Clorox (CLX)
NYSEConsumer StaplesHousehold & Personal ProductsSnapshot 2026-09-04
$93.06-1.30%
Close 2026-09-04 · 1-day change
NYSEConsumer StaplesHousehold & Personal ProductsSnapshot 2026-09-04
Warn: Management is running behind on a stated commitment.
Clorox integrates the Gojo acquisition to expand its product range and boost growth. The company aims to manage gross margin decline despite higher costs, targeting about 43.2% gross margin next quarter. Sales have stabilized around $1.67 billion, showing progress against prior declines. Profit margins near 14.4% PE and a dividend yield of 6% support steady returns.
Clorox faces ongoing sales stagnation with flat revenue growth and persistent margin pressure. The company’s gross margin has declined 140 basis points due to cost headwinds. CEO transition and volatile management add uncertainty. Analysts have lowered EPS guidance to $5.55 for fiscal 2026, reflecting softness.
The market prices in about 12% revenue growth and a price roughly 12% above our fair value near $87. Our fair value is below the Street median, indicating some optimism. We see risk in margin and sales targets given recent softness and lowered guidance.
Breaks if: EPS guidance cut below $5.45 or actual EPS falls below $5.45
Breaks if: Integration progress score falls below 50%
Breaks if: Gross margin falls below 42%
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder facing some near-term headwinds. The current thesis state is intact, but the company is dealing with pressures on margins and sales.
The market appears to have a neutral view on Clorox's valuation, as it is considered cheap compared to peers. There is a slight expectations gap, indicating that investors may be anticipating modest improvements in performance.
Clorox's fundamentals are expected to show mixed results in the near term. While management is focused on returning to organic growth, recent sales declines and margin pressures pose challenges.
The long-term thesis hinges on several factors, including the successful integration of the GOJO acquisition, management's ability to stabilize margins, and potential benefits from inflationary pressures or positive sector momentum.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the view of steady performance. However, concerns about ongoing sales decline and the need for organic growth remain significant threats. An opinion piece suggests that the current share price lacks sufficient upside potential, indicating lower expected returns.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Address gross margin pressure from ERP transition, GOJO acquisition costs, inflation, and supply chain challenges.
Stated as a priority in 5 of last 5 quarters. Gross margin declined from 46.5% in 2025-Q4 to 41.3% in 2026-Q4, driven by ERP transition impacts, GOJO acquisition costs, and inflationary pressures. Management has acknowledged these headwinds and cost savings efforts. The trajectory shows margin pressure with ongoing mitigation efforts.
“Gross margin decreased 520 basis points primarily driven by lower volume, GOJO inventory step-up, higher commodity and logistics costs, partially offset by cost savings.”
“Gross margin decreased 140 basis points primarily driven by higher manufacturing and logistics costs and unfavorable mix, partially offset by cost savings.”
“Gross margin decreased 60 basis points primarily driven by higher manufacturing and logistics costs, partially offset by cost savings.”
“Gross margin decreased 410 basis points primarily driven by lower volume and higher manufacturing and logistics costs, partially offset by cost savings.”
“Gross margin was 46.5%, flat versus prior year, with incremental ERP shipments contributing about 150 basis points benefit.”
Breaks if: Net sales fall below $1.6 billion
Focus on reversing the decline in net sales and improving market share.
Over the next 1 to 3 years, Clorox's performance will depend on its execution of strategic priorities and external economic conditions. Not investment advice.