| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 71 | 18.2x | 17.8x | Top tier | |
Growth | 18 | -5.4% | 7.1% | Bottom tier | |
Quality | 78 | 33.4% | 4.5% | Top tier | |
Safety | 46 | 2.8x | 2.6x | Around median | |
Capital Return | 19 | — | 2.12% | Bottom tier | |
Momentum | 20 | -10.6% | 2.9% | Bottom tier | |
Sentiment | 68 | 11 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
The Clorox Company operates in consumer goods through brands and products including Clorox, Glad, Hidden Valley Ranch, Kingsford, and Fresh Step, in addition to health and professional hygiene businesses. The company generates revenue from the sale of cleaning and home care products, trash bags, food products, grilling products, and cat litter, while health and hygiene businesses represent more than 50% of its portfolio. The 2.25 billion dollar acquisition of GOJO Industries expanded the company’s presence in the professional hygiene market through Purell, a business-to-business operation with an established product base and stable cash flows.
In quarter 4 of fiscal year 2026, revenue reached 1.95 billion dollars and declined 2% year over year, despite exceeding the market expectations stated in the provided data. Gross margin fell to 42.3% from 45.2%, reflecting inflationary and supply chain cost pressures, while reported net margin was 8.7%. On a 2026 TTM basis, the company recorded revenue of 6.8 billion dollars, gross profit of 3.0 billion dollars, net income of 756 million dollars, and earnings per share of approximately 6.21 dollars.
Performance varied across the portfolio in fiscal year 2026; Home Care achieved eight consecutive quarters of share growth, and Pro and international businesses continued to record strong share growth, while Glad and Hidden Valley Ranch improved during quarter 4 of fiscal year 2026. In contrast, Fresh Step and the Litter segment remained below the outperformance level targeted by management, while Kingsford experienced seasonal weakness due to weather and retailers’ promotional decisions. The company ended fiscal year 2026 with consumption approximately stable in quarter 4 and an overall share decline of only one-tenth of a percentage point.
The average analyst target is 100.11 dollars, within a wide range of 83 to 127 dollars, and the stock has a Neutral consensus rating; the average target is well below the top of the 52-week range of 128.9 dollars and close to the midpoint of the range extending between 84.7 and 128.9 dollars. The news indicates a price-to-earnings multiple of 21.7 times, a valuation that requires balancing reported sales growth of between 13% and 14% in fiscal year 2027 against nearly stable organic growth, an expected gross margin of approximately 42%, and inflation exceeding 200 million dollars.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Management expects net sales growth of between 13% and 14% in fiscal year 2027, but the organic portion is expected to be only stable to slightly higher. Most of the difference comes from the addition of GOJO and comparisons related to the ERP system implementation. Therefore, the acceleration in reported revenue depends largely on the portfolio and comparisons, rather than on a similar jump in the sales volume of Clorox’s existing businesses.
Clorox paid approximately 2.25 billion dollars to acquire GOJO Industries, adding Purell and expanding its health and professional hygiene platform. The business exceeded its targets in quarter 4 of fiscal year 2026 and was accretive to earnings rather than dilutive, as management initially assumed. The company expects mid-single-digit growth for the business, rising to mid- or high-single-digit growth for several years as revenue synergies are realized, in addition to supporting adjusted earnings per share in fiscal year 2027.
The company expects inflation to exceed 200 million dollars in fiscal year 2027, compared with a historical range of between 75 and 100 million dollars. Pressures include commodities, energy, supplier costs, ocean freight, transportation, and logistics, with an assumption of an average Brent crude price of approximately 90 dollars per barrel. Therefore, management targets a gross margin of approximately 42% and does not expect to recover it fully during fiscal year 2027, despite productivity and selective pricing.
Automated analysis for informational purposes only — not investment advice.
The company fully recovered the distribution it lost after the cyberattack, and distribution was above its level following that event according to the August 3, 2026 call. Home Care achieved eight consecutive quarters of share growth, while Glad and Hidden Valley Ranch shares also improved during quarter 4 of fiscal year 2026. However, Litter and Fresh Step remain in an early stage of remediation, despite improvements to the product, packaging, and pricing and the development of lightweight and low-dust options.
Linda Rendle held the positions of Chair and Chief Executive Officer during the quarter 4 fiscal year 2026 earnings call. She explained that she informed the board of directors in May 2026 of her intention to step down due to personal health challenges, while confirming that she was cancer-free and continued to perform her duties. She also said that the board had retained an external search firm and that the search for a new Chief Executive Officer was progressing according to the schedule set by the board, without naming a successor in the provided data.
Clorox targets free cash flow equivalent to 11% to 13% of sales in fiscal year 2027, despite margin pressure in the first half. Management acknowledged that the dividend payout ratio of approximately 85% of net income is high, but described this as a transitional situation related to margin rebuilding. The company also intends to use cash flows generated over 12 to 18 months to repay short-term balances and commercial paper, while its commitment to supporting distributions remained unchanged according to the August 3, 2026 call.
