NYSEConsumer StaplesHousehold & Personal ProductsSnapshot 2026-08-31
Reading CLX? Create a free portfolio, then add this holding for ongoing Reports and tracking. Track it in a free portfolio. No credit card.
Create your account →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 with a focus on health and hygiene products. The current thesis state is intact, but the company faces challenges in returning to organic growth and managing margins.
The market appears to have a neutral view on Clorox's valuation, with an expectations gap indicating that some growth is anticipated but not fully justified. The stock is priced at a premium compared to peers, suggesting that investors expect steady performance.
Fundamentals are likely to show mixed results in the near term. The company is under pressure from declining margins and recent sales declines, but management is focused on returning to organic growth, which could improve performance over the multi-year horizon.
The thesis hinges on several factors, including the successful integration of the GOJO acquisition, management's ability to stabilize margins, and the broader economic environment, particularly inflation and employment trends. Any cuts to guidance could negatively impact sentiment.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the thesis by indicating progress. However, concerns about ongoing sales decline threaten the outlook and return to organic growth.
as of 2026-08-31
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.
Overall, Clorox has a solid foundation but faces significant challenges that could affect its performance. Monitoring management execution and economic conditions will be key in the coming years. Not investment advice.
