CLX

Business profile & competitive position

The Clorox Company operates in the Consumer Defensive sector, specifically the Household & Personal Products industry. It is a multinational manufacturer and marketer of consumer and professional products, reporting fiscal 2026 net sales of $6.7 billion and employing roughly 9,200 people across approximately 25 countries, with sales reaching about 95 markets. Its consumer-facing portfolio includes Clorox, Pine-Sol, Glad, Fresh Step, Kingsford, Hidden Valley, Brita, and Burt’s Bees, while its professional division sells under the Purell, CloroxPro, and Clorox Healthcare brands. In April 2026, Clorox completed the acquisition of GOJO Industries, adding hand-hygiene assets and expanding its business-to-business health and hygiene footprint.

From a numerical standpoint, the company’s competitive position is mixed. Its 8.7% net margin is respectable for a staples business but not unusually wide, suggesting pricing power that is solid rather than exceptional. The stock’s beta of 0.58 confirms the defensive, low-volatility profile typical of household-products companies. The most jarring figure is ROE of -1,893.5%; that magnitude almost certainly reflects a deeply negative book-equity base—often the result of share buybacks, write-downs, or leverage—rather than a catastrophic collapse in operations. Because ROE is distorted by the equity denominator, it is not a clean signal of competitive moat. The customer-concentration data is more straightforward: Walmart accounted for 26% of FY2026 consolidated net sales, and the five largest customers represented about half. That concentration gives large retailers meaningful negotiating leverage and is a material constraint on pricing power.

Financial posture

As of the current snapshot, Clorox carries a market capitalization of $10.8 billion, trades at a P/E of 18.5, and fetches $89.15 per share. The 8.7% net margin and 0.58 beta reinforce the company’s identity as a mature, cash-generating consumer staples operator. The negative ROE of -1,893.5% is structurally problematic as a valuation input and should be read alongside the balance sheet rather than as a profitability verdict. At the same time, the stock is hovering just above its 50-day EMA of $88.52, with an RSI of 56.6, which points to neither overbought nor oversold technical conditions.

At 18.5x earnings, the valuation sits in a range that investors often associate with steady but not high-growth consumer names. The modest margin and single-digit top-line scale (relative to mega-cap peers) suggest that the multiple is being driven more by defensive cash-flow expectations than by aggressive expansion premiums. The company’s capital structure—notably whatever is producing the extreme negative ROE—deserves attention, because it can affect dividend capacity, acquisition flexibility, and interest-rate sensitivity even when operating margins look normal.

Strategic priorities & outlook

Clorox’s most recent 10-K frames its operational agenda around the IGNITE strategy, built on four choices: fueling long-term profitable growth, innovating consumer experiences, reimagining how the company and its people work, and continuously evolving the product portfolio. Near-term execution centers on completing and optimizing a new enterprise resource planning (ERP) system and a broader digital transformation aimed at long-term efficiencies across supply chain, digital commerce, innovation, and brand building.

The company also plans to invest in strong brands, strategic digital capabilities, and a streamlined operating model to build resilience and deliver consistent, profitable growth. Health and hygiene expansion remains a priority, including integrating the GOJO acquisition and growing professional and institutional markets. Operationally, fiscal 2026 was a reset year: organic sales and earnings declined, and diluted EPS fell 26%, partly due to macroeconomic headwinds and ERP-transition timing that had pulled some sales into fiscal 2025. A portfolio milestone occurred on January 31, 2026, when the Glad bags and wraps venture with Procter & Gamble expired; Clorox purchased P&G’s 20% interest, while Glad retained core intellectual-property licenses on a royalty-free basis.

Macro & geopolitical exposure

As a Household & Personal Products business, Clorox is exposed to a basket of macro factors that shape costs, demand, and regulatory risk. Input commodities—resins, pulp, chemicals, and packaging materials—can move with oil prices and forestry markets, directly influencing gross margins. Freight, warehousing, and labor costs affect the cost structure from factory to shelf. Because the company sells in roughly 95 markets, currency translation is a recurring consideration, with a stronger U.S. dollar pressuring reported international revenue and a weaker dollar providing a tailwind.

Regulatory exposure is meaningful: disinfectants, healthcare products, and personal-care items face oversight from bodies such as the EPA and FDA, as well as evolving rules around ingredient disclosure, sustainability, and plastic packaging. Trade policy and tariffs on imported raw materials or finished goods can also shift cost curves, while customer concentration makes the company sensitive to inventory reductions or promotional demands from major retailers. Consumer trade-down into private-label alternatives during periods of economic stress is an additional demand-side risk typical of the sector.

Recent developments

Recent headlines show investor attention focused on valuation, dividend safety, and the upcoming quarterly report:

• 2026-11-02 — ADRNY or CLX: Which Is the Better Value Stock Right Now? (zacks.com)
• 2026-11-01 — Clorox vs. Procter & Gamble: Which Dividend Is Safer for Retirement? (247wallst.com)
• 2026-10-30 — Clorox: Valuation Bleached Clean (seekingalpha.com)
• 2026-10-30 — Clorox's Q1 Earnings Coming Up: Key Insights for Investors (zacks.com)

Clorox is scheduled to report next earnings on 2026-11-02 after the market closes, with the current consensus EPS estimate at $1.07.

Earnings behavior & post-earnings drift

Over the last eight reported quarters, Clorox has beaten earnings estimates 6 out of 8 times, for a 75% beat rate, with an average earnings surprise of 9.6%. The average five-day price move after those reports has been +1.67%, classified as an upward post-earnings drift.

The most recent four quarters illustrate how beats and misses do not always map cleanly onto immediate price direction:

• 2026-08-03: EPS of $1.66 vs. estimate $1.64, a 1.2% surprise. The stock rose 6.52% the next day and 9.61% over the following five days.
• 2026-04-30: EPS of $1.64 vs. estimate $1.55, a 5.8% surprise. Despite the beat, the stock fell 9.67% the next day and 4.49% over five days.
• 2026-02-03: EPS of $1.39 vs. estimate $1.43, a -2.8% miss. The stock still gained 2.43% the next day and 5.63% over five days.
• 2025-11-03: EPS of $0.85 vs. estimate $0.818, a 3.9% surprise. The stock rose 1.17% the next day but drifted -4.08% over five days.

That pattern highlights the difference between the earnings print and the reaction: guidance, margin commentary, and macro context can override the headline beat or miss. With the next report due on 2026-11-02 after the close and consensus at $1.07, the historical beat rate and positive average drift offer a reference point, but recent individual reactions show substantial variance.

For a deeper dive into institutional ratings, detailed risk factors, and the full consensus view on Clorox, investors can explore the complete institutional verdict for CLX.