The Clorox Company (CLX)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Clorox as a consumer-defensive business with familiar cleaning and disinfecting brands, but the numbers demand caution. At the 2026-10-26 close of $86.76 and a $10.5B market cap, FairStock calculates a P/E of 18.04 and a P/B of 117.24. That book-value multiple tells me reported equity is tiny, so the 163.76% ROE is not a simple quality signal; ROCE is only 8.32%. Debt/equity of 22.21 is not alarming, but Piotroski 3/9 and Altman Z 1.11 suggest financial health is weak. The growth record is the real problem: FairStock's Lynch category is SLOW GROWER — Shrinking, based on profit falling 2.9% a year over five years and revenue rising 1.1%; it also reports revenue growth of -2.01% and profit growth of -50.90%. Filed results show fiscal year 2025, the year ended 2025-06-30, revenue of $7.1B and net income of $810.0M, EPS $6.52, versus fiscal year 2024, the year ended 2024-06-30, net income of $280.0M and EPS $2.25, and fiscal year 2023, the year ended 2023-06-30, revenue of $7.4B, net income of $149.0M and EPS $1.20, so profit has been volatile while sales stagnated. In fiscal Q3 2026, the quarter ended 2026-03-31, revenue was $1.7B, net income $187.0M and EPS $1.54, only slightly better than fiscal Q3 2025, the quarter ended 2025-03-31, net income of $186.0M and EPS $1.50. Valuation looks stretched on asset value: FairStock's Graham Number is $8.95 versus the $86.76 price, a -865.36% margin of safety, and PEG is 33.26. The 6.02% dividend yield is attractive, but with $405.0M FCF against a $10.5B cap, coverage deserves scrutiny. I see a decent brand franchise, not a bargain.

In plain English: Clorox makes cleaning and disinfecting products, laundry additives, and professional cleaning supplies sold around the world. The business has steady sales but weak recent profit trends and mixed financial-health signals. At $86.76, the shares look expensive compared with the company's reported accounting value and recent earnings, even though the dividend payout is high.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30) · FY2023 10-K (period ended 2023-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer