CLX
The Clorox Company$122.22
Unclear
Target $116.13
Report: Feb 23, 2026Consumer Defensive • Household & Personal Products • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$122.22-5.0%
Rec: UnclearConviction: Medium
Entry Target
$89.33
(27% below current)
Fair Value
$116.13
(5% below current)
Stop Loss
$96.66
(21% below current)
Position Size
Starter
Time Horizon
Long-Term
Key Metrics
Live Snapshot
Market Data
52 Week High$150.84
52 Week Low$96.66
Avg. 3 Month Volume2.21M
Efficiency
LTM Gross Margin44.2%
LTM EBITDA Margin19.0%
LTM EBIT Margin15.7%
LTM Operating Margin16.0%
LTM ROA13.6%
LTM ROE1502.5%
LTM ROIC24.0%
LTM ROCE30.6%
Capital Structure
Market Cap (MM)$12.5B
Enterprise Value (MM)$15.5B
Shares Outstanding121.60M
Total Debt (MM)$3.22B
Cash & Equivalents (MM)$227.00M
LTM Net Debt (MM)$2.99B
LTM Net Debt/EBITDA2.3x
Growth
TTM Rev. Growth-5.7%
Last 3-Yr Rev. CAGR-1.5%
Last 3-Yr EBITDA CAGR12.8%
Last 3-Yr EPS CAGR20.1%
Valuation
Street Target Price$121.00
LTM EV/Revenue2.3x
LTM EV/Gross Profit5.2x
LTM EV/EBIT14.6x
LTM EV/EBITDA12.1x
LTM P/E16.6x
LTM EV/FCF19.9x
LTM P/FCF16.1x
LTM P/TB3.3x
LTM P/B-100.2x
Dividend Yield3.6%
Payout Ratio60.3%
Executive SummarySituation: Current price is $122.22 versus fair value $116.13 (-5.0% expected return), and valuation confidence is stable. Debate: Bull case depends on Gojo (Purell) acquisition closes, expanding health/hygiene with $2.25 billion deal adding leadership in sanitizers and validating IGNITE growth beyond 0-1% categories; addresses market concern on flat organics by delivering bolt-on revenue. Bear case centers on Moat erosion from private-label gains in bleach (60% share) and litter post-cyberattack, impairing pricing power and compressing margins 300 bps to 13%. Conclusion: Recommendation is Unclear; maintain no position until reliability and catalyst evidence improve.
Bull Case
Brand moat sustains 44.2% gross margins 290 bps above peer median with ROIC 24.0%; ERP productivity and Gojo integration drive 16.0% steady-state margins; $778 million TTM FCF supports 3.2% dividend yield and compounding at 1.0% growth.
Bear Case
Organic sales flat at 0.2% FY2025 with ERP headwind of 3.5-4% FY2026; narrow moat eroding to private labels post-cyberattack; high leverage at 99% debt/assets versus 57% peer median risks de-rating to 13.0x terminal multiple.
Key Catalysts
Mid-Term (6-18 months)Impact: High
Gojo (Purell) acquisition closes, expanding health/hygiene with $2.25 billion deal adding leadership in sanitizers and validating IGNITE gro...
Near-Term (0-6 months)Impact: Moderate
Back-half FY2026 innovation launches (Glad scents, Brita Plus, Litterbee) drive share re-acceleration, countering private-label fears with s...
Long-Term (18+ months)Impact: Moderate
Recent Q2 FY2026 earnings reaffirmed -1% to +2% organic guidance excluding 3.5-4% ERP headwind, with Gojo announcement shifting focus to ino...
Primary Risks
Concern: Medium
Moat erosion from private-label gains in bleach (60% share) and litter post-cyberattack, impairing pricing power and compressing margins 300...
Concern: High
ERP reversal and tariff $40 million headwind exacerbate front-half FY2026 sales dip to -14-15% Q1, triggering multiple de-rating if margins...
Concern: Medium
Stewardship is adequate with strong board CPG expertise from Lead Director Matthew Shattock (doubled Beam Suntory revenue) and Gina Boswell...
Recent Activity
2025-02-04SEC Filing (8-K)
-7.24%Clorox reported Q2 FY2025 results with joint venture wind-down and acquisition of P&G's Glad interest.
2024-08-02SEC Filing (8-K)
+7.42%Clorox reported Q4 and FY2024 results with 6% net sales decline, 380 bps gross margin expansion, and 22% increase in diluted EPS to $1.73.
2024-05-01SEC Filing (8-K)
-5.57%Clorox reported Q3 FY2024 results with 5% net sales decline, 40 bps gross margin expansion, and 76% increase in diluted EPS to a $0.41 loss.
2024-02-02SEC Filing (8-K)
+5.62%Clorox reported Q2 FY2024 results with strong recovery from cyberattack, updating full-year outlook.
2023-11-02SEC Filing (8-K)
+6.61%Clorox reported Q1 FY2024 results with 20% net sales decline due to cyberattack disruption.
Valuation Table
9.8/10Decision Grade
Scenario Range
$74
Bear
$893
Base
$140
Bull
$122