Start here if you're new
what it is
Clorox makes cleaning, disinfecting, trash, grilling, and wellness products for homes and businesses.
how it gets paid
Last year Clorox made $7.1B in revenue. Health & Wellness was the main engine at $2.8B, or 39% of sales.
why it's growing
Revenue grew 0.2% last year. EPS came in at $1.93, and revenue was up 85% vs. prior year.
what just happened
Clorox turned $3.1B of revenue into a 42.5% gross margin.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
60/100 earnings predictability — reasonably predictable
16.7x trailing p/e — the market's not buying it — or you found a deal
4.0% dividend yield — cash in your pocket every quarter
30.0% return on capital — every dollar works hard here
xvary composite: 59/100 — below average
What they do
Clorox makes cleaning, disinfecting, trash, grilling, and wellness products for homes and businesses.
Your kitchen and bathroom keep reordering the same names. Clorox runs at a 16.5% operating margin against 0.2% annual revenue growth. That gap says the brand still prints cash even when sales barely move.
How they make money
$7.1B
annual revenue · their business grew +0.2% last year
Health & Wellness
$2.8B
Household
$1.9B
Lifestyle
$1.4B
International
$1.0B
The products that matter
branded cleaning and household products
Cleaning & household goods
$7.1B revenue · +0.2% growth
it's effectively the whole company, generating $7.1B in annual sales with growth of just 0.2%. that's why this stock gets judged more on stability and margin than expansion.
entire story
Key numbers
$7.1B
annual sales
You are buying a $7.1B business that grew just 0.2% last year. That is a mature machine, not a sprint.
16.5%
operating margin
Every $100 of sales left $16.50 after running the business. That is the cushion that helps fund the dividend.
4.0%
dividend yield
Your cash payout is 4.0% while the stock carries a 0.65 beta. That is defense, not excitement.
30.0%
return on capital
The business earns 30 cents for each dollar of capital used. That is the clean sign the brand still pays rent.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 80 / 100
- long-term debt $2.5B (14% of capital)
- net profit margin 12.8% — keeps 13 cents of every dollar in revenue
- return on equity 96% — $0.96 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in CLX 3 years ago → it's now worth $9,000.
The index would have given you $14,540.
source: institutional data · total return
What just happened
beat estimates
Clorox turned $3.1B of revenue into a 42.5% gross margin.
EPS came in at $1.93, and revenue was up 85% vs. prior year. The clean read is that pricing and brand power are still doing work.
$3.1B
revenue
$1.93
eps
42.5%
gross margin
gross margin
The 42.5% gross margin matters because it shows how much room is left after product costs.
-
clorox has continued to struggle over the past few months.
-
the company registered weak results for the fiscal second quarter (year ends june 30th).
-
earnings per share plummeted 10% vs. prior year, while the top line came in relatively flat.
-
lower consumption and sales volume hurt results at some of its divisions, and ongoing expense controls only partially offset rising operating costs.
-
the company may well post soft results in fiscal 2026.tougher business conditions will probably persist over the next few months, and it may take some time before management’s efforts, including enterprise resource planning transition and other supply-chain improvements, take hold.
source: company earnings report, 2026
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What could go wrong
the top threat is ERP transition and supply-chain execution risk.
med
ERP transition and supply-chain execution risk
Management already told you the fix may take time. When a staples business is only growing 0.2%, operational friction shows up fast.
If the cleanup drags on, the hoped-for recovery stays a story instead of becoming a number.
med
input cost inflation
Raw materials, packaging, and freight do not need to spike dramatically to hurt results. The latest quarter's 43.2% gross margin is the line worth guarding.
A margin hit matters here because annual revenue grew just 0.2%. There is very little sales acceleration to hide behind.
med
consumer trade-down and volume softness
Clorox sells staples, but staples are not recession-proof at the premium end. The latest quarter already showed revenue down 1% from a year ago.
A slow bleed in volume can pressure both shelf space and pricing power over time.
On a $7.1B revenue base growing 0.2%, even modest execution or cost misses can matter more than a small change in demand.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
revenue growth stuck at +0.2%
That is barely growth on a $7.1B base. If this number does not improve, the income story stays more compelling than the equity story.
trend
gross margin after the 43.2% quarter
If margin holds while sales stay soft, earnings can stabilize. If margin slips too, the repair case weakens fast.
calendar
ERP and supply-chain milestones
Management already framed this as a multi-quarter fix. You want proof that the operational cleanup is becoming visible in the numbers.
risk
institutional selling streak
Three straight quarters of net selling is not fatal. It does tell you large holders have wanted less exposure, not more.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a stock drifting with the market, not leading it.
risk profile
average
stability score 3 — typical risk profile for a large, mature staples name. Safer than some. Not a bunker.
chart momentum
bottom 5%
technical score 5 — the lowest rating. The chart looks weak until the business gives investors a reason to care again.
earnings predictability
60 / 100
results are predictable enough for a staples company, but not so steady that you can stop watching margins and execution.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 336 buyers vs. 497 sellers in 4q2025. total institutional holdings: 99.7M shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$90
$146
$127
current price
$118
target midpoint · 7% from current · 3-5yr high: $240 (+90% · 20% ann'l return)
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