CLOROX CO /DE/ (CLX)

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AI: Fair-priced

Price checkAt $105.70, Clorox fairly balances recovery potential against debt and weak cash coverage.

MarketWatch recorded a $105.70 closing price on August 14. That equals 17.6–18.5 times management’s fiscal 2027 adjusted earnings guidance of $5.70–$6.00 per share; adjusted earnings exclude specified unusual costs. It is about 22 times trailing reported earnings of $4.81. The $5.00 annualized dividend yields 4.7%. Those figures are reasonable for durable household brands, but they offer limited bargain protection while acquisition debt is elevated and recent cash generation has not covered dividends.

Big pictureStable household demand supports sales, but profits and cash have proved surprisingly uneven.

Revenue barely changed from $7.11 billion in fiscal 2022 to $7.10 billion in 2025, yet net income ranged from $149 million to $810 million during 2023–2025. Fiscal 2025 free cash flow—cash left after operations and capital spending—was $761 million. For the first nine months of fiscal 2026, it fell to $161 million, below $452 million of dividends. Retailer inventory changes, grilling season, consumer trade-down and commodity costs make earnings more cyclical than the stable sales suggest.

Business strengthStrong brands and improving margins are offset by heavier debt and costly shareholder payouts.

Gross profit reached 45.2% of sales in fiscal 2025, recovering from 35.8% in 2022 and demonstrating pricing and cost-saving power. However, March 2026 debt was $4.08 billion against $1.19 billion of cash, leaving $2.89 billion of net debt before the April Purell-owner purchase used acquisition funding. Dividends consumed $602 million and buybacks another $332 million in fiscal 2025. Shares nevertheless declined 2.6% from June 2024 through March 2026, showing that repurchases more than offset employee-share dilution, but at a meaningful cash cost.

What could change the storyA lasting sales recovery and debt reduction could create value; another cash shortfall would not.

The bull case requires fiscal 2027 guidance to hold: 13%–14% reported sales growth, including 9.5 points from GOJO, and adjusted earnings of $5.70–$6.00 per share. The stronger proof would be at least roughly 3% growth excluding acquisitions and currency effects, free cash flow comfortably above the approximately $600 million dividend, and falling net debt. The bear case strengthens if weak consumer demand or higher manufacturing costs prevent that recovery. At $105.70, the price already assumes Purell integration succeeds and core brands regain momentum.

$105.70 price considered

AI: News

Annual results and outlookClorox beat quarterly forecasts, but next year’s profit guidance still demands a meaningful recovery.

On August 3, Clorox reported fiscal fourth-quarter revenue of $1.95 billion and adjusted earnings of $1.66 per share, modestly above forecasts. Earnings still fell 42% from the prior year. Management projected fiscal 2027 sales growth of 13%–14%, including 9.5 percentage points from GOJO, and adjusted earnings of $5.70–$6.00. Shares rose from $95.53 on July 31 to $105.70 on August 14, though timing alone cannot establish that results caused the gain.

Chief executive searchThe chief executive plans to leave for health reasons, adding uncertainty during a difficult turnaround.

On May 28, Clorox said Linda Rendle would remain chair and chief executive until a successor is appointed, then serve temporarily as an adviser. The board began an independent search after Rendle decided to step down for health reasons. Investing.com reported the shares were down 3.6% during May 29 morning trading. The announcement plausibly contributed to that reaction, although same-day price movement cannot isolate one cause. Leadership continuity matters while Clorox integrates GOJO and rebuilds market share.

Outlook cut punished sharesA sharp April forecast reduction exposed weaker demand, higher costs and slower market-share recovery.

On April 30, Clorox reduced fiscal 2026 adjusted earnings guidance to $5.45–$5.65 from $5.95–$6.30 and forecast organic sales, meaning sales excluding acquisitions, divestitures and currency effects, would fall about 9%. Expected gross-margin deterioration widened to 2.5–3.0 percentage points. The shares closed 9.67% lower the next trading day, from $96.44 to $87.11. The timing supports a likely connection, while broader trading conditions may also have influenced the move.

Purell acquisition completedClorox bought Purell’s owner, adding growth but also debt and integration demands.

Clorox completed its GOJO Industries acquisition on April 1 after agreeing to pay $2.25 billion in cash, or $1.92 billion after estimated tax benefits. GOJO brought nearly $800 million of annual sales and the Purell brand, expanding Clorox’s institutional hygiene business. Fiscal fourth-quarter reporting indicated GOJO added about ten percentage points to sales. The deal can improve growth and channel diversity, but financing costs, integration spending and the larger debt burden reduce near-term cash available for dividends, repurchases and debt repayment.

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Free cash flow

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$7.10B	$7.09B	$7.39B	$7.11B	$7.34B	$6.72B	$6.21B	$6.12B	$5.97B	$5.76B	$5.66B	$5.51B	$5.62B	$5.47B	$5.23B	$5.23B	—	—
Gross profit	$3.21B	$3.05B	$2.91B	$2.54B	$3.20B	$3.06B	$2.73B	$2.67B	$2.67B	$2.60B	$2.46B	$2.36B	$2.39B	$2.30B	$2.27B	$2.32B	$2.20B	$2.17B
Research & development	$121.0M	$126.0M	$138.0M	$132.0M	$149.0M	$145.0M	$136.0M	$132.0M	$135.0M	$141.0M	$136.0M	$125.0M	$130.0M	$121.0M	$115.0M	$118.0M	$113.0M	$111.0M
Net income	$810.0M	$280.0M	$149.0M	$462.0M	$710.0M	$939.0M	$820.0M	$823.0M	$701.0M	$648.0M	$580.0M	$558.0M	$572.0M	$541.0M	$557.0M	$603.0M	$537.0M	$461.0M
Basic EPSper diluted share	$6.56	$2.26	$1.21	$3.75	$5.66	$7.46	$6.42	$6.37	$5.43	$5.01	$4.45	$4.31	$4.37	$4.14	$4.06	$4.28	$3.82	$3.27
Diluted EPSper diluted share	$6.52	$2.25	$1.20	$3.73	$5.58	$7.36	$6.32	$6.26	$5.33	$4.92	$4.37	$4.23	$4.30	$4.09	$4.02	$4.24	$3.79	$3.23

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys3$1.39M disclosed value

Sells (SEC code S)9$3.60M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 5, 2026Form 4	Breber Pierre RDirector	BuyCommon Stock · indirect	5.0K	$85.82	$429.1K	18.0K
Nov 21, 2025Form 4	Breber Pierre RDirector	BuyCommon Stock · indirect	4.0K	$104.13	$416.5K	13.0K
Sep 4, 2025Form 4	Reynolds Eric HEVP - Chief Operating Officer	SellCommon Stock	15.0K	$123.78	$1.86M	54.2K
May 7, 2025Form 4	Breber Pierre RDirector	BuyCommon Stock	4.0K	$136.57	$546.3K	4.0K
Mar 11, 2025Form 4 · 10b5-1	Marriner KirstenEVP - Chief People Officer	SellCommon Stock	733	$150.00	$110.0K	26.3K

Review ownership filings at SEC.gov ↗

CLOROX CO /DE/ (CLX)

Financial charts

Financial statements

Insider buys & sells