by product category rather than geography. A fourth reportable segment, International, covers sales outside the United States and is excluded here per the non geographic focus.

• Health and Wellness: This segment provides home care cleaning and disinfecting products, laundry additives, professional cleaning and disinfecting products, and professional food service products under brands such as Clorox, Clorox2, Pine‑Sol, Scentiva, Tilex, Liquid‑Plumr, Formula 409, CloroxPro, Clorox Healthcare and Hidden Valley.

• Household: This segment offers bags and wraps, cat litter, and grilling products under the Glad, Fresh Step, Scoop Away and Kingsford brands.

• Lifestyle: This segment provides food items, water filtration products, and natural personal care products under the Hidden Valley, Brita and Burt’s Bees brands.

Clorox holds a strong competitive position with over 80% of its sales coming from brands that rank number 1 or 2 in their respective categories. The company faces competition from other nationally advertised brands, private label offerings and large multinational consumer goods firms, as well as from retailers such as club stores, grocery chains, drugstores, dollar stores, mass merchandisers and ecommerce platforms. Competition is based on product performance, brand recognition, price and innovation. Clorox’s advantages include a powerful brand portfolio, a history of innovation, strong sustainability commitments and ongoing investments in digital transformation that improve supply chain efficiency and customer engagement.

The company serves a diverse customer base that includes mass retailers, grocery outlets, warehouse clubs, dollar stores, home hardware centers, drug, pet and military stores, third party and owned ecommerce channels and distributors. Its largest individual customer is Walmart Stores, Inc. and its affiliates, which accounted for approximately 27% of consolidated net sales in fiscal year 2025. The five largest customers together represent nearly half of the company’s sales. Professional customers are reached through a direct sales force and a network of brokers supplying institutional, janitorial, food service and healthcare accounts.

Investment Thesis

▲ Bull case

The ERP implementation, though initially disruptive, has now been fully completed and stabilized, creating a stronger operational foundation that enables Clorox to execute its growth strategy more effectively in fiscal year 2027 and beyond, despite not being heavily emphasized by management during the earnings call as a near-term headwind; this foundational upgrade improves data visibility, supply chain responsiveness, and order-to-cash efficiency, which are critical for innovation velocity and promotional effectiveness, and the company noted that incremental costs from the ERP have already begun to decline toward the end of Q3 and are expected to be minimal in Q4, signaling that the worst of the disruption is over and the benefits of enhanced operational discipline are poised to materialize in the coming quarters as innovation hits shelf and distribution gains translate into sales.
Innovation across Clorox’s portfolio remains a significant and underappreciated catalyst, with several new product launches showing strong early performance that management acknowledged but did not fully connect to future share gains; specifically, Clorox PURE (allergen platform) has secured preferred shelf placement and is generating velocity above expectations, Hidden Valley Ranch Dippers are rolling out nationally with strong protein-forward appeal meeting growing consumer demand, and Glad’s new absorbent layer trash bags and scent innovations are gaining traction, all of which represent high-margin, differentiated offerings that can drive premium pricing and share growth in categories where private label has remained flat, indicating that the innovation pipeline is not only robust but beginning to convert into measurable commercial success.
The acquisition of GOJO (now Clorox Purell), while initially dilutive to gross margin in year one, is a strategic accelerator for Clorox’s IGNITE strategy, providing immediate scale and profitable growth in the high-margin health and hygiene category, with the business adding $800 million in sales growing at mid-single digits, contributing approximately 3% to Clorox’s full-year revenue and delivering EBITDA neutrality in year one with clear pathways to accretion through $50 million in run-rate cost synergies, and management’s confidence in the integration is high due to retained leadership and dedicated integration resources, positioning the acquisition to become a meaningful contributor to both top-line growth and margin expansion starting in fiscal year 2028, a timeline that was not emphasized during the call but is supported by the company’s stated plan to deliver revenue and cost synergies beginning in year two.
Clorox is actively leveraging revenue growth management (RGM) and price pack architecture (PPA) as a tactical lever to respond to competitive pressures and consumer value perception, with concrete examples including the Glad 80-count trash bag price adjustment that restored value superiority and drove share gains, and ongoing tests in market for similar RGM actions across other brands; this disciplined, data-driven approach to pricing and pack sizing allows Clorox to avoid broad-based price increases that could alienate cost-conscious consumers while still protecting margin and driving share, and the fact that these initiatives are already live in Q4 and planned for expansion in fiscal year 2027 suggests an underappreciated ability to dynamically optimize profitability without sacrificing volume growth in a volatile cost environment.
Despite near-term headwinds from elevated oil prices and supply chain costs, Clorox’s underlying categories remain resilient, with consumer behavior showing continued brand loyalty and willingness to pay for value in forms such as convenience, premium scents, and larger pack sizes, as evidenced by strong performance in Scentiva (Cherry Blossom as #1 scent), Glad trash share gains, and Hidden Valley’s return to share growth this quarter; management noted that private label shares have not increased meaningfully and that consumers are still shopping for brands, indicating that the core demand for Clorox’s portfolio is intact and that the company’s focus on innovation, shelf execution, and value superiority is well-aligned to capture growth as macro pressures ease, a dynamic that was acknowledged but not framed as a medium-term tailwind for fiscal year 2027.

The ERP implementation, though initially disruptive, has now been fully completed and stabilized, creating a stronger operational foundation that enables Clorox to execute its growth strategy more effectively in fiscal year 2027 and beyond, despite not being heavily emphasized by management during the earnings call as a near-term headwind; this foundational upgrade improves data visibility, supply chain responsiveness, and order-to-cash efficiency, which are critical for innovation velocity and promotional effectiveness, and the company noted that incremental costs from the ERP have already begun to decline toward the end of Q3 and are expected to be minimal in Q4, signaling that the worst of the disruption is over and the benefits of enhanced operational discipline are poised to materialize in the coming quarters as innovation hits shelf and distribution gains translate into sales.
Innovation across Clorox’s portfolio remains a significant and underappreciated catalyst, with several new product launches showing strong early performance that management acknowledged but did not fully connect to future share gains; specifically, Clorox PURE (allergen platform) has secured preferred shelf placement and is generating velocity above expectations, Hidden Valley Ranch Dippers are rolling out nationally with strong protein-forward appeal meeting growing consumer demand, and Glad’s new absorbent layer trash bags and scent innovations are gaining traction, all of which represent high-margin, differentiated offerings that can drive premium pricing and share growth in categories where private label has remained flat, indicating that the innovation pipeline is not only robust but beginning to convert into measurable commercial success.
The acquisition of GOJO (now Clorox Purell), while initially dilutive to gross margin in year one, is a strategic accelerator for Clorox’s IGNITE strategy, providing immediate scale and profitable growth in the high-margin health and hygiene category, with the business adding $800 million in sales growing at mid-single digits, contributing approximately 3% to Clorox’s full-year revenue and delivering EBITDA neutrality in year one with clear pathways to accretion through $50 million in run-rate cost synergies, and management’s confidence in the integration is high due to retained leadership and dedicated integration resources, positioning the acquisition to become a meaningful contributor to both top-line growth and margin expansion starting in fiscal year 2028, a timeline that was not emphasized during the call but is supported by the company’s stated plan to deliver revenue and cost synergies beginning in year two.
Clorox is actively leveraging revenue growth management (RGM) and price pack architecture (PPA) as a tactical lever to respond to competitive pressures and consumer value perception, with concrete examples including the Glad 80-count trash bag price adjustment that restored value superiority and drove share gains, and ongoing tests in market for similar RGM actions across other brands; this disciplined, data-driven approach to pricing and pack sizing allows Clorox to avoid broad-based price increases that could alienate cost-conscious consumers while still protecting margin and driving share, and the fact that these initiatives are already live in Q4 and planned for expansion in fiscal year 2027 suggests an underappreciated ability to dynamically optimize profitability without sacrificing volume growth in a volatile cost environment.
Despite near-term headwinds from elevated oil prices and supply chain costs, Clorox’s underlying categories remain resilient, with consumer behavior showing continued brand loyalty and willingness to pay for value in forms such as convenience, premium scents, and larger pack sizes, as evidenced by strong performance in Scentiva (Cherry Blossom as #1 scent), Glad trash share gains, and Hidden Valley’s return to share growth this quarter; management noted that private label shares have not increased meaningfully and that consumers are still shopping for brands, indicating that the core demand for Clorox’s portfolio is intact and that the company’s focus on innovation, shelf execution, and value superiority is well-aligned to capture growth as macro pressures ease, a dynamic that was acknowledged but not framed as a medium-term tailwind for fiscal year 2027.

▼ Bear case

The litter category transformation, particularly the reinvention of Fresh Step, is proving far more challenging and prolonged than management acknowledged, with the company admitting that the transition requires consumers to relearn purchasing behavior due to changed UPCs, names, claims, and pack sizes, and while distribution gains were in line with expectations, shelf placement remains suboptimal in key retailers, directly impacting velocity and conversion; this is not a temporary setback but a multi-year effort to rebuild share in a category with exceptionally strong tailwinds, and the fact that Clorox is still in the early stages of mapping consumers to new SKUs after a complete product overhaul suggests that the business will continue to underperform through fiscal year 2027, dragging on overall results despite strength elsewhere.
Gross margin pressure is structural and more persistent than management indicated, with the current outlook showing a full-year decline of 250 to 300 basis points driven by multiple overlapping headwinds — including 150 basis points from lapping prior-year ERP-related operating leverage, 200 basis points from the GOJO acquisition (50 basis points of ongoing dilution and 150 basis points of one-time inventory step-up), and 100 to 150 basis points from elevated input costs tied to Middle East conflict-related oil prices — and while some components are labeled as one-time, the cumulative effect creates a sustained margin drag that will not fully reverse in fiscal year 2027, especially given that cost savings are being delayed to fund ERP stabilization and that the company has not yet demonstrated its ability to offset these pressures through pricing or productivity in a meaningful way.
Innovation, while strong in certain areas like Clorox PURE and Glad, is not translating into broad-based category growth due to inconsistent execution and shelf readiness, as highlighted by the litter business where distribution gains did not align with proper shelf placement, and by admissions that velocities remain weak despite increased TDPs, indicating that the company is gaining distribution but failing to convert it into sales due to poor on-shelf execution — a critical gap that management acknowledged requires ongoing work with retailers but did not frame as a systemic issue, raising concerns that increased innovation spend may not yield proportional returns if shelf execution and consumer education lag behind product launches.
The Food segment, particularly Hidden Valley, remains under sustained pressure from both competitive dynamics and secular consumer trends, with management admitting that the category declined mid-single digits in Q3 — worse than the low single-digit decline they had anticipated — due to high promotional intensity from competitors and ongoing headwinds from GLP-1-related shifts in eating behavior, and while the company has responded with product innovation like the Ranch Dippers and a return to the traditional 16-ounce bottle, these actions are still in early rollout and have not yet reversed the category trend, suggesting that the business may continue to lose share and relevance in a declining dressed-and-dip category unless innovation accelerates significantly, a risk that was not fully addressed in the call despite the segment’s importance to the portfolio.
The CEO transition following Linda Rendle’s announcement to step down for health reasons introduces significant near-term uncertainty and potential execution risk, as her departure — while planned and orderly — removes a leader who has been central to driving the ERP stabilization, innovation acceleration, and portfolio reshaping over the past six years, and although she will remain in an advisory role, the search for a successor could lead to strategic pauses, shifting priorities, or delays in key initiatives such as RGM expansion, cost-saving project acceleration, or integration of GOJO, especially given that the company is already navigating a complex cost environment and has not yet demonstrated consistent margin improvement, making leadership continuity a material risk to the execution of its fiscal year 2027 plan.

The litter category transformation, particularly the reinvention of Fresh Step, is proving far more challenging and prolonged than management acknowledged, with the company admitting that the transition requires consumers to relearn purchasing behavior due to changed UPCs, names, claims, and pack sizes, and while distribution gains were in line with expectations, shelf placement remains suboptimal in key retailers, directly impacting velocity and conversion; this is not a temporary setback but a multi-year effort to rebuild share in a category with exceptionally strong tailwinds, and the fact that Clorox is still in the early stages of mapping consumers to new SKUs after a complete product overhaul suggests that the business will continue to underperform through fiscal year 2027, dragging on overall results despite strength elsewhere.
Gross margin pressure is structural and more persistent than management indicated, with the current outlook showing a full-year decline of 250 to 300 basis points driven by multiple overlapping headwinds — including 150 basis points from lapping prior-year ERP-related operating leverage, 200 basis points from the GOJO acquisition (50 basis points of ongoing dilution and 150 basis points of one-time inventory step-up), and 100 to 150 basis points from elevated input costs tied to Middle East conflict-related oil prices — and while some components are labeled as one-time, the cumulative effect creates a sustained margin drag that will not fully reverse in fiscal year 2027, especially given that cost savings are being delayed to fund ERP stabilization and that the company has not yet demonstrated its ability to offset these pressures through pricing or productivity in a meaningful way.
Innovation, while strong in certain areas like Clorox PURE and Glad, is not translating into broad-based category growth due to inconsistent execution and shelf readiness, as highlighted by the litter business where distribution gains did not align with proper shelf placement, and by admissions that velocities remain weak despite increased TDPs, indicating that the company is gaining distribution but failing to convert it into sales due to poor on-shelf execution — a critical gap that management acknowledged requires ongoing work with retailers but did not frame as a systemic issue, raising concerns that increased innovation spend may not yield proportional returns if shelf execution and consumer education lag behind product launches.
The Food segment, particularly Hidden Valley, remains under sustained pressure from both competitive dynamics and secular consumer trends, with management admitting that the category declined mid-single digits in Q3 — worse than the low single-digit decline they had anticipated — due to high promotional intensity from competitors and ongoing headwinds from GLP-1-related shifts in eating behavior, and while the company has responded with product innovation like the Ranch Dippers and a return to the traditional 16-ounce bottle, these actions are still in early rollout and have not yet reversed the category trend, suggesting that the business may continue to lose share and relevance in a declining dressed-and-dip category unless innovation accelerates significantly, a risk that was not fully addressed in the call despite the segment’s importance to the portfolio.
The CEO transition following Linda Rendle’s announcement to step down for health reasons introduces significant near-term uncertainty and potential execution risk, as her departure — while planned and orderly — removes a leader who has been central to driving the ERP stabilization, innovation acceleration, and portfolio reshaping over the past six years, and although she will remain in an advisory role, the search for a successor could lead to strategic pauses, shifting priorities, or delays in key initiatives such as RGM expansion, cost-saving project acceleration, or integration of GOJO, especially given that the company is already navigating a complex cost environment and has not yet demonstrated consistent margin improvement, making leadership continuity a material risk to the execution of its fiscal year 2027 plan.

Geographical Breakdown of Revenue (2025)

Peer Comparison

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7	CHD	Church & Dwight Co Inc /De/	23.36 Bn	24.96	418.62	2.40 Bn
8	CLX	Clorox Co /De/	11.85 Bn	15.38	1.75	2.49 Bn

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Investment Thesis

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Geographical Breakdown of Revenue (2025)

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Investment Thesis

Segments Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer Comparison

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