One-glance verdict
Undervalued
$92.72 our estimate vs market $83.10
Wall Street consensus: $100.76 (8.7% higher than our fair-value estimate)
10% below our estimate, below the bear case
Fundamentals snapshot
The Clorox Company
CLX · NYQ · Consumer Defensive · Household & Personal Products
Current price
$83.10
52-week range
$83.09 - $128.90
Market cap
$10.05B
Balance sheet
Distressed
6.82x Adequate
Net debt $5.46B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 163.8% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Reward Trades at 17.3x P/E vs peer median 22.1x (21.9% cheaper).
- Risk Net debt grew 110.3% over 3 years.
What this company does
The Clorox Company
The Clorox Company sells many well-known household products you likely have at home, including Clorox bleach, Glad trash bags, Kingsford charcoal, and Burt's Bees lip balm. The company makes its money from the steady, year-round sales of these essential items that people need to buy repeatedly. This provides a relatively predictable business because customers tend to purchase these products no matter how the economy is doing.
How the company got here
Founded in 1913 as the Electro-Alkaline Company, Clorox started by making industrial-strength bleach. A key turn came when an early investor's wife suggested creating a less concentrated version for home use and gave away free samples, creating household demand. Over the decades, Clorox expanded beyond bleach by acquiring well-known brands like Kingsford charcoal, Hidden Valley ranch dressing, and Brita water filters. Major acquisitions of First Brands in 1999 (adding Glad bags and Scoop Away cat litter) and Burt's Bees in 2007 (entering the natural personal care market) significantly grew the company's size and product diversity.
What it actually does
The Clorox Company makes and sells a wide variety of products for both consumers and professionals that you likely see in stores every day. These range from its famous cleaning and disinfecting supplies to items for your kitchen, like trash bags and food dressings, and even personal care products. You'd recognize many of their brand names, such as Pine-Sol cleaners, Glad bags and wraps, Kingsford charcoal, Fresh Step cat litter, Brita water filters, and Burt's Bees lip balm. The company sells these items through many channels, including big-box stores, grocery stores, and online.
Health and Wellness
This is Clorox's largest business segment and focuses on products that clean, disinfect, and promote well-being. It includes the classic Clorox bleach and disinfecting wipes, as well as other cleaning brands like Pine-Sol and Formula 409. This segment also serves professional settings like hospitals with its CloroxPro and Clorox Healthcare lines. Following a recent acquisition, it now also includes Purell hand sanitizer, further strengthening its position in health and hygiene.
Household
This part of the company provides products that are staples in many homes, focusing on everyday chores and needs. It's built around well-known brands like Glad, which offers trash bags, food storage containers, and wraps. This segment also includes products for pet care, such as Fresh Step and Scoop Away cat litters. Another key product line is Kingsford charcoal, a leader in the grilling market.
Lifestyle
This segment groups together brands that cater to personal care and food. It features Burt's Bees, which offers natural skincare and beauty products. You'll also find Brita water-filtration products, like pitchers and filters, in this category. On the food side, this segment is responsible for Hidden Valley dressings, dips, and seasonings.
International
This segment is responsible for selling Clorox's products to customers outside of the United States. It markets and sells a variety of products from the company's other segments, sometimes under different brand names that are popular in local markets, like Poett and Clorinda cleaning products. While a smaller portion of the company's total business, it provides a way for Clorox to grow by reaching new customers around the world.
What management is betting on now
The company's current strategy, called IGNITE, focuses on growing its business by innovating and making a positive impact. A key part of this is expanding in areas that align with major consumer trends, such as health, wellness, and sustainability. For example, Clorox is committed to reducing plastic waste in its packaging and using 100% renewable electricity in its U.S. and Canadian operations. They are also investing in making their brands more purpose-driven to connect with consumers on a deeper level.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$259.00M
FY2025 Q1
$182.00M
FY2025 Q2
$127.00M
FY2025 Q3
$233.00M
FY2025 Q4
$219.00M
FY2026 Q1
$57.00M
FY2026 Q2
$269.00M
FY2026 Q3
$-165.00M
Revenue
$1.67B
Net income
$187.00M
Diluted EPS
1.54
Operating cash flow
$-122.00M
Free cash flow
$-165.00M
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Sources
Revenue
$1.67B
Net income
$157.00M
Diluted EPS
1.29
Operating cash flow
$311.00M
Free cash flow
$269.00M
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Sources
Revenue
$1.43B
Net income
$80.00M
Diluted EPS
0.65
Operating cash flow
$93.00M
Free cash flow
$57.00M
Fetching…
Sources
Revenue
$1.99B
Net income
$332.00M
Diluted EPS
2.68
Operating cash flow
$294.00M
Free cash flow
$219.00M
Fetching…
Sources
Revenue
$1.67B
Net income
$186.00M
Diluted EPS
1.50
Operating cash flow
$286.00M
Free cash flow
$233.00M
Fetching…
Sources
Revenue
$1.69B
Net income
$193.00M
Diluted EPS
1.54
Operating cash flow
$180.00M
Free cash flow
$127.00M
Fetching…
Sources
Revenue
$1.76B
Net income
$99.00M
Diluted EPS
0.80
Operating cash flow
$221.00M
Free cash flow
$182.00M
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Sources
Revenue
$1.90B
Net income
$216.00M
Diluted EPS
1.74
Operating cash flow
$340.00M
Free cash flow
$259.00M
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Sources
Is it cheap or expensive?
Fair value $92.72 vs current price $83.10
Wall Street consensus is the average analyst price target: $100.76 (8.7% higher than our fair-value estimate).
Our most-likely fair value is $92.72 a share — about 11.6% above today's price of $83.10, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $5.5B. Interest coverage 6.8x.
Net debt
$5.46B
Interest coverage
6.82x
The Clorox Company's profit covers its interest bill about 6.8 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
CLX
BASELINE
The Clorox Company
Total debt $5.60B Interest coverage 6.82x This is the baseline the peer rows are being compared against.
Total debt $35.02B Interest coverage 22.52x +230% vs CLX Carries about 3.3x more debt cushion than CLX.
Total debt $6.54B Interest coverage 9.18x +35% vs CLX Carries about 1.3x more debt cushion than CLX.
Total debt $7.86B Interest coverage 15.85x +133% vs CLX Carries about 2.3x more debt cushion than CLX.
Total debt $2.43B Interest coverage 11.32x +66% vs CLX Carries about 1.7x more debt cushion than CLX.
Total debt $36.90B Interest coverage 9.22x +35% vs CLX Carries about 1.4x more debt cushion than CLX.
What you should know
The case for and against CLX
3 Rewards
1 Risk
Rewards
-
Returns 163.8% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Trades at 17.3x P/E vs peer median 22.1x (21.9% cheaper).
Risks
-
Net debt grew 110.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.28x
Forward P/E
13.27x
P/B
111.69x
P/S
1.50x
EV/EBITDA
13.74x
PEG ratio
1.06x
Profitability
How much profit each dollar creates
Gross margin
42.3%
Operating margin
12.9%
Net margin
8.7%
ROE
163.8%
ROA
8.3%
Health
Liquidity and balance-sheet strength
Debt / equity
22.21x
Current ratio
0.66x
Quick ratio
0.34x
Total debt
$5.60B
Total cash
$143.00M
Growth
How the business has been compounding
Revenue TTM
$6.76B
Revenue 5Y CAGR
-0.8%
EPS TTM
4.81
EPS 5Y CAGR
8.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$576.00M
Free CF TTM
$761.00M
FCF margin
11.3%
Dividend
Shareholder payout
Yield
6.0%
Payout ratio
103.1%
Last ex-div date
2026-08-12